ASIC: 80% of Binary Options traders, 72% of CFD traders and 63% of Forex traders lose money

Discussion in 'Wall St. News' started by mlawson71, Jul 3, 2018.

  1. mlawson71

    mlawson71

    People often say that 95% of traders lose money, but that number is not supported by offical survey statistics and is more of an expession of the opinion that a lot of traders do lose money.

    We finally have some official statistics!

    The Australian Securities and Investments Commission says 80% of Binary Options traders lose money, while the percent with CFD and forex traders is 72% and 63% respectively.

    The findings are published in June in a paper titled “Improving Practices in the Retail OTC Derivatives Sector”.

    A recent ASIC review of 57 of forex, CFD and binary options brokers also identified a number of risks associated with the financial instruments offered to retail investors.

    Frankly, those numbers aren't as bad as imagined they would be, but they're still pretty bad, in my opinion.
     
  2. truetype

    truetype

    But everyone on ET has a 3- 6 Sharpe!
     
  3. Especially bad when you consider that if you're a disciplined "Price TA" trader, it's almost impossible to lose.
     
    Money Trust and Xela like this.
  4. pipeguy

    pipeguy

    Placing random trades with controlled stop loss will hold you near the breakeven. Greed spoils everything!

    But its great that the myth has been debunked, it gives the inspiration to work harder
     
  5. SabreMan

    SabreMan

    3-6 Sharpe, is low to mid end performance, some of the high frequency trading systems that i currently have in development have double digit Sharpe :cool:
     
    Last edited: Jul 3, 2018
    southall likes this.
  6. henry76

    henry76

    Wrong way round mlawson , the closer to 50% making money the less chance you have of consistantly beating the market, you want mkts where as higher percentage as possible are losing money ( outside of commissions).
     
  7. schweiz

    schweiz

    Can you have a negative Sharpe? 3-6=-3. :D
     
  8. schweiz

    schweiz

    Well placed entries with controlled stop loss will hold you far above the breakeven.
     
  9. truetype

    truetype

    HFT is another story, but all the TA/ chart-reader/ price-action traders on ET claim 3+ Sharpes.
     
  10. southall

    southall

    I have no such systems but in theory:

    A system of trading that has 2:1 reward/risk ratio and a 50% win rate and gives 1 trade a day (ie. 250 a year). Has a sharpe ratio of over 5.

    Even a system with 1.5:1 RR ratio and 50% win rate and 1 trade a day has a sharpe ratio of 3.
     
    #10     Jul 5, 2018