DislikedBased on your results posted thus far for E/U, this system has a good 14.2% edge or Kelly Value of 0.142. (and that's based on a Win Probability of 50%, where E/U has demonstrated a greater win probability of 65.1%. With a W/L at 1.4, you need a win probability of roughly greater than 46% to have a 10% edge.)
Check out this link to view an equity curve simulator:
http://www.hquotes.com/tradehard/simulator.html
In my opinion, I'd say based on the strong fundamentals of this system (PivotPoints), the good Risk-Reward ratio, and the infrequency of trades (not overtrading), this system has good long-term viability.
GlenIgnored
i) we should risk 14.2% on each trade to get optimum results.
ii) the margin value of each trade should be 14.2% of our capital
We are doing far more conservative than that, which means we can save ourselves from heart attack caused by huge drawdowns, yet still on the right path to riches.
Anyway, this only applies to trading EU only. I am interested to see how the Kelly criterion goes with all 5 pairs as a whole. Waiting for blueace's results.