1: System entry – exit – Stop loss must be reactive to price ( Reactive means they must act as strong support / resistance. Price must feel hindrance to cross these points.
2: No. of trade must be almost constant for a particular period like if your system given 25 trades in year 2010 then a crucial year 2008 it must not extraordinary give more than 35 trades .
3: Know your trading system Drawdown
4: You must have serious backtest trade record this will help you to design money management and risk taking capacity.
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