AntiCre replies to: The Killing Floor


{quote} Good post. Do you think an edge-less (i.e. 50:50 win/loss negative-sum system before spreads) could be converted into a profitable with proper trade or risk or money management? In my findings also, most presumably profitable systems I tested (systematically) resulted in a 48%-52% range leading me to believe the following: For every profitable trade, there is almost always going to be a losing trade For every stop loss hit, there is also always going to be a corresponding take profit For every statistically proven profitable entry, there…

you can boost a system that is just under break even or at break even, it’s just you can easily burn yourself in doing so and you need significantly more resources, occurrences and time in order to do so.

the main reason being, a 0.1% edge vs a break even strategy will behave extremely differently during the extreme scenarios and every 0.1% change produces drastic change in how things behave during those scenarios and over 100,000s of occurrences.

A 0.1% negative edge, will change the behavior during those periods so much, that it can often be too much to deal with. This is why I think it is extremely important to have some kind of edge upon entry, even if it’s 0.1%. It will make a HUGE difference over the long haul.

I will try to make a post showing this in greater detail so you can visualize just how much things change with only the slightest increase or decrease in edge.

Glad to hear you are liking the posts so far my goal is to make this one of the highest quality threads on here, providing traders with some real data and information they can use to build their own system or use the TKF one and just modify it, so they can have a fighting chance in this business.

discord(dot)gg/scBBFdb – Usually Here

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