Tuesday, August 21, 2012

Going Live

I'm currently opening a new account with Pepperstone. I hope to be trading live again next week with the low volatility breakout system that I described in the last few entries.

My overall aim is to become a mechanical trader by simultaneously trading multiple, low-correlated systems. My vision is :

- a smooth equity curve from using low risk money management (<1% per trade) in combination with multiple systems (the systems in drawdown should be more than compensated by systems in profit at any particular time due to low correlation).

- a rapidly rising equity curve from high frequency of trades (multiple systems will provide many trading opportunities every day. High frequency + the effect of compounding = steep equity curve).

4 comments:

  1. Welcome back on live trade and GL.....

    I see you chose NY close broker, thats very OK!!

    Bye from EU
    Clemens

    ReplyDelete
  2. What is your profit factor and returns looking like?

    ReplyDelete
    Replies
    1. Hi. I only had two entry signals since this entry. Both hit their stop loss. It's just two trades so statistically meaningless.

      I'm going to use the following formula to calculate my profit factor, using my backtest results from 2001 to 2012:

      (Avg profit per winner * win rate) / (Avg loss per loser * loss rate)

      = (1.67 * 0.4784) / (1 * 0.5216)

      = 1.53

      Hope this helps. :)

      Delete

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