I’m very interested in the way of trading without indicators, called naked trading. I backtested a lot but now as im starting to trade live almost every trade setup goes against me and it seems like the system isn’t valid. Does someone also trade Big Shadows or Kangaroo tails? Or has anyone suggestions for me to get on the right track? Thanks for your help!
How far from your entry do you set a take-profit &/or stop-loss in your backtests?
I normally set my stop-loss below the low of the candle when im trading Big Shadows/Kangarootails and the take-profit i set at the next s/r-level. RRR has to be at least 1:1.5.
What kind of win % you getting from those? Adhearing to a strict Stop Loss level.
How did you back test it?
Backtesting i got around 60-65%, but the take-profit can be different sometimes, maybe 1:1 or less if i think the trade goes against me. I never move the stop-loss.
Mostly with Forextester 5 and a MT5 demo account.
Your numbers arent adding up, & the results are conflicting.
Backtest at a fixed R-multiple below 1. More than 1-R will produce more losing streaks than winning streaks, less will be the opposite. Then post the win %.
So i should set my tp closer right? If i understand correctly, closer than sl? Thank you for the help i do it as soon as i’m home.
This part eliminate validation your back test
Correct. For now, put your TP shorter distance than the SL is. Keep the same ratio to help with the metrics. You can expand that TP later on once there’s more data.
Thank you so much!
You’re being given good advice (of course) by @EmeraldEyes and I wouldn’t want to interfere with that.
Just a couple of things to say, here.
Firstly, I think you’re very wise to be looking at “naked trading” rather than at indicators.
Secondly (as general advice for you, but not a reply to the specific question you asked here), this book is very good and will help you if you don’t already know about it:
1 Like