I think the Idea of not making a single loosing trade is quite nice but would also demand that you make next to nothing profit. In the end Forex is a game of probability, and all that really matters is profit at the end of whatever period a trader sets for himself…Perfection is unnecessary and a huge waste of time.
A lot of us are tempted into wasting so much time trying to perfect a winning system, in search of the HOly Grail when we could be raking in Pips [me included]. Truth is a system that is 51% right is good enough already, everything else is just greed, impatience and time.
Just dare to leave open a buy in GbpAudvfor a week or two. Have you ever heard somethig about rollover? Do you know what over spread is? Let’s say you sell on gbpjpy and somehow boj intervention works and price never comes back again? Aw yeah, don’t forget those pairs that have negative swaps in both directions.
And that would explain why the concept of a no loss system would never work for you.
You’re trading the wrong side of the line.
You can use market orders for entry, but that would incur large drawdowns.
When you use pendings, the market can go where it will without having a detrimental effect on your balance.
As long as your order is not filled, there is no market exposure. You can file anything from limit via market to stop orders and you are NOT in the market with those orders. Just a order [B]with filling[/B] is “a ticket” to be in the market.
. . .sounds like me last year! Well, not a significant loss - several tiny losses (and tiny wins) due to frequently opening and closing tiny positions to test scripts that I have been working on. As for my real trading, all stop losses that were hit were already moved to break even or negligible amounts before hit. On the positive side I had 12 trades that were closed in substantial profit (from May-Dec), I know not its many trades but I was able to always cut losses short and let profits run.
My account has grown 820% since April 25th, and all trades were made with 2-8% risk, (except 2 of the trades - my first profitable trade i risked 40% (a gamble i know - but i could afford to lose the money lol) and it gained me 85%, then one of my 4th or 5th trades i risked 28% - and it gained me 50% - every thing else, include my biggest winners were all from 2-8% intial risk) - So even if a couple times I risked more than I should have to give my account a boost - i still had no real losers last year.
And now Im taking it more seriously and will never risk more than 5-6% on a trade again.
