|
|
Using probability as a guide
|
FOT-March 2009-3
|
|
This approach uses the Martingale rule in a conservative way to trade larger positions after a string of losses without getting wiped out.
|
Detailed Description
When evaluating the merits of a trading strategy, many arm-chair system developers focus almost exclusively on its percentage of profitable trades. If a trading system has a high percentage of winning trades, it seems logical it will withstand the rigors of real-world trading better than a system with a lower percentage of winners.
However, the percentage of winning trades doesnt contain enough information to make a valid comparison between two trading systems.
|
|
|