Forex strategy 80-20
Testing the Strategy We tested this strategy using the backtesting capabilities of the Multicharts64 version 11 Platform. This is a simple false breakout system. We see that the curve is quite good over its year history. The shuffled Trades Analysis shows that the system is very reliable, with a likelihood of small drawdowns, depicting a max consecutive loss of 16 trades. Although you think that a losing-streak is terrible, it is not, but we need to be prepared psychologically to endure it.
This figure is the one needed to help us conservatively decide our risk strategy. As I already mentioned in other strategy analyses, you, as a trader, need to decide which percent of your equity you can lose without losing your temper. That figure has a close relation to the rate of growth of your trading account because it will decide the size of your position.
And here it comes the way to do it. Once we know the distribution of drawdowns of our trading system, we, as traders, want to minimize the probabilities that a losing streak goes beyond our max drawdown figure. This is an approximation, but its good enough to allow us to decide the best position size for our risk tastes. Number 1: trading performance. Traders can analyze these relationships: Are the majority of losing trades caused by the same mistake?
Are the majority of losses coming from a few trades? Are the majority of losses coming from a small number of days? The same questions can be asked for profits and winning trades as well. Number 2: individual performance personal effectiveness. Traders can analyze these relationships: How much time is spent on each task and how much benefit does it bring? What are the crucial tasks in my trading that lead to the most results? What actions are the most beneficial for my results?
Number 3: the market. Number 4: strategy performance. Traders can analyze these relationships: Do the majority of the trading opportunities occur at the same points during the strategy? Are the majority of my wins generated by a minority of the same entry type? Do the majority of my filters have a very small impact on the performance? Does a minority of my tools and indicators have the most positive impact on the strategy? Better gauge your projections with the Forex Position Size Calculator.
The above questions and ideas are examples. Everyone is highly encouraged to analyze and find connections that benefit them as an individual trader. This is not limited to the above, and many more ideas can be created. Do you notice any cause and effects? Let us know down below in the comments section! It allows us to focus on the most important and valuable core tasks, methods, and resources.
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CROTONE VS CAGLIARI BETTINGEXPERT
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