tag:blogger.com,1999:blog-26012405.post5618068661312924531..comments2024-03-10T12:27:40.157+00:00Comments on the trend follower: Rolling with the punchesUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-26012405.post-61299504133880071312013-02-02T08:47:16.393+00:002013-02-02T08:47:16.393+00:00THanks for the comment. The 40% average is the typ...THanks for the comment. The 40% average is the typical win rate across the whole trend following spectrum. As a rule I do not pyramid, yet others do quite aggresively. Curtis Faith in his book Way of The Turtle talked about the Turtle traders using the 'whipsaw' method with very tight stops (0.5R) allied to the aggresive pyramiding that they used. This sounds quite similar to what you may be doing - it reduces the win rate, but makes the potential wins a lot bigger. <br />Of course, looking at the monthly performance numbers of those traders, they showed quite wild swings (in percentage terms) from one month to the next. Horses for courses... Trader Stevehttps://www.blogger.com/profile/07875469634283453010noreply@blogger.comtag:blogger.com,1999:blog-26012405.post-66128822583085405992013-02-02T00:06:13.083+00:002013-02-02T00:06:13.083+00:00Hi Steve. As I'm writing this post I'm wit...Hi Steve. As I'm writing this post I'm with a 19,5% winning rate (80,5% losers). Yet, my winners are 4,68x the size of my losers which makes my system to have yet positive expectancy. Hope the rate will get closer in the future to the 40% average for trend following systems. I pyramid whenever the price movement allows it to, which makes the stops to rise when new units are added (don't know if the 40% average winning rate considers pyramiding...). Does it?<br /><br />Nice website.<br /><br />Best<br /><br />João.Anonymousnoreply@blogger.com