I am using the King of Forex ema scalping strategy along with simple price action. It’s a lot of cost averaging entries to turn losing trades into winners.
Over 200 conservative winning trades. Wins are small, but take into account no losses and having fun trading every day.
It takes practice, which I suggest doing on live trading with 0.01 lots
I trade London session daily because I do it before work. Ideally, I would trade after New York session has been going for an hour or two so that the USD high impact news is over.
I think the psychological part is crucial:ok_hand:t4:
My win rate is about 71% but since a few weeks I reduced trading because I’m working on a new gym plan and a trading system, back on a demo-account. I’m experimenting with a 1:2 ratio at this system but usually my (old) trading system allows me to trade 1:1 sometimes I’m even able to set a realistic exit at 1:3.
When trading lower tfs like m1 a 1:4 rrr could be realistic but i couldn’t imagine to be profitable at my tfs with an 1 to 4 risk reward ratio. But this could sound completely stupid in another’s ear:grin: again it depends on…
hello Kcrusty, thanks for your response, may i ask which prop firm are you using?
i failed FTMO few months ago by hitting daliy drawdown , thinking i may try again next month, but FTMO is the most expensive in the market, i have checked on MFF, but it seems the slippage is a bit big as i scaple and have tight SL.
I like FTMO but the no news trade, no night and weekend position did not work for me. FTMO is excellent for scalper and daytrader. So, I went with MFF.
no surprise to have 11 losers in a row, then, i hope?
out of any 100 consecutive trades, the chance is more than 50% that you’ll have 11 consecutive losers somewhere, with that win-rate
that isn’t the main problem, though - the main problem is that without having any very long runs of consecutive losers, you’ll often be in a position where you’re 25 trades down on balance
this is why, with no criticism implied at all, i want to add my voice to those above wisely pointing out that this R:R and win-rate are unsuitable to anyone other than a very experienced trader with a detailed understanding of the statistics and probability functions involved in trading
and if your win-rate creeps down from 33% to 29%, which could easily happen, you won’t have a way of working out that that’s what has happened: you will just think you’re having a “bad patch” of the kind you very often get with a 33% win-rate
that isn’t your fault at all, but it’s a reality
if your method is based on something valid, with an edge, it will be possible to trade it safely with a much lower R:R and higher win-rate, as rightly mentioned above
Hi @Joanne852. This is very normal when you begin trading. However, you can mitigate the reluctance to execute trades by reducing your position size to 0.5% per trade. You can also trade on higher time frames such as H4 and D1 as this could reduce the anxiety of always placing a trade. You could also pick a few pairs to trade.
Stay strong and resilient, my friend. Losing streaks are part of the trading journey, and they test our perseverance. Take this time to reflect, regroup, and refine your strategies. Remember, even successful traders face setbacks. Surround yourself with a supportive community and stay motivated. Don’t give up—embrace the challenges as opportunities for growth. Wishing you a wonderful weekend and a fresh start ahead!
@AnalyticsTrade thats it true, thats why i come to babypips, people in here are so supportive and friendly
you too, wishing you all the best and success
Eleven lost trades in a row is well within normal parameters for the win rate and reward to risk ratio you mention using. If your figures are right, your system is profitable.
That said, the psychological toll of long losing streaks can be crushing even for the most hardened and experienced of traders.
There is a solution.
Look for an alternative strategy that has a much higher win rate. It will inevitably mean accepting a lower reward to risk ratio of course. Let’s say you identify a strategy with a slightly higher win rate of 50% say. You can now reduce the necessary reward to risk to 1.5:1 and still be profitable.
As a general rule of thumb, the higher the win rate, the lower the probability of you encountering a long losing streak and the better you’ll sleep!
11 lose, but what and how was your performance before? What happened, this is the 1st question to yourself.
Try to stop trading for 2 days and something else absolutley different and far away from trafing. Even don’t think and talk about it.
Then sit down at the right time and just start to whach a naked chart for a while. Identify key levels, where supply or demand occur. Forget your system and switch on only the 20EMA and 20MA (or what you prefer) and try to concentrate on the candlestick formations, where are the good signals and how they are related to the indicator. If you trade on pairs where a lot of “smart money” work, you will encounter sudden irregular moves that stops you out easily.
Such situations happens, pal… The matter is not to give up and continue analyzing the charts and hope for the best. Especially since you said you’ve noticed some good positions to enter and was afraid of doing it.
Psychology in trading is a very broad and hard topic to master. Everything comes with the experience, once you got such a lose streak, there’ll be a win one. Keep your head up, good luck!
Hey Joanne
Feel like you are afraid to loose money,
probably something in your mind says you aren’t capable of loosing money.
and that’s just because you want to avoid pain of loosing money.
i tell you the coping strategy that i have read in psychology books:
try to learn meditating at first and learn to concentrate
there are two possibilities either you have monetary pressure in your life to make money so you can’t take the pain of loosing money or you don’t internally believe that your strategy is profitable and after these stops you’ll have a period of winning trades.
whatever the problem is try take a small step toward keeping the trade going on.
if it hits the TP you have a positive experience that you are capable of trading well and if it hits the SL you got to know either this is part of the game and it happens or there are some bugs that you can use the lost and improvise.