thank You for your comment. Ill answare as efficient as possible.
It performed very good. It took you out of the wrong direction very quick and never violated the 2% max risk.
Heres a example:
At the GBP/USD it performed good. First was a 40-days rule in place since there were no clear trends. Prior brexit it broke out towards the downside. The first trade was a lost of 1%
It initiated a long trade which was a gain of 1%
At the night of the brexit it closed the long at 1% loss and initiated a short trade which it closed automatically 12 july at a profit of 9,8%
So the over all profit in this pair on Brexit was around 9,8% account gain within 20 days.
This was 1 out of 5 trades. Add another 4 trades in the similar fashion and a account groth of 5-10% you can figure out a account growth of around 40% around the brexit votum.
There were better performers but this is the closest i saw when i opened my chart so decided to use this one.
Aswell keep in mind that there were at least 50% people who made losses on brexit. So a 40% gain isnt that bad for a completely automated system that requires no knowledge of you at all from markets economics plitics or even trading.
the system performs exactl the same on every security. it really does not matter what you trade.
When you follow the rules precisely the system will in it self ban you from trading pairs in which it will perform badly. Thats how i created it.
The system has a build in Risk management calculation which is conected to the average movement area of the underlying security (some statistics and maths i did in the background and didnt explain in here). This means that it really does not matter which security you trade, the system will automaticaly and by itself adjust to the security. Once you start trading it you wil notice that for every security the numbers of calculation differ a lot while the claculation always stays the same. once you calcucated the numbers (entree, stop loss, position size according to risk management) you will notice that it is always the same risk management in place regarding percentages.
I like to ask you to post the exmaple which you found has a stop loss of 500 pips. Simply use your “Snipping Tool” which every windows has (find it at windows search bar typing “snipping tool”) to create a screen shot and post it here please.
About the stop losses in the 40-days trades. From what i have backtested the stop losses and the calculaton is very efficient, even more efficient than the 5-days high five trading method.
The issue you might was looking at was that when a pair starts ranging after it made a bigger advance into one direction. Then the “range” of the 40 days in many cases (after 3 consecutive trades closed in loss or RR less than 1:1) if often high leading to a wider stop loss. But the system is created to cover this “divergence” simpl yby the wide spread orders of entre. Why?
Immagine the dow made a advance from 19000 to 21000 within 2 months. You have been participating in this clear new “up-trend”. Now it becomes flat and the system forces you to use the 40 days method.
The price ranges around 20900 the last few days orweeks. Your entry for a long is 21000 with the 40-days system and you have a wide stop loss.
Your entry for a short is much further away at 19000.
Why is that good? simply because the entree for a short in such a clear bullish market is intelligent to be set far away. We discovered that it is a up trend, if we have now weeks or days where the market is ranging that does not mean that the up trend has ended, it is most likely that the uptrend will continue and you will participate in it as soon as it breaks out making new highs.
For the uptrend to end in such short term cases of 2-3 months the last low must be violated. every move in contratrend is considered a “reaction” only to a heated up bull market. It is only considered a trend change if it completely offsets the priop upmove by 100%.
On the other hand your new longposition in case of a brakeout will be a less risky position due to the bigger stop loss calculation. And that is very good that way simply because trading at market tops is dangerous. If a market reaches a new top the possibility for a shrp swing back is very high. this will keep your potencial losses small but still let you participate in that market.
This will flatten out. Once the 40 days moved beyong the big advance mentioned earlier your entrees for long and short will come closer together and your stop loss will not be as wide anymore.
And after you started the 40-days methode on the security that started ranging you anyways have already another security in which you are trading the 5 days method. this means your risk/profit always stays the same since you have 30 securities to chose of. if one is not behaving good and kicked your 5-days trading out then you will find another one withing minimum time to trade in and skip the one which is in the 40-days method.
But please add a chart which is in your interest and i will be able to explain it more precise on your example.
Please aswell take into consideration that a 500-pip stop loss in 'Gold is not a big stop loss at all since gold tends to move 2000 pips/day easily.
Once you have 5 trades open and the 40-days system opens a new trade you will be having 6 trades open, yes. This resolves itself by the system since it will sooner or later take you out of one of these 6 open trades. Once you have 6 trades open you restrict from opening a new trade by the 40-days system by deleting the orders. After the system took you out of 1 of the 6 open trades by itself (3 closes in loss or RR less than 1:1) you initiate again the 40-days to every security untill it opens a 6th trade again.
You can aswell play it a bit more risky and have 10 trades open simultaniously but i would not suggest tht since i didnt test anything in that fashion yet.
Over all the system is created to give you a account growth of 15-35% each month (depending on moth- high and low season of VOLUME since there are months where its more traded and months where its less traded). Thats already a great account growth. making it more risky is not adviced by me.
Got a meeting in 8 minutes so i need to hurry. I will answare the other posts in the evening or tomorrow.