Tropical Leaves
 Low Risk Progressive  
 Improved safety version of Original Pro  l  Stable growth  l  low DD  

Counter trend strategy that is entered manually by our Trader. Returns around 3 -4% pm with adjusted risk reduction settings compared the Original Progressive including the following: 

 

News Filter added

( All our systems now have a news filter)

We will combine our automated news filter with manual monitoring so we don't miss possible low risk trading opportunities.  

Only one pair traded at a time

To reduce possible drawdown only 1 pair will be traded. Although this will impact profitability it will reduce drawdown considerably, and help to ensure stable long term results.

Reduced position size

We reduced the position sizing in relation to the account balance by 60% to further reduce drawdown and enhance safety.

 

Reduced Safety stop 

With a all the above factored in we were able to reduce the safety stop level.

To put current safety stop in perspective: We had an extreme news event ( Fed rate hike announcement) in June 2021. The dollar moved 250 pips in one direction in 12 hours.

If all these measures (above ) was in place on the Original Progressive account, our drawdown would limited to 7% and we would have exited with a profit. 

Therefor it can be assumed that it is unlikely that our safety stop at 20% will be reached.

Why all these improvements will help us avoid us reaching our safety stop: 

- With the news filter we will be entering the market at a later stage ( after extreme volatility) and so the chance of a pullback is much higher.

- With only 1 pair, and a 60% reduced position size, we have created 'more space for market movement against our position' lowering our drawdown.   

- We manage manually, so our Trader will close at breakeven or a small loss if the situation requires it.

We don't have a long history of the Low risk Progressive yet, but given that ' The Original Progressive' had an impressive record for 18 months before June 2021 ( trading 10 pairs, 100% position size, without a news filter), it is realistic to expect a 'safer version'  to do really well in the well long term.