
25th January 2013, 01:29 PM
|
Member
|
|
Join Date: Jan 2007
Posts: 26
|
|
Ocho
The key to loss recovery is to incorporate a loss stop. Continuing to chase losses will bust your bank. You need to obtain 6-12 months of data on avg number of losses, max loss for your system. Having established these figures lets say your avg. is 2 and max. 5, if you set your loss stop to 3 you may find that on 90% of occasions full loss recovery is achieved. You have to accept that you will still have losing days.
This is only half of the equation. You need to obtain your average dividend and determine your multipliers for loss recovery. I calculate my multipliers to two decimal places. As you can see there is a lot of mathematics and statistics that needs to be calculated to develop a successful system. It has taken me 2 years to get to this point.
|