From the ExitPoints Analytic Systems Developer:
The EP-Swing strategy will focus on trading liquid micro and mini futures contracts, with the objective of achieving a high payoff ratio. My goal is to let profitable trades run while cutting losses quickly, resulting in average gains that exceed average losses. To accomplish this, I will adopt an anti-martingale approach, utilizing trailing stop loss orders for every open position. Given the leveraged nature of futures, a martingale strategy is not suitable for this type of instrument. This will be a discretionary trading strategy.
Positions will be initiated based on clear BUY or SELL signals from market indicators, with both long and short positions possible. However, each entry will require “price confirmation,” meaning that the market must meet certain price criteria before a trade is triggered.
The position size will be calculated to risk no more than 2% (or $500) of the model account’s initial value on each trade. For an account size of $25,000, this means the difference between the stop entry price and the stop loss price, multiplied by the number of contracts traded, must be less than $500. Additionally, no more than five positions can be open simultaneously. New trades will only be entered once there are fewer than five open positions.
The primary goal of stop loss orders is to protect profits and limit losses. Trailing stop losses will be used to implement the anti-martingale approach by locking in profits as trades move in the desired direction.
Most trades will exit when the stop loss is triggered, but in some cases, positions may also be closed early if market indicators signal a reversal:
Risk Disclosure:
Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and onlythose with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure:
Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.