System Potential

Originally posted at the Forex Factory on Aug 4, 2008.

http://www.forexfactory.com/showthread.php?p=2143985#post2143985

Thinking about it like that is not very good. Just because 4.5% is a small number to you doesn’t mean it is realistic with his system potential.

Some systems suck and getting a 4.5% monthly return with them is extremely good. Other systems potential is much more.

It all depends on what his winrate % is and what his risk:reward ratio is. Then you can start to establish what is his optimal %r to apply to his system.

I am not familiar with the jacko style of trading so I am not sure what effect trying to shoot for 150 pips a month will have on his system.

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