I will test next week on my vps with follow...
TF 5,15,30,60,240 on eurusd chart , sl 30 for each pair, 10% mm & 5% profit.
We all talk about if SL/TP is lopsided, we don't want to trade the system because r/r ratio is not good. (example: SL = 70 and TP = 8, (which is terrible R/R ratio - one example from this forum "RSI_MA scalper" has this ratio) ) Also, we shy away from martingale strategy because of possible heavy draw down when positions against us, and we think reward is not worth the risk. However, not many people think about 'basket' trading the same way. But in reality, my opinion, basket of trading is also same way. SL/TP ratio is lopsided. Just my 2 cents...
I trade basket trading, RSI_MA scalper and Martingale style trading because it's based on probability of hitting the target far more often than hitting SL. I believe draw down is unavoidable in Forex business. So, I am willing to stay with trade with reasonable drawdown. This is the 'balance' that I am talking about. What is the 'reasonable' draw down before cut the losses?
Going back to Appaloosa System, if we can select the direction per pair, instead of all 'buy' or all 'sell', I think hitting target maybe faster. That is why I suggested adding optional indicator to select the direction of each selected currencies in the basket.
Last edited by 4x4me; 09-04-2010 at 15:19.
Wow superb analysis !!! great. It seems strange when the EA opens all buy/sell for those basket of pairs, something concrete decision has to be applied, the e.g you have sighted some where in the post i.e Eurusd and usdcan go 90% in opposite direction is a very clear evident, which causes doubt on the strategy.
RSI MA Scalper works well though r/r is very high, for the reason, just see the timings it does trade !
looks like going to be an entry tomorrow... another 15% for me hopefully
beautiful 13 percent today, looks like can grab more but am happy with my 10percent... total grabbed 27 percent since last week