Your stats show the total slippage and comissions at $77,952,945,204.73. That's almost $78 billion. It's just ain't realistic.
Anybody got a system with Profit Factor 2.0+ over 2000 trades?
- Thread starter KRSNA
- Start date
Your stats show the total slippage and comissions at $77,952,945,204.73. That's almost $78 billion. It's just ain't realistic.
Great.
Just another thread where wanna-be system traders thinking system trading is about developing the best performance.
System development is easy.
System Traders are about Risk Management.
Just another thread where wanna-be system traders thinking system trading is about developing the best performance.
System development is easy.
System Traders are about Risk Management.
This is like saying, "Creating culinary recipes is easy. The cooks are about the salt and spices".
I mean, a trading system is evaluated in terms of risk and reward, and that's what counts in its performance. So, I don't know what you are saying at all.
AaronCapps
Global Futures
i concur with JimmyJam,
i see many clients that may have a good trading method/system, but poor money management, little commitment & discipline take them out of the game.
i see many clients that may have a good trading method/system, but poor money management, little commitment & discipline take them out of the game.
That's what makes you a newbie.
OK... so you develop a trading system. Woopeee!!! It's a great system!
So what do you do next? Trade it live?
or...
You have a system running, already. What do you do with?
I don't follow. Perhaps we are using different terminology. To me, a trading system will have a set of rules, such as:
-- Use a 3-point stop
-- Increase/decrease position size when the reward-to-risk ratio is increasing/decreasing
Then by definition, the trading system already defines risk management. Now, since this thread is in the "Automated Trading" section, I presume that we are talking some software that simply follows the predetermined rules and requires no interference. So, what's left?
Perhaps you guys are referring to someone without commitment to his own system, but then this is an entirely different discussion which belongs somewhere in the "Psychology" thread. My point, however, is still the same: a well-defined automated trading system is about risk management, so I don't understand why consider these concepts as two different things.
Nope, that's a (probably) good system which is geared towards profit acquisition, not risk management. You're still thinking about what you have to gain, not what you have to lose.
Risk Management is a whole different ball-o-wax, is almost never spoken to and is rarely (if ever) understood by traders, both retail and institutional alike.
JJ
So, what is it then? Something like "Never risk more than 3% of your equity on a single trade", or perhaps "Scale down when profitability goes down"?