thread: The Compounding System

I just finished my backtest to date Jan 2, 2014 for the period. I use OANDA Canada for my broker so some consequences might differ from person to person. This was because of its EU London open. The sign bar was the 2:55 am EST pub.

My review was to determine just how many reductions on a daily transaction would maximize my return. If you were to really have a max of two TP, I'd have gained 400 pips. This would have only been a risk of 30 pips max every day. By doing this, I could risk.6% of my account assuming a 2% daily risk per transaction.

If I were to go for 3 TP, I'd have gained 1040 pips for the same period. This would be a max risk of 70 pips every day. This would also cause lower my first risk to.3% to restrict risk to 2% of my account.

For 4 TP, the profit would have been 960 pips, indiing much more gain than 3TP. This would be for a risk of 150 pips. So I don't see much benefit and my first risk would be decreased into .15%.

So, for this egy, I'm will move ahead with a max amount of losses per commerce of 3TP. There is logic to quitting after the loss because the reduction plateau would ify any prospective fibonacci retracement or even elliott wave consequences.

My job is done in order to introduce a egy to traders so now I am not posting anything here. If anyone wishes to modify some forward testing is then brought by this and it might help others. The PM is not being answered by me. Thanks.

Welldone Aahmad thank you for this superb simple trading system.

I only completed my backtest for the period Jan 2, 2014 thus far. I use OANDA Canada for my broker so some results may vary from person to person. This was open. The signal bar was the 2:55 am EST bar. My inspection was to determine just how many reductions on a daily trade would optimize my return. In the event that you were to have a max of two TP, I would have gained 400 pips. This would have only been a risk of 30 pips max every day. By doing this, I could risk.6percent of my account assuming a 2 percent daily risk per trade. If I were to go for 3 TP, I would have gained...

Hello, your finding is quite interesting!

Did u also perform the testing on NY open as well?

IMO so long as we have set max 3 orders to lose, it will affect the whole result in a long run.

Thank you again!

I have tested on London open. I have fulltime job and kids go to school at nyo. I am now testing GBP USD in London open.

I've only tested on London open. I have fulltime job and kids go to school at nyo. I am now testing GBP USD at London open.

I got a question . Like you said you use maximum 3 orders into TP and you'd risk 0.3% per trade. Assume that you have winning percentage. 0.3 %*20*12=72% in return for the year? As the winning percentage is high and max 3 orders, would you increase the lots size to achieve higher return?

quote I got a question . Just like you said you use maximum 3 orders to TP and you would risk 0.3% per transaction. Assume that you have winning percentage. 0.3 percent *20*12=72 percent in return for the entire year? As the winning percentage is high and max 3 orders, do you increase the lots dimensions to achieve higher return?

I will continue to use a.3% risk. Since the account grows, I will increase the lot size accordingly. I use babypips to compute lot size.

quote I will continue to use a.3% risk. Since the account grows, I'll raise the lot size. I utilize babypips to compute lot size.

Ok~ with 0.3% initial risk, maximum 3 orders means you have 0.3%, 0.6%, 0.9% that overall 1.8% risk in total and you may need to risk 1.8% to receive 0.3% a day, daily RR ratio will be 6:1, in case of over 3 orders then you've got to win 6 orders in a row to make it . Can it be a bit too much?

I just finished my backtest for the period Jan 2, 2014 to date. I utilize OANDA Canada for my broker so some consequences may differ from person to person. This was because of its EU London open. The sign bar was the 2:55 am EST pub. My inspection was to determine just how many reductions on a daily trade would maximize my return. If you were to have a max of two TP, I'd have gained 400 pips. This would have been a risk of 30 pips max every day. By doing this, I really could risk.6% of my account assuming a 2% daily risk per trade. If I were to really go for 3 TP, I'd have gained...

Good Job

quote okay ~ but with 0.3% initial risk, max 3 orders means that you have 0.3%, 0.6%, 0.9percent which total 1.8percent risk in total and you may have to risk 1.8percent to get 0.3percent every day, daily RR ratio will be 6:1, in the event of more than 3 orders then you have to win 6 orders in a row to make it . Would it be a bit too much?

Dependent on the backtesting, a profit was made utilizing this risk tolerance. I know that results aren't conclusive of performance. Only time will tell if I could earn a profit.

Now went nicely in my own favor. 10 pips in under 10 minutes.

93923

quote dependent on the backtesting, a profit was made utilizing this risk tolerance. However, I understand that past results are not conclusive of performance. Only time will tell if I will make a profit. Now went nicely in my favor. 10 pips in less than 10 minutes.

I wanted to discuss here that if people do comparison of LO and NYO then both have their own advantages. However, I believe if you face slippage issue LO is better. Slippage is greater in NYO as compare to LO.