I have came across few discussions where people talk on the potential of trading the equity curve. It is the same as turning the trading strategy on/off based on performance. Other methods are to use a moving average and trade the crossing. Others use Kelly formula to increase/reduce capital to the strategy based on performance.
Think about it; trading the equity curve of a buy-and-hold strategy on EUR/UDS; is the same as trading EUR/USD instrument itself. Just pretend that EUR/USD curve is your equity curve.
My experience is that it does not make sense. You are better off focusing on creating profitable trading strategies; and ditch the ones that stop working.
Think about it; trading the equity curve of a buy-and-hold strategy on EUR/UDS; is the same as trading EUR/USD instrument itself. Just pretend that EUR/USD curve is your equity curve.
My experience is that it does not make sense. You are better off focusing on creating profitable trading strategies; and ditch the ones that stop working.