Of course a trading plan is only useful if it has been tested for profitability.Rixter said:purely because they have a trading plan
A plan that always loses money is worse than no trading plan.
GP
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Of course a trading plan is only useful if it has been tested for profitability.Rixter said:purely because they have a trading plan
Could a plan "have no plan and ignore stops" be a plan if it is profitable?GreatPig said:Of course a trading plan is only useful if it has been tested for profitability.
A plan that always loses money is worse than no trading plan.
GP
I think anything that has been consciously decided is a plan, even if it's just pick stocks at random and sell when you need some beer money. I don't think profitability has anything to do with it being a plan.Thommo said:Could a plan "have no plan and ignore stops" be a plan if it is profitable?
In some experimenting I've been doing in AmiBroker with a plug-in I've been writing for backtesting, I've generally been finding that for longer-term trend trading stops reduce profitability far more than they increase it. And in the few cases where they do increase it, it's only by a small amount.Stops set too close look dangerous to me. The idea is for Danny Day Trader only.