I trade longer term mechanical trading systems exclusively on the ASX. I rarely look at daily charts and the systems are built using weekly timeframes. The information in this site is based on actual trades in real portfolios. I don't trade using margin or any sort of leverage. I mainly use Amibroker for system testing and trade monitoring. I am not selling anything. This is just a journal to record where I have been and, just maybe, where I am going.
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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