Assuming you have 500:1 leverage and are using EurUsd to scalp… here are results from January/2024 to now.
$20 is extremely hard to profit without DD of <$20 on the m30 chart timeframe. All forms of scalping will have 70+% drawdown… but with $200, that drawdown is now 7%.
With that said, one of the most profitable groups on EurUsd was using 0.09 lots with a Take Profit of 9 pips and a stop loss of 9 to 13 pips.
EurUsd 1m timeframe instead:
If you’d use .01 lot per trade, a 7 pip TP and 6 pip SL had +90% return, 27% drawdown. 75 trades. .02 lot per trade, a 7 pip TP and 10 pip SL had 180% return, 51% drawdown. 75 trades. .03 lot per trade, a 7 pip TP and 7-12 pip SL had 270% return, 70% drawdown. 75 trades. .04 lot per trade, a 7 pip TP and 7-15 pip SL had 325% return, 75% drawdown. 47 trades.
Within all the tests on EurUsd so far this year, 7 pips TP was found to be the most profitable, but still horrible drawdown. Any tests with >20% drawdown carry a significantly higher risk of ruin. Past results do not have any predictability but can be a guide to what kind of TP & SL to use based on current market conditions. You will need to manage these trades or else these numbers will eventually go back to breakeven ($20).
Risking your money while just hoping to make more money. The image of gambling in my head involves casinos, and Forex is not like that. If you have great risk management and conduct thorough analysis, it won’t be like those casinos because there’s nothing to analyze in those casinos.
Fair enough, then! It’s not a definition I like at all, myself, because it doesn’t in effect differentiate between “pure chance” and “mixed skill and chance”.
“Trading” forex by using CFDs is not actually trading at all. Currencies are not exchanged. That’s only a pretence. It’s betting (is that the same as “gambling”?) against a company on the price-movements of the company’s own products which have been artificially created solely for people to bet on them. That much is just fact.
What’s opinion is whether the fact that it’s betting makes it “gambling,” but that depends what you mean by “gambling.”
