Disliked{quote} Thanks Jpadvisor, Did you plot that chart from your own data on Excel or some other source? As long as your values reflect full coverage of your transaction costs, then those parameters will be profitable. Personally, I want a bit more cushion on the minimum RR, so I shoot for all trades with a minimum of 2R. My aspirations for this system are that better than 2R is possible, but that will be my minimum. With 2R trades, if you can achieve even a 60% win rate, you will generate almost 120% ROI every 100 trades with 1% risk per trade.Ignored
I'm a great fan of money and risk management theory myself, and have been struggling with implementing them in this method as well.
Where I'm at now :
-try to find a large TF setup : H1 or higher
-drop down a timeframe and look/wait for a setup in the same direction, put stoploss level at last swing high/low
-when the setup on the lower TF starts moving (ADX), the number of pips between spot and SL level = 0.5% of capital
It often happens the big setup doesn't start along with it yet, but i can usually manage to grab a couple pips from the small timeframe (far from ideal, likely a 0.5 reward/risk), but it does set me up for great RR values when the larger TF starts out.
It boils down to using a M15 size SL for a H1 size move. The fakeouts that dont work out are mitigated by the tiny amount of capital at risk.
The game taught me the game. And it didn't spare me the rod while teaching.