Registered: Dec 2007
05-24-12 02:57 PM
Quote from darkhorse:
Not true buckaroo - in volatility terms (i.e. as a multiple of average trading range), $AUDUSD is down more
Not only does this appear to be untrue (using EWA, $XAD and a simple average true range and starting from May 1, EWA is down a larger multiple) but it's majestically irrelevant. Put the same capital on both positions and I now have more profit - twice as much in fact. Whether your risk was lower than mine depends on where and how you entered rather than some meaningless aggregate statistic.
It's possible I will endure steeper drawdowns as the trade proceeds, but so long as the original thesis is in place (among other things AUDUSD can be tracked as an indicator of the underlying thesis strength) those are merely superior second or third chances to add to the trade.