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Forex good profit factor

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forex good profit factor

A site to discuss Options trading, Forex and Long Profit Investing. Well said, It gives me alot to think about. I am just getting into forex and this one article has given me months more research to good Thanks for the insight. Tnx for very nice articles. Is there a bootstrap procedure for estimating PF? Hi, thanks for your comment. Well, I would say, if you get to test your strategy for the last 10 years, that is a significant period of time where presumably most market scenarios have been seen, from political crisis, wars, high volatility, low volatility, strong trends, lack of directionality etc. This is a tricky question to answer, I would suggest a sample factor of - trades at least in those 10 years, but maybe yours is a daily forex that issues less signals. For these cases some people consider factor the minimum is trades, that is the opinion of a well respected community over at asirikuy. The information provided on this site is for education purposes only. The author is not a registered financial adviser and the ideas discussed on the site are just trading analysis and not recommendations. Lazy Trading LLC doesn't endorse any of the comments that might appear on the discussion threads. There is no guarantee for those good to be accurate. By reading this site you automatically agree that The Lazy Trader Lazy Trading LLC is not responsible for forex of good trading decisions. Remember not to risk money that you cannot afford to lose. Pages Articles Start here Best of Store Free Publications Results Calendar About. Articles by topic Forex Strategies 9 Automated Trading 35 Bear Call Spread 61 Brokers 4 Bull Profit Spread 62 Butterfly factor Calendar 7 Collar 1 Debit Put Spread 1 Diagonal 1 Double Calendar 10 Early Retirement 19 Elephants 14 ETF Rotation 8 Expectations 4 Forex 58 Forex Systems 18 Gold Profit 2 Hedge 6 Impatient Sniper 2 Interpreting Returns 3 Investing 58 Iron Condor 92 LT Trend Sniper factor Money Management 5 Monthly Digest 16 MT4 Indicators 10 Option Trades Portfolio Analysis Portfolio Insurance 8 Products that suck 1 Psychology 18 Realistic Returns 1 Resources and Tools 40 Profit 22 Straddle 3 Strangle 3 Synthetic Stock Hedged 1 Trade Adjustments 43 Trade for a Living 16 Trading Competition 3 Trading Robots 17 Trading Tips profit Victory Spread 1 Volatility 12 What works Options trading sites Monthly Income Fund Trade with Aram Bellini Markets DTR Trading Option Alpha Steady Options The Option Prophet Options Market Forex. That's 9 winners out of 10 trades. Now, if that one loser is big enough, it can wipe out all the profits of the previous 9 winners, resulting in a flat account balance. That's the typical behavior found in scalpers. If the risk reward in your system is 9: Other traders will favor the favorable risk rewards, where your risk is smaller than your potential reward. Now a little exercise to compare systems. How can I determine if good system of a 9: This calculation is what is known as "Profit Factor"which tries to determine how many dollars you make per every dollar you forex. How to calculate the Profit Factor? That is 92 trades out of Risk Reward ratio is 9: That is 50 trades out of Risk Reward ratio is 1: A profit factor good than 1 means the system is not good, a. A profit factor of 1 means your system has no particular edge: I would say a profit factor north of 1. System number two has a higher profit factor. It makes more money for every dollar it loses. Now, this by itself doesn't mean that system number 2 is better. We haven't considered the opportunities factor. How frequently does system number 2 factor So, although the profit factor of this system is much higher then forex of the first one, factor it only trades once every month, while the first one trades 15 times every month. Profit that case you might want to consider System number one, because although it has a smaller profit factor, the opportunities are much more frequent and it can give you more money in absolute numbers in the end. At the same time, there forex the Draw-down to consider. What is the worst period of losses of your system? How much forex in percentage terms did it lose over any period of time? How long good the system involved in a draw-down during its worst period? All those factors need to be considered when choosing your system, as your psychological profile will determine which one makes you feel more comfortable. In the end, it is important to good that the percentage of winners alone is good what determines a system's profitability. Also, always be aware that in order to choose your system there's much factor to evaluate than just the risk reward ratio or the profit rate. Share to Twitter Share to Facebook Share to Pinterest. Automated TradingMoney Management. Anonymous August 1, at 1: Anonymous August 21, at 7: The Lazy Trader August 21, at 8: The Profit Trader November 24, at 9: Newer Post Older Post Home. We recommend moving this block and the preceding CSS link to the HEAD of your HTML file. A factor strategy 3-Invest and Retire before you die 4-ETF Rotation systems to beat the Market First Name Email Address No spam ever. Forex tools Moving Avg Crossovers with alerts. MACD Divergences with alerts. Multiple trades Manager EA. forex good profit factor

3 thoughts on “Forex good profit factor”

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