Sorry, I gave you more credit than your deserve at your stage of learning.
Have fun.
Two Questions For Practicing Day Traders
- Thread starter ironchef
- Start date
Have fun.
Ok.. I was too specific.. In general, you need to take into account both Win % of trades and the wining trades $$ vs losing trades $$ ratio.... You can be profitable if you have 50% winning trades to losing trades ratio and your profits to losing$$ ratio is greater than zero. As long as you cover trading costs. Again the bottom line is what's important... Weelkly, monthly or yearly
you can also be profitable with a 40% win ratio if your profit/loss ratio is good enough.. There are many ways to be profitable
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Yes I agree, one of the systems on C2 that was very good had 40% win rate and had double reward or triple reward to risk.
Edge this whole thing started with.
Not profitable this or that amount or percent, which of course you have to be if you believe you have an edge.
Having an edge is positive expectancy - what I posted previously. That is all.
IOW exactly the opposite of the almost all of the ridiculous "systems" - using that word very loosely - on C2. Someone gets their hands on some amateurish freebie crap software, throws up an RSI or two and what do you know found the holy grail, runs to C2 to let the world know.
I hesitated to respond - because it looked like the thread was turning - to shit - so to speak - like a lot of threads seem to do. It's all about what works for a trader. We all trade different - but it doesn't mean one trader is right- the other trader is wrong.
Toucan - I am replying to your post - because you mentioned "Winning trades versus Losing trades and Ratio. A trader can have a VERY LOW - Winning Percentage - and still do VERY WELL. I have Algos - that have Single Digit Winning Percentage - and they do very well.
While I do have Algos that have a VERY HIGH - Winning Percentage - a trader can do very well - with a VERY LOW - Winning Percentage. Below - are some snapshots of what I am talking about. This is actually my favorite Algo setup.
Please look at the "Total Trade Analysis" - the Percent Profitable - Average Winning Trade versus Average Losing Trade - and the very important - the Ratio Avg Win/Avg Loss.
Look at the Chart - notice all the Break Even trades - which gives a VERY LOW Winning Percentage - but good results.
Not to worry. The discussions may veer off course but they are still very pertinent. As you said, there are many systems with varying win rate, R:R... all could have positive expectancy.
Believe me, in day trading I tried everything, even experimenting with @padutrader's notes and @SimpleMeLike's just click, click and click... I finally came to realize that what makes a difference for me is to find a method that fits my personality and risk tolerance. That means I can't force fit one method on me.
Regards.
I know both of you are good traders. It is OK to have different opinions, don't be too hard on each other.
Hope you two have a good day trading.
i also run an algo for my trading. it would be interesting to discuss the trials and tribulations of developing and running an algo in today's market. if you are interested, we could take this discussion offline so we don't pollute this thread.
toucan
If you want to talk sometime - and if you have Skype - send me a Private Message with your Skype Name. If not - send me your email address - I will send you a Zoom Room link.