Originally Posted by
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We decided the volatility of the market by a 10 day exponential moving average of the Average True Range. Our first stop was three times that volatility studying. The same cease was trailed from the near, after entry occurred by a coin flip. The stop could move in our favor. Thus, the stop moved the markets moved in our favor or volatility shrank. We used a 1 percent risk model for our position-sizing.
That's it! That's all there was to the machine; a random entrance, and a trailing stop that was three times the volatility, and also also a 1 percent risk algorithm to size positions. It conducted on 10 markets. And it was constantly in each market, either long or short, depending upon a coin exchange. It's a good example of how simplicity functions in system growth.
When You run a random entry platform, you get different results. This system made money when it only traded one contract per futures market. It made money 100 percent of the time when a simple 1 percent risk money management system was added.