MT2 NinjaTrader Robot - Technical Support - Questions - Tips - Settings - Discussions
28/06/2010 20:37:11
Tom Leeson
Administrator
Posts: 661
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High Frequency versus low frequency trading
Small drawdowns - negative risk reward - high winnin ration vs - potentially larger drawdowns - positive risk reward - low winning ratio
I cold however if so desired trade the MT2 on a higher frequency trade setting which has a much lower drawdown and much higher winning ratio - anyone who is experienced means that is the result of changing the risk reward and placing a stop which very rarely gets hit and targets which get hit very frequently...
this is preferred by trades who want to win like someone playing a fruit machine... however i find i like trades that may go on for many sessions - 5 days even. i do close and re-enter after a Friday to Sunday break i don’t like to leave my positions subjected to outside market news events... so you maybe a trader who thinks i know 50 contra contracts and 4 pips - fine good for.. however i like 2.5% risk and adaptive stop sizes to manage position size- i also like trades that may easily be 350pips per lot...:-) so yes that does mean a lower winning ratio, lower trade frequency but a mega risk reward ratio :-)
edited by tom on 28/06/2010
edited by tom on 28/06/2010
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MicroTrends tom
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23/06/2010 17:57:20
Tom Leeson
Administrator
Posts: 661
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My Boast:
I can crank the MT2 up to 15K per month on 1 lot on the 6B per month
Why do i not trade it?
i don't like the drawdown that will inevitable occur at some point which with that setting can be quite heavy like 6K or so.
You never know when you are going to start off with a drawdown or this amazing best case scenario...
This is why i prefer to use systems that fit my style...
I also create and continously research systems... no i am not looking for the holy grail -i already have that... that is simply the approach to trading -- the system is almost irrelevant....
Yes i do use the MT2 as part of a greater system.... It gives me a health check on counter trend range trades - and it allows me to trade pullbacks on a range break...
The Silver bullet will allow you to combine this with strategies as a filter or as a permission slip to enter a trade...
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MicroTrends tom
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