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How Do you trade... ?

  • Poll

  • Trading style
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  • #1
  • First Post: Aug 12, 2008 1:24pm Aug 12, 2008 1:24pm
Hi,

Today I talked to a trader that try to use and find systems that generate constant cash flow with low DD.
He also know that if he change some part of his trading system will he get more cash in the long run but with bigger DD. ( More like my trading systems )

So which style are you...

1- Less gain with small DD trader
or
2- Bigger DD with Bigger gains ( Maybe not so much bigger than 1 )
  • #2
  • Aug 12, 2008 4:30pm Aug 12, 2008 4:30pm
you dont have to be either. you can have small drawdown with high gains. it all depends on your strategy and the price that you get into a trade. ive seen systems with little or no drawdown with humonguous payouts. they just have to filter out trades that wont win or find better prices to get into the trade.
  • #3
  • Aug 12, 2008 5:12pm Aug 12, 2008 5:12pm
Wot 'e sed. That's why I couldn't answer this poll.

Work out the weaknesses in your system; the times when you get false signals.
The market reveals who we really are...
  • #4
  • Aug 12, 2008 5:20pm Aug 12, 2008 5:20pm
95% of "traders" use "systems" that achieve small gains and large DD.
  • #5
  • Aug 12, 2008 6:05pm Aug 12, 2008 6:05pm
hekenberg needs to add that choice to the poll -
Quoting opie999
95% of "traders" use "systems" that achieve small gains and large DD.
In trading, there is no bullshit. You either make money or you don't.
  • #6
  • Aug 12, 2008 7:12pm Aug 12, 2008 7:12pm
The market reveals who we really are...
  • #7
  • Aug 13, 2008 12:11am Aug 13, 2008 12:11am
LOL

Of course the perfect system is small DD and Big Gains. But I think some traders can live with big DD ( Risk takers) and other would break down if they had a system with big DD.


Example:

There is still traders talking about martingale. ( BIG RISK TAKERS )
  • #8
  • Edited 12:34am Aug 13, 2008 12:33am | Edited 12:34am
Less DD and more gain would be my vote.

DIBS for example is the best low risk/high gain system I have ever come across.
  • #9
  • Aug 13, 2008 1:42am Aug 13, 2008 1:42am
Hi,

Of course less DD and big Gains but that was not in the poll

If you need to make a choice Only 2 choices .....

Enjoy your trading day!
  • #10
  • Edited 10:55am Aug 21, 2008 10:28am | Edited 10:55am
I implemented a MM for my EA.

Here is the result depending of Risk factor.
So which risk factor - Nr - do you take


Nr_Profit Nr_trades Profit_factor Expected_Payoff DD_in_dollar DD_%
1 2767.55 248 1.61 11.16 317.55 2.64%
2 7056.12 248 1.56 28.45 952.65 6.38%
3 11810.26 248 1.57 47.62 1587.75 8.75%
4 13358.05 248 1.58 53.86 1587.75 11.03%
5 17316.05 248 1.43 69.82 4119.63 15.47%
6 40348.63 248 1.49 162.7 6627.59 20.66%
7 47195.3 248 1.44 190.3 8804.62 24.26%
8 56901.96 248 1.43 229.44 12639.07 28.04%
9 112193.0 248 1.46 452.39 23358.14 31.86%
10 142810.2 248 1.45 575.85 31997.42 29.71%
11 192358.8 248 1.44 775.64 46326.3 32.10%
12 204798.3 248 1.42 825.8 52815.72 33.43%
13 284640.4 248 1.42 1147.74 79151.8 35.46%
14 329654.7 248 1.4 1329.25 97052.4 37.85%
15 377097.7 248 1.4 1520.56 119798.83 41.46%
16 488982.3 248 1.39 1971.7 165155.48 41.59%
17 557574.7 248 1.38 2248.29 197193.27 43.50%
18 682868.5 248 1.41 2753.5 205411.37 45.47%
19 721414.6 248 1.4 2908.93 205981.39 47.49%
20 797839.6 248 1.39 3217.1 205981.39 49.16%
21 995100.7 248 1.41 4012.5 220919.4 50.76%
  • #11
  • Last Post: Aug 21, 2008 12:54pm Aug 21, 2008 12:54pm
Quoting hekenberg
I implemented a MM for my EA.

Here is the result depending of Risk factor.
So which risk factor - Nr - do you take


Nr_Profit Nr_trades Profit_factor Expected_Payoff DD_in_dollar DD_%
1 2767.55 248 1.61 11.16 317.55 2.64%
2 7056.12 248 1.56 28.45 952.65 6.38%
3 11810.26 248 1.57 47.62 1587.75 8.75%
4 13358.05 248 1.58 53.86 1587.75 11.03%
5 17316.05 248 1.43 69.82 4119.63 15.47%
6 40348.63 248 1.49 162.7 6627.59 20.66%
7 47195.3 248 1.44 190.3 8804.62 24.26%
8 56901.96 248 1.43 229.44 12639.07 28.04%
9 112193.0 248 1.46 452.39 23358.14 31.86%
10 142810.2 248 1.45 575.85 31997.42 29.71%
11 192358.8 248 1.44 775.64 46326.3 32.10%
12 204798.3 248 1.42 825.8 52815.72 33.43%
13 284640.4 248 1.42 1147.74 79151.8 35.46%
14 329654.7 248 1.4 1329.25 97052.4 37.85%
15 377097.7 248 1.4 1520.56 119798.83 41.46%
16 488982.3 248 1.39 1971.7 165155.48 41.59%
17 557574.7 248 1.38 2248.29 197193.27 43.50%
18 682868.5 248 1.41 2753.5 205411.37 45.47%
19 721414.6 248 1.4 2908.93 205981.39 47.49%
20 797839.6 248 1.39 3217.1 205981.39 49.16%
21 995100.7 248 1.41 4012.5 220919.4 50.76%
I see quite a jump in profitability of your EA from #8 to #9 by increasing your DD only by 3%. I don't like to see DD on my account for more than 1/3 so I would go with something like option #10.
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