garyfritz wrote:Shelley, I'm trying to understand the R:R and return on this strategy.
When you say you've banked 863 pips, does that refer to the pips earned by all 3 positions? E.g. if a winning trade that TP'd at 50 and 100, and let's say a JS exit at 200 pips, would that be a total of 350 pips banked?
Do you still run with a 200 pip stop? Which, since you have 3 positions, is actually 600 pips risk?
Let's say you trust this strategy and want to risk 2% of your account on each trade. If you traded 0.1 lot, the 600 pip risk would be $600, meaning you'd need a $600/2% = $30k account. You'd have earned $863 in 3 months, risking $600 on each trade?? That's $863/$30k = 2.87% growth in 3 months. That seems like a lot of risk for a small return.
I thought I had a fairly accurate version of Gday implemented in Tradestation. But when I dug it out and tested it, it's been losing pretty steadily. Only AUDCHF and EURAUD showed a profit in the last year. I must have something wrong. Could you PM me the list of trades you've taken since June (or as many as possible) so I can see where my problem is? And summarize any changes you've made to your original basic rules? I'm using stoch length of 8, buy when it crosses over 20 / sell when it crosses under 80, go to BE at +50, TP1 at +50, TP2 at +100, 50-pip jumping stops, SL at -200.
Thanks!
Yes, Gary you are right in your R:R comments...if the trade is closed at -200 SL it is actually -600 because you have 3 times your position, however this is an extreme, keep your shirt SL, whereas most trades that don't reach BE will close at the cross of the stoch. I'm not sure how you would work out the R:R on that basis, but in all my testing of this strategy (nearly 1 year) I have only had 1 trade go to a full SL (disclaimer - I have not traded non stop during this time)
As for the 863 pips, I was actually being a bit lazy and just taking the results from myfxbook these were the pips if only 1 position (they don't multiply out ...it is actually much more due to the multiple positions taken as well...1111 pips.
This morning though, both my trades have closed at the cross of the stoch with drawdowns...
chfjpy -177.2 pips (-531) and gbpchf -85 pips (-255) so total pips now banked = +325
With that being said, both of these trades were very marginal and is something I am looking to tweak to improve entries.
As for your Tradestation results...I am currently using stoch of 7,2,2 all other parameters are as you have listed. Can you please run your test with the updated stoch settings?
Cheers
Shelley
