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GEN: Re: Trading the Pivot



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Dennis:

   You're average profit per trade looks much, much too small to have any
   trading value.  $13/trade?  Any costs over $13 makes this non-profitable, 
   as you discovered when you put in $35 costs...  In fact, at $13/trade with 
   no costs, I'd hypothesize that your entry technique is just about equivalent
   to random entry (I don't know how you were exiting before adding in profit 
   targets/stops).

   I personally always assume $100 costs (reasonably conservative for most 
   markets entry/exit approaches), and never look at results without those
   costs figured in.  Then I have no interest whatsoever if I can't get
   over $200/trade; the time and effort to trade it just isn't warrented for
   me personally.  I start perking up alot when the average trade is over $500.
   All systems I trade now (3) range from $500 to $1200 per trade.  These
   systems get in from 5 to 15 trades per year.  Obviously, these are primarily
   position systems, although two have average trade lengths of less than three
   days.

   I'd suggest you keep searching for a more substantial edge.


-Kevin