String of losses

Discussion in 'Forex' started by AttoCEL, Mar 5, 2021.

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  1. Can you elaborate more? What do you really mean in this post?
     
    #11     Mar 6, 2021
  2. AttoCEL

    AttoCEL

    Sure. With an open mind we explore alternative ways to pay for a string of losses besides the conventional raising of the reward to risk ratio (pushing the target further). I think I've said enough to entice creative types. I will only respond to productive discussion.
     
    #12     Mar 6, 2021
  3. tomorton

    tomorton

    I get strings of losses due to two reasons - sudden increase in volatility and trend failure. But I don't find either significantly damaging to the account. They're annoying but I think of them as inevitable.

    Why should I get involved in trying to eliminate these strings?
     
    #13     Mar 6, 2021
    KCalhoun likes this.
  4. AttoCEL

    AttoCEL

    I never said we're eliminating the string of losses, we have ways of reducing the loss count but thats not whats being discussed here.
     
    #14     Mar 6, 2021
  5. arranua51

    arranua51

    My first year of trading, I lost $36K, 2nd year I gained $28K. 3rd year I’ll be paying taxes. I think I have developed a strategy of not losing. Most of the time I start losing at the end of trading day I end up gaining.
     
    #15     Mar 6, 2021
  6. Collagen

    Collagen

    A streak of losses happens..u just need to investigate if it’s expected or not.
     
    #16     Mar 6, 2021
  7. deaddog

    deaddog

    Why the losses? The strategy or the trader?
     
    #17     Mar 6, 2021
  8. AttoCEL

    AttoCEL

    both 80/20 split
     
    #18     Mar 6, 2021
  9. tiddlywinks

    tiddlywinks

    The thing about "strings" of losing (or profitable) trades is that the sequence is, for lack of a better word, is random. And this applies to any instrument, not only forex.

    If you've tested a strategy with a 99% win ratio based on one million trades, you can not predict the order, the sequence, of the 1% of fail trades. A string of ten thousand losses consecutively, remains within the overall results/expectations of the strategy. In this example, there is no indication the strategy is faulty or failing.

    Altering the R:R in effect, is creation of a new strategy invalidating the previous test results. IMO, it's not very different than revenge trading... not a sound or lasting solution. As an alternative "way to pay", adjusting R:R is an attempt to "fix" the trader, not the strategy.
     
    #19     Mar 6, 2021
    beginner66 likes this.
  10. AttoCEL

    AttoCEL

    Firms don't hire traders with these beliefs in randomness, but your opinion is understandable even when faced with overwhelming evidence to the contrary. Such conceptions are fed to us in culture and movies.
     
    #20     Mar 6, 2021
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