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Old 05-21-2007, 11:53 PM
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Re: What is your strategy when a trade goes against you

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Coot - how do we define 'valid' then? I guess that's why I'm not understanding here...

Simple. Validity refers to (in this context) a strategy that yields a statistically significant positive expectation of return (assuming that was the result you intended to achieve).

Remember, you can design, test and implement a strategy that does not yield a positive/winning result.

And you can enter and exit correctly per this setup.

Just because you execute this setup correctly, does not make it a winning strategy if the premise upon which your strategy was designed was flawed to begin with.

And that's my point.

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