The distribution after 100 backtesting trades is distributed as on
the data table. The Risk:Reward is a minimum 1:1 with 2 trades running to a 1:2 ratio. A lot of trades was closed at a ratio less then 1:0,6 as the price failed to enter the profit target zone. Some trades were closed
when the price halted inside the zone not going to the 1:1 ratio and was
closed inbetween mostly at 1:0,8. Then some trades was closed at 1:1,5
This table is only an indication as I have done it. Yours might
differ totally according to where you will take profit if the target zones
are not met. Do some testing and make your own distribution.
The loss:win ratio is 38% to 62% according to the backtesting that
I have done. Depending on how you are going to handle and close
outcome trades based upon that distribution. This will show what is the chances of success for this strategy based upon the
distribution.The above table was obtained with 100 trades starting with a $500 account and 3% risk with the
distribution as per page 2.
After 400trades and 24 months later (±16 trades per month) a starting balance of $500 has grown to
just over $3000 risking not more then 3% of capital. This is the foundation of trading. To have a
system that beat the odds and then manage the downside well and it will produce a good return over
time.This is a simulated result based upon the distribution as per page 2.
nice breakout trades with the odds in your favor applying the MLTS principal.
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