Sharpe ratio depends on the standard deviation of the system. Its basically the return of the asset/portfolio minus the risk free rate which can be the US 10 year or anything else divided by the standard deviation of the return. The standard dev of the jazz is slightly higher at $510 but that is because of the large winners some of them above $1000 and $2000. The more sprayed the returns are from the mean, the greater the standard dev and hence lower sharp ratio. The higher lots were done back in July to show that the system can easily withstand higher lots without going into a DD. So as more trades are taken and expectation of the system climb, the stnd dev will fall down to closer $350 and that will yield a higher sharp ratio. Not a concern as of now but its getting captured in System Quality Number (SQN ) which divides by standard dev and yields SQN at 2.6 and TSS at 3.8.
The Jazz Room discussion this morning has been focused on GBP bottomin AWTS and AUD pickup in strength. However lack of volatility means,movements are constricted.
On demand from subs who cant afford fees, we have opened up the myfxbook open orders as well. So feel free to manage it free. Please choose your stops and targets or track the myfxbook link like a hawk.
Its always dangerous to copy trades from open orders because there is always a 5 min update interval to myfxbook and you will not know when a trade is closed etc.
Clear YEN strength building up but its from a very low base so we can wait a bit longer but those who like to take risks, go short USDJPY or GBPJPY or AUDJPY.
A day of almost no movements. Asia was dead rubber with europe no better. USDjpy in a 15 pip range. AUDUSD in 18 pip range, EURUSD -18 AND GBPUSD in 18 pips.
USDCAD 25 pips range.
Despite this, JAZZ is positive for the day and even could turn 1% profit if we close trades now.
As stated above, AUSSIE is rolling in strength. There could be real push coming. The reason why AUDUSD is not yet moving is because of DX strength being at peak. But look at EURAUD GBPAUD AUDJPY AUDCHF.....Thats why I said above the choice currency to short against a rising Aussie is JPY, CHF or GBP or EUR.
But AUDUSD will move higher subsequently once dx peaks over and starts rolling down.
We are trying to see if we can show you what AWTS looks like. Its a but like a electronic screen that you see in ATC where you manage planes coming and going.
We are thoroughly enjoying the experience of trading with small clients who have never seen this kind of trading.
Folks this is why you need to trade Forex. Take risk and make the money. Leave others to play safe.
If you have noticed, we take significant risks and large positions. But then they are all calculated risks based on AWTS. So often you find forex traders esp signal providers scared to take risks or take risk and fall flat on their face. this mostly happens when they get some subs following them and they go under pressure. But the real reason why it happens is because they dont have a trading algo backing them. JazzForex has significant number of followers now thanks to forexfactory for allowing us to put this commercial post. We are fairly excited but we still trade the AWTS rather than what we feel will happen.
Its easy to say EURUSD has fallen from 1.4 to 1.3350. Atleast now it will bounce. Wrong way to trade.
