Two Questions For Practicing Day Traders

Discussion in 'Trading' started by ironchef, Oct 6, 2023.

  1. That's very good. Feel free to post a chart.
     
    #221     Oct 26, 2023
  2. toucan

    toucan

    suntrader is correct... win % is only part of the equation... you can have a really high win rate, but if your profit:loss ratio is inverted, you could still be losing money or risk large drawdowns that could lead to busting your account. in general, you want a system that has both a win% >= 50% and a profit:loss ratio >= 1.5:1. but the one number that you must have is at the end of a week, month, or year, the system has to be profitable. one other thing is that sim trading will always have better results than real time trading.
     
    #222     Oct 26, 2023
  3. ironchef

    ironchef

    It is still too early to tell. Won't know if it is sustainable until after a few more months, especially after I scale up.
     
    #223     Oct 26, 2023
  4. ironchef

    ironchef

    I am painfully aware of that.
     
    #224     Oct 26, 2023
  5. Nope, you are wrong. I already said for equal risk vs reward my win% is around 65% and in real life trading, you can have a down month, but a profitable year. I will try to explain it this way, say you flip a coin, it comes up heads 50 times in a row, what is the chance that is comes up head on 51 try, it's still 50%. However, if you have an edge with say even 55% win rate, over time, you will be profitable.
     
    #225     Oct 26, 2023
    toucan likes this.
  6. There are many systems in C2 with a win rate of 95% or higher and they win every month. And they are all not only worse than my system, they are complete shit. They can have a higher win rate than me since they don't take a loss on one of their trades till it blows up their system.
     
    #226     Oct 26, 2023
  7. SunTrader

    SunTrader

    Which proves the point - opposite of your belief.
     
    #227     Oct 26, 2023
  8. SunTrader

    SunTrader

    win amount * win% / loss amount * loss% is a far better measure.

    There are many others. Do yourself a favor and pickup a trading systems analysis book or two.
     
    #228     Oct 26, 2023
    toucan likes this.

  9. Maybe try to learn to read and understand what I wrote. I don't know why it is so hard for you. On my C2 system, my Forex trades had equal risk vs reward. So for example, let's say I would lose $ 1,000 on a losing trade. I would also win $ 1,000 on a winning trades. All of these trades had hard stops and targets. My 65% win rate, allowed the system to generate a profit over time even with some months being negative. Let's say 1st month was 15% profitable, while 2nd month was 8% negative. When you added up all the months for the year, the year % was profitable.
     
    #229     Oct 26, 2023
  10. For those reading my posts, I want to explain the difference between a system and discretionary trading. The Forex trades were all system generated, no emotion no revenge trading, no mistakes. All trades were automated overnight and I could see the results in the morning. What I posted win% now is for futures trading which where I have to put in the trade and manage it. It is much harder. To achieve better success, I need to try to be more like a robot on my futures trading.
     
    #230     Oct 26, 2023