Saturday, December 17, 2005

Risk & Reward


Reward/risk ratio (simulated using TradeSim & AmiBroker) for the system shown in the WPL trade below. I took the biggest winner out. This is the only system I trade where the exit points stay fixed from the week that the trade is taken. Average positive RR was 2.58 and average negative RR was -0.70. I use 1% risk position sizing. This is a fairly new system so I am keeping a close eye on it. I designed it to trade the stocks in the ASX100. So far so good.

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