I am sure there were a few people rolling their eyes and with a fantastic laugh at my expense with that name, but I couldn't resist!
(This thread was originally named The Holy Grail No-Stop-Loss System however I suppose that the Admins did not find that as amusing as I did)
I have been trying to find a profitable method of trading that truly fit my style. Dare I say it, but after quite a lot of trial and error, I believe I have have developed something which is appropriate for me. It was motivated by a few threads on here, which got me thinking, and that I did quite a bit of manual back-testing, then exchanged it live for a while last year, and since the onset of the year have been applying it with a few good results. I have a set of principles, research certain pairs on Sunday, place my transactions, and check them every evening. Risk is quite manageable, DD thus much has been about 6.5%, and should never reach greater than 10% if that. Expected profitability is all about 0.5percent per week on average, somewhere between 20%-30% per annum. I can live with those figures.
There are lots of good traders out there, and I am not one of them. I was doing OK with a few divergence trading, but in the long run it just didn't match my style. I had something that could do the job for me.
No more seeing the charts, no more trying to select entry and exit points, no more getting stopped out only to observe that the transaction bounce right back, or see a commerce in good profit lose it all. It's quite mathematical with only an ounce of feeling for the market. And the last few months has been trading that is relaxing. No volatile returns, but more winners than losers.
I will trade this manner for quite some time, and that I will require a while to demone its profitability.
EDIT 05NOV17 according to articles #44 #45, annualised IRR for the previous 9 months is approximately 36%pa. Therefore, I have improved the Take Profit goals per trade for another time, and anticipated profitability a week is currently 0.75percent per week on average, with a revised goal of 30%-40% return on equity per annum. Drawdown has dropped about 5 percent, with a maximum of 10.1percent to date. Together with the revised goals, this could achieve 15%-20%, possibly a little higher. Furthermore, to mitigate broker risk, while I intend to keep on increasing the account size, funds together with the broker will be limited to A$20,000. Once the equity from the account exceeds that amount, sporadic withdrawals will be made and stored in a typical bank account.
EDIT 23DEC17 All transactions closed out, system reset and I will start again on 08Jan18. Annualised IRR YTD is 33.7%.