#1 System - Home

HOW TO MAKE A 60% WINNING SYSTEM INTO A 70% WINNING SYSTEM

This system is said to be a 60% winning system
I didn't come up with that number - but have heard that - and believe it

I mean just look at any chart with the 10-8 bands on it
And you can see winning trades

I really think the fact that you can see it working
Is more important than a winning %

But let's just say it is a 60% winning system
What could we do to up that percentage

HERE ARE SOME IDEAS - YOU MIGHT TRY

More than 1/2 the trades are winners
So if we take a trade and it's a loser

That means the odds increase for the next trade to be a winner
That doesn't mean it will be, but with a loss, a winning trade should be closer

DOUBLE UP CONTRACTS

Say you trade 1 contract per trade signal and you get a loss
The next signal, you could trade 2 contracts

If that was a winner, you would be trading more contracts on the winning trade
If the 2 contract trade was another loser, then trade 3 on the next signal
Eventually you will hit a winner and be trading the most contracts on that trade

START OFF WITH 2 OR 3 CONTRACTS

If the market trades 2 bars above the 10-8 bands
And then takes out the 2 bar high, the mometum is in your favor

Of course we could take a buy signal and the market could turn right against
But chances are you would get a little move your way

Say if you started out with 3 contracts
The market moves your way, and you sell 2

That makes the last contract easier to hold
If the 3rd contract turns into a loss, you may still get a small profit

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GOOD OLD COMMON SENCE

Say Corn moved down to $1.50 a bushel
And you were extremely bullish

You got a 10-8 buy signal and went long Corn close to the lows
Corn rallied to 1.80 a bushel
And then came crashing down to 1.60 and put in a 2 bar sell signal

Would that be a trade to take ?????
We all know markets come back and test the low

Would we want to short Corn at rock bottom low prices
That might be a loser you filter out, which would help give you a higher %

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CATCHING A MAJOR LOW OR HIGH

Sometimes you may catch a major low or high right off the bat
Of course you can never be sure

So if we just held the contract we bought at the lows
With the intention of letting that contract ride this new bull market
We would basically be 100% for the forseable future

Because the 10-8 bands got us in at the lows of a bear market
And we are just going to hold that contract

We could hold that contract for months or years without making another trade
Again - add good old commen sence to this system - and we can up our winning %