Cut your losses
Let your winners run
Or at least as the rule of thumb goes - much easier said than done
This (your results) is what happens when you do the opposite, and I’m pretty sure I’d be correct in saying this is the main contribution to the 95% ‘rule’ - during my earlier stages I’ve been there and back so many times I’m still recovering from the effect.
Only problem trying to follow that idea is if your system’s efficiency is THAT low trying to let anything run is going to result in a bigger loss each time. I’m far from being an expert but my recommendation is that you seriously reconsider the system you’re using as well as your money management.
I’m not sure if you’re cutting winners early or if it’s your trade placement in general or both. You mentioned trading news - given those results I’d speculate that they were the result of chasing price on event breakouts but landing yourself on the end of the movement before either only being able to a) make a tiny profit before price retraced for the long term on you or b) make a large loss as price retraces on you before you’re even able to score a profit. Hell I made the same mistake just a few minutes ago on the CAD/USD Trade Balance & USD Unemployment Claims, but given the uncertainty of it I was only playing with teaser 0.01 lots and tanked a $1.5.
You also mentioned using psychological sl’s - if your entries tend to put you in positions where you’re inclined to sit in such poor risk to reward ratio trades you ought to try using an order instead. There’ll be times where they get cut out ‘early’ but in the long run they’ll save you a lot more pain. If anything in the event that they’re getting hit more often than not, it’ll serve as an impetus to find a trading method/template with a greater efficiency.
Also does anyone have any of this data available…
Any of your data not likely, any of our trade data most probably if we’re using a platform like MT4 or manually calculated it. Whether anyone’s willing to share it is another thing :eek:
I’m not too fussed about the transparency of my earlier progress and as far as my ego is concerned those days are (hopefully) behind me so if it makes you feel any better:
Short Positions (won %): 541 (78.19%)
Long Positions (won %): 566 (73.50%)
Profit Trades (% of total): 839 (75.79%)
Loss trades (% of total): 268 (24.21%)
Gross Profit: 3 061.60
Gross Loss: 5 145.84
Average profit trade: 3.65
Average loss trade: -19.20
That isn’t including the ones I pulled on a previous broker with very similar results, and yes it was real money. Note that closing partial lots will count as an individual trade so in reality the win % are slightly lower. As you can see extrapolated to the drawing board that’s pretty much a 1 : 5.2 R:R ratio.
The determination to form a solid system with the appropriate risk management and the discipline to stick to it all is what makes the difference between -40% efficiency in profit to loss and well anything positive really.
I’m hesitant to throw out recommendations to systems but seeing as you seem to be a more fundamentally rooted trader (as far as news is at any rate) I’ll link the threads that helped me get my act together:
Alternative Technical Templates
Alternative Technical Templates 2
And this template I’ve taken quite a liking to but have yet to test it:
The Forex Store
