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Pip Hunter E Feb 2, 2008 6:00am | Post# 1

Accuracy vs. net profit
While I prefer a higher level of accuracy, lately I'm finding myself becoming "a little braver" regarding larger take profit goals, and smaller accuracy results. This is driven by the simple fact of greater bottom line net profits without really ballooning my draw down, but I've found it to be a bit of an uncomfortable sacrifice.

Overall, I do think trading systems can be much more accurate than many of the systems you see folks sharing specific details of, yet those systems do show a net profit.

Anyone have any thoughts or experience on this?

blueruby Feb 2, 2008 6:09am | Post# 2

You have to trade what works for you. I wasted so many months trying to catch bigger moves ("let my profits run") and for some reason it just doesn't work for me. It still affects my trading and my bottom line.

The only times I've been consistently profitable is when I take my profits rather than trying to let them run. I'm to the point where it's a feeling, not a number. In fact, that feeling has always been there, I'm just learning to listen to it.

Pip Hunter E Feb 2, 2008 6:41am | Post# 3

I trade news subjectively myself, but for system based trading, ya gotta measure.

So are you saying that you are finding higher accuracy to be better for your systems then? I'm assuming that if you are shooting for smaller targets, you are also raising your accuracy. Are you measuring to see if that is the case? Just curious. Thanks for your response.

peterM Feb 2, 2008 8:58am | Post# 4

how about a compromise between the two? You could open two smaller positions and take profit at a certain point and let the second position run.

Pip Hunter E Feb 2, 2008 1:05pm | Post# 5

I do love scaling out, and it deffo kicks acc up a notch.

Pip Hunter E Feb 4, 2008 2:37pm | Post# 6

bump :)
Anyone else find themselves allow acc to decline a bit, in the interest of legitimate net profit gains?

Pip Hunter E Apr 1, 2008 3:35am | Post# 7

Lemme give this one more bump, then I'm going to delete it from subscriptions.

Any mechanical traders want to talk shop?

pipwrangler Apr 19, 2008 12:04am | Post# 8

If you are uncomfortable then that is a sign that you need to rethink your activity. I error on the side of preservation of profit and balance rather then larger take profits. Big trade fever will kill a successful trader just as fast as an inexperienced trader. A trading system is only as good as its user. We need to put the human element back into why we decide to pull the trigger on a trade rather then totally reliance on a mechanical devise. After all who gave the devise it's life.

Pip Hunter E Apr 25, 2008 6:16am | Post# 9

I'm just trying to talk tech regarding mech trading... I don't need any help with my comfort. I do believe I've since come across another forum with mech FX traders though, so this will satisfy my desire to talk shop

FX Grunt Apr 25, 2008 8:17am | Post# 10

Sounds more dangerous. What happen to sticking to the plan and setting reasonable target to get a smoother equity curve?

Are you trading for a living or for fun money?

Pip Hunter E Apr 25, 2008 10:23am | Post# 11

lol if u say so

Discretionary trading is death.

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