I have three systems which work with acceptable expectancy. They took me three years to develop and cost me about $9K in losses to perfect. Why the fuck do you think I would GIVE you these?
win/loss over 70% - please help
- Thread starter zenith
- Start date
High percent of winners means nothing if your losses are greater than your gains. I once traded a scalping system that was right 80% of the time and I lost money. How? The losers were nearly 4 times greater than the winners. Add commissions, slippage, and associated fees and you're down for the month. 
two words. risk management.Quote from CaptainObvious:
High percent of winners means nothing if your losses are greater than your gains. I once traded a scalping system that was right 80% of the time and I lost money. How? The losers were nearly 4 times greater than the winners. Add commissions, slippage, and associated fees and you're down for the month.
High percent of winners means nothing if your losses are greater than your gains. I once traded a scalping system that was right 80% of the time and I lost money. How? The losers were nearly 4 times greater than the winners. Add commissions, slippage, and associated fees and you're down for the month.
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two words. risk management
OK! I'm not too proud to ask. How would risk management save this system? I had be one of those black box, magical mystery systems. Trade either set up or it didn't. Assumeing the set up occured I jumped in with a market order, which was what the system dictated, market orders. By the way this was for currency futures which I was trading about two years ago. The goal was 6 ticks. Real world, I got about 4.5 average. As I stated it was 80% accurate. The downside was the 20% losers averaged about 14-16 ticks depending on when the system gave an indication to get out. Trading 10 contracts the best I could do was a profit of $300 - $400.00 per month. System gave about 10 trades per week. I bought this from Howard Goldstein/Trading Dynamics. Web link is http://daytradesystems.com/main.html
Any "constructive" suggestions would be helpful. I might be able to trade it again. I just didn't feel sitting in front of my screen from 7am to 1pm everyday and earning a whopping 100 bucks a week was a good use of my time.
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two words. risk management
OK! I'm not too proud to ask. How would risk management save this system? I had be one of those black box, magical mystery systems. Trade either set up or it didn't. Assumeing the set up occured I jumped in with a market order, which was what the system dictated, market orders. By the way this was for currency futures which I was trading about two years ago. The goal was 6 ticks. Real world, I got about 4.5 average. As I stated it was 80% accurate. The downside was the 20% losers averaged about 14-16 ticks depending on when the system gave an indication to get out. Trading 10 contracts the best I could do was a profit of $300 - $400.00 per month. System gave about 10 trades per week. I bought this from Howard Goldstein/Trading Dynamics. Web link is http://daytradesystems.com/main.html
Any "constructive" suggestions would be helpful. I might be able to trade it again. I just didn't feel sitting in front of my screen from 7am to 1pm everyday and earning a whopping 100 bucks a week was a good use of my time.
Alright bro, how bout this? If you´re going to profit 6 ticks, dont lose more than two. If you´re going to lose 14-16 ticks dont win less than 45 ticks. Don´t wait for your system to tell you when to exit, you exit when your stoploss gets hit... no sooner no later.
By doing this you´ll probably get your prob down to 50%, or less... but guess what, if your prob is 30% and you hit a 3:1 profit/risk ratio... you´re winning...
A good risk management strategy should have entry parameters, bet size parameters, diversification, a good stop loss, and good exit parameters {for winning trades}
It doesnt matter which vehicule you´re using, options, futures, currencies, stock, etf... without sane risk management you´ll go broke sooner or later. No matter how good your strategy is.
By doing this you´ll probably get your prob down to 50%, or less... but guess what, if your prob is 30% and you hit a 3:1 profit/risk ratio... you´re winning...
A good risk management strategy should have entry parameters, bet size parameters, diversification, a good stop loss, and good exit parameters {for winning trades}
It doesnt matter which vehicule you´re using, options, futures, currencies, stock, etf... without sane risk management you´ll go broke sooner or later. No matter how good your strategy is.
Quote from CaptainObvious:
High percent of winners means nothing if your losses are greater than your gains. I once traded a scalping system that was right 80% of the time and I lost money. How? The losers were nearly 4 times greater than the winners. Add commissions, slippage, and associated fees and you're down for the month.
--------------------------------------------------------------------------------
two words. risk management
OK! I'm not too proud to ask. How would risk management save this system? I had be one of those black box, magical mystery systems. Trade either set up or it didn't. Assumeing the set up occured I jumped in with a market order, which was what the system dictated, market orders. By the way this was for currency futures which I was trading about two years ago. The goal was 6 ticks. Real world, I got about 4.5 average. As I stated it was 80% accurate. The downside was the 20% losers averaged about 14-16 ticks depending on when the system gave an indication to get out. Trading 10 contracts the best I could do was a profit of $300 - $400.00 per month. System gave about 10 trades per week. I bought this from Howard Goldstein/Trading Dynamics. Web link is http://daytradesystems.com/main.html
Any "constructive" suggestions would be helpful. I might be able to trade it again. I just didn't feel sitting in front of my screen from 7am to 1pm everyday and earning a whopping 100 bucks a week was a good use of my time.
It doesnt matter which vehicule you´re using, options, futures, currencies, stock, etf... without sane risk management you´ll go broke sooner or later. No matter how good your strategy is.
You are correct. That was the point I was trying to make in my intial post. Winning percetages mean little if your losses are bigger than your gains. I learned that the hard way with the system I purchased. Perhaps I did a poor job of communicating that. We seem to be on the same page.
You are correct. That was the point I was trying to make in my intial post. Winning percetages mean little if your losses are bigger than your gains. I learned that the hard way with the system I purchased. Perhaps I did a poor job of communicating that. We seem to be on the same page.