ES Journal - 2015

Volente's 10 point rule

10 point rule.png
 
Stops & targets. If win rate is below 50% (always expected to be near 30%), then reward has to be no less than x3 the stop, which has to be outside current high/low of whatever time frame is being traded. Selling highs in downtrend and buying lows in uptrend (opposed to initiating a trade in middle of moves) may decrease win ratio, yet potential reward will ultimately be appropriate to offset losses. If required stop level increases risk to capital above 1%, then trade not to be taken. All this preferably RTH.
 
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+13.5
-2
-1.5
-1.75
-2
+10
+8.75
-0.75
-3
+5
-3.25
-3
+9.75
--------+29.75

Average reward x4.4 average risk
 
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