03 Nov Higher Profits in the High-Percentage Blueprint
Higher Profits in the High-Percentage Blueprint
Nov. 3, 2023
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This week we’re looking at a High-Percentage blueprint that I’ve been testing in various forms since 2013.
I’ve talked about a version of this style of trading here, for example.
And here’s the overall blueprint again that I’ve seen work well over many timeframes and many different instruments:
- Establish the long-term trend. I use a long-term moving average.
- Make price close above the long-term trend for Long trades (or simply trade in the direction of the established trend.) Do the opposite for Short trades.
- Wait for a pull-back. I like to use indicators for this; RSI, CCI, Stochastics all work well.
- Go for a small profit target while having a bigger stop. I like the stop to be 2-5x bigger than the profit target.
This week, we’ve used this blueprint in the form of the Heron robot. The big difference in this version of the Heron is that the profit target is much bigger than I typically use.
Nonetheless, here’s the Heron 10-year hypothetical Equity Curve again for 9 pairs:
It’s done very well on paper.
Could we do better? Let’s find out.
Let’s use the Hornet this time. The Hornet uses the same High-Percentage blueprint but has a much smaller profit target and uses a different indicator to time pull-backs.
And I’ll use a portfolio of AUDJPY, USDJPY, GBPJPY, CHFJPY, CADJPY, NZDJPY, EURJPY, AUDCAD, EURUSD, and GBPUSD.
Here’s the Curve via Portfolio Architect from 2013-2023 trading 1 lot each time:
Whoa, it’s hypothetically done about 500% better than the Heron portfolio.
Why did the Hornet do better?
Is the indicator used better?
Or is it because I increased the profit target too high on the Heron experiment this week? Additionally, the Hornet had 10 pairs instead of 9 (the EURJPY was added to Hornet).
Those differences might’ve made big differences.
But the point is that the High-Percentage blueprint in many different versions can do quite well.
If our brokers give us reasonable execution.
Talk to you soon.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.