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Is this strategy good enough?


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Is this strategy good enough?

  #81 (permalink)
 
MWinfrey's Avatar
 MWinfrey 
Lubbock TX
 
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baruchs View Post
The total DD comes from combining all the trades from all the strategies in one list. Then sorting that list by exit time and calculating the DD. That is the big surprise.

So treat or manage ALL strategies on ALL markets traded as ONE.

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  #82 (permalink)
 
MWinfrey's Avatar
 MWinfrey 
Lubbock TX
 
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baruchs View Post
For example lets say we have two strategis each makes 1 trade a day. So if strategy #1 is +500$ on day one and -300$ on day two, its DD is 300$. If strategy #2 is -300$ on day one and +500$ on day two, it also has a DD of 300$. What is a daily DD of trading together?

300

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  #83 (permalink)
 baruchs 
Israel
 
Experience: Intermediate
Platform: NinjaTrader
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Posts: 323 since Jun 2009



Quoting 
300

No its not its ZERO!
Day 1: +500 + -300 = +200
Day 2: -300 +500 = +200

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  #84 (permalink)
 
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 MWinfrey 
Lubbock TX
 
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baruchs View Post
No its not its ZERO!
Day 1: +500 + -300 = +200
Day 2: -300 +500 = +200

Good Grief...of course. Sorry for being so dense.

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  #85 (permalink)
 
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 ThatManFromTexas 
Houston,Tx
 
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baruchs View Post


Now I know why 95% fail.


I learned it in first grade.

....it can more profitable to add a losing strategy into a basket.

.... don't concentrate on the net profit

... delete from the page the currency pair, the entry time and the entry/exit prices. They are not relevant .....


If someone has a legitimate and honest question I'll gladly answer, but if you want to make some sarcastic remark pls keep it to yourself.

Why don't you just trade the dang thing ?

I'm just a simple man trading a simple plan.

My daddy always said, "Every day above ground is a good day!"
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  #86 (permalink)
 
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 monpere 
Bala, PA, USA
 
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baruchs View Post
In that thread I even stated that it can more profitable to add a losing strategy into a basket.


baruchs View Post
Do you want me to prove it?

Please educate me. I would like to know.

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  #87 (permalink)
 baruchs 
Israel
 
Experience: Intermediate
Platform: NinjaTrader
Broker: pfg
Trading: eminis
Posts: 323 since Jun 2009


Quoting 
Please educate me. I would like to know.

Ok I'll prove it with your help in two ways. (You will need to answer questions)
First story:
You are going on a street and see on a corner some guy tossing a coin. You stand in front of him and stare.
From your left (the side is very important lol) comes another guy (or girl) and stands by you. All this time a guy tosses a coin. After a whial a guy on your left asks you if you want to bet on the coin toss. You ask him what are the odds that he gives. He says: If its head he will give you 2K and if its tail you will give him 3K.

Will you play with him? Is it a winning strategy for you?

p.s. Because you left your house in a hurry you took only 10K.

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  #88 (permalink)
 MetalTrade 
 
Posts: 1,055 since May 2010

You also have to know that British science professors proved in 2010 that if you toss coins the heads will come up more than the tails.

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  #89 (permalink)
 baruchs 
Israel
 
Experience: Intermediate
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So do you need a sharp ration, a profit factor, what? I'm still waiting for an answer.

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  #90 (permalink)
 
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 Linds 
Victoria, Australia
 
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baruchs View Post
Ok I'll prove it with your help in two ways. (You will need to answer questions)
First story:
You are going on a street and see on a corner some guy tossing a coin. You stand in front of him and stare.
From your left (the side is very important lol) comes another guy (or girl) and stands by you. All this time a guy tosses a coin. After a whial a guy on your left asks you if you want to bet on the coin toss. You ask him what are the odds that he gives. He says: If its head he will give you 2K and if its tail you will give him 3K.

Will you play with him? Is it a winning strategy for you?

p.s. Because you left your house in a hurry you took only 10K.

.
It is good odds..but the risk of ruin is way too high with such a small bank and only 2 possible outcomes each throw - lose 2K or win 3K at 50/50. Can I go home and get another $100000 and play until the odds play out for me?

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