Had a trading system once, that had 80% win rate. I thought it was pretty high and suspect. Backtested it manually on 118 trades. Still got good results. I though then, that even if the win rate went down, it should still be profitable. So, I traded it using small amounts to actually, test it real time. I had 7 live trades, 6 of which were losing trades. Only 1 was a winner. Reviewing the trades, I saw the the slippage was huge and that doomed the trading system. I dumped it right after. Nothing like trading it live to see if it really holds up during market conditions.
Hello Businessman, Thanks for the response. Yes, I am thinking of sticking to rule of if live results shows 2 times drawdown, stop the system.
Hello Businessman, The net profit is the total for 16 years of historical back test. Lol, I wish it was for one year.
If only high win rates like 60%,70%,80% (with at least 1:1 Risk Reward) were possible with a mechanical/automated system. Trading would easy and we would all be rich already. But we all know trading is not easy.
Hello Businessman, I like to keep an open mind and not know anything when it comes to trading. Anything is possible. I believe there are traders rather it be discretionary or automated system trading with win rates from 10-100% that is making a lot of money and rich already. Just because I can't achieve this win rates and results, does it means it does not exist.
Consistent profit factor is the key. Good 16 year average profit factor means you could recover from a bad drawdown.