hankee replied to the topic Nature of Markets – Power of Probability, Compounding & 1pip in the forum Trading Systems Discussion 11 years, 1 month ago
I was just thinking that by waiting until marigin call we are actually assuming a stop loss. In the case of a 0.4% per pip trade, of aproximately 185 pips (assuming margin call at 25% equity). Is that right? For example if we had a 100 dollars balance, 0.4 USD * 187 = 75 dollars loss, the ammount necessary to get MC.
I would like to have an…[Read more]
hankee started the topic Forex Tri-Arb signals as predictors of price in the forum General Discussions 11 years, 1 month ago
Yesterday I was checking out this thread at FF –Triangular Arbitrage @ Forex Factory– and I found it extremely interesting.
So the story is this: for any forex currency cross (say, EURJPY) there are combinations of two other currencies (for example, USDJPY and EURUSD or EURGBP and GBPJPY) from which you can create a “synthetic” EURJPY. So if…[Read more]
hankee replied to the topic What is the minimum edge necessary to beat spread? in the forum General Discussions 11 years, 1 month ago
Today I was thinking about this same issue, and I remembered this thread and i thought “Well, let’s go check it
“.So now i understand what I didn’t at the time: to calculate how profitable a system is you have to include the spread before calculating the risk/reward, not after.
I also always wondered what the “profit factor” was and now I…[Read more]
hankee joined the group
TZ and SS. 11 years, 1 month agohankee started the topic What is the minimum edge necessary to beat spread? in the forum General Discussions 11 years, 6 months ago
Suppose I have a system with a 1:1 RR that gives me, say, 10 pips 60% of the times I make a trade. I intuitively know that with a 3 pips spread, this system is probably going to be profitable. But is it? And what if for example I had a win ratio of 55%? Would it be profitable? And how much?
I suppose there is some mathematical formula to calculate…[Read more]hankee started the topic What is the minimum edge necessary to beat spread? in the forum General Discussions 11 years, 6 months ago
Suppose I have a system with a 1:1 RR that gives me, say, 10 pips 60% of the times I make a trade. I intuitively know that with a 3 pips spread, this system is probably going to be profitable. But is it? And what if for example I had a win ratio of 55%? Would it be profitable? And how much?
I suppose there is some mathematical formula to calculate…[Read more]hankee joined the group
Fractal Arrow Prediction 11 years, 6 months agohankee became a registered member 11 years, 6 months ago