Quote:
Originally Posted by ryudox
you said you risk 2 % per trade, actually its 2x2%=4% if you close out both long/short at a losing position. I saw in your backtest results the most consecutive losts was around 6-7 losts, but 1 win make up for those small losses  |
You're right, technically it is 2% per trade but if you lose both trades for the week then it would be a 4% loss.
And yes, the system does have losing streaks, and a low win rate... Only around 30% of trades are winners, but the risk/reward ratio on the winning trades is so high the wins make up for the losers by far.
You do have to have patience with this system. Because it's only 1 or 2 trades per week those 6-7 consecutive losses can mean you'll go over a month without a winner. It's rare, but it does happen.