Hello,
I am new to Forex. For couple of weeks I have been extensively backtesting the Engulfing Bars at daily timeframe in the direction of the current major trend (I do not use it as reversal rather as continuation). I keep my reward:risk ratio to be 3:1. I often get 20 correct & 10 incorrect. So 20 correct * 3 = 60 profitable trades and 10 lossing trades. So by these numbers my NET PROFITABLE trades get to around 80-85% profitbale trades. I get 100 NET profitable trades per month on backtesting after winning trades*3 & deducting all losing trades. I want to ask that:
1. Is this accuracy good enough to start the demo and than live trading?
2. What should my risk per trade? Should it be 2% or 1% of account capital? (I am against risk higher than 2% per trade)
3. Can my aspirations of buying a Rolls Royce Phantom & lavishly living in Kensington & Chelsea, London be met one day if I keep this success for a few years?
Thank you,
Regards,
Aariz
I am new to Forex. For couple of weeks I have been extensively backtesting the Engulfing Bars at daily timeframe in the direction of the current major trend (I do not use it as reversal rather as continuation). I keep my reward:risk ratio to be 3:1. I often get 20 correct & 10 incorrect. So 20 correct * 3 = 60 profitable trades and 10 lossing trades. So by these numbers my NET PROFITABLE trades get to around 80-85% profitbale trades. I get 100 NET profitable trades per month on backtesting after winning trades*3 & deducting all losing trades. I want to ask that:
1. Is this accuracy good enough to start the demo and than live trading?
2. What should my risk per trade? Should it be 2% or 1% of account capital? (I am against risk higher than 2% per trade)
3. Can my aspirations of buying a Rolls Royce Phantom & lavishly living in Kensington & Chelsea, London be met one day if I keep this success for a few years?
Thank you,
Regards,
Aariz