Day trading difficulties

Discussion in 'Psychology' started by oilfxpro, Apr 17, 2011.

  1. Visaria

    Visaria

    I don't understand this, if you have a method that gives you 50% winners, the probability of having 75 consecutive losers is 3.77 x 10 ^22

    It's possible to have 10 losers in a row , but if you had say 20, you need to re-evaluate your method, because your assumption of your method having a 50% win rate is likely to be wrong.
     
    #161     May 1, 2011
  2. If you use a 50 % hit rate method , and can devise a betting method which will not exceed a draw down of 5% of your account size, and the 5 % is for 75 consecutive losses, the method will eventually always be a winner.

    There is such a betting method.
     
    #162     May 1, 2011
  3. ammo

    ammo

    75 consecutive losses would have to be a miniscule stop or a large acct
     
    #163     May 1, 2011

  4. $1m account , with average weekly earnings of $10k and maximum draw down of 10 % .

    I really don't believe the consecutive losses would ever exceed 20 with manual disciplined trading and draw down would exceed 5% with 60 losses in last 100 trades , and in the worst case (impossible scenario ) 10 % with 80 losses in last 100 trades.

    There is such a system , where your maximum position size can be 3*start position, yet one could sustain 80 losses out of 100 trades .This betting method would be used on 50 % success rate systems , but one should prepare for 20 % success rate.

    I know there is random distribution of profits and losses , and it is possible to regulate random distribution losses to 1 win to 2 losses maximum, using a specific method of regulation of randomly distributed losses .

    If you have a 50/50 system , and losses were evenly distributed , one could easily use a martingale system to recover losses, thereby one would never really have losses , this is because they would all be recovered.The above specific method is not a martingale method.



    :D :D
     
    #164     May 1, 2011
  5. Visaria

    Visaria

    Well good luck to you, I have no idea what you are talking about.
     
    #165     May 1, 2011
  6. ammo

    ammo

    that 1 mil acct is great if you have it,and if you did,you catch the 3 trendays a month and double/triple/quadruple it every year,if not ,that system has a slim chance of reaching a mil on this system if its more likely 50k or less
     
    #166     May 1, 2011
  7. This works on day trading. 20 pip stop and trading without any bias.

    Just look for direction and s/r and take positions , profit target 10 to 20 pips.

    200 to 300 pips profit this morning.Testing on demo.

    What do you think of this over trading with 100 to 200 trades daily?
     
    #167     May 3, 2011
  8. cornix

    cornix

    200-300 pips in one day with 20 pips stop-loss?
     
    #168     May 3, 2011
  9. There were some pairs with 2 positions and others with 3/5 positions, so on average about 60 pips to 80 pips for this morning.

    See the attached report for detailed trade history with 20 pip stop on every trade.
     
    #169     May 3, 2011
  10. cornix

    cornix

    I don't get it, what is the bottom line profit in pips for strategy in total?

    And if you trade so well, why question your day trading?

    Can't download file, something is wrong with how it's attached.
     
    #170     May 3, 2011