To: fut_trade who wrote (11 ) 6/18/2002 11:50:42 AM From: Defiant Read Replies (1) | Respond to I see. Well, if it works for you, all the more power. It seems that type of system relies heavily on your ability to monitor the situation closely. Personally, while Williams %R plays a role in my analysis, I have found it to be a risky indicator on its own. The rise or drop can be very large without showing itself on the indicator. Hence, while it will tend to show you the general trend, it can reverse it any moment. Further, I have found it to be quite varied in daytrading and scalping. By that I mean, playing the cycle can quite often be a waste of time. The potential gains do not merit the potential risks. I have toyed around with them. Personally, I have found that it isn't necessarily the amount of trades you make, it is the quality of them. The more trades you take, the more risk you take. Statistically, you are setting yourself up for a beating unless you are careful and religious with stops. Instead, I tend to focus on the multiple indicator set-up, and do not worry if I get in a little late and get out a little early, take my profits, and focus on compounding it with a series of a limited # of trades where I am willing to take a larger than usual risk. For me, your 50-60% win rate sounds tedious and akin to gambling. I don't mean that as an insult. I have traded such systems in the past. It is a lot of work and quite often a headache. Like you said, you have to cut your losses quickly and let your gains run, but you have to also kick, fight, and bite for your money. You are relying on adding slowly and surely. I prefer to have more confidence in my trades and take larger risks with fewer trades. I have found that compounding gains with high leverage in lower risk trades is the best way to increase the size of your portfolio. For example, with two trades I have increased the value in one of client's account by 70% this week.
