Current exposure on five 50 P trades in the red is close to 1.5%...

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Cyclone73

1,772 Posts.

416

05/12/19

20:30

Post #: 41822278
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Originally posted by Cyclone73: ↑

Hi Sharks,
I regards to exposure, For example the GBNZ I have been only trading on a 4 or 5 day cycle.
Top top bottom about 150 - 200 pips so never more than 20 trades at 10 pip intervals and re-setting each time rather than just letting it go.
While that pulls in great results, I think it's only a matter of time until I get badly burnt (as in cremated!)
My thoughts are that at the moment the price is trading at around the yearly high or -20%., which has to break at some time, and I thought it may have been it when it broke 2.00....not to be this time I guess.
I'm looking for this to be a background base earner (and don't have the time for constant monitoring) so will have to adjust the range to suit the possibilities of six month or a years price wanderings.
Try to match the strategy to what I am able to input.
Because of this I have now grid spacing's of 50 P and will perhaps move out to up to 100 P to reduce the amount of cash in play at any one time.
This is obviously not as efficient in skimming pips from small fluctuations.
I will also only trade max two pairs. The lot size is for one.

The lot size is neither here nor there at the moment, the risk is based around 5. If I was to invest 5k I would divide the current lot size by 10. ie .015
I was only basing the .15 on what I may invest in the strategy if it works out to some satisfaction the numbers are currently what you see above.

For example in testing with 50k investment over the last 13 months with sell from the top third, buy from the bottom third and bidirectional through the middle third with 50 P space and 1.5 lot and 30 trades the PF is 4.1, earnings is close to +45k or +90% growth with a down draw of 34% (a bit high).
If you were lucky enough to compound any where even close to that over three or four years...continuing to up the lot size in relation to bank, you're looking at big bickies, especially if you don't have to eat into the profit for cheese and bread.

If I only have to check in once or twice a day for five to ten and maybe an hour on the weekend for this particular EA, (in case the world ends or adjustments are required) I'll be happy to take the reduced earnings.

Still in dream land, Mike

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Current exposure on five 50 P trades in the red is close to 1.5% of bank.
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