Hi there, would you mind sharing your ROI and your trading style/strategy?
I’ve backtested my strategy, and it seems like it is working well, and it fits my personality having a 9-6 full-time job. I’ve decided to start a Youtube channel to document my journey and ensure that I follow my trading plan.
I’m risking 2% per trade.
In 2021, July to October, there are 4 months of losing streaks, -15, -6, -1, -2, which is approximately -25 R, since I’m risking 2% per trade, I will be having a drawdown of 50%.
My trading strategy is pretty simple, after I have made my trade, forget about it.
Either it hits Tp/Sl or I close them manually.
I’m not sure if i will be psychologically affected if I’m in that kind of situation, but backtesting give me confidence.
Thorough work. Back-testing is fundamental to developing a trading strategy. It gets a bad repuation from some apparently successful traders, but that’s only because it can be misused, for example to curve-fit a strategy. But any tool can be misused so that’s not a particulalrly valid objection.
I have to say that when I am back-tesing or trialling a strategy, I never persevere with anything which has a trade win rate of 50% or less.
One specific question - is all this data from trading one single forex par, or multiple pairs, or some other markets?
Thanks for your reply.
As you can see, my overall win rate has ranged from 39-46.
My data is just for one single pair which is the EURUSD.
My thought process was that if I traded more than one pair, then my lot size would decrease based on my system. And what do you think about it?
In my opinion, I have to spend more time on trading and more effort to manage my trade if I have to look at more than one pair. I don’t back to trade more than one pair.
EUR/USD is a logical choice. Can’t say if it’s the best - depends on the strategy.
But anyway there’s a problem with all profitable strategies - none are profitable all the time on every pair. So trading one pair only puts you in a straight-jacket - statistically you must have mostly winning quarters/years but also some losing quarters/years. Tracking at least one other pair, on demo would work, would highlight when your favourite target stops performing and you could switch to the back-up either as a substitute or as a hedge.