Have I proved wrong the Rule of 90/90/90 or not? 🙂

Trading Discussion
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Hi Everyone

First of all, I would like to clear, before starting my post, I am not claiming that I am a super duper forex trader rather I am just asking your opinion or views on my last seven & half months trading performance on my Demo account.

I am not sure whether the Rule of 90/90/90 only applies to the traders who trade on Live Trading Accounts, or it may be applied on Demo Trading Accounts as well.

However, I have started Demo trading from January 2018 with the Equity of US$ 100,000/= on 1:1 Leverage. I had almost lost US$1,000/= during the month of January, 2018, which I recovered in the next month.

Here is my account summary from January to April, 2018

7th January to 30th April.PNG1168×737 65.1 KB

While I started to testing / experimenting my Ichimoku trading system as well as SW Currency Method from May, 2018. I tried to use different settings and various strategies on both of them. Specially, I tried to find out the correct usage of stop-loss and trailing stop.

While I was testing my trading system with all of these strategies, I booked almost US$3,000/= loss during that period. And most of these losses were incurred because I let the trade run to test my stoploss strategy, otherwise I could have easily squared off my loss position much earlier.

Here is the account summary from May to July, 2018

1st May to 31st July.PNG1187×732 60.2 KB

Nonetheless, I really enjoyed and learned a lot during that experimenting period. And, at last, I have almost finalized both of my systems.

Here is the snapshot of my account summary from 1st to 14th August, 2018.

upto 14th August.PNG1167×742 59.4 KB

And here is my Dukascopy Demo Account summary up to 14th August, 2018

Screenshot_20180814-162612.png720×1280 81.5 KB

I am quoting here the Rule of 90/90/90 for those traders who are still unaware of it

"The 90/90/90 rule is a basic rule of trading. It means 90% of new traders loss 90% in 90 days."

I started my account with the Equity of US$100,00/= and after almost 7 1/2 months time, I am still maintaining this account with only 3% loss up till now.

So my fellow BP members, what is your opinion on my trading performance on my Demo Account up till now?

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We often hear about the dangers of jumping from one strategy to another whenever one approach produces some losses, the end result being a string of losing attempts to find something that works.

You appear to have achieved the opposite and worked on your own method consistently, methodically, progressively and systematically throughout the year to date. You have identified weaknesses and resolved them along the way, resulting in a reliable and profitable strategy.

The result shows the reward for such diligence…

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Thanks @anon46773462 for your valuable input and appreciating comments.

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At which stage will you think about starting live?

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I will prefer to stick myself with demo trading till the end of this year because I want to test my trading system some time more.

And I would, In Shah Allah, start trading on Live account from new year.

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Sounds like a good plan.
I hope you will continue to let us know how you are getting on… :slight_smile:

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Sure Manxx. I would try to post it in my Progress thread. But, as you know, very few of BP members do have interest in such type of activity or postings.

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Hi @anon58863749,

We have yet to find any reliable study behind the “Rule of 90/90/90”, but people continue to mention it on forums as if it was a proven fact. Unfortunately, this so-called rule seems to be nothing more than another example of people misrepresenting statistics and spreading these misconceptions to others: Divorce Rate: It's Not as High as You Think - The New York Times

In the US, forex brokers are required to report client profitability stats to the CFTC every quarter, which is approximately every 90 days. Below are the stats FOREX.com reported to the CFTC for the past year:

For the calendar quarter ending June 30, 2018, there were 34,000 active non-discretionary
trading accounts of which 38% were profitable and 62% unprofitable.

For the calendar quarter ending March 31, 2018, there were 35,139 active non-discretionary trading accounts of which 28% were profitable and 72% unprofitable.

For the calendar quarter ending December 31, 2017, there were 33,885 active non-discretionary trading accounts of which 33% were profitable and 67% unprofitable.

For the calendar quarter ending September 30, 2017, there were 34,138 active non-discretionary trading accounts of which 32% were profitable and 68% unprofitable.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

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First of all, I would like to thank you for reviewing my post / thread.

But you should correct to yourself first. it is not the people rather the brokers’ agents or their Educators who started to quote the said so-called rule in their Webinar or Courses.That’s why the so-called rule become so popular and are being quoted by the general public in every forum because people judge them very well informed and educated persons.

If you haven’t find any reliable study behind the said rule and the said so-called rule seems to be nothing more than another example of people misrepresenting statistics and spreading these misconceptions to others, then why are your Educators spreading these false misconceptions at every platform.

Thanks for providing the statistics of CFTC which you reported on quarterly basis to them. I observed from your stats that the unprofitable clients percentage was almost double than the profitable clients.

But you didn’t tell us what was the percentage of your clients, who left you after being unprofitable during these 90 days time. Did you ever analyze it or not?

I know it very well - but thanks again for informing me. But I couldn’t understand as to what was your moto to expressing or advising all these thing to me?

I simply ask this to the community.

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Hi again @anon58863749,

It’s important to note that we are not connected to the people (we would not call them educators) spreading misconceptions about this so-called 90-90-90 rule. What do they have to gain from misrepresenting the real statistics? Perhaps it helps them to sell their courses to traders.

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When I said ‘YOU’, I was talking about the whole community of Brokers and not only to you.

You only responded to my one question :slight_smile: - what about others?

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Whilst I, and I am sure others, appreciate your comments about this so-called rule, the point of @anon58863749’s thread is not to explore its accuracy, or its origins, or even its relevance. There are more than enough threads on BP about how many traders lose and why…

What he would really appreciate are serious and constructive comments concerning his demo trading progress outlined in the OP?

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This is what my current standing at Dukascopy Trader Contest during the month of August, 2018.

Capture.PNG1131×582 39.2 KB

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You can’t prove or disprove that principle on a trader sample of one. So no, you have not proven or disproven it.

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No. Firstly the rule is for live accounts. Secondly 90% fail means 10% succeed so even if you did you’ve just proved it right as you could be one of the 10%. Just for advice: God, faith or hope will not help in trading. Plan your trade and trade your plan. Don’t mix the two. Best of luck. Start a thread when you open your live account.

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That was uncalled for. Get your mouth under control.

For a newcomer, who has been here for exactly one week, you’re a bossy little fellow, aren’t you.

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Thanks @Rickster99 for enlightening me about the said rule.

Should I consider it as a compliment from you?

No bro … if you don’t have faith in God or on yourself too, you won’t be successful in any field of life including trading. And my friend, “hope, desire or wish” keeps us motivating and help us in achieving our goals or targets.

Perhaps, you have heard the phrase “Where there’s a will - there’s a way”

Thanks for your advices and well wishes.

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Thanks for your opinion @Mrakun777.

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You really are strange. Read the title of this discussion. You have asked a question and I answered and gave a reason and said it’s on a live account. So why then would I be paying a compliment- to clarify I’m not. When you do it live I’ll compliment you.

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Clint I’m not going to give wrong advice to someone who is trying to succeed. I’m not going to sugar coat how difficult trading a live account is to become consistently profitable. You may do that and it’s up to you. Dont have a go at me for trying to give real advice.