[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

[amibroker] Re: Fast OR Slow ? or Risk/Reward ratio



PureBytes Links

Trading Reference Links

DT>>A fast [and smart] indicator will catch the trend ASAP, but it will 
leave the trend prematurely.

DT> Another slower [and more wise] indicator will loose the early birds, 
but it will be rewarded with the delayed exit

You may look at this under different angle: 

- fast indicator has smaller risk and less reward
- slower indicator has greater risk and bigger reward

I think the same relation is true for a timeframe: intraday - small 
risk/small reward, long-term: big risk/big reward. And Risk/Reward ratio 
would be almost equal. 

What option to choose (fast or slow indicator, intraday or long-term 
timeframe) is up to a trader. How much risk (drowdown) can he swallow?

Good luck in trading,
Mike


------------------------ Yahoo! Groups Sponsor ---------------------~-->
Make Money Online Auctions! Make $500.00 or We Will Give You Thirty Dollars for Trying!
http://us.click.yahoo.com/yMx78A/fNtFAA/46VHAA/GHeqlB/TM
---------------------------------------------------------------------~->

Send BUG REPORTS to bugs@xxxxxxxxxxxxx
Send SUGGESTIONS to suggest@xxxxxxxxxxxxx
-----------------------------------------
Post AmiQuote-related messages ONLY to: amiquote@xxxxxxxxxxxxxxx 
(Web page: http://groups.yahoo.com/group/amiquote/messages/)
--------------------------------------------
Check group FAQ at: http://groups.yahoo.com/group/amibroker/files/groupfaq.html 

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/