Doesn’t look like many systems on here use stops. Most have the futures systems have blown up and some of the systems that have done well for years have lost more than 50% after this market correction.
They did well in completely different market conditions using leverage. Next 2 years more likely market conditions will be different from past (average volatility at normal 18-20 levels, instead 10-15). And at some point, you need to add the recession or political black swans.
When it comes to trading, the old adage ‘current profit/loss is not indicative of future performance or success’ should not to be taken lightly.
I think past track records/performance can be misleading which is why most investors should understand the market and trading system they will be investing with.
My systems will survive.
Attention! Risk Warning! Do not forget that trading in foreign currency using leverage carries a high level of risk and may not be suitable for you. A large amount of leverage provides an opportunity to make a significant profit, but it can also lead to serious losses. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you may lose some or all of your investments and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Important! Results obtained in the past cannot guarantee the same results in the future. You should not invest funds that are for you the latest savings or borrowed, loan. This will not lead to anything good, since in this case you will be dependent only on a positive result and the cycle period, at which there is a stagnation in profitability or a period of drawdown, you will not accept.
I will try to delete all messages whose only function is to antagonize other users of this forum.
I would delete this statement, if I would be you. Actually you are promising good results, which might be not legal.
He didn’t say they would thrive, just survive.
You can still “survive” down 99% remember
I do understand that the market is antagonizing us, but Happy Holidays to Everyone!
Merry Christmas and Happy New Year 2019.
As I examined a lot of systems when starting here on C2 I noticed that systems with high returns are often systems with less than 1 year of history.
Often, after more than 2 years of trading systems go completely wrong.
So perhaps the trick is to track and follow young systems on C2? BUT keep a very close eye when trading them!
I’ll do my very best to keep my system on the right side.
The most important thing is realizing when a loss is a loss and let it go. it dosnt matter if your right 4,000 times if the one time your wrong you double down and hold it until someone else (your always watching broker) liquidated the position for a 50-70% loss or more. Does your system use stops? ive heard it all…i dont need stops i trade on no margin. Its oversold i should buy more.
Not sure how long your system can survive with an uncontrolled drawdown on a single trade of 25% ? It also would be more informational if you would list a description of your strategy. Happy New Year !!
Imho people attach too much importance to DD on an individual trade. When trading from a certain point of view on the market behaviour you must allow your position to run against you because it is impossible to be right every time and from minute 1 spot on. That’s how I see it!
What is the difference between being stopped out 4 times in a row at -5 percent or 1 x a 20 percent DD ?!?!?
Of course I am still young here on C2…we will see how the year 2019 goes on.
Hi @JohnSwing, its alright when you know where you have to get out AND when you are not over leveraged. Unfortunately most traders tend to never get out when they are in a huge drawdown and thats why we see so many systems crash.
Losing 4 times in a row with 5% stop outs is almost the same as losing 1 at 20% IF you have enough funds to withstand the losses which is why over leveraging is the biggest problem.
Ideally each trade should not be allowed to lose more than 2% of the funds available.
Anyways, good luck in your new system.
You say your system will survive. Therefore, why would you write the portion above. Shouldn’t someone beg, borrow or steal to get into your fund? You sell information here and specifically not trading advice.
Why the important and official style warning about something you are not associated with?(investment advice)
What did I write bad? If a person took out a loan, the campsite should be done monthly. And the system every month to get profit is unreal. Therefore, I warn you that you can not do this.
Personally I feel the main reason to avoid using borrowed funds or funds you can not afford to lose is that it introduces and element of fear and any trader that has experience knows scared money never makes any money. The second one enters a period of difficult trading and there is a draw-down you will not remain committed, even under normal conditions and inevitably will stop trading at precisely the wrong moment. If you put money at risk which you can not afford to risk you will not act in your own best interest, period. Don’t trade with money that’s designated for any other use whatsoever, it will affect your ability to make rational informed decisions. Fear must be avoided if one is ever to make money trading. Fear of losing money, fear of losing profits, fear of making mistakes etc etc. Fear leads to every bad action in the book.
My trading system always uses a tight stop loss. I try to keep risk low and take profits high. My system uses a profit to loss ratio of 3:1. My strategy http://collective2.com/details/126050414