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发表于 2010-7-11 08:35 PM
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本帖最后由 abaqus 于 2010-7-11 22:36 编辑
I did AD many times before, some of them were out of water with little gain, most of them became more loss. In AD is following market direction, the results may not very bad.
I am thinking this a little bid different way - money efficiency.
Efficency is important part of making money. Traders have to keep their money running. Very simple, for a 65% win rato trading system (with 2% initial loss stop), if each week can make you 5% as average gain, after 20 weeks the gain should be 1-(1.05)^20= 165%. But if only trade half time of these 20 weeks, the final gain is 1-(1.05)^10 = 63%. AD is like to reduce your money runing speed, at least. Assuming you are luck guy, all AD finally out of water, but at least you did not gain nay thing from these 7 trades (35%), the final gain is 1-(1.05)^(13) = 88%. But I never see any trader are so lucky, especially, meself.
Little futher, assumed when you finally give up, 2 of these 7 bad trades are -10%, 3 of them are -5%, and 2 of them are 0%, then the final gain is 1-1.88*0.9^2*0.95^3*1^2= 33%. So a 165% gain system could as low as 33%. This is little bit more than money efficiency.
The another impact is your trading confidence. Sometime, your feeling got bad damage.
just for fun
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