Testing Entries, Exits, and Stop Loss in WinTrader Trading System in FOREX, MCX, NSE Markets

November 28th, 2016 → 1:06 pm @

Testing Entries, Exits, and Stop Loss in WinTrader Trading System in FOREX, MCX, NSE Markets

Once you've purchased WinTrader trading system, the excitement is to right away for real time trade. After all the trader must remember that WinTrader Trading system is by design and definition a group of interrelated parts that combines lot of indicators with sophisticated calculations. There is lot more thing you have to get acquainted with the trading system you just bought. Before taking real time trader, a trader must do a test the trading system and get familiar with all the features and facilities provided with WinTrader Technical Analysis software for perfect BUY or SELL entries, Targets and Stop Loss. If your entry method might be excellent; however, if your exits are weak you'll discard your entries along with the rest of your trading system, if the overall results aren't up to your standards, in that case you have to assume that you are following something wrong with the trading system. You have to discuss with your concerned person with the company and get clear all your doubts and then again you have to test the trading system until you are confident in real time trading. This way helps to avoid unnecessary losses due to your ignorance.

Testing Entries with WinTrader Trading System

It can be very revealing to test your favorite entry methods. We have all too frequently found that many of our cherished assumptions about the right way to enter a market have been mediocre at best. As you become adept at testing systems, you will probably find that the importance of your entries will diminish, and that the way you exit the markets becomes the more critical factor. All that you can ask of an entry is that it give you a better than random potential for profit. Once you have that, it is up to your exit strategy to capture as much of the profits as possible while keeping the losses within reason.

One of the most critical statistics derived from system testing is the percentage of winners versus losers (% winners). Everything else being equal, a high winning percentage is obviously preferable to a low winning percentage. Fortunately, if the average profits to average loss ratios are adjusted correctly, long-term profits can result even if the winning percentage falls to a very low figure. Most long-term traders manage to survive by catching some very large profits now and then and wind up with a winning percentage of only 35 percent to 45 percent. The problem is that, in spite of small losses and big profits, the lower the winning percentage, the more volatile the trading results will be.

An even more difficult task is faced by day traders who must develop a method that winning trades well over 50 percent of the time. Since day traders can't let their profits run, because they have to exit the trade before the market closes. Their ratio of transaction costs to trade profits is typically very large, and it is extremely difficult to sustain an average profit to average loss ratio of more than 1:1. Whether you are a long-term trader or a short-term trader, it is impossible to have a high percentage of winners without entering the markets correctly. While it is true in the overall scheme of things that exits are more important than entries (after all, it's the exit that ultimately determines the outcome of a trade), good exits are a lot easier to find when the entries have been done correctly.

The procedure for entry testing in WinTrader Buy Sell Signal Software:

The best way to effectively test the trading system is to test trade difference stocks, currency pairs and commodities (FOREX, MCX SX, MCX, NSE, NCDEX, COMEX, etc) as much as possible in different segments. This will give clear idea how WinTrader Technical Analysis System works in all segments with different conditions.

Analyzing the Test Results:

If the trader got correct entry method with Win Trader Trading System, it should get you into markets in the correct direction with a winning percentage that is significantly better than random.. Also, if you are trying to be a trend follower, the trades should show higher winning percentages as the time span increases. It is extremely important that any entry method you select should yield better than random results at first, because adding stops and attempting to let profits run will invariably reduce the winning percentage substantially. The better your entry percentage is initially, the tighter your stops can be. If you prefer your stops relatively loose, you can maintain a higher winning percentage at the expense of more risk per trade.

The Importance of Exits:

Apparently, we don't recommend you actually trade without stop loss, trading without stop loss involves high risk when there is huge turn in the market. So make it as routine to put stop loss immediately after enter the trade before put the targets. So we have to exit strategies, one is at Target Levels and the second is at Stop Loss Level. Target levels are plotted in your trading system or you can use predetermined profit levels to book the profit. Win Trader Technical Analysis Systems uses Trailing Stop Loss Strategy. Trailing stops are stop loss that are continuously calculated after some logical price points have been reached. They can serve as initial risk stops or profit-taking exits, or both. The purpose of an entry, as we stated, is to give you an opportunity for profit that is better than coin flipping. You need to test your entries, and, if your present method doesn't do better than random, you'd better find a new one.

Perhaps more to the point, this study also highlights the importance of exits. We assert that it is entirely possible to create a profitable trading system using random entries and a combination of stops and profit-taking exits. It is not possible to create a profitable system using near-perfect entries and random stops and exits. Concentrate your efforts where they are important: on risk control, good exits, and money management, rather than on chasing the Holy Grail of the ultimate entry method. The next time you hear about someone making big profits because of the latest high-tech entry method, ask them for their exit strategy and write it down because it's probably the real secret to their success.

Testing Exits

We have discussed about how the entry method works in Win Trader trading system and tested them. As we saw, testing entries that are independent of exits is relatively simple and straightforward; the results are objective and easy to evaluate. Testing exits independently is much more difficult. Since entries and exits often interact in unexpected ways, tests that are designed to show us the relative merits of various exit strategies will be affected by the entry method. We have done our best to devise a testing procedure that will give us some insight into the relative merits of various popular exit strategies. WinTrader Trading System clearly shows the target levels to exit the trade with profit or the trader can use pre determined profit to book the profit.

Trailing Stops

Risk in an open trade can be defined in two ways. Initial risk is the difference between market entry and a risk-control stop loss. Equity risk is the difference between an open position's market price and the price your exit strategy says. Most trend following reversal exits tend to be relatively far from the market, making the risk on open positions significant. This equity risk multiplies as trading proceeds over a portfolio of markets. It can be argued that equity risk is a "nice" problem to have because it increases with profitable trades. But a loss is a loss, whether it occurs from equity high or not. In either case, money disappears from your account. One simple way to manage this kind of risk is to trail a stop behind the trade. The stop loss can be calculated in a number of ways; in WinTrader Trading System, we follow trailing stop loss method as we discussed before. This will help to minimize the loss in trading.

Conclusions

While the real purpose of this section is to exhibit the important of testing procedure after purchased WinTrader Buy Sell Signal Software and Trading. As we discussed, the exits will make huge differences in the testing results. Test the entry and exit strategies separately before you integrate them into a system. If we had tested our moving average entries using stochastic exits, we might have concluded that moving averages were not profitable. The choice of exit strategies can have a dramatic impact on the profitability of an entry system. The exit with the best winning percentage is not necessarily the most profitable. Specific entries might determine the range of profitability, but the exits are responsible for the final result.

WinTrader Trading System’s advanced Trailing stop loss feature will help the highest winning percentages.

Remember that winning percentage and average profit to average loss ratio are the critical elements in the probability of ruin formula. If we can adjust both of these criteria in our favor, we are more likely to achieve our trading goals. We're sure that if you follow WinTrader Trading Systems Trading Instruction and proper money management you will come out the market with profit.

WinTrader Buy Sell Signal Systems works in Meta Trader 4 (MT4) platform, one of the world renowned platform using by more than 90% of forex traders around the world. Currently WinTrader Trading System support following markets

A) Commodity Segment:

  1. 1MCX (India)
  2.  NCDEX (India)
  3.  COMEX (USA)

B) Stock Segment:

  1.  NSE Stocks
  2.  NSE Futures
  3. 3NSE Options (NIFTY & BANK NIFTY)

C) Currency Segment:

  1. FOREX
  2. MCX SX (India)

 

  To see the live performance of WinTrader Buy Sell Signal software, and how WinTrader helps a trader to become professional successful trader with consistent profit from trading in Commodities/Currencies/Share markets like MCX, NCDEX, FOREX,  CLICK HERE to register your details for real time FREE LIVE DEMO

 You can find some interesting links below, that will helpful in your trading

  1. Technical analysis software, the real purpose is to make profit from trading FOREX, MCX, NSE, NCDEX

  2. Importance of Trading System in Future Trading in FOREX, MCX, NSE, COMEX

  3. Facts about Fudamental and Technical Analysis trading in Commodity, Stock, Currency Markets

  4. How to manage stress in day trading FOREX, MCX, NSE, COMEX with WinTrader Buy Sell Signal System

  5. Figuring out when to buy and when to sell with best Buy Sell Signal Systems

  6. Getting started with day trading in MCX, NSE, FOREX from WinTrader Buy Sell Signal Software
  7. The basics of Support and Resistance Level in Trading FOREX, MCX, NSE
  8. Trading in MCX, NSE, FOREX as a Business?
  9. Identifying the Qualities of Successful Day Trader in FOREX, MCX, NSE
  10. Are you a TRADER/ INVESTOR/ GAMBLER? A comparison between three trading style
  11. HABITUAL WINNERS STRICTLY FOLLOW TRADING PLANS WITH BEST BUY SELL SIGNAL SOFTWARE
  12. Trading For Living With Best Technical Analysis and Buy Sell Signal Software
  13. Determining Market Condition in FOREX/SHARE/COMMODITY Market with WinTrader Buy Sell Signal Software
  14. Why use buy sell signal Software to trade in FOREX, MCX, NSE
  15. How to start a day trading career in MCX, NSE, FOREX with the best buy sell signal software Step One
  16.  How to purchase a best buy sell signal software for trading?
  17.  India’s best and 100% accurate BUY SELL SIGNAL Generating software updates in New Version 7.0
  18.  Why do most traders fail in their trading and lose their hard earned money over and over?
  19. How to choose a good BUY SELL Signal generating software and Trading system in MCX-NSE-FOREX?
  20.  Highly accurate BUY SELL signal generating software in India NSE MCX

See the performance yourself, CLICK HERE to contact us and FIX UP a FREE REAL TIME DEMO of WinTrader BUY Sell signal software in FOREX, MCX, NSE, COMEX, NCDEX, MCX SX markets.

OR

Contact our representative on below mentioned numbers;

  1.         +91 9846 699177 (English)
  2.         +91 9061 973737 (Hindi)
  3.         +91 90613 08080 (Tamil)
  4.         +91 92492 73612 (Malayalam)

 www.wintrader.in

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