I think we need to define drawdown. Here is a widely accepted definition from investopedia.com: The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted as the percentage between ...

The Best System on forex-factory forum

iGor, Please don't make this personal and accuse me of not being serious. I'm taking time out of my schedule to discuss this and I couldn't be more serious. You can't have it both ways when it comes to drawdown. You can't say 1000 from 2000 is 50% ...

The Best System on forex-factory forum

Assuming January is the first month of trading this system what happens if you start out with a 1000 pip loss? Does that get ignored since there was no initial profit? Would you promise your clients that the first month would be a winner?

The Best System on forex-factory forum

FXiGor, Do you realize that most system developers consider a system broke and take it offline way before it experiences a 50% drawdown? Do you realize that from a psychological perspective, virtually no one would endure a 50% drawndown and ...

The Best System on forex-factory forum

Well, the secret is out now! What % risk do you use? I'm a 3% kind of guy.

EUR/GBP Trading Room

FXJ, that's a great point. To limit your risk to X% you would have to trade 1/2 of what you would normally trade for a pair like the GBPUSD or EURUSD. Thanks for pointing that out. I ran your margin numbers my FX calculator that I have and got the ...

EUR/GBP Trading Room

It was a slow day but despite that the GBPJPY has moved up 175 pips in the last 24 hours, the EURJPY 118 pips, and the CADJPY 157 pips. The common theme is JPY of course. I think if you look around there are pips to be made. I do agree that ...

The art of Staying Out Of The Market

Here's the daily chart (with signals removed). From this perspective it's lower highs and lower lows. The interesting point about this chart is that the USDX is lower than it was in 2004 when the Japanese routinely intervened and manipulated the ...

USDX

I have a couple thoughts. I think the more discretionary you are the harder it is to walk to walk away because you really do rely upon being in tune with the market and you depend on detecting subtleties that others may not notice. If you are purely ...

Automated Trading

For those that aren't familiar with the EURGBP you should know that it's worth just over $20/pip so don't let the stability fool you!

EUR/GBP Trading Room

Here is a copy of the email I sent to Tom Bullkowski and below it is his reply: Mr. Bullkowski, I am a proud owner of the 2nd edition of Encyclopedia of Chart Patterns. In chapter 49 you discuss Symmetrical Triangles and aptly state that a triangle ...

Naked Cable

I would think so but I'm not certain. I emailed Mr. Bullkowski and asked him the same questions. Perhaps he'll reply and if so, I'll post here. Scott, I agree with you in that I'm not terribly interested in patterns either, I just think you can have ...

Naked Cable

I have the book in front of me. You have to undestand that his charts are daily charts. If you're looking at an hourly chart you can not expect a triangle to last 3 weeks!

Naked Cable

So a 1 hour chart could never have a triangle because it can't sit still for 360 candles and a weekly chart would only need 3 candles to qualify as a triangle? I think you're going a bit to literal on your interpretation. Where did you come up with ...

Naked Cable

Thanks WTB. That is a very important point that I neglected to mention.

Drawing a Trendline

Three weeks refers to a daily chart. You can not expect a short term chart to go sideways for 3 weeks. On an hourly chart that would be 360 candles!

Naked Cable

Well, you've stumped me. I certainly can't debate or commnet on the most of thoughts that you've laid out because I don't understand your logic. There are a few trading concepts that aren't apparent here: 1. Every trading day is unique, what works ...

Automated Trading

Automated trading systems (and chess programs) don't have to be unbeaten to be successful, they just have to have a positive expectancy. If you beat an automated trading system 4 out of 10 times they you are still the loser. The point of an ...

Automated Trading

That's what makes trading fun. They believe just the opposite. Your equity curve is how you keep score.

Automated Trading