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Cup and Handle Patterns

Cup and Handle Patterns 17% Win Rate

Cup and Handle Patterns 17% Win Rate

Cup and Handle Patterns 17% Win Rate is the result of all the cup and handle trades from daily chart, from the first trimester of 2020. So, let’s take a look at the results.

The premise

As I already said in my previous two articles in which I analysed the results of the Head and Shoulders and Inverted Head and Shoulders patterns, April is the best time to look back into the first trimester of the year. So, in our case, we need to analyse the trades from the January – March 2020 period and see what we did wrong. Therefore, let’s see what happened with this very low Succes rate.

What Cup and Handle Patterns did we have?

EURJPY loss -0.08% for a risk of 0.5% (almost breakeven).

USDPLN loss -0.30% for a risk of 0.5%.

#TRV loss -0.30% for a risk of 0.5%.

#AMZN loss -1.30% for a risk of 1.3% (full initial risk).

#FB loss -0.60% for a risk of 0.6% (full initial risk).

EURNZD win +2.00% for a risk of 0.5%.

How these statistics looks like?

We have 5 losing trades and 1 winning trade which means 17% win rate. Also we have a +2.00% gain for winning trades and a -2.58% loss for losing trades. Therefore, the net gain is -0.58%. Also, the risk reward ratio is 1:4 which is very good.

What can we learn from these cup and handle patterns results?

If we take a look at the results, we’ll find a very big surprise. That’s because I managed to lose only -0.58% with 5 losing trades and only one winning trade. This is the pure magic of the risk and money management. This is what any trader need to learn in order to become successful. Without a proper money and risk management there’s no chance for win in the long run.

The conclusion

Before I started to write this article I was thinking to lower my initial risk for the cup and handle trades. That’s because I knew that I had a lot of losing trades and only one winning trade. But, now, after I made this analysis I completely changed my mind. I don’t need to lower my initial risk for this kind of trades. I need to continue in the same manner. And that’s because a single winning trade will compensate for four losing trades. Now, I invite you to also read about Head and Shoulders Patterns 64% Win Rate. And also about Inverted Head and Shoulders 71% Win Rate and Double Bottom Patterns 45% Win Rate. I’m sure you’ll have a lot to learn from my mistakes.

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