Attached Image
Playing around with a system that is very much like a coin toss in nature. Going to journal the results here.
Some people might think I am crazy but most if not all of my trades are going to be with a risk:reward ratio less than 1:1. The worst R:R I will use is 3:1 and the most common will be around 2:1. Since I am expecting and will be required to have such a high winrate in order for this system work this will be using a very aggressive risk management plan. I will be risking 10% or less per trade.
Since this account is so risk aggressive drawdowns are too expected. A draw down of 35% is totally healthy and expectable for this system.
Heads = Long
Tails = Short
Do not ask me how the system works. If I wanted to go in to that the thread would be in a different location. I will talk about the system in general terms but I will not post entry rules or steps or anything like that.
Let the games begin.
Attached Image
Current Goal: $850.00
A Little About the System: As I stated earlier the news is my least favorite part of the market to trade. This is because the news is the levy flight in the market. Those that know me know I firmly believe the market is a random walk with a levy flight. Those that know also know that I think phycology is very important in trading and more times then not, if you can do the opposite of the herd your results will likely be opposite of the herd. So what is the herd doing? What is every one taught to trade and what is every one trying to capture? The trend. The News. The Levy Flight. Every body is trying to capture the levy flight or the trend of the market and in doing so they end up getting chopped to bits by the random walk. Since everybody is chasing the Levy Flight I have learned to chase the random walk. As crazy as it sounds, it is much more predictable than the levy walk or the next trend. As I said, it is extremely hard to predict when and where the levy flight or trend will take place. It is how ever very easy to see when the levy flight or trend has taken place after the fact. This is often a big problem for most traders, by the time they notice the market is trending, the trend is over. And what do we know will always happens after the levy flight takes place? The market reverts back to the random walk. So in a sense this is a mean reversion strategy as most of the market, especially shorter time frames spend most of their time in a random walk like state. So the goal is to find a levy flight that has already occurred and trade the reversion back into the random walk.