|
发表于 2011-10-12 03:47 AM
|
显示全部楼层
本帖最后由 csw2002 于 2011-10-12 04:48 编辑
回复 QWE 的帖子
30% accuracy rate is actually the result of a study I read many years ago conducted on a major broker's customer records. It would include day traders, swing traders, position traders and everything in between. That study was conducted on trading records from 1992 to 1998 which was quite a bullish period except for the fall in 1998 (when Asian Financial Crisis, Russian Rubble default and LTCM hit the market). That's why 95% of traders lose money over the long run. It is my personal belief that stops are absolutely essential on leveraged positions. On the other hand, if you trade only non-leveraged, you may be able to get away with not having stops.
To make a profit given such stacked odds, I only look for trades that give me at least 5 to 1 reward to risk ratio. For example, I saw the Oct 4 false break-down on a mature trading range (from 1100 to 1210) and I know that such false breakout on mature trading range usually results in a fast move to the other side of the range. I went long on ES 1105 with 10 point stop gunning for 1205. That is a 10 to 1 reward to risk trade. I gave it a 10 point stop because should ES trade back below 1100, my trade proposition of it being a false breakout would have been wrong. Given that I only trade set-ups that have at least 5 to 1 RR ratio, my edge is 58%. That is, in the long run, I should get 58% return. Of course I am no where near that because my success rate is lower than 30% and there are certain trades that I have taken where my estimated RR ratio didn't pen out. On the other hand, if you have high accurary rate combined with high reward to risk trade, you should make a fortune in a short amount of time. |
评分
-
4
查看全部评分
-
|