We are very excited about this new Forex System,and if it even comes close to the success of Russells Turtle Trading System for the Futures markets, and his Balanced Trader for the Stock Indexes then we can expect great results.
This system is specifically designed to trade the exciting Forex markets. Russell has taken the best of both his hugely succesful trading systems and tailored them specifically for trading the FX markets! And with the skills of a financial programmer he has developed the code to run this system in TradeStation.
Most trend following systems have some kinds of rules telling you how to cut your losses and let your profits run.
The Turtle Forex method is way more sophisticated than most others, as the computer program actually has two different sets of money management rules.
The first group of rules is related to position size in terms of portfolio theory and market volatility, and tells you how aggressively to load up on each new signal that comes along in order to make the most amount of raw profit with the highest degree of efficiency on any given trade.
The second, and totally independent set of money management criteria, are derived from established risk of ruin tables and statistical probability theory, and are designed to keep you in the trading game for as long as it takes to get into the mathematical “long run”, regardless of how choppy the markets might be in any short term period.
The bottom line is that even when the markets are giving out false signals and there are no trends of which to take advantage, themoney management systems used are good enough at controlling the losses and keeping you in the game until the point that as soon as one big trend does comes along, (and one always will if you have enough patience and discipline and capital), it can pull you right out of the hole and get back to the profitable side of the ledger.
We are going to trade the U.S. Dollar against the British Pound, Swiss Franc, Eurocurrency, Japanese Yen, and New Zealand Dollar. Below is the historical backtesting for this portfolio trading one contract per trade in the 5 markets we will be following. Of course historical testing does not in any way guarantee any future results in actual trading, but it is a good indicator of what we expect in the future.
This system is specifically designed to trade the exciting Forex markets. Russell has taken the best of both his hugely succesful trading systems and tailored them specifically for trading the FX markets! And with the skills of a financial programmer he has developed the code to run this system in TradeStation.
Most trend following systems have some kinds of rules telling you how to cut your losses and let your profits run.
The Turtle Forex method is way more sophisticated than most others, as the computer program actually has two different sets of money management rules.
The first group of rules is related to position size in terms of portfolio theory and market volatility, and tells you how aggressively to load up on each new signal that comes along in order to make the most amount of raw profit with the highest degree of efficiency on any given trade.
The second, and totally independent set of money management criteria, are derived from established risk of ruin tables and statistical probability theory, and are designed to keep you in the trading game for as long as it takes to get into the mathematical “long run”, regardless of how choppy the markets might be in any short term period.
The bottom line is that even when the markets are giving out false signals and there are no trends of which to take advantage, themoney management systems used are good enough at controlling the losses and keeping you in the game until the point that as soon as one big trend does comes along, (and one always will if you have enough patience and discipline and capital), it can pull you right out of the hole and get back to the profitable side of the ledger.
We are going to trade the U.S. Dollar against the British Pound, Swiss Franc, Eurocurrency, Japanese Yen, and New Zealand Dollar. Below is the historical backtesting for this portfolio trading one contract per trade in the 5 markets we will be following. Of course historical testing does not in any way guarantee any future results in actual trading, but it is a good indicator of what we expect in the future.
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