Yes of course I use the 2% money management rule. My strategy is a long term investment. Most of the time my trades last from 1 week to 1 year max. My average trade time at this moment ( not at zulutrade ) is around 6 months. I use the 200sma, the momentum indicator ( 12 ) and the ATR indicator ( 5 ).
The 200sma is for the trend
The momentum indicator shows me the entry / exit signal ( When it goes from under 100 to over 100 this is an entry signal. When it goes from over 100 to under 100 it is an exit signal ).
The ATR indicator gives me the stop loss
When price action is above the 200sma it is likely that we are facing an uptrend. At the same time when the momentum indicator goes above the 100 mark than I’ll buy because I have 2 strong signals ( Price action is above the 200sma and the momentum indicator gives me a buy signal )
That is how I trade. I trade on weekly charts so it’s normal that I have to set large stops. Zulutrade only offers scalpers or intraday traders to the community which I never recommend because at the beginning they are showing great results but they’ll go away at some point.
My strategy is not the holy grail but I can assure you that this is one of the best methods there is. You can always backtest my strategy but it’ll take some time to show that this is good because there will drawdowns.
I don’t like people who wants there money tripled in one month because it aint possible accept when you’re greedy.
Good luck
PS: You talk about the USD/NOK pair which had a stop loss of 2800 pips ( at 5.89022 )
Im sorry if you are not on zulutrade, then what’s the reason for you to post here?
If your strategy is not suitable for zulutrade they you simply dont do for becoming a zulutrade trader. You either alter it, or simply either trade for yourself, or some other platform as well. Large stops are not easy to absorb from small accounts, you need to keep them tight should you wish any follower on zulutrade to be able to follow. As for the strategies, you can find all sorts of them in the 100K that zulutrade offers.
The rankings of traders at Zulutrade are almost terrifying.
I just had a look at their own “Performance Table” of traders all ranked according to the Zulutrade parameters. The maximum drawdowns of their top-ranked five traders at the moment are (in this order) 35%, 52%, 48%, 85% and 108%. Also included in their “top ten” to follow are two traders with drawdowns of 2,000% and 4,000%!
If you input your own search parameters, using their search engine, to try to identify any traders who have been there for 6+ months, have real money accounts and maximum drawdowns under 15%, there’s only [B][U]one[/U][/B] listed (and he’s apparently done a grand total of 4 trades in over a year)!
It’s very much “[I]caveat emptor[/I]”, and that’s putting it mildly … :5:
There are a few things you missed out. First, trading, not just forex is not for everyone. If you don’t have the character this demands you can read as many books as you wish and sadly you are unlikely to succeed no matter how hard you try. It is one of the few professions that studying will not help you succeed. About EA’s, it is a shame we didn’t meet earlier. Most EA’s have a lifespan of 90 days, it is well known. When the market changes the EA must be updated and if not done right it will chew your account up, especially if uses martingale. Most (not all because I don’t know every single software in the market) automated software online are a waste of time. I have discovered that signals that manually researched have an upper edge as whoever is researching the market can easily adapt to the market. I have been using a provider (I am not mentioning who in this thread) that so far has proven itself for over a year. I looked into the performance and they had 1 rough month, which is great if you think about it. They stopped sending stuff a few times during the year, reasoning that the market is not suitable for their strategy. This is something EA’s cannot do.
About selling EA’s. I agree and disagree. Imagine I developed a good EA (I mean good, no BS) but lack the capital for trading. I sell the EA and use the money for trading. Once I reach the amount I need I stop selling it. Individuals that do have the money and developed their own EA’s are not selling them, on this you are correct.
Some of the players on zulutrade, going from Lexys’ research, sound like river boat gamblers. Reminds me of a warning from investment writer Andrew Tobias many years ago: Relying on experts, he wrote, "sooner or later, you will lose all your money… . "
That is not accurate and I am guessing this is taken out of context. Experts manage your pension and are managing funds of the most wealthiest people alive in the world. There is a great difference between such experts and those that pretend to be experts. Think about it.
You may have a point Pollar. I think Tobias was talking about those who play systems almost to the point of religiousness. Eventually the market will go against the system…
That’s not entirely accurate. Yes, the market is likely to go against the system at one point, that is why there is not such thing as 100% success and that’s why people use stops. When that happens the trader can either try adjusting the strategy to the new market or simply sit on the fence (means you don’t trade). You need to be extremely skilled to do this and most aren’t.
