Response
From your trade examples you have a constant 600 pip stop loss and a 300 take profit, that's more like 0.5 RR, how is that 2-1 RR?
600 SL : 300 TP is presented as a 2:1 risk:reward ratio - it's how I always write this.
Why do you have such wide stops when trading the 1hr chart, would it be more suitable to a monthly?
I've used 600 pip SLs for THE'A'SYSTEM for the last 3 years on the 30 mins & 1 hour chart - I will do some research on the monthly chart.
When you say you average around 1500 pips per month, am I right in thinking that's 5 trades per month assuming you win them all, how do you maintain that average when as you state, some trades may be left open up to 4 months?
Best to take a look at my results spreadsheet - available as nil5605@yahoo.com. All trades taken since Jan 09 are included - successes & losses, along with open trades.
Also, if it's 5 trades per months, why did they all occur on the same day?
As you'll see from the results spreadsheet this is not always the case.
Why did you open 4 short trades on the same day within a 12 pip range, great if you win 1200 pips, what happens if you lose 2400 pips, is that about 40%?
I open more than 4 trades in a month, as you'll see from the spreadsheet.
Again, if it's 5 trades per month, to get your figures, 59 trades per year,
44 wins 15 losses to get your 75% mark.
I've taken more than 5 trades in a month - but the results show that since January 2009 the total wins & losses have equated to an overall 75% win ratio.
What are the current clients response to the drawdown?
Continuity of a trading system is important to them - I don't 'chop & change' dependent upon drawdown / market conditions. The same system that I started using 3 years ago is running today.
I like Van Tharp, I estimate expectancy to be 0.10 with standard deviation of 0.10. Do you get these figures?
Again - you & others are more than welcome to statistically analyse my results in terms of SD.
Kind regards
NIL
nil5605@yahoo.com
