Setup: Resetting my demo account to $5,000 USD @ 20:1 leverage. Proft-loss ratio (PLR) will be 1:1 this week, with both take profit (TP) and stop losses (SL) set to 30 pips. Each of six pairs will trade at 15% of the available capital. While that flies in the face of the 2% rule favored by many seasoned traders, I'm assuming for the purposes of this exercise that the $5,000 total represents what I'm willing to safely risk.
Expectations: I won't get quite as many trades this week, and the higher TP level will help ensure a slightly better quality from those trades. However, I expect many of them will still end too quickly, and the spreads will inflict some losses this week rather than allowing a break-even or even slight profit for the QRF system. I don't expect to lose as much as last week, but I won't be surprised to kiss about 200 pips goodbye, give or take a few.
Rule Override: Since I'm still trading on a short ratio, I think I'll keep the adjustment from last week a while longer.
2a. If a currency pair's trade history contains two losses, I will cease trading it for the day.
Sunday, March 18, 2007
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