Friday, April 13, 2007

Trade Ideas February performance

February's late sell off did sweeping damage to the higher risked plays (5% and 8%) for both the Trade Ideas and my newsletter picks. A similar reward:risk system used on the QQQQ only delivered a 32% win percentage on a 1% risk with an average gain of 0.25% per trade. All QQQQ 2% risk plays were stopped for an average loss of -2% per trade, and 9 of the 19 5% risk plays were stopped out with no winners for an average loss of -5% per trade. There were no winners or losers for 8% risk based on the QQQQs.

Unlike the previous month my newsletter picks outperformed the Trade Ideas picks both in the percentage of profitable picks and in the average return per trade. The 2% risk was the best reward:risk performer for my newsletter whereas the 1% risk (3% reward) was the most profitable when compared across strategies.

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