Quote:
Originally Posted by Henry
Ash,
Thanks for this system. I have been using it as an indicator of the trend since you first "unveiled" it on forexfactory. What I found is that entry is a problem and that the drawdaown on the longer timeframes can be huge. Have you perhaps looked into this aspect of the system.
Cheers
Henry
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Relatively speaking, the system's drawdowns are actually manageable, because what's imperative, is to look at it's risk/reward ratio.
If a system's average reward is larger than the average risk as is the case here, then drawdowns shouldn't really be a problem.
So for example, maybe you might have a 200pip drawdown, but if the profit is 300pips, then really, the drawdown isn't actually "huge". A scalping system that has 10pip SL and 2pip TP has huge drawdowns, relatively speaking.
