My theory of averaging

General topics about Forex trading

Re: My theory of averaging

Postby Rom » Thu Mar 18, 2010 8:36 am

Alright. So if my usual trade is one contract of 6*$100000 of TP 100 & SL 50,i should break it up into 2*$100000 of 33 & 25, 2*$100000 of 66 & 37, and 2*$100000 of 100 & 50?

If you can spend the extra work, instead of lots 6.00 SL 50 TP 100 I suggest (and also to put some trade management on contract 1 & 2)
This will not by itself increase return per month. That will happen when risk level is adjusted according to new trade statistics using risk calculator

Code: Select all
1 (maintaing your existing TP/SL relation)
1. Lots 1.2 SL 75 TP 150
2. Lots 1.2 SL 62 TP 125
3. Lots 1.2 SL 50 TP 100
4. Lots 1.2 SL 37 TP 75
5. Lots 1.2 SL 25 TP 50

2
1. Lots 1.2 SL 75 TP 100
2. Lots 1.2 SL 62 TP 80
3. Lots 1.2 SL 50 TP 60
4. Lots 1.2 SL 37 TP 40
5. Lots 1.2 SL 25 TP 20

3 (maintaing your existing TP/SL relation)
1. Lots 2.0 SL 75 TP 150
2. Lots 2.0 SL 50 TP 100
3. Lots 2.0 SL 25 TP 50

4
1. Lots 2.0 SL 75 TP 100
2. Lots 2.0 SL 50 TP 66
3. Lots 2.0 SL 25 TP 33


Rom
 
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Re: My theory of averaging

Postby ivanlim » Thu Mar 18, 2010 8:45 am

I see. Well kjell,this is a really great system. I hope this would help me. Thank you very much for sharing such a wonderful idea. :D

Looking forward to future ideas from you =P
Ivan
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Re: My theory of averaging

Postby Rom » Thu Mar 18, 2010 8:48 am

:)
Rom
 
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Re: My theory of averaging

Postby ivanlim » Thu Mar 18, 2010 9:22 am

Oh dear,i just realised that i am not allowed to open 2 or more contracts of the same buy/sell trade for any currency pair. Do you know how do i open 3 contracts instead of 1? Probably i did it with the wrong steps
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Re: My theory of averaging

Postby Rom » Thu Mar 18, 2010 9:26 am

I don't have that problem. My girlfriend does not care.
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Re: My theory of averaging

Postby ivanlim » Thu Mar 18, 2010 10:09 am

Haha,ok. May i know which broker do you use?
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Re: My theory of averaging

Postby Rom » Thu Mar 18, 2010 10:38 am

The live one is IBFX. Demo is FXOpen.
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Re: My theory of averaging

Postby ivanlim » Thu Mar 18, 2010 10:37 pm

Ok. Thanks a load for your help :D
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LMD-Multicurrency performance

Postby Rom » Wed Mar 24, 2010 12:27 am

Using the data at
http://www.forex-tester.com/forwardtests/forexworldcup/statement.htm
LMD-Multicurrency cannot deliver

Code: Select all
                             DATA
                     StartDate: 20100204
                       EndDate: 20100323
                  ProfitTrades: 41
                    LossTrades: 51
                 SumProfitPips: 1550
                   SumLossPips: 2260

                      LMD-Multicurrency
              Trades per month: 59
                Average profit: 38 pips
                  Average loss: 44 pips
             Profitable trades: 44,57%
              Profit per trade: -7,72 pips/trade

              Sustainable risk: 0,61%
              Return per month: -8,80%
       Average annual drawdown: -45,87%


kjell
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