I agree wholeheartedly. With 9:1

    SPY system comments

    Posted by dougmil on 1st of Jun 2011 at 12:47 pm

    I agree wholeheartedly. With 9:1 win ratio in backtesting, I am thinking of devoting a significant portion of my retirement accounts to SPY System and using a much smaller portion for my own swing trading, which has not approached SPY System backtest results. As long as average annual returns in SPY System remain better than my own trading, I will hold or increase the amount devoted to SPY System. If I never approach SPY results, that is fine. I just have to be continuously trying to improve my own proficiency at some level.

    It is the 9:1 consistentcy that gives me the confidence to follow the signals with minimal emotion. That reduction in emotion frees me up to focus on improving my own trading competancy on a smaller trading account. So it is a sort of a relief that frees my mind up to focus on other constructive educational endeavors while I am making serious money.

    I took a few courses at one of those trading schools and they preached that you only need a 50:50 win ratio to be a successful trader, as long as your losses are small and you let your winners run. At no time did any instructor imply that a 9:1 win ratio was a realistic goal.

    So thanks Matt. Your points about the possibility of missing a larger move are clearly understood and accepted as the nature of the logic of the system. I would never be disatisfied with anything that has a 9:1 win ratio.

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