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Old 09-03-2009, 17:40
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AshFX AshFX is offline
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Originally Posted by Henry View Post
Thanks for this system. I have been using it as an indicator of the trend since you first "unveiled" it on forexfactory. How about drawdowns?


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.
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