Which setups are more attractive?

Discussion in 'Risk Management' started by elitetradesman, Oct 15, 2012.

  1. Try taking your finger off both of them.

    Start over.
     
    #11     Oct 18, 2012
  2. baro-san

    baro-san

    If you plan to bet you should also think in terms of Kelly formula, of maximum draw-down, of maximum bet.

    If you consider betting on a black box trading system, or a back-tested trading system, you should consider the data you have as unreliable and not do it. You should trade only a system that makes sense to you.
     
    #12     Oct 19, 2012
  3. ===============

    Elite T;
    Frankly the first sounds like the worst set up i have seen all year;
    really neither, but amoung the 2, the last one:D

    Keep looking
     
    #13     Oct 24, 2012
  4. bone

    bone

    You are a big swinging dick. Best post on Elite Trader for 2012.
     
    #14     Oct 24, 2012
  5. Newex

    Newex

    The 1st is like playing black and red on a roulette but by betting 407 you get 433 and not 407.

    The other one seems very conservative and chances are that you will lose the 50$ thatn win the 1000$ .

    On paper the 1st one gives the better return (better than a roulette anyway) but if i HAD to choose i would go for the 2nd one .

    Losing 50$ is no big deal.
     
    #15     Oct 30, 2012
  6. Bry

    Bry

    how about doing further research to determine if the second entry can be modified for greater odds; ie, maybe it works 22% better if taken only on Thursdays when the 33 EMA is up, etc.
     
    #16     Nov 2, 2012

  7. Perhaps reversing All the signals of the 10% win-rate set-up would give you a 90% win-rate set-up! :D
     
    #17     Nov 2, 2012
  8. chiefFLE

    chiefFLE

    setups with a higher % winrate are the most attractive, even if they have negative expectation over the long run. It is a psychological barrier to success. One of many.
     
    #18     Nov 14, 2012
  9. The way I see it, it depends on the frequency of the setups. They have the same expectation, so jump on the one that you see most often.
     
    #19     Nov 14, 2012
  10. Where is your mansion located??
     
    #20     Nov 14, 2012