I did a little back test from May through today putting SL at
different levels. The max profit was realized with NO stop
loss. With 2% SL there were 13% of the trades that stopped
out and profit was only 80% of the max; at 3% SL 8% stopped out and
profit was 87% of max.
looks like a SL will make you feel good, but it will far from
optimizing the end result. We will hope that today was an
aberation.
jmoynan -- the thing is, max profit is not necessarily what you
are after. Look how everyone has trouble handling the
drawdowns -- me included. Sometimes a profit target or
stop loss will give less net profit, but a much smoother equity
curve with less drawdown, which gives a system that its more
comfortable to put more money into.
Posted by mitchellvisa1 on 2nd of Nov 2009 at 10:06 pm
Michael--Totally agree. I had a good October with the
systems, but lost over 14% today. I would have certainly
taken only 18% net in October if it meant I didn't lose almost
$15K today! However I do understand it will mean the 1st
time I try it with a 3% SL, it will trade down to $.01 past my
stop, then rally back up 20%! I will have to look at the
optimization in Ninja using different SL. Thanks!
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hm...when do you set a
SRS Swing Systems...HORRIFIC TODAY!
Posted by 1800promote on 2nd of Nov 2009 at 03:24 pm
hm...when do you set a break even stop?..after %x in profit?
I did a little back
Posted by jmoynan on 2nd of Nov 2009 at 06:49 pm
I did a little back test from May through today putting SL at different levels. The max profit was realized with NO stop loss. With 2% SL there were 13% of the trades that stopped out and profit was only 80% of the max; at 3% SL 8% stopped out and profit was 87% of max.
looks like a SL will make you feel good, but it will far from optimizing the end result. We will hope that today was an aberation.
J
jmoynan -- the thing is,
Posted by Michael on 2nd of Nov 2009 at 08:58 pm
jmoynan -- the thing is, max profit is not necessarily what you are after. Look how everyone has trouble handling the drawdowns -- me included. Sometimes a profit target or stop loss will give less net profit, but a much smoother equity curve with less drawdown, which gives a system that its more comfortable to put more money into.
Michael--Totally agree. I had a
Posted by mitchellvisa1 on 2nd of Nov 2009 at 10:06 pm
Michael--Totally agree. I had a good October with the systems, but lost over 14% today. I would have certainly taken only 18% net in October if it meant I didn't lose almost $15K today! However I do understand it will mean the 1st time I try it with a 3% SL, it will trade down to $.01 past my stop, then rally back up 20%! I will have to look at the optimization in Ninja using different SL. Thanks!