Bulls are stupid Animals!especially when Im short!
- Joined May 2007 | Status: MT4/MT5 EAs/Indicators/Alerts coder | 6,486 Posts
MT4/MT5 EAs/Indicators/Alerts coder
How much would you invest in a CTA w/ 30% returns? 1 reply
What would you do if you had a very good system? 7 replies
how much would you NEED??? 7 replies
How much would you pay for an MT4 ECN bridge? 3 replies
Would you trade this system? New system #2. 10 replies
DislikedI feel the standard 2 % is way to low here, that is, if the winrate would be 90%, how much would you risk on each trade?Ignored
DislikedI would go with at least 1 : 1.5 / 2 R:R. This way you can profit more from your 90% system. Maybe your system cannot accept 1:2 ratio. This would be a problem, and as FerruFx said, it can be a loser even if it's a 90% system.Ignored
Disliked{quote} As a general rule, increasing the RR will decrease the win rate in similar proportion. @roughtrader: The table here shows the probability of losing X consecutive trades in any 50 trade sequence, for any given win rate. However, unfortunately, it does not show the more important probability of the losses exceeding the wins by a given number. For example, if you have a sequence of LLLWLLL, that is a max sequence of 3 losses, but in reality, you've lost 6 out of 7 trades...Ignored
Disliked{quote} It is just a rewriting of the well known simplified Kelly criterion http://en.wikipedia.org/wiki/Kelly_criterionIgnored
Disliked{quote} It is just a rewriting of the well known simplified Kelly criterion http://en.wikipedia.org/wiki/Kelly_criterionIgnored
DislikedThe risk taken on each trade should take into account all the variables at play in your trading system.
That is to say; your capital, the win rate of your system and the average risk reward ratio that your trading system gives to you.Ignored
Disliked{quote} wow 82% chance of 11 losses in a row for 25%? Is this accurate? Thanks for the table, I saved it.Ignored
DislikedFirst trade : TP : 10 pips / SL : 5 pips Second trade : TP : 100 pips / SL : 50 pips No need to make complex calculations to find out that even though you have a nice system (based on stats) on the paper, you might end up losing a lot in this... Both trades have TP twice as big as SL (which respect the given RR), but if you win the first and get SL hit on the second, you will be a big time loser...Ignored