DislikedJairo,
I have been there and I know by experience that you are correct. That is why I am doing some modeling about it. Even with 90% win rate, if we do not know exactly when to pull the plug we might end up giving everything back plus some..
I believe that there are several components to this problem:
1. size
2. skew
3. % wins
4. Bar volatility for pair and trading time period
5. surrender strategy
6. Maximum allowable risk
This is a multiple space problem that have a very subjetive component. I mean: all these items are very mechanical...the missing component is when the mindset affect them...
for example...if I have 100 of winning trades, then why not to pull the plug when my pair changes its trend? Because after so many wins I believe that I cannot lose and then we are proven wrong!...we the surrender strategy must be set fixed and non-violable...a rule that says, "if this....,then i am out."
So, there you have it..we are thinking about all these...but as said by others "there is so much given by fti, that now we need to put all these piece together."
RegardsIgnored
Far from me trying to discourage anybody from experimenting what he/she feels the best for his/her style/personality. But I think the most important part of all this is your PA reading skills. If you are good at it, you may trade without any calculation, just reading PA and taking appropriate action. I have not reached that yet. I mean, my results are not so good. But I am training to calculate nothing, just feeling and acting. Anyhow, I wish anyone the best, whatever the style chosen.