HI friends
can anybody give some hints on this topic please!
1 how to have more winners than loosers
2 how to have bigger winners and smaller loosers
regards
ford
Win Expectancy = frequency X size of win
(Net expectancy of trade = win expectancy + loss expectancy)
so blindly optimizing win count while having small size of win you end up scalping.
even if frequency is low but win size is BIG, you can end up making HUGE profits
(usually several weeks of scalper profits in few days!).
What finally matters: having net expectancy high for your trading system.
More winners:
Go higher time frame (less noise) spot a trend
enter at supp/resistance/pullbacks
in the direction of Macro trend and exit quickly with scalpers profit, Never try counter trend! If trade went wrong dont exit quickly wait for a while since you are on the side of Macro trend.
Big Wins:
just like 'More winners' case, but ride the trend and trail instead of having fixed targets.
Dont be afraid to give away some profits in small reactions trail with decent distance
and exit at supp/resis/trend channel boundaries.
smaller losses:
Position sizing.
Don't put all your money in one trade. First probe your position with small size.
If it works then add on, else cut the loss with small position size.
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I have said the easy parts...
The tough part is deciding when to scalp, when to ride the trend!
Deciding on position size dynamically taking into account of market nature (i.e if you are sure for a big move you can double down!) and your risk tolerance (how much draw downs can you with stand? will your account open to lightening bolt loss wiping it fully?)