The regularization process is as follows: D point buy, break down the lowest stop loss price at 3 pips, break up E point buy or stop win. The space above D point to E point is at least twice the stop loss space. The risk of return is 2:1, the probability of success is about 65%.
We can calculate the following formula: Average profitability = probability of success * risk of return * risk of failure * R (R = risk value) per trade: Average profitability = probability of success * risk of return * R = probability of failure * R (R = risk value) = 65% × 2 × R = 35% × R = 0.95 R. Here, R = the space value of the K line of the 3 r integers.
False breakouts often occur during a trend or turbulent trend. For example, a price that has already crossed a previous high price and failed to continue rising, and then falls below the previous high, the trend is likely to reverse. What do you mean? - Rule 2B, this trading strategy is specifically for fake breakouts. What do you mean? 1, observe the confirmation of the drawback after the breakthrough, if the price falls after the breakthrough of the previous high (low), then the position can be opened in reverse at this normalization point. What do you mean? 2, if the market is unfavorable (erroneous directional judgement), break the normalization point of about 3% stop loss. What do you mean? 3, if the market is favorable (the direction is correct), the profit stops at 6% or more.
Figure 3
Figure four
This strategy has a risk-return ratio of 2:1 and a 60% probability of winning.
We can calculate from the above formula: average profitability = probability of success * risk of return * risk of failure * R (R = risk value) per trade: Average profitability = probability of success * risk of return * R = probability of failure * R (R = risk value) = 60% × 2 × R = 40% × R = 0.8 R. Here, R = 3%. This is obviously a trading system with a stable profit and a positive expected value.
Translated from the Zen Library