Is there such a thing?? If so I have yet to see the perfect strategy.
Cheers
Blackduck
Most of the traders lose their money because of their low knowledge and skill about trading and forex market.
Surely this is not the correct way to choose position size/stop loss? You should be choosing your stops based on your strategy i.e below recent support or resistance be that 20, 50, 100 pips and then adjust your position size accordingly so that your stop loss = x% risk, rather than adjusting your stop loss to allow you to trade .16 lots every time.
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A very important point.
Stop losses should be placed at a point that invalidates your trade hypothesis.
Using a closer stop because it represents the maximum amount of money you are willing to risk is an indication that your position is too large.
This means that you should reduce your position size so that you can choose a meaningful stop that is also consistent with the amount of money you’re willing to risk on the trade.
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I get what you say and many traders follow your advice. I don’t need support and resistance level lines when using Ichimoku, MACD and PSAR trend strategy over three time frames.
Many pairs equate one Pip to one Dollar. A few are more expensive. In any event, at my lot size I can manage the S/L to give me a starting risk reward ratio of 1 - 1.5. Also, I’ll cut short a losing trade before it reaches the S/L.
Maybe that’s unscientific, but my trending strategy is profitable.
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That 3% is an internet myth. Many people feel like regurgitating it makes them seem smart, like they are now part of the forex club. Has it occurred to you that most things you find online are unverifiable and when you really put it into perspective, even without the so called facts that are quoted, but not presented, it doesn’t make sense? I’ve heard many statistics about how many people lose in forex, but apart from some old studies, which were flawed and setup in a way to discredit forex, I haven’t seen any real data.
What I do notice in your post, is that you are trying to justify your losses. What I really read is: “I can’t make any money in forex, so most forex traders are not making any money either.” You then go online, search the question and see some questionable statistic that confirms your bias, and now you are a believer.
How do you know that your strategy works? If you’ve back tested it, and it gave you a good win ratio, consistently, then you have no need of worry. But your strategy is obviously not working, so go back to the drawing board, and quit spinning unverifiable, internet myths.
Another thing you should look at is the current market condition. In which market conditions did you back test your strategy? If it’s different from what you’re seeing right now with the elections, then that might explain your losses. If you lost no matter which condition, than your strategy has flaws. For years I had exactly this problem. I used one particular system that only worked for one market condition and when that condition was not present, I would lose seriously. It took me almost six years of periodically analyzing my data to see the recurring pattern. Once I investigated the pattern, I realized what I did wrong. Quit justifying, start analyzing.
How long are you trading?
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That’s not a sixth sense. Bars and patterns form in the same way over and over again, not just on lower time frames. Because scalpers sit in front of their screens a lot more, they see it form and the formation goes down into their subconscious. After a while it becomes like second nature. You see a pattern forming before technical indicators do. You may not like scalping but, that extra screen time may help you in your swing setups. I just can’t stand the waiting on the higher time frames, even if I know exactly how the pattern will develop.
I don’t know about the 97% figure, but if it were true, I’d wager that 97% of that 97% are all the people that started trading without taking sufficient time and effort to learn and practice.
One of the brokers has provided an analysis of how their retail clients fared. Yes, some 79% lost money BUT over 50% had made winning trades. The issue, the analysis found, was that on average clients hung on to losing trades far too long, hence the overall loss. Seems to make sense to me - if clients’ trades are right 50% of the time and, for example, every winning trade averages £1 profit and every losing trade averages £2 loss then 75% of the cash spent is lost. The question then becomes are around 75% of CLIENTS losing money or is money lost on 75% of TRADES? Or am I being more dozy than usual?
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Break that down more though. How many retail traders who don’t bother to learn much if anything and then go into the markets all guns blazing like it owes them something and blow their accounts make up that 97%. I’d wager a fair amount. Being able to deal with losses and approaching your learning correctly can make a huge difference in setting yourself up for some success in forex, whether that is a bank teller’s wage, breaking even or making good money.
This is a sensible and corrective reply.
Hello steve369 what trailing stop is best for you to ride the trend?
I mean do you use 25 or 30 or ___?
Money management needs to be properly maintained to reject losses. And money management is needed to control the risk.
What strategy is that please
If you can’t maintain money management, you can never control risk. If you risk more than 2% for a trade, the account may be at risk. Loss can never be covered without following a 1: 2 risk-reward.
Hi. I’m still experimenting with this. If I’m at my computer, I can manage it easily by moving the S/L manually candle width at a time. If I’m in a long trend, I’ll minimise it at 50 (=$5) - but that’s just my take on it because I trade small lot sizes.
It’s my improved Bulletproof trend strategy, that is based on the three ducks line up and the 60 EMA as the base trend line - buy above, and sell below, being in line with Ichimoku over three time frames.
It’s a very strict strategy, and patience is needed to get the right set up, especially as the markets are moving more so with fundamental sentiment with Covid 19 adversely affecting economies. IMO, that makes technical analysis a hit and miss affair.
This is not in question but how is this a perfect strategy?? That was my original comment.
What do you say to the statement of a perfect strategy.
Blackduck
for now I’m one of the 97%
The was forward is to stick to a system in which you can risk as high as 25 % of your equity. Such trades comes once in a while, could be just twice in a month. Also stick to higher time frame. The dea as of risking 1% of your equity is for those still learning. All the best.