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>Kevin Morgan wrote:
>>
>> Subject: Gen: Help understand statment.
>> In my system work, I've found this to really be true: deeper stops are
>> better. (!) Way deeper stops. (!!) My best systems have win/lose size
ratios
>> of as "bad" as $600/$3100 (!!!). Sounds silly I know...but with win
>> ratios as high as 98%, it works our pretty well. These are almost
>> always counter-trend, limit entry/limit exit (fixed profit) systems,
>> with fixed stops (no trailing stops). Some are closer to one to one
>> (i.e., $2100/2400 win/lose sizes), so they aren't all so skewed.
If your account size permits for buy signals, try entering 1/3 when
the signal is generated, 1/3 when the market moves half way down to the next
support, and 1/3 when support is hit (averaging down). Set your stop and
target based on the average price paid and wait for the bounce. Do the
opposite on sell signals.
I have traded counter-trend systems in this way with substantially
better results than entering at one fixed point, but it takes strong nerves.
Of course the system has to be good to begin with.
Good luck and good trading,
Ray Raffurty
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