I've trading forex since 2008, tried lots of method and EA. I developed my own trading strategy last year. It works very well I believe, but I only gained about 14% in ten month. The Max DD is 5.95%, Profit factor 2.07. Average monthly return: 1.30% Is my strategy too conservative? Do I need to risk more?
How does this performance compare to the prior 10 months backtest results? How many trades did you have in those 10 months? How many pairs do you trade? Would your system also be profitable on other pairs?
1. The live performance is little better than backtest results because I've made few adjustments to improve the system. 2. 108 trades have been executed in the past 10 month. Profitability 83% 3. I trade 7 major currencies EURUSD,GBPUSD,USDCHF,USDJPY,USDCAD,AUDUSD,NZDUSD. I'll consider to backtest more currency pairs to the system.
This kind of dd only seems to benefit the invisible hand. Why not cut losses at specific levels and re-enter?
Being conservative in trading is always good and never ever thinking about exposing your account to more risk to earn more. Instead, learn to get better trades. Always try to maximise your profit/return compared to your risk.