OK, that was totally awesome! A couple of questions;
1. In order to invest max lots you have to figure out how many PiPs negative you will allow the trade to go before you get a margin call. How many did you calculate it on, 25?
I did an EA that studied the win ratio on increased stop losses. (SL from 10 to 200 in 10 PiP increments) I plotted the win loss ratio on a graph. It made a beautiful parabolic curve. There was a dramatic increase in the win ratio at first and the it started to flatten out as the SL got larger. It would be interesting to see how much your odds would increase with a 50 PiP drop to the margin call. Of course that would increase the number of trades required to reach the goal because you couldn't buy as many lots, but there maybe a sweet spot in there somewhere.
2. The strategy in this game is 100% correct trades. Why one currency and the daily requirement? Wouldn't it be better to try and find the 'perfect' trade on any pair on any day? Seems to me that that would increase your odds considerably also.
3. It looks like you set the TP for 25 PiPs. Think what would happen if you were right in one of those trades and let it run for 100! What do you think about letting the good ones run with some sort of trailing stop that protected your 25 PiP win?
4. DON'T STOP NOW! Unless you have multiple bad trades in a row you should still have more than your opening balance. (Never less than what it took to open the position). I don't think you need a 100% win ratio. I think you can do it with a about a 78% win ratio. Years ago I made a spreadsheet that calculated my compounding so I knew how many lots to purchase based on my trade strategy. It's only based on leverage of 100:1 but I'll modify it and see what win ratio we need to have.
Oh and one last thing. What about pairs that have the lowest margin requirement? Using pairs that require less margin I.e. AUD/USD versus EUR/USD allows you to purchase more lots because we will have less margin requirement.
This is the coolest thread I've seen in a long time. Don't weaken. Get up off the mat and go for round 2. We're cheering for you!
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