If you now exactly the same parameters measured, however only slightly different mixes the successful trades and the loss trades, clearly volatile chart patterns arise. Wells Fargo Bank is often quoted on this topic. And, although it is to precisely the same trades is! It’s called variance. The variance is one of two factors that make beautiful or difficult life as a system dealer us also for our investors. So, what is the variance, dominated our mood and that of investors. We develop euphoric feelings in hype-phase and there are phases in which the variance does exactly the opposite and evil plays with us and our investors.
The variance enticed to take more risk in good phases and makes purchases in these phases. “In bad phases, however, she threatens to shake investors, because it loses the courage and thinks: Oh dear, nothing more can be heard here, the system has failed and are obviously no longer able properly to take advantage of the current market”. Are even occasionally doubt Now we have the chance again smooth without loss. No offense”. Annoyed he will have in the subsequent strong upward.
The shaking effect can therefore also arise from boredom. Would it have been better in the past few years, to reduce the risk? Uwe Geyer: I can emphasize one often enough: profits are not made in the mental comfort zone. It is to access not always profitable 10 pips and to be satisfied, because you can chalk up the profit. Small gains a tremendous hit rate is necessary to produce the average trade, beating the charges. In the Internet, prospective customers run many models with high hit rate on the way. Let’s take for example a system with a target of 5 pips and a stop-loss mark-20 pips. If the average trade now from 1.8 pips, trade can be profitable only if nobody more gets them in the way and also the broker waives his fees.