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Henry,
I should have pointed out that I don't trade expensive contracts (i.e.
SP500) with MONS. I have been limiting this campaign to the contracts with
margins under $2500. So the gains and losses tend to be smaller.
Yes, indeed large loosing trades are very important. In testing I also try
to through out the largest winning trade since it sometime distorts the
results. I have an excellent example for the Mexican peso. Disregard the
largest win and the results are poor. My largest loosing trade was -$522
net on short 2 Sept Live Cattle and my largest winning trade was $1,870 on
long Sept Coffee. The loss on the LC was in part a screw up on my part in
getting in the stop loss in time.
I hold trades for overnight (if not stopped out on the entry day) and close
out on the next opening. I've been on the right side of one limit up (Aug
Pork Bellies). This week I cleared $350 on Monday (Sep OJ & Dec CT) and
$122 yesterday (Nov CRB). This morning I placed orders to go long Sep
Copper and Aug GSCI. Since these are Buy Stop orders there has been a 50/50
chance of having them filled today.
I hope this helps. M
-----Original Message-----
From: Henry Amand <omega-list@xxxxxxxxxx>
To: omega-list <omega-list@xxxxxxxxxx>; Marlowe Cassetti <marlowec@xxxxxxx>
Date: Wednesday, August 11, 1999 1:55 AM
Subject: Re: What to expect from a trading system ?
>Hi Marlowe, thanks for your reply.
>
>Just another question though,
>
>First of all you want the trading system to do well on a number of
>different commodities. I can get that. not all will do well and not all
>will lose at the same time. If you get out of the ones that don't do
>well fast enough, you are alway's making money somewhere.
>
>What i don't get, your average net trade is $98.80
>
>Is that enough ? your system must get you out of the market fast
>then because if trade 35 is a loosing one and you loos, say $ 3500
>you have lost everything. Over here it is not uncommen to lose
>$ 3500 in a single trade. Is it because of the commoditie you trade
>that 98.80 is enough ?
>
>Also this get's us to the point about the maximum loosing trade.
>I get how important that is now :-) If that is very high it wil blow all
>youre winnings away.
>
>Greatings
>
>Henry Amand
>
>
>
>> Through today, I had 34 individual trades, one contract each, with a
54.8%
>> win/total ratio, a profit factor of 1.88 and an average net trade of
>$98.80.
>
>
>
>> >What is the highest percentage i should ask from a system before
>> >i start trading it ?
>
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