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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
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