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Old 01-19-2009, 08:43 AM
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Kenny Rogers Kenny Rogers is offline
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^ Well, the strategy on the Hare Account is quite risky because I am trying to be aggressive on this account. It's a new strategy. I was up almost 80% on the account at one point, but obviously it did not last. Real bummer. The strategy is based on a type of reversion to the mean and its standard deviation with a group of currencies being traded at the same time. This strategy opens a lot of trades and also trades everything including the exotics with large spreads, and I believe one of the weaknesses of this strategy is the broker's varying spreads during slow times. Therefore, I should not be trading it on Sundays because I've noticed the spreads widening to unacceptable levels at the start of trading. Also, it seems this strategy moves around the mean on both sides, so now I have a 1:1 ratio...and it is hitting my SL and TP randomly.

And many of my losses are hitting their stop losses, and quickly turning back into my favor after I've been taken out. It has been frustrating to say the least.

I'm playing with widening the stoploss to 3-4 times the target profit on a different demo, which gives me the crapola rewards to risk ratio. But I think this gives a lot more wiggle room for the reversion to happen, sometimes, even I have to compromise with the market's behavior...and going against what I believe of having positive RR ratio. This is why I will need some time to verify my results, re-evaluate my trading philosphy, and come back to the game at a later date. Not sure if this will help the strategy to be more consistent. Right now, it is way too wild. And it's real money, so it does hurt quite a bit.

So I really do need to shut up now, and get focused on trading. Kenny Rogers is not a happy camper right now.
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Last edited by Kenny Rogers; 01-19-2009 at 08:46 AM.
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