I'd like to talk a little about spread.
One of the problem with this RR ratio could be the spread: it regards as TP than SL & Trailing stop.
The spread on EU can be between 1 & 2 pips (2/3 pips GU) , and it may dramatically affect the results.
E.g. last friday I took a short trade on GU as on my previous post (2.5 spread for me), Price went down for 4.7 pips, so trailing stop didn't activate....and I lost 20 pips. If I had 2.2 spread that trade would have ended at BE.
I think there's a little difference between the two different outcomes... or
In other cases the trade could end in a full win (10 pips) or just 2/3 pips, always because of spread...
Not talking about slippage (I use pending orders so, theorically I should suffer less from it) wich can execute your market order 2 or 3 pips away.
So you need 10 + Your spread + Slippage = Total Pips move in your favour to win 10 !!!
And you need 20 - Your spread - Slippage = Total pips against to take a full 20 pips LOSS !!!
Not talking about variable spreads: Broker can modify the spread...etc.
Surely all this cases can heavily affect the final outcome of "our" system!! And I'd like to hear something about from Udine.... Are you sure bro, that 20/10 RR is the best in your study about this system?
Surely, all this cases can hevily affect wichever kind of backtesting !!!
One of the problem with this RR ratio could be the spread: it regards as TP than SL & Trailing stop.
The spread on EU can be between 1 & 2 pips (2/3 pips GU) , and it may dramatically affect the results.
E.g. last friday I took a short trade on GU as on my previous post (2.5 spread for me), Price went down for 4.7 pips, so trailing stop didn't activate....and I lost 20 pips. If I had 2.2 spread that trade would have ended at BE.
I think there's a little difference between the two different outcomes... or
In other cases the trade could end in a full win (10 pips) or just 2/3 pips, always because of spread...
Not talking about slippage (I use pending orders so, theorically I should suffer less from it) wich can execute your market order 2 or 3 pips away.
So you need 10 + Your spread + Slippage = Total Pips move in your favour to win 10 !!!
And you need 20 - Your spread - Slippage = Total pips against to take a full 20 pips LOSS !!!
Not talking about variable spreads: Broker can modify the spread...etc.
Surely all this cases can heavily affect the final outcome of "our" system!! And I'd like to hear something about from Udine.... Are you sure bro, that 20/10 RR is the best in your study about this system?
Surely, all this cases can hevily affect wichever kind of backtesting !!!