MoneyTec Traders Community Forum - View Single Post - Elliott Wave Theory shouldn't be used for Forex

bulldogFXR · 11-12-2003, 11:54

I don't want to oversimplify the issue... But if you look at it from a statistical point of view, you only need to be right 50% of the time to generate profits if you're losses are smaller than your gains. I realize we want to do better than an inherent 2:1 risk to reward, but that's all it takes. I don' t trade the EW, but I have a friend who does and he does fairly well with it in FX. I think the reason for this (not withstanding the inherent economic growth problem) is, it allows a systematic and consistant approach to the trading cycle itself... being consitant with your approach allows the law of averages to work in your favour.

11-12-2003, 11:54	#14
bulldogFXR level 3 Join Date: Dec 2003 Posts: 167 Downloads: 0 Uploads: 0 Rep Power: 0	Elliot wave... I don't want to oversimplify the issue... But if you look at it from a statistical point of view, you only need to be right 50% of the time to generate profits if you're losses are smaller than your gains. I realize we want to do better than an inherent 2:1 risk to reward, but that's all it takes. I don' t trade the EW, but I have a friend who does and he does fairly well with it in FX. I think the reason for this (not withstanding the inherent economic growth problem) is, it allows a systematic and consistant approach to the trading cycle itself... being consitant with your approach allows the law of averages to work in your favour.