Hi Geoff,
20/7 is a strategy I have looked at and traded. According to my figures, it has not had a losing month since my figures started (Aug 10), and this includes trading over the Christmas holiday season.
From 01 Aug 10 until 31 Jan 11 performance was as follows (again according my figures which allow for a spread of 2.5 pips.)
Total Pips: +337
Av Winning Trades: 86.5%
Performance of the strategey this month has not been quite as good, with 3 losing trades so far, however, its still in profit.
A point to note is although the pip total seems small (337) given that the stop loss is half that of regular FMT, you can put double the lot size for the same risk, so its equivilent to winning 674 pips at the regular settings.
Currently I don't trade 20/7 anymore, I have swithced over to 40/10 for my own reasons, however I am a big fan of taking a small profit for a number of reasons:
-High %age of winnig trades makes me
most days!
-Consistent monthly gains.
-Low drawdown and risk.
Further, quite often the trade will come in regardless of whether the indicator is "correct" or not, because the general market noise at opening time triggers the TP before the stop.
I guess the disadvantage of this type of strategy is you will never get the fantastic high gains that you can get with the standard settings in a good month, but then you also miss out on the not so fantastic negative months as well....
Hope this is of interest.
Philip.
Hi Wiseambitions
Always enjoy your analysis...following the same theories above have you ever looked into TP 7 and SL 20...according to my rough calculations there has been around 15 winners in a row...but I know there were a couple of losses in one week some time back
Geoff
Just had a quick look at my records and it looks like for the last 12 weeks...39 wins...6 losses...13 no trades...would like to see a longer backtest to see how these parameters do in the long term