Capital Markets becomes the first to launch industry leading Autochartist in UK Leading global capital markets trading firm.

To me as a professional metatrader forex broker, the most important ratio to look for is reward to risk. Generally I want to see 2:1 if not 3:1 or 4:1. If a manager makes 20% annually on average, I don’t want to take any more than 10% of pain in any month. I actually don’t even want to take that at any time. I don’t want to see that on a daily resolution, let alone on a monthly resolution. Monthly numbers can hide a lot of sins. It’s an arbitrary cut-off point, and the manager can get lucky over the years, actually having 20% losses during a month, but recovering and showing a maximum drawdown of only 7%.

There are about a zillion different trading styles. Some make money and most don’t. The styles used in trading are about as numerous as the stars in the sky. Put any two people behind a screen or on a trading floor and not one of them will trade exactly the same as any other. They can be broadly categorized into such sectors as trend followers, break out traders, short-term, long-term, medium term, Meats, softs, and spread trader, energies, oil, corn, day traders, swing traders, Forex traders, contrarian trader, fundamental trader, mean reversion systems, contrarian systems, exhaustion systems, and on and on and on. In my opinion I really don’t need to know a whole ton about a trader’s system and how it works, as long as I know he has his risk control down and can be trusted to follow it and it makes sense to me and is reasonable.