Hi, I am Terry from Wiltshire, I am new to the posts, but I have followed them with some interest, I have also purchased the DIT system. I do struggle with some of the "emotional" stuff I have read here, because I seem to recall that when emotion creeps into this then any profits around fly out of the window. I share some of your concerns, particularly the risk/reward ratio, however I am sure that there might be something that can be bolted on or changed to salvage this plan.
Two thoughts come to mind:
1. What was going on in the market when the winners were around? Has it fundamentally changed since then? Was it in a longish term rising trend, so the system just worked? This might be worth looking at to see if the current conditions have changed at all, and so caused the higher incidence of losing bets.
2. I have read too, that the correlation is a possible answer to the problem. ie it only works when the markets are very closely correlated, and, of course there is some movement as well - enough to trigger both stops and leave you with some money. What occurs to my relatively uninformed trading mind, is to dump one of the indices and just trade on one of them. That way the correlation becomes perfect every time, and you are only looking for a bit of movement. Is it that simple? Or have I missed something here. I guess you would need two spread betting accounts to place the two separate bets, but, again, it might be worth looking at. I would value a few opinions. If it did work you could still trade both indices if you wanted to, placing two bets on each accounts. Have I trod on someones toes here, or does anyone think this might work?
Your thoughts would be most welcome. Terry
