Another update!
Today I want to talk about distinguishing higher from lower probability trades.
The way that I will be approaching this is simple.
I will be using a point system and with that point system I will score certain trades. The higher the score the better the chances are for being profitable.
Each indicator will have a certain amount of points and some indicators will be required in order for me to take a trade.
For example:
I can only take a trade if the RSI is overbought or oversold.
I could have all the points in the world if the RSI is not overbought I won't take the trade.
I may eventually add something extra to it like this:
If the trade scores 4 points i can risk 0.5%, if it scores 5 points i can risk 0.6%.
Meaning that the higher probability trades will have a higher frozen margin to it but also more profit or losses.
I'm not sure if this is a good idea or not yet but once I get to making a trading plan and then in turn doing the back testing I will try it out and see how it goes.
If my back testing proves that it is more profitable I will try to implement it together with risk and money management.
Any questions?
AntiVi
Today I want to talk about distinguishing higher from lower probability trades.
The way that I will be approaching this is simple.
I will be using a point system and with that point system I will score certain trades. The higher the score the better the chances are for being profitable.
Each indicator will have a certain amount of points and some indicators will be required in order for me to take a trade.
For example:
I can only take a trade if the RSI is overbought or oversold.
I could have all the points in the world if the RSI is not overbought I won't take the trade.
I may eventually add something extra to it like this:
If the trade scores 4 points i can risk 0.5%, if it scores 5 points i can risk 0.6%.
Meaning that the higher probability trades will have a higher frozen margin to it but also more profit or losses.
I'm not sure if this is a good idea or not yet but once I get to making a trading plan and then in turn doing the back testing I will try it out and see how it goes.
If my back testing proves that it is more profitable I will try to implement it together with risk and money management.
Any questions?
AntiVi