Saturday 6 October 2007

Risk Return

On this system I use a 2:1 risk return this means if our target is 3points our stop will be 1.5 points.

We can therefore have 2 losing trades requiring just 1 winner to bring our account back to break even

When the account has grown to a specific size a second contract will be added.

When using the system with 2 contracts 1 contract will be closed at 3points which acheives our goal for the day ( The account builder)

The 2nd will be our ' bonus runner' and can esily run to several more points, if the 2nd contract realises a 4.5 point profit the risk return on this 'bonus runner' trade has increased to 3:1

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