Here's your system. You can easily automate it. Fire of one trade each month as indicated in the parameters (maximum of two/month in the case the first one is a loss maker). Stop goes to breakeven after ahead by say 50 pips and then trailing stop takes over. You will get the returns your after on your investment, year in year out without any major drawdowns or risking too much per trade.
Don't you think the returns on forex should be a bit higher to justify the added headache? I know this above is somewhat nonsensical sounding, but personally I don't know if currencies are worth doing for the typical returns that other markets offer, especially on smaller accounts.
As for return, of course , as much as possible. But the prerequsit is the loss tolerance. Like me, I don't want the loss is greater than 20% any time. Under this condition, I can choose stock, forex, others. If I can get a trading system, say 60% annual return with 20% risk, I will be very happy. But I cannot find it in the forex right now.
Forex is difficult - its certainly harder than stocks or futures in my brief (10 yrs this February) experience. But simplicity is still the best guide as usual. Recently during a period of despair, I tested the performance of a small number of blackbox systems who had the balls to publish a couple of years worth of their trades. I was most heartened to se that their performance was worse than most of my simple systems - typically, they had win % of 70%, an R (avg profit/ avg loss) of 1 and the Expectation (E = (1+R)*W - 1) was the big surprise, E of 0.2 !! So keep at it. Billf..
Also I post a link here about "forex scam" on the wiki. http://en.wikipedia.org/wiki/Forex_scam Have fun to read and post ur comments if any.
As the simple moving average, compare with dividend fund , they can get 10%-15% average annual return, do not know the maximum down of those funds, maybe probably < 20%
I took some time to read the thread, but I cannot get the idea. Where can I get detailed information?