Hi Don
I bought your book a few months ago and have now stumbled upon you here on this website. Thank you for the work and I think the money management insights are great. I've been testing the consecutive money management rules on my own systems through the Oanda broker for a few months now, but with not much success.
My systems seem to have performed very well during the Huge volatility of recent March 2020 volatility (and now understand why you apply filters to low volatility from this practical experience) , but otherwise they seem to bleed out slowly, generally speaking.
I have two more general questions for you as I consider your methods while trying to improve my own trading:
1. Why is your focus on GBPJPY ? Is this purely trader preference, or this insight has come from backtesting? From testing with my systems over the past couple of months I cannot tell the performance apart on this pair vs. some of the other highly liquid major pairs, although some of them more obviously would want to be filtered out and not traded, from looking at the data I've collected.
2. Would you agree that much of the performance of your systems can be attributed largely to having a winning edge with your entry signals? I observe that in this 15 minute breakout system you have a 100 pip TP and 250 SL , which means that ceteris paribus you would need a +71% winning percentage to see a profit (if my math is correct). I observe that your system has a 77% win percentage over the past 4 years which is awesome. I agree with the power of designing for clusters and the improved profit/drawdown ratio, but would you agree that without the winning pct edge that a random system might not even breakeven with a MM system like this? The reason I ask is because I am struggling with my own entry signal development to overcome that, and am interested if you think that is a major key to the kingdom?
Appreciate any insights on these topics that you might be able to lend. I'd be happy to share some of the stats I've collected so far if you're interested (systems on this site) . Again thanks for your work and insights into MM. I am applying these now to my own trading.
John
In god we trust, all others must bring data.