A wide variety of technical indicators, which have several really good? Today KlipC proposed five key indicators is often overlooked on the trader / fund managers.
1, the real maximum retracement (Real DD)
Trading is often talked about the true maximum retracement (MAX DD), often do not understand how to make the calculation of the investors confused. Usually Metatrader brokers and other platforms via MAX DD view, its biggest loss report shows are based on closed orders. However, the transaction as a responsible investor, why should not more concerned about floating profit and loss it? We all know that when you look at closing the transaction account manager, I feel very profitable, but the outcome is often bleak. These account managers (though not all), there is usually a huge floating loss, and this can only see when you're looking at equity accounts.
2, the net value of the curve
when it comes to stocks, we all know how much money account, but KlipC emphasize not only the importance of the stock, as well as the net value of the curve. Net curve is a set of data drawn over a period of time, according to the market trend accurately understand how accounts.
Although it is difficult to manually draw, but using KlipC senior python algorithm, we were able to conduct in-depth study of the traders biggest decline within the expected time, let the user know that a rate of return of 50% of traders in the past year, If you take into account the net value of his stock and curve, he could suffer the biggest decline of 70%, fortunately, the market reversed his interests.
3, risk-reward ratio (RRR)
any good analysis should include risk-reward ratio traders, this ratio combined winning percentage of traders, investors, traders will show the most real transactions, investors judge signal copy the trader is correct.
Assuming the order profitable, the trader an average of 50 points per single profit (US $ 50); in order losses, the trader an average of 20 points per single loss (or US $ 20), by using the risk-free rate of return, we will both digital divide, to get his RRR of 2.5.
This is not only an important indicator of investors, for traders is also an important indicator to measure the degree of success of the transaction. If you do not KlipC the RR ratio calculator, we must focus our trading downloaded into an Excel spreadsheet, respectively statistical orders all gains and losses, and then calculate the ratio, so obviously wasting a lot of time.
In short, the RRR value of greater than 1, indicating a higher winning percentage the trader, worth following, otherwise it is not lower than the recommended 1.0.
4, the time positions profit and loss ratio (HR ratio)
Golden Rule Financial transactions are timely stop. KlipC team last year did a 1000 poll of traders sampling, survey results show that traders in 1000, 1000 people have been in a continuous loss. This is not only loss-making state plagued novice trader, it is also plagued by experienced traders. I do not know why, when a person is at a loss, he would only want to break even, it would have been waiting for an opportunity to rebound positions. Once we overcome this difficult trading psychology, we have achieved 70 per cent success.
HR ratio is concerned about profit and loss list list of average holding period. For example, we see a single trader's loss is the average holding period for a single average holding period for a profit three times, it may be considered too emotional trader tends to carry a single, can not avoid increasing losses.
5, the average earnings of the past three months (3M return)
Most account managers show yields nearly a year since even from the initial funds to potential investors, the numbers usually looks great, but the benefits may be the first few months generated, but no recent transaction. So whether the account can continue the steady profits? Account managers index a measure of whether the transaction is that he sustained the previous quarter (first three months) rate of return. Especially in the derivatives market, the market is volatile, regular active account management can minimize the risk of unnecessary accounts.
Over time, more indicators may also appear endless, KlipC think the choice of indicators in order to do more with less.