Obvously the 3rd and 4th entries have the best risk/reward
ratios but imho the risk of not having a 3rd entry is far too high
to save too much money for this opportunity. More than 50% of the
trades won't have a 2nd entry. More than 50% of the 2'nd entries
will not have a 3'rd.
I'm not able to make the profitability stactistics for
every entry weighting but my guts tell me that a mix of the 40/60
system and the normal 40/20/20/20 could be quite
interesting.
I wouldn't want to miss the 3rd and 4th entry opportunity
because risk/reward ratios are very attractive, but I
also don't want too much of my money to be on the
sidelines after a signal so for me it makes sense something like
40/30/15/15 or 50/30/10/10 or 40/40/10/10.
I suppose that someone will do the math and find the
ultimate ratio....!
Also a nice entry ratio is when you just take the
percentage of the numbers of the 1, 2, 3 and 4 entry trades since
the start of the statistics. I didn't do the exact math, but then
we would have about 58/26/9/7
yeah just trade whatever you want. I may look at more
scale in %'s, but changing that on the SPY page is not easy, so I
will not do that willy nilly. Again I'm about providing you
guys with information so that you can choose from. Decide
which style fits you best.
For example I was advised by some colleagues to only
offer the single entry system, for simplicity. But I decided
to give you options to choose from
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which system has the best statistics?
Posted by zwyss on 6th of May 2011 at 03:34 am
Obvously the 3rd and 4th entries have the best risk/reward ratios but imho the risk of not having a 3rd entry is far too high to save too much money for this opportunity. More than 50% of the trades won't have a 2nd entry. More than 50% of the 2'nd entries will not have a 3'rd.
I'm not able to make the profitability stactistics for every entry weighting but my guts tell me that a mix of the 40/60 system and the normal 40/20/20/20 could be quite interesting.
I wouldn't want to miss the 3rd and 4th entry opportunity because risk/reward ratios are very attractive, but I also don't want too much of my money to be on the sidelines after a signal so for me it makes sense something like 40/30/15/15 or 50/30/10/10 or 40/40/10/10.
I suppose that someone will do the math and find the ultimate ratio....!
Also a nice entry ratio is when you just take the percentage of the numbers of the 1, 2, 3 and 4 entry trades since the start of the statistics. I didn't do the exact math, but then we would have about 58/26/9/7
yeah just trade whatever you
Posted by matt on 6th of May 2011 at 09:42 am
yeah just trade whatever you want. I may look at more scale in %'s, but changing that on the SPY page is not easy, so I will not do that willy nilly. Again I'm about providing you guys with information so that you can choose from. Decide which style fits you best.
For example I was advised by some colleagues to only offer the single entry system, for simplicity. But I decided to give you options to choose from