My favorite The Ladder System.Originally Posted by ;
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I visit # 2 as a intriguing scenario appears like a 1:2Originally Posted by ;
I Watch # 3 because 1 trade though 3 entries- I enjoy the potential reward on that. 1:2
I View # 7 because the more ideal scenario, should this be a ladder based system intriguing positioning of the stoploss is it like 1:4, 1:3, 1:2. I am unsure... or 1:3,1:2,1:2
Number 1 is nearer to what the experts are using , else no other person is good for selling high buy bottom egy.Originally Posted by ;
Yes its profitable on its own, but I would still like to search if there's more ways to reduce risk. You're right in statistical sense.Originally Posted by ;
Its hard to increase probability of the majority of mechanical systems , after a certain point. Should you join a 70% accurate egy with another 70% accurate analytical-stuff, the systems likelihood gets diminished. So egies can not be enhanced via more technical-analysis.
Then, money-management is the only method left to lower the risk which means improvement to the machine (if there's any room for this).
Thanks for the images. Its a way of visualizing possible outcomes of every risk model.Originally Posted by ;
I appreciate your efforts.
If you want to share anymore understanding, please do not hesitate.
70% with 1:1 is next to HG!Originally Posted by ;
If I had such a system I wouldn't bother 2 minutes with money management: Kelly is 40 percent per commerce with such a system!!
Fiddling with all the trades can only lessen your edge.
The risk reduction would come from diversifiion as many markets as possible.
Originally Posted by ;
Few notes on the 7 scenarios above:Scenario (1):If TP1 is struck, and price retraces up to entry point, a second order is started at old open price, and for 1st position. Same thing with TP2. Once TP3/SL3 is struck the cycle finishes. Scenario (2): 2nd place is opened in 1st position while place is opened in 2nd position hit SL, hit SL. Reduction for teh cycle if SL was struck by all 3 positions is 3. The picture isn't scaled but when any place struck TP, total profit for the cycle should be 3. After any place hits TP the cycle ends. More about that later, if there's an interest.Originally Posted by ;
Maybe I place these in a fast EA to test them on various pairs when time permits.
I think he means this:Originally Posted by ;
https://en.wikipedia.org/wiki/Kelly_criterion