Forex: Minimizing Drawdown and Maximizing Profitability

Discussion in 'Forex' started by Forexer Guru, Jun 21, 2023.

  1. well explained. most banks are usually closed around that time.
     
    #41     Jun 29, 2023
  2. alistera

    alistera

    Well of course they don't produce any returns, they fundamentally use the wrong basis which always at best nets out to zero but you will understand it, anyone with anything that works will use a basis you cannot reconcile therefore you can never understand how it works.

    So you won't use it because you can't trust something you don't know, no matter how good it is and regardless how open or closed it is, hence you have to develop it yourself until one day you understand, you were on the wrong path all along, most never get that far.
     
    #42     Jun 29, 2023
    Forexer Guru likes this.
  3. Overnight

    Overnight

    Your sarcasm meter is broken.
     
    #43     Jun 29, 2023
    PPC likes this.
  4. @Overnight I thought you were going to say I am naïve. its the first time I am coming across this kind of creatures on this planet. I guess they are not creatures but bots.
     
    #44     Jun 30, 2023
  5. See another one.
    I don't want to refer to him/her/it as malinger
     
    #45     Jun 30, 2023
  6. #46     Jul 10, 2023
  7. alistera

    alistera

    People today can't do simple math, even going in to the supermarket which is their job was waiting 5minutes while the cashier with the guy in front tried to calculate how many cans were wrongly added to the bill.

    The average R/R ratio for daytrading is 1:3 and for swing trading is 1:10, you have $100,000 risking 1% per trade or $1,000, yet the average return is 1-2% per month meaning their net win / loss is around $1k to $2k per month, this along with the rest of the world uses a logarithmic curve to generate their less than stellar returns.

    However there is another approach, an institutional approach, which uses an exponential curve to generate the returns, let's say you allocate $100 to an account which is 0.1% of AUM at a 10% return per day.

    For 10days you allocate 100% to trade that produces $258 end capital, then the next 10days you allocate 50% which produces $422 end capital, then the next 10days you allocate 20% capital which produces $515 end capital, but you are only risking profits not capital.

    This is what the arb system does, actually it's producing 20% per day auto trading which becomes $2,377 after 30days but the same principle applies on Forex or Futures or Stocks starting with $1,000 (obviously you wouldn't allocate 100% up front).

    At $100 you have 10attempts to generate more percenta per day and week than people can produce per year as the returns compound (Einstein), so why doesn't everyone do it, because you cannot use retail tools they need tools where consultants cost $1,500 to $2,000 per day, but if you learn those tools yourself then obviously you can because that is the road I took.

    Sure it takes a long time but there is one advantage, you don't have to live the miserable life everyone else leads working until they die using a logarithmic curve, chasing something that only results in a black swan or hijacked capital event to come along and destroy years and decades of effort because you exposed capital to the markets.

    [​IMG]

    Obviously if you have $100,000s or $millions you swing trade for 15-20% (or do you) but that excludes 99.9% of the general population :D
     
    Last edited: Jul 11, 2023
    #47     Jul 11, 2023
    murray t turtle likes this.
  8. %%
    Or more\
    if it looks like SEPT selloff + such is going to claw back more than planned, then less \
    may tighten stops.
    WMT requires any refunds to go to service desk good time saver :D:D
    One small or medium advantage some have over Bill Gates;
    we may never out work him LOL:caution::caution:Can start giving earlier than he did;
    so earlier harvest.........
     
    #48     Aug 18, 2023
  9. SunTrader

    SunTrader

    @Baron every post of Palermo1987 has a ad link in but I don't believe for any of your sponsors.
     
    #49     Aug 18, 2023
    murray t turtle likes this.
  10. Baron

    Baron ET Founder

    His posts have been deleted and he has been permanently banned. That was an excellent spot on your part. Thanks!
     
    #50     Aug 19, 2023
    SunTrader likes this.