i love day trading

[biyas10]

using a particular type of martingale, i can be profitable with a 20 % system even with 1:2 ratio
although that type of martingale is ABSOLUTELY not advisable to trade, ABSOLUTELY not, just for record purpose.

want details? )

what you will do with a 20% wining system when it is not useful for trade. hope you will explain.

 

[Luckytrader]

Yes want to know more about your great system.

Waiting for your reply jain

 

[hmp]

Dear Ratan
Will U Pl. Explain Your Maritangle System In Detail? It Looks Interesting.
Thanks And Regards
Hmp

 

[beginner_av]

matriangle is very dangerous if u dont have proper infrastructure...even if your entry seems perfectone small hiccup like ur net going down, ur pc crashing etc just when the market turns but before u can place a protective stop in. but as ratan has already said, it is dangerous.
as for 20% or 30%, it is not 7 losses in a row or 8 losses in a row..then it would have been all too easy in fact theoretically it can be 50 or more losses in a row too...when u toss a coin do u know what will come next - head or tail? now when u toss a coin 10 times do u know whether 5 heads and 5 tails will come? But when u do it for 1000 times that probability will approach .5. look at cv's thread somewhere on calculating expextancy.

 

[ratan jain]

beginner: not meaning to hurt you, but expectancy is different from probability.

regards your observation about runs of losses, u are absolutely right... it will be about 30 wins in 100 trades, or 300 wins in 1000 trades, and not necessarily 3 wins in 10 trades. You have made a very vaild point. in fact sometimes i discover even a 40 or 50 % winning system, but because the system is going through a bad phase, it looks like a 20 % system, and i discard it, whereas i should at least take a 100 trades before deciding on a system. So, your valid point is accepted

 

[hmp]

Pl. Explain Ur Way Of Trading.
Thanks And Regards
Hmp

 

[biyas10]

what happened ratan, are you going to explain .

 

[ratan jain]

luckytrader: its not a great system, just 20 to 30 % winning trades.....

still interested in knowing my GREAT system?

just require balls of steel to apply money management tactics to make money from such a system.

hmmm...balls of steel....even they melt when there is too much heat



come on guys its trading time, concentrate on trading! lets talk in the evenings

 

[beginner_av]

hey ratan,
not hurt or anything at all...i love good discussions. i was just answering to someone who said what will i do with a 20% winning system...and then someone who said how can i take 7 losses or 8 losses in a row...
1. just because it is a 30% winning system, u ont get JUSt 7 0r 8 losses ina row..it can be much more..and there comes probaility and law of large numbers.
2. Now what will this person do witha 20% system? there comes expectancy.
from some site:

"Expectancy is simply the product of your profit percentage per win and your win rate minus the product of your loss percentage per loss and your loss rate. For example:

* Win percentage 6%
* Win rate 60%
* Loss percentage 4%
* Loss rate 40%.

The expectancy is 2.0% per trade, or (6% x 60%) - (4% x 40%).

One of the more famous expectancy numbers comes from William O’Neil, advocate of the CANSLIM system and founder of Investors Business Daily. If we use his stop and target numbers of 8% and 20% and his published win rate of 30%, the expectancy can be calculated to be: (20% x 30%) - (8% x 70%) or +0.4%.

The bottom line is: expectancy must be positive if you want to make a profit over time. Never use a system with a zero or negative expectancy. You will not win. You can not beat the house over a long series of bets or trades."

hope that clarifies

 

[ratan jain]

ok...
here goes....




Come on u dont expect me to tell u everything, do you?