Do you like this trading strategy?

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?

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Hmmm. :thinking: I think it would help if you could share more information on this strategy? :thinking: Like, do you use indicators? What are your entry and exit signals etc. Then, more people would be able to give more substantial responses. :sweat_smile:

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Oh. :open_mouth: Unless of course you’re trying to sell something. :confused:

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I am just asking people that whether this trading strategy can be considered as a good one.
Please tell me your opinion.

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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%?

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Because risk per trade is only 3%.

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But are your figures accurate or just estimated?

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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.

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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.

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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.

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I think the performance is absolutely fine. I calculate the annual profit to be 106%, which is even better.

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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.

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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 :slight_smile:

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.

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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.