Tuesday, September 14, 2010

The well chosen example

Occasionally, when looking at various trading methods, you come across a system that seems to give outstanding results - all the examples you see show fantastic returns. As trend followers, we know if you achieve a win percentage of 40% to 50%, you are doing extremely well. My personal target is to achieve an average of 50% success rate with my average reward being twice my risk per trade. I know if I achieve those numbers, I will be ok (assuming sensible risk management). Sometimes though, you get into a trade that ends up giving you far more...

Below is a chart for Blinx plc. I will say immediately that I did not trade this position, but it's my 'well chosen example' of potentially how well trend following can work.

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