Trading Systems and Money Management : A Guide to Trading and Profiting in Any Market

Figure 21.1 shows that without the trend filter, 18 markets had an average profit factor above one. However, we cannot say that ...

certainty, fall somewhere in the interval 0.83 to 1.19, while the true percentage of profitable trades will, with 68 percent cer ...

As it turned out, this was a very interesting piece of research where very few of the ten different versions of the five systems ...

Reason number four is the order of the systems in the first place. In this case, we started by adding the stops to all systems a ...

is the relatively little time they spend in the market, which makes plenty of room for diversification with other systems and ma ...

Relative-strength Bands as the Filter The hybrid system No. 1 probably least liked the filters, no matter which filter it was te ...

sion of this system lost as much as one-third of its average profit per trade and two-thirds of its risk–reward ratio. The numbe ...

general decrease of performance, compared to trading without the filter. In this case, the profit factor comes out to 1.52, comp ...

The stop-loss version of the expert exits system using the relative-strength bands as a filter, in Table 21.12, also is a good e ...

despite the fact that this version has the highest profit factor, it still has the lowest average profit per trade and risk–rewa ...

in these tables: Namely, the terrible results produced by the stop-loss version of this system, no matter which filtering techni ...

The average profit per trade for the stop-loss version of the Harris 3L-R pattern variation isn’t much to brag about either. The ...

performance quite a bit. Again, the risk–reward ratio is almost one-third the size of the original system, and the average profi ...

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Chapter Variables Most of the time, when building a system, we talk about making the system robust, meaning it should be as litt ...

tem as broad in scope as possible, work with as few optimizable variables as pos- sible (preferably more than three), and avoid ...

Even if we assume that one or several trading sequences on different markets give an accurate picture of how the trades will be ...

274 PART 3 Stops, Filters, and Exits FIGURE 22.1 Excel spreadsheet showing randomly selected trades (data subsheet). FIGURE 22.3 ...

I will not go through all the systems tested, but simply describe the process so that you can do it yourself on your own systems ...

Figure 22.3 shows some of the equations needed to calculate most of the sta- tistics that can be derived from this analysis. In ...