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Maximum Productivity

by ss Daniel Kamesh kamesh (2018-12-28)

So, what a Maximum Productivity Review CFD systems essentially does, includes these three important things Cuts your losses short That is, if a trade goes against you, you exit at a small loss, not a large loss. This is done with a stop loss, which is in contrast to some people who put money into stocks or CFDs and have no plan for exiting, and see their losses keep increasing until they lose a significant portion of their float. In fact, the stop losses in a CFD trading system should be not too small to exit you out of trades with minor movements of the CFD price, and not too large in that your losing trades become too large in comparison to your winning trades. An optimal stop loss is in its happy medium. Lets your profits run That is, if a trade goes in your direction, your trailing stops allow enough room for the CFD to run and your profits to become large, but close enough to allow you to exit later on when the trade eventually does go against you. With a trading system where this happens, your profits are bigger (usually much bigger) than your losses, although they are typically not as frequent. Both of these points 1 and 2 above leads to. A healthy profit-loss ratio In case you're unfamiliar with this term, the profit-loss ratio is the size of the average profit compared to the size of the average loss. For example, if your average profit is $820 and you average loss is $205 your profit loss ratio is 4 (820/205).Note that there's a similar term called the win-loss ratio, which is how many wins there are compared to losses. But these two terms must be looked at together. If you only have 35% winning trades and 65% losing trades, resulting in a modest win-loss ratio of 0.54 (35/65), a system is profitable, if the profit-loss ratio is nice and high.That is, you multiply the profit-loss ratio, with the win-loss ratio, to get the "profitability ratio". As long as this number is greater than 1, the system is profitable. In the example just mentioned, the profitability ratio is 2.15 (0.54 x 4). This is really what makes a system profitable.You will always have losing as well as winning trades in a trading system. If the wins are much bigger than the losses, though less frequent, and this includes taking into account costs of trading such as commissions and interest costs, then your trading plan is good, and your trading will be profitable.