Hello traders.
This is one year statistics.
EURUSD
winning trades: 25
losing trades: 24
risk per trade: 3%
risk reward ratio: 1:2
yearly profit: more than 70%.
What do you think?
Hmmm. I think it would help if you could share more information on this strategy? Like, do you use indicators? What are your entry and exit signals etc. Then, more people would be able to give more substantial responses.
Oh. Unless of course you’re trying to sell something.
I am just asking people that whether this trading strategy can be considered as a good one.
Please tell me your opinion.
The r:r saves the performance of this strategy and means that you can afford for your win rate to fall well below the current 51% before you would have a losing year.
However, why is the annual profit rate not much higher, over 100%?
Because risk per trade is only 3%.
But are your figures accurate or just estimated?
Hi, this isn’t really a trading strategy, it’s more a money management strategy. Money management - wise it seems fine. Re : Trading strategy you’d have to tell us how you would actually win / make profit e.g what indicators you use, when you start a trade / end one etc.
As a money management aspiration its absolutely fine, though an ambitious r:r of 1:2 is hard to square with such a low win rate as 51% - its hard to picture a set-up which occurs less than once a week but which is nevertheless recognisable enough to be utilised, and which consistently allows for double the profits against capital risked.
This is a very simple but tested strategy for over 4 years from 2018.
And yearly statistics are almost same.
So I am asking you how much do you like the result of my strategy.
I think the performance is absolutely fine. I calculate the annual profit to be 106%, which is even better.
I would say, that 50 trades over 4 years is not enough to be anywhere near “tested”. You can try to extend this period at least to 2015 to catch EURUSD range between 2015-2017 and see how it will work out.
You can also try to test it on different pairs/timeframes. If strategy works only for one pair and one timeframe and is garbage on everything else - it may not be reliable for live trading.
Agree, they are numbers pulled from no where. A MyFxbook would be nice too lol
I tested for AUDUSD. It works almost same as EURUSD.
profit rate decrease slightly because winning ratio falls a little. But it’s OK.
I think all the major currency pairs are highly correlated, so my strategy will work through all the other six majors.
That’s a bold assumption
This is the beauty of simple trading strategy.
I agree. There are few instances of pairs printing in very different price behaviours than the others. I see basically two classes of forex currency - risk-on and risk-off. Sometimes some currencies drift in and out of the groups but AUD and NZD are always in risk-on and JPY is always in risk-off: CAD and CHF are part-time members but their behaviours is in each case affected by a larger neighbour.
One example of a unique price behaviour would be the GBP/USD around the London open: as a guide, see how ATR behaves intra-day. Some say EUR/USD behaves similarly.
This is not bad. The rate of the risk is just 3%. So fair enough.
It is more of a money management strategy than a trading strategy. It depends on what tools you use too.