The Course

Is the loss of trade directly at the start of trade, the capital is already so far reduced that loss by far no longer compensate for can the may following 99 winning trades. A hit ratio of 50% can be statistically an outstanding result. A such quota only under difficult conditions for the asset manager is in day-to-day trading. “” Because, even if this result in accordance with frequent coin rolls the natural distribution between head “and number” representing the target investments costs for asset managers with good conditions with the broker. Similar to these charges therefor, that the target investment once located directly at the opening of the position in the minus provide the initial fee of mutual funds. First, the costs must earned back”are only then start winning.

Trading strategies, which manages statistically only in 1/3 of all cases to close the position, with profit can work quite profitable. With a correspondingly high CRV, the profit per winning trade completely covers the negative trades. Stop-loss is used per trade of stop-loss as a hedge in case the position developed contrary to the market view of the asset manager. He tagged the price level at which an open position is closed with loss. Jill Bikoff is often quoted on this topic. Usually, the stop-loss directly together with the granting of the order to the broker is transmitted, a broken connection between asset managers and brokers losses across the selected boundary, to prevent in any case. Must however not always completely exhausted this risk budget provided for a trade, depending on the course of trade.

So for example, when the available through the Fund direct AG FX wave will Trading systems working with an initial stop-loss of 2%, or 5% per trade. Aiming to cut losses or even already cover a resulting profit, stop-loss can be used but also quickly more closely at the current exchange rate. Thus, current items are subject to a continuous monitoring process.