Tim, When evaluating potential systems I have found that you can often save yourself a lot of time by going straight to the scenarios where the system won't do well. If you can survive that period of drawdown then it warrants further investigation. ...

The Fibonacci Rainbow

With traders using martingale strategies, disrespecting position sizing and proven money management techniques as well as demanding 400:1 leverage all the while not using stop losses and being satisfed with 10 pips profit after paying a 4 pip spread ...

Why Is Everything Free and Cool With Forex ?

Here's an index which tracks the results of the largest funds who would presumably be in a position to pay that kind of salary: Fund Results Back to reality...........

Forex Career Profile

Bemac, One thing that occured to me is that your spreadsheet, while completely valid, does not account for contract sizes and that is where the problem that Ryan Jones explained comes into play. Let's say you could trade 1 mini lot per $1000 in your ...

Money Management vs. % of Success in Trading Systems

How in hell could you come up with a curve that was generated from my system? As explained earlier, the software took the 378 trades, applied a fixed fraction of 3% and then jumbled the sequence using monte carlo analysis. The point is that when ...

Money Management vs. % of Success in Trading Systems

To some degree we weren't talking about the same thing. But to be clear, the two curves I posted earlier used fixed fraction which is the same as fixed percentage not to be confused with fixed ratio. i can select between 9 different money management ...

Money Management vs. % of Success in Trading Systems

Dude, that's the point. If your system can capture market movement from entirely random moves then it is likely to catch movement in real markets where biases and inefficiencies exist. It's a testing methodology used by real traders.

Random Price Movement

I hope this helps...it is from page 20/21 and took me a long time to type The main characteristics of antimartingale methods are that is causes geometric growth during positive runs and suffers from what is called asymmetrical leverage during ...

Money Management vs. % of Success in Trading Systems

Bemac, The good news is that you don't have to recode. The bad news is that your "system" does not have a positive expectancy and as such, money management principles can not be applied. Ryan Jones explains this concept on pages 15 & 16 of his book ...

Money Management vs. % of Success in Trading Systems

Read this short article with an open mind. I hope that it can help explain the concept a little better. http://www.adaptrade.com/Articles/article-mc.htm http://www.traders.com/Documentation/FEEDbk_docs/Archive/022001/Abstracts_new/Bryant/Bryant.html ...

Money Management vs. % of Success in Trading Systems

This is quite true and it that's your point you win. If you step into the real world on non-normal distrubutions you are in for a rude awakening.

Money Management vs. % of Success in Trading Systems

That works well as long as you never take a loss. Good luck with that. The sequence of events absolutely matters. I do admit that you understand the associative law of mathematics but that has nothing to do with money management.

Money Management vs. % of Success in Trading Systems

Your assumptions are that wins and losses are equally distributed. In real life, they are not. You can experience a series of wins and losses. Captain Piptastics's spreadsheet shows the probability of this happening quite well. If you drawdown your ...

Money Management vs. % of Success in Trading Systems

LazyPawn, Your assumption couldn't be further from the truth. Below are two identical images. They consist of 378 trades. The only difference between the two is the sequence of the order in which these trades occurred. One went bust and one lived ...

Money Management vs. % of Success in Trading Systems

miscon, There are a variety of ways to do this. Some testing methods employ monte carlo techniques which jumble your trades to show the historical significance of the exact sequence of your trades. Some methods jumble the input data before it ...

Random Price Movement

miscon, Mike has written a series of great articles. They can be found by googling ""breakout futures" and then clicking free newsletter. I have read his work for quite some time before it occured to me that he was the author of the software as ...

Money Management vs. % of Success in Trading Systems

I was just kidding you and it's a good channel. Thanks for the explanation.

Euro Japan Bargain?? or ??

You've got 14 lines on your chart. It's bound to hit one of them sooner or later.

Euro Japan Bargain?? or ??

turveyd, That explanation made no sense whatsoever. Maybe we should let him answer for himself.

My New TradingSystem Need Help!

Just so I understand, you risk 90% of your account on every trade? If your stop gets hit you are left with 10% of your account? What is the accuracy of this system?

My New TradingSystem Need Help!