There's so many different strategies,
trade systems everywhere. You can see great reports, that show 100%
win ratio. So the question arises – is it really so easy to trade?
I do not think that it's easy. I think that one has to know how to
identify good reports from bad ones. So in this article I am writing
about what profitable trading means. And how to understand reports.
time period to use
the longer time period in a report we see, the better report it is.
Long time period we need because market changes all the time. Market
conditions change too. Market can be ranging for example for months,
but very fast it can change to a strong trend. It means that range
trading strategies will fail. Break outs trading strategies will fail
at ranging market. Good strategy has to be profitable or break even
all the time. For example if we study ranging market strategy, it has
to be profitable at ranging market conditions and at least at break
even at trending market.Below are my Strategy contest balance and rank charts from Dukascopy web page. I have to mention that my strategy is profitable when market is in ranging state.Above chart shows that equity rises gradually, but ther…