I never trade with a stoploss. I backtesting my system over 4 years of data and several thousands of trades, with a range of stoploss values and discovered that profits increased as my stoploss tended to zero. As Tharp states in his MM books states, ...

Unless you have significant sums to play with it is just about impossible to make big sums in forex without leveraging. The unleveraged %age drawdown then becomes a significant factor because your account drawdown becomes the unleveraged %age ...

I don't think the attachment in the previous post was successful. Here's another try as a jpg

Without wishing to sound too arrogant I believe I can provide unequivable proof that the FX mkts are not efficient and that from price action alone it is possible to find opportunities that have a positive expectation of success over a significant ...

There is an interesting confluence of correlations between these two currencies. It is well known that the USD is negatively correlated with gold and due to Australia being a resource driven economy the AUD is positively correlated with gold. The ...

Developing a system that is capable of handling all the different market modes is one of the greatest challenges when creating automated trading techniques. Whilst not infeasible I don't feel that to be profitable you need to develop a system that ...

I agree entirely. I don't believe 100 trades is anything like enough. If you had developed a system that trades every hour as opposed to every day would you believe that a system that has worked well over the last 4 days (96 trades) will now cope ...

I can't comment on your proposed method for generating trade signals as I look at a different approach, however the only word of caution I can provide from my experience of trading very short term trading systems is that slippage really needs to be ...

A few years ago I coded up the mathematical test for randomness - commonly known as the drunken stagger, and proved to myself that mkt movements were very very near random. The test says that if one marks a series of steps of size delta both up and ...

I would personally caution against only trading one pair. I believe all mkts have a range of modes. Most traders/systems learn to understand the majority of modes for a particular pair but often fail to pick a pair when certain modes come along. If ...

I'm afraid I have to disagree - it's not what you are likely to lose on one trade, it's how much are you likely to lose during the worst drawdown you're system is likely to suffer following a bad sequence of trades. Backtesting over several years of ...

For folks following this thread I'd really urge you to hop across to the thread on "Determining risk" - this is all about how to set your gearing factor to maximise wealth whilst minimising your chance of blowing your account based on the statistics ...

My point is there has to be a line drawn where we say we can accept this amount of drawdown. I believe there are two things that create wealth in trading. That is a great trading plan and the ability to trade it. You can make the best trading plan ...

If similar results are also achieved across a wide spectrum of currency pairs then this would be indicative that the system is tapping into something fundamental and would have a greater chance of possessing longevity as all the currencies would ...

Good stuff Twinchell - I guess like many things you have to be at a certain point before words of wisdom resonate. Just want to pose a couple of points - Whilst I appreciate that for most systems drawdowns are randomly distributed and that you are ...

If you are a system trader it is easy to show that stoplosses will always cost you money if you have a reversing system (one that goes long,short,long...). A point that Tharp makes in his money management books. Several years ago I did an experiment ...

Just wondering whether the reduced daily ranges are in response to the recent phenomena of the significantly reduced spreads that we all enjoy. In order for the game to stay the same the ratio of daily ranges to spreads needs to remain constant - ...

I'm not so sure that the brokers view things on an individual trade basis, through trades from all their clients they will have an average position size on a particular pair at an average rate. They will look to liquidate their position over time ...

Myself and a couple of colleagues started trading our own fully automated system back in mid feb of this year. Our opening account balance was 80K usd which has now grown to 240K in just under 9 months. Whilst not hugely specatcular this has been ...