Dear All,
I am taking an online course where the 2 day trading strategies taught have been tested on my demo account where the stop loss and target profit have been set at reasonable amount of pips. I made about 20 trades on my demo following exactly the rules taught and all except for one were losers. The market would always touch the preset stop loss which are always between 8 to 40 pips from the entry point.
This may sound like a silly question but if this kind of result continues for another 20 trades, would it be wise to trade the opposite way ie if the strategy points to a long trade, then I would make a short trade and vice versa, since 95% of the trades would go against the direction suggested by the strategy. Because if I do that, I would have a 95% chance of winning.
If anyone here is against this way of trading, how should I change the physchology of my mindset? Because the strategies are actually common established strategies.
@Oxygencanbreath
In theory it makes sense but you really need to monitor how far it goes the other way after you have taken the loss.
It could be just whipsaw because your protective stop is too tight - but you may have a point.
On the other hand I can almost guarantee that as soon as you change so will the market environment - call it’s sods law
In general, I can say this. Nobody communicates that trading will bring you money, even those who teach you. Everything will depend on you. And if you see that trading does not bring the desired results, then you are doing something wrong.
He’s following the rules taught to him. If I understood him correctly he is not indulging in discretionary trading. So, what makes you say that he’s doing something wrong?
@Oxygencanbreath can you share the strategy?
I think you can reduce your winning ratio but instead increase average gain per trade. There are multiple ways to optimise your strategy and it should be done with your trading strategy.