It sounds like you're risking a thousand to make a hundred. High win rate, poor R:R, eventual blow up. Do you really think it's a good system?
1. True, there is lots of "noise" in the markets. 2. True, there aren't any really obvious edges (legal ones, anyway). If there were, traders would eventually learn them and then only want to take the profitable side. IOW... there must be buyers and sellers at all prices, or no trade... and to have that there must be a nearly 50-50 uncertainty. (When you're buying, there is someone selling who is equally convinced that your buying is wrong and the correct play is to sell. Successful big traders will tell you that their win/loss ratio is no more than 50-55% winners... can be <50% too.) 3. Also true... there are regularities in how the market behaves. Learn and trade those if you want to succeed.
no, I don't think you understand the system. The win rate is abysmal. That's all I do is take losses. day after day. the adding to losers is what most take issue with. Let's say I risk $1000 per trade. If it moves against me by $500 I have two choices. If I like the position and believe in the fundamentals I will do nothing. Because I still have $500 more before I will stop it out. If I'm getting chopped to death and fed up I will add to the loser in hopes that I will improve my average price and if it chops my way I'll have twice the size. But I've then just shortened my stop by quite a bit, because I am still only going to risk $1000 on any trade, whether I have 1 contract or ten contracts. But I'd rather be stopped out sooner than later on a choppy trade because time is money. If it's not going to perform I would rather get rid of it and use the margin more efficiently somewhere else. I trade multiple currencies, so no one pair is that big of a deal until I catch a big trend. Then that one pair can almost pay for the whole trade. That's why I say, "Let your profits ride."
You're right, I assumed you were holding on to losers until they became winners. You're doing something different.
Sure you naive poster, there are no guarantees. If you're looking for a guarantee put your money in T-bills and there there is no 100% guarantee either. Now, let trading to those who understand it and pls no bull.
/\ This. An edge exists for as long as an opportunity presents itself. The outcome may also be temporary and purely fluke and luck on your part too. E.g. being biased long in a bull market, being biased short in a bear market. No brainers and little effort on your part to impart such returns. And just like anything, the key is knowing when inflections occur. When to call it quits. When a system stops working, so you stop using it and try something else.
great advice how to destroy an account. Trade a system until it starts losing money, then switch to another system. Although now with a much lower balance in the account. People never switch from a profitable system, they only switch at the depths of drawdown. The system always works. It worked 100 years ago, and it still works today.
You sound like a charlaton and a simpleton. Every trader has multiple strategies and are constantly improving their system and make changes in a changing market place. But you know better. Your system never loses for 100 years. Sure. 100 years. 100. Good luck to your paper account.
I'm certainly a simpleton, and proud of it. Tell me something now that is different than it was 100 years ago, or for that matter back in Tulipmania. The system is always the same. It never changes.