Strategy makes money but more losers than winners

Discussion in 'Trading' started by zanek, Sep 27, 2012.

  1. zanek

    zanek

    Would you all trade a strategy that has more losers than winners, but makes money overall ?

    I know the psychology of having more losers is tough on us when we trade, so I'm trying to determine if I should keep retooling my strategy until I get the percentages up.

    Thoughts ?

    <iframe src='http://www.stocktesting.com/Embed.aspx?x=g%252bNwXzSFui%252b%252ft2anw22O9IP0JTfo0cj%252bjeDIJGLHqTgQSke8%252bP4Sd8l%252bPSoyxu3UkTLDchB7pYDIfC4vRdEXxHequYY%252fCaUP0K20JvxkbsKpc7zPMtJB3lsWzJGU%252bsAe5Sm5aGrD3o%252btSifWdA0VmQ%253d%253d' width='600' height='500' frameBorder='0'></iframe>
     
  2. kandlekid

    kandlekid

    With a well funded account, probably. If not well funded, then I probably wouldn't. And of course, it depends on the size of the losses.
     
  3. achilles28

    achilles28

    How many trades in the backtest? I can't see the info?
     
  4. LoL... Wow your a retard. If a strategy won't make money with a $1,000 account it won't make money with a $1,000,000 account...
     
  5. achilles28

    achilles28

    Those equity curves are shit. Forgive my language.

    If you want, risk what you can afford to lose, and cash out at the historical high water mark.

    I doubt there's much of an edge there...
     
  6. kandlekid

    kandlekid

    But he didn't say that, did he ?

     
  7. kandlekid

    kandlekid

    Ok, just curious, which of the posted strategies is yours ?
     
  8. ? How else does anybody do it? A typical trend trader will get stopped out 60 to 80% of the time, waiting for that 20% when it trends and pays for all the losses.
     
  9. zanek

    zanek

    All of the strategies are mine. Yea, the equity curve isnt that great, but I'm just getting started using that website to write my strategies in Javascript. Kind of cool to write everything in a browser and see results to backtesting without having to download any software (even works on an iPhone and iPad).

    Anyway, I've seen some strategies with a 30% win rate but the equity curve looks way better, so I'm not sure if I should even care about the thought of losing 7 out of 10 times.

    The strategies I embedded before were squished, but you can see them better here:

    http://www.stocktesting.com/Embed.a...7gOK7TqAOSJWgL5S1lPn+m9pRqZs1RB9ux8PynXYKaA==
     
  10. It much like last call at the bar, everyone thinks someone else has a better deal going home. I once told a group of daytraders that your imagination will offer far better profits than reality.

    The numbers of winners and losers in a given trading methodology is a reflection of the group of strategies that you use and the risk that you take in your rules. It is pretty meaningless I think.

    For example, breakout strategies have different counts than trend traders, than overbalanced strategies, than indicator extremes, than countertrend etc.

    If your methodology makes money, then psychology is easy. The real challenge you are hinting at is when to know that your strategy has begun failing.
     
    #10     Sep 27, 2012