The trader has everything to do with failure as it is they whom are deciding on the leverage. For Example, a Trader who using 5:1 leverage (considered by many to be very low because a broker offers 200) who has a 1000pips drawdown is reflected as 50% account drawdown. This means they need a 100% return from this point to get back to BREAKEVEN.
So you are saying that leverage is actually the main cause of failure. It is true that leverage will magnify losses, but it certainly does not cause the losses. Account profit and loss is affected by leverage, not the system performance. These are 2 different things. The system performance has nothing to do with leverage. It either wins trades, or it loses trades, regardless of the leverage. In your example, the system with the 1000 pip DD is the sole cause of failure. The leverage only determines how much money the trader lost due to that 1000 pip DD. The leverage had nothing to do with the system losing 1000 pips. If I lose 1000 pips in a manual trade, I am not going to blame the leverage for causing it. LOL
Well, Team Aphid Bird didn't start putting trades through this week so I'm assuming it will begin next week. Remember they take the second half of December off. I'll be starting a blog about it all once the first trade is initiated and will post the link here.
Hi, The leverage is the main cause of failure on the trader account, we agree it does not cause the losses on the system but is directly responsible for account loss.
Hi, Yes, they are starting to trade from this Sunday evening again. Additionally, they have a new system that is starting only in the FX-Auto platform called TeamAphid Daily.
Happy to hear TAB is coming back, the made good profit in the last 3 months of 2007 on the Auto trader demo accounts. With my live account open, it waiting for them. As for the new Daily Team Aphid, first ill like to see them run it a while, See if they Do better then Technofinazs that is also a daily system, sadly still holding ~50% success rate.
If you repeating same entry on a daily basis you would expect a 50% success rate, it how the signal provider manages the losses and maximises the gains to make the system from breakeven to profitable.
For anyone that is interested, I'll be starting my blog (hopefully) tonight. TAB has initiated it's frist trade of 2008, although it has not been filled yet. It's nice to see it there so that I know that they are in the background doing their thing now and I have my account and portfolio set up correctly.
For all interested, I have started my blog. It can be viewed here: http://cambisttrading.blogspot.com/