Disliked{quote} I don't know how the backtests were done to show these results but I have done it live and the account grows. Here is an example, let's take the German Flash trade coming this week: -11 pips is my max loss Even if spread widens to 15 pips during the peek of news my loss will not exceed 11 pips because a 15 pips spread results in 7.5 pips disadvantage if you entered the trade BEFORE the news. e.g: if the price didn't move from minute :29 to minute :30 but only the spread did to -15, you're net loss will be -7.5Ignored
I took -15 Pips on SL 5 at 8:30/9:30 because of NFP sometimes spread is 20 pips in first seconds on EUR/USD :/ - than calculation is correct.
For you, Tony, sometimes obvious things are hidden villages to other people. I give you an example: You invest BEFORE the news (and if you would also use 2nd account for shorting you could cover both sides) and this is a true edge, cause as you said you can halve the spread ! This is the difference of thinking and why you earn money in this market - and as I said because of your high value trading for you it's ok to have W/L Ratio of 1.5 or even less or with other words: Two big wins per year of 100000 $ and 200 lost of 800 $ fits your style. Unplayable for me.
Thanks for your insights ! I will make a "hand" backtest, may be today on news for long and short, adding spread widening accordingly (e.g.: max. 10 Pips spread on German ifo (means on SL 5: Lost of -10 pips) and so on). SL 5(+spread/2), TP 20, 40, 60 and 2 hours after trade was opened.
The best news are: German ZEW, German Ifo, Draghi (thursday), NFP, ISM-Manu and some other red marked at forexfactory. I will concentrate on the best ones. I will show results here.
Tony, thanks for the hint investing before. nice one.