Wins & Losses – FTSE

How many win/losses should you have? A professional hedge fund manager will tell you out of 100 trades, the outcomes will look like they do in diagram 1 below. Diagram 2 and 3 then shows my FTSE indicator in action in different time frame settings. Of course we would only like big winning trades – but that is not reality for any great trading system. What you aim for is no big losses and a technique for making big wins.

Points to note: You can have more losing than winning trades, but still be profitable. There may be ideal trades you would like to have signalled, but no system captures everything and better to miss some profits, than with profits, capture even bigger losses too.

Note also the number of signals and the time frame. Shorter the time frame, the more signals. Pick to suite your lifestyle.

Diagram 1: Wins and Losses

Diagram 2: FTSE 100 30 minute chart

Diagram 3: FTSE 100 1 hour chart