Actually, right now, I'm looking for the best strategy to exit for my system. Then I try to search on FF and a lot of times that some technical system founders use strategy like "Open 2 trades, use same SL, then when 1st position hit TP, close it and move the 2nd trade to BE and trail it, then you have a free ride ".
Well, its looks cool when I read it. But, for me its looks like combining 2 absolutely different strategy.
First strategy is use FIX SL and TP, and
The second is use fix SL and trail when the position in some value of profit.
In my opinion, both strategy must have positif expectancy on long term. If one of them has negatif expectancy then better we only use the positif one.
And I think it only works on trend following or momentum base system.
Am I wrong? Do I miss something ?
I tried to do some math.
Let say we have a system with 60% winning percentage which using fix SL = TP = 100 point then after 10 trades(2 positions for every trade) we will have (2x6x100)-(2x4x100)=400 point profit.
Then when we use "Open 2 trades, close 1st trade on TP, move 2nd trade to break event" strategy, let say on wining position, price always turn to open price just after hit first TP.
So we will have (6x100)-(2x4x100)= -200 point
Any suggestion will be appreciated and sorry for my english
Thank you very much
Aldhy
Well, its looks cool when I read it. But, for me its looks like combining 2 absolutely different strategy.
First strategy is use FIX SL and TP, and
The second is use fix SL and trail when the position in some value of profit.
In my opinion, both strategy must have positif expectancy on long term. If one of them has negatif expectancy then better we only use the positif one.
And I think it only works on trend following or momentum base system.
Am I wrong? Do I miss something ?
I tried to do some math.
Let say we have a system with 60% winning percentage which using fix SL = TP = 100 point then after 10 trades(2 positions for every trade) we will have (2x6x100)-(2x4x100)=400 point profit.
Then when we use "Open 2 trades, close 1st trade on TP, move 2nd trade to break event" strategy, let say on wining position, price always turn to open price just after hit first TP.
So we will have (6x100)-(2x4x100)= -200 point
Any suggestion will be appreciated and sorry for my english
Thank you very much
Aldhy