Replies to post #17304 on Cycle Trading

[Duma]

Yes compounding is so important to the end yield result.

As an example consider that you are trading a system that will net you 50% in a years time. Say you have a 25% gain at mid year. If your next trade has a 1% gain, it will add 1.25% to your annual gain. Trading with compounded gains is very important.

So my last 10min trade officially gained 7.6% officially. I got nervous Fri and bailed EOD, so my gain was limited to 4.5%. It's that old bird in the hand trick that cost me. But then I would have been very pleased if the market had been down yday.

So now it is time to wait for a reset which could come tomorrow. If it does I will miss it because I will be in the desert wheeling.