Saturday 18 July 2009

Making losses smaller than wins

Is it possible to make losses smaller without making wins smaller as well? Not with a coin flipping system, but with forex we can make the stop tighter than the limit. Remember I am only aiming for breakeven with the risk management. If I elected to have a 40 point stop and a 60 profit target, I could lose 60% of the time and still breakeven:

for 10 trades, wins = 4*60, losses = 6*40

Wins 240 pips
Losses 240 pips

OK we have breakeven Houston

Morty Sill





No comments: