Dear ES,
I suggested MinProfit of 40 and/or multiple of step as this strategy tends to have large draw-downs (while cost averaging). Making steps larger we reduce the risk of getting wiped-out (during strong trends). The larger the profit the better from risk : reward perspective, but it requires larger retracement to close with decent profit.
So, one has to experiment and decide on one's risk/reward profile, but like all martingale strategies it is very risky irrespective of settings. If the market trends for extended period of time without retracement, it will wipe out.
Cheers, Kris
Quote:
Originally Posted by ElectricSavant
Tokarus,
May I ask why 40.0 (dollars) per 1K? and why would it need to be larger than the step? why is there a limitation when these appear to be unrelated inputs? Sometimes I get lost and please excuse the primitive question.
This last move in cable seems to call for a 20.0 or 21.0 min profit input...I was just wondering how you arrived at 40.0? Was there a historical signifigance other than just this last move that I so primitivley referred to, or do you prefer to just trade less?
ES
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