Moving Average Channel System, 79% backtest annual return when each trade risks 2%

The Moving Average Channel System is used for GBPUSD, the rules are very simple. Backtest shows 79% annual return if each trade risks 2% of your account.

(1) When EMA13 typical price rises 10 pips or more than 10 pips, buy at EMA13. Stop Loss and Take Profit are 50 and 300 pips respectively.

(2) When EMA13 typical price decreases 15 pips or more than 15 pips, sell at EMA13. Stop Loss and Take Profit are 50 and 300 pips respectively.

As STOP LOSS is 50 pips, if you want to control the risk of each trade under 2.00%, the actual leverage should be 1:4. As Take Profit is 300 pips, this means the potential reward of each trade is 12%. In the backtest the annual trade is 36, and the winning ratio is 0.3, then the annual return based on the backtest is

36 x0.3x0.12-36x0.7x0.02= 79.20%

You need to be alot more specific mate

You do know, he posted that over 7 years ago right.

With Brexit, GBP could make big moves either way based on fundamental news coming out in the UK.

No, because my phone posted it just then as recent posts…

No idea why it does that, but this was posted Feb 4, 2011 and the guy that posted it hasn’t been back on here since Feb 8, 2011.

Seems like a couple of people have had that happened to them today haha