Terminator,
what you're talking about is profitability. . .thats a prerequisite. . .as a retail trader, your advantage is just that you dont have to maintain the markets constantly. . .that is what enables you to extract some money
Terminator,
what you're talking about is profitability. . .thats a prerequisite. . .as a retail trader, your advantage is just that you dont have to maintain the markets constantly. . .that is what enables you to extract some money
Being in the (FX ) market all the time or not has nothing to do with profit and edge Peter.Originally Posted by ;
Trend following systems using 2 simple moving averages by way of example are in the market all the time AND are profitable at the same time, even though they do generate massive drawdowns.
This really is a huge advantage and can give retail traders an edge to people that always have to exhibit a bid/ask. Although, I am not sure how much it cancels out the numerous disadvantages that we've got.Originally Posted by ;
Hey FXTerminator
I've been away for a little while, so I'm seeing this thread just today, but would love to give my 2p since I feel strongly about it.
For me , attaining a 2:1 reward/risk ratio is THE key to profitability.
During Q3 06 I tested a method which I started trading live this year. Over 100 trades throughout testing I had a very fine 67% of trades that were successful, but today since 2 Jan 07 and 80 trades I just managed 51% (though I expect this will creep around 60 percent over time). So by having a mean winner of 51 pips versus average loser of 24 pips, I've generated 600 pips per month throughout January and February.
Geld,
I do not think using a 2:1 RR is your secret for you. I believe using a system that manages a 51% gain ratio is the secret, along with your profit occurs to be dependent on your RR...
Trust me, even if your system goes down to a 20% gain ratio (do the math). . .you WON'T be profitable. . .so it is not your RR. . .it's your statistical edge.
Originally Posted by ;