Optimising Risk/Reward Values

[adt100]

To '87 you can add at least 5 other cases since then that would have been considered statistically insignificant (ie so unlikely to occur that could be ignored)......................................Each one could have blown you up if you had ignored.

A much brighter man than me has often said is shareprice is random than how do we get trends?.............................A quick took at most charts suggests trend of some description.

 

[Space Invader101]

Beachlife, what CFD providers do you use? Not CMC markets? Their education is full of &$@#. They give you hit and miss strategies with ideally selected examples.

CFD providers automatically take the oppisite side of a trade when you trade. So if you lose, they profit.

I like CMC's trading software. I don't like their education. Every time they send me education emails, I just delete them.


It might not be your money management system that's failing you, but the chart time frame being used. Longer time frames filters out market 'noise' and makes trends more visible.

 

[Sir Osisofliver]

To '87 you can add at least 5 other cases since then that would have been considered statistically insignificant (ie so unlikely to occur that could be ignored)......................................Each one could have blown you up if you had ignored.

In fact there have been more than five occurances - so why do we get this myth perpetuated?

Because 85% of the time the standard deviation version of risk works. So 85% of the time the Brokers and Salespeople get to make hay whilst the sun shines and get to say things like black swan events when it all goes pear shaped with no consequences to themselves.

A much brighter man than me has often said if shareprice is random than how do we get trends?.............................A quick took at most charts suggests trend of some description.

Agreed


Cheers

Sir O

 

[patchau]

I have recently downloaded a free Metastock addon called Visual Strategy Trader (VST).
It has been interesting to test out some trading strategies on ASX stocks & ETF’s by applying a system then changing the parameters and instantly viewing the results.
My Metastock coding skills are limited but so far all has gone well. I will attach some charts and if anyone is interested can post any ASX chart with a breakout (Turtle) system applied and parameters of your choice eg. 21/7 , 15/5.