5:1 Ratio
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Thread: 5:1 Ratio

  1. #1
    Hello everyone.

    Last 2 months I was thinking about system based only on a good money managment and decent RRR. With no tools.

    My pair is Cable since is volatile what's important for this particular system.
    Daily in certain hour (7:30, GMT 1) I open a trade in direction of last day. My SL is -20 pips from available and TP 100 pips. I move SL to BE after 40 pips.

    The principal portion of the system is cash managment. When the RRR is 5:1 I will have 5 losing transactions in row only 6th trade I will open trade using more lots. Here's the chart of position sizing.

    Trades Lots
    1. 1




    2. 1




    3. 1




    4. 1




    5. 1




    6. 1,5




    7. 1,5




    8. 2




    9. 2,5




    10. 3




    11. 3,5




    12. 4




    13. 5




    14. 6




    15. 7




    16. 8,5




    17. 10




    18. 12




    19. 14,5




    20. 17,5




    21. 21




    22. 25





    With these position sizing I will cover all previous loses.
    Since 28.7.06 (that's 171 trading days) in my backtesting were greatest 12 losing days in row and next day covered all loses. Circle is completed after good trade (TP 100 pips struck ).
    Risk is never biger than 1% of account on begining of circle.

    The proportion of good trade is around 19%. So with each 5 losing transactions is one trade that is good.

    I'm testing it live today with my micro account. Now was losing trade in row so tomorrow I'm starting with 1,5 lot. Will see what this system could perform.

    Any opinions welcome.

    Lots of pips to each of
    Peter

  2. #2
    I'm sure that if you use a simple moving average cross you'll receive far better percent of winning trades. Use a large enough time period (gt;=4h).

  3. #3
    Quote Originally Posted by ;
    Questions

    1) do you trade on Sundays? I can't imagine that you'd be successful in hitting 100 pips on these days frequently.

    Two ) do you keep trades available till they reach either TP or SL?

    2a) If you DON'T, then how do you rely partial profits/losses where you don't hit either TP or SL?
    1. No transaction is on Monday.

    2. Yes I keep it available and if nothing is struck I will close it next day at the time when I open a new commerce. Just Friday I will close commerce at 10PM.
    This happened just 11 times and it was just positive pips.

    2a. If TP or SL is not struck I am taking it like a different lose in row.

  4. #4
    Quote Originally Posted by ;
    I'm certain that if you use a simple moving average cross you will get far better percent of winning trades. Use a large enough time period (gt;=4h).
    Which phases of MA can be the very best?

    Thank you

  5. #5
    I've backtested this on 10 decades of daily data.

    The results are comparatively poor.

    The highest # of losses to get 1 full year is 20.

    The highest # of declines for 2-5 years is 30.

    The highest # of declines for 6 decades is 36.

    The highest # of declines for 7-10 years is 62.

    I did back evaluation the remaining data I had and it came up with 120 maximum number of losses for around 18 decades. . .so, not so good.

    The winning percentage is just 13%.

    You'll certainly need enhance the winning percentage.

  6. #6
    Questions

    1) can you trade on Sundays? I can not imagine that you'd be successful in reaching 100 pips on these days very often.

    Two ) do you keep trades open until they reach either TP or SL?

    2a) If you DON'T, then how can you count partial profits/losses in which you do not reach either TP or SL?

    Quote Originally Posted by ;
    Hi everybody.

    Last 2 weeks I was thinking about system based only on a good money managment and good RRR. Without any tools.

    My pair is Cable because is volatile what is important for this system.
    Daily in some specific hour (7:30, GMT 1) I open a trade in direction of last moment. My SL is -20 pips from open and TP 100 pips. I proceed SL to BE after 40 pips.

    The main part of this system is money managment. When the RRR is 5:1 I will have 5 losing transactions in row just 6th trade I will open trade with much more lots. Here's the chart of position sizing.

    Trades Lots
    1. 1




    2. 1




    3. 1




    4. 1




    5. 1




    6. 1,5




    7. 1,5




    8. Two




    9. 2,5




    10. 3




    11. 3,5




    12. 4




    13. 5




    14. 6




    15. 7




    16. 8,5




    17. 10




    18. 12




    19. 14,5




    20. 17,5




    21. 21




    22. 25





    With all these place sizing I will cover all previous loses.
    Since 28.7.06 (that's 171 trading times ) in my backtesting were greatest 12 losing days in row and next day covered all loses. Circle is finished after good trade (TP 100 pips hit).
    Risk is never biger than 1% of account on begining of circle.

    The percentage of good trade is about 19%. So with each 5 losing transactions is a really good trade.

    I'm testing it live today with my micro account. Now was losing trade in row so tomorrow I'm opening with 1,5 lot. Will see what this system could do.

    Any comments welcome.

    Many pips to all
    Peter

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