Quite often, I have received the question, “What is Your Winning Percentage”? I think any answer to this question is misleading because it leads the trader to the mentality of “I can make xyz” using these indicators. This is misleading because there are more factors than the indicators — like your trading discipline, trade management, and psychology. However, since I have developed the ADX strategy and ATR strategy I can show you what the hypothetical answer is.
What is Your Winning Percentage?
The ADX strategy performance report (which is based on hypothetical trades (see disclaimer below), trading one contract from February 13, 2011 to February 12, 2016, the results are below.
For example, trading one contract on Crude, using a 12 minute chart the winning percentages are about the same (as is a 45 minute chart):
And the Equity Graph is:
These strategy performance reports are based on taking every trade and using an automatic stop. Discretionary traders can potentially increase the winning percentages by using a lower timeframe for confirmation of the move and even lowering the risk associated with the trade. However, they have to learn to read the charts and know the indicators. For example, a flat ADX magenta dot is not a peak and will cause losses as a secondary peak will be form after a new high or low is made. Having sufficient profit potential on entry versus taking every magenta peak can increase the profits.
These strategy reports simply show that the TradersHelpDesk ADX trade setup is viable and can produce profits. The rest is really up to the trader and not the indicators.
The strategies will be available in about a month on a subscription basis but you will need to have the indicators prior to subscribing.
Disclaimer for Winning Percentage
CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.