System: xCombo Review
Description: System uses a combination of technical & fundamental analysis to determine entry and exit points across major currency pairs. Traded over a varying schedule where time, location, and market access are not constants.
Risk and money management are the linchpins of this system’s profitability. Position size is flexible and adjusted to keep trade risk constant as a % of account balance, independent of net pip accumulation. Profitability can only be judged by % of equity growth.
Example to illustrate below:
Trade 1: SL = 25 pips @ 2% of account balance w/ 62 pip target has potential of 4.5% equity gain
Trade 2: SL = 120 pips @ 2% of account balance w/ 300 pip target has potential of 4.5% equity gain
With balance of $1,000 and trade 1 is win and trade 2 loss then:
net pips = -58
net $ = +$25
If trade 1 is loss and 2 is win then:
net pips = +95
net $ = +$25
Also because of risk management, win ratio is also not correlated to net $/% equity growth (without accounting for RR). The following example will help further illustrate this point:
If 5 losing trades at 50 pips and 0.5% each
& 2 winning trades at 10 pips and 3% each
Then the following stats would be produced:
Win ratio: 40%
Net pips: -230
Net profit: +3.5% (+$35 @ $1,000 balance)
Type of Trading: Real
Started: Mar 20, 2015
Tracking: 0 users
Currency Pairs: AUDJPY, AUDUSD, EURAUD, EURCHF, EURGBP, EURJPY, EURUSD, GBPCHF, GBPJPY, GBPUSD, NZDUSD, USDCAD, USDCHF, USDJPY
Overview: xCombo Review Myfxbook system has made +45% in 46 trades since Mar 20, 2015. The average winning trade is about82.33 pips / $79.61, and the average trade with a loss around -43.02 pips / -$20.71. Trades are left open on average for 1d.
(5/18) 27% is the winning percentage of its buy trades and (11/28) 39% is the winning percentage of its sells.
(Sep 22) 297.3 was the best trade it ever produced. (Apr 30) -174.4 was the worst.
Pros & Cons
- It doesn’t appear to be a scalper, which is good
- Large stoploss, be careful.
- 30% drawdown or less is always a good sign