RobertBric

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You
will see proof that using only one strategy with positive expectancy can make
your rich but can also make you poor. Trading results depend upon the
statistical distribution of trades which nobody can control.
What
you CAN control are many other factors, amongst them is your investment portfolio
structure, or better, the various strategy-market combinations. Doing this
right increases the chance of your trading being a profitable activity. See how
it is done.
Note of caution. This article is for
a serious trader who is prepared to put to use parts of his brain that process
mathematics and related sciences. Traders need to use mathematics and statistics for
proper analysis in order to develop proper trading approaches. Please note also that numbers are shown using the European format ie. a comma is used as a decimal separator and a full stop as a thousands separator.
What is the standard advice you hear/read about money management (MM)?
The standard
advice one gets when s/he starts trading is to trade (very) small. “Risk 1% or
less per trade. Maybe 2%. Maximum 3% not too often!”
Such advice
is normally not supported by any serious background information. Why not risk
0,1% or 10% …
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positive avatar
positive 23 May

I always prefer an R:R of atleast 1:1.5 ..Lot of traders fail to manage this aspect and loseout. Ascertaining target is a combo of skill and patience. Very well presented.

NagarajaAdiga avatar

right! most of the traders can't control emotions and people have taken trading as gambling which is why all these RR ratio exist. In my experience trading with lower leverage and averaging the trades can give a fantastic return in long run. nice article

belman avatar
belman 24 May

Great !

Furian avatar
Furian 26 May

very usefull. keep good work +1

adask avatar
adask 31 May

Good article.

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You will find a possible UGLY TRUTH of how with some
craftiness one can make practically any trading robot perform with such trading
results to make the best professional traders in the world green with envy.  You will understand why selling trading
robots is a potentially very profitable business. Consequently, you will be able to see
marketing campaigns for trading robots in a new light.
What proof
do we get for trading results of trading robots?
Have you ever seen a marketing promotion for a trading
robot? The promise of trading results (fantastic profits in the shortest period
of time) is head spinning.
Have you ever gone to check the web site in the
promotion? If you have you saw many charts as proof of successful trades. All
those charts could be bogus. This is why buyers of trading robots demand to see
trading results.
So trading robots promoters show trading results from
their DEMO accounts. But those could also be forged. This is why buyers of
trading robots demand to see trading results by logging into the trading
account.
So some trading robot promoters allow you to log into
their account. And some (very few but nevertheless!) allow you to check their
LIVE trading accoun…
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RobertBric avatar

@LinnuxFX. Very often a channel forms overnight, called the Tokyo channel. It is defined by the resistance and support when the Asian market was active. At London open you have many false breakthroughs of those levels. So you need to fade the move. Backtesting and optimization will show you the best times, SL, TP and other parameters.

RobertBric avatar

@LinnuxFX. There is a known tendency for the price to oscillate around a round number (00 or 000 and sometimes even at 50) before breaking through of reversing. Find out a statistical distribution of one or the other, optimise with backtesting and go for it. Scalping, of course. Contest rules probably will not let you do this one, I guess.

kkforex avatar
kkforex 23 May

very well researched article 1+

belman avatar
belman 24 May

Nice article +1

Furian avatar
Furian 26 May

man I should read You regulary. exelent job! +1

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You will find out a definite answer to this
question that haunts every trader. You will see the results of a comprehensive
study of 127 indicators. And THE WINNER IS…? You would most likely never have
guessed it. It is an indicator that every trader knows and many
traders use. The question is whether they use it properly and profitably. Should
you use it? Read on...
The study of
127 indicators
In this book of 800!!! pages the author and his team present
the results of testing the performance of 127 indicators for a period including most of the
previous century for Dow Jones Industrial Average. (Note: the study doesn’t differentiate
between indicators and oscillators.)
Unfortunately a similar study doesn’t exist for the FX
market. But indicators are indicators because technical analysis is technical
analysis in any market so let’s see whether we can learn from this study something
for our FX trading
They compared results of the performance of the
Buy&Hold strategy with a strategy using a particular indicator. There were
some other rules which are irrelevant for this discussion.
The tested indicators included also the indicators
that are widely used in FX trading like:
various types
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scramble avatar
scramble 18 May

@robert: you are right! i read again whole article and so i understand i got it wrong last time. stress gives this and many other kind of thigs!
good luck :-)

DaddyPapi avatar

The people who actually have the holy grail indicator(s) are busy making money from it and dont want to share it..otherwise they would lose their edge

belman avatar
belman 24 May

Well done +1

Furian avatar
Furian 28 May

Most efficient indicator is into our head. To understand what BBWEB (big boys with endless balance) try to do in particular time frame with intention to induce some sentiment which will be wiped soon after majority of day traders start to think "ok I go in this direction" Someone must lose if some other win. Fake sentiment is most deadly sword for majority of traders as well as 'recomendation" from some "good names"

HansFX avatar
HansFX 14 July

Good article. This also explains why all indicators only work in certain market regimes. It's important to constantly test which indicators work best at a given moment for a certain currency pair. You can either do this by using MT4s back-testing framework, or by checking for example my link, where they test different forex indicators on recent price series. Make sure to set "include transaction costs" to true in the settings.

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What is the
article about?
You will see results of an interesting survey of more
than 1500 traders done a year ago at a webinar which I attended. Such a large
number of participants in a survey makes the survey results rather valid and
credible. Please note traders were trading various markets not only forex.
The focus of the survey was to determine how much
money people had for trading and what their expectations were from trading in a
financial sense.
Participate
in a survey
BEFORE YOU WATCH THE VIDEO or read the rest of the article, please write your view/answers to the
following questions in the Comments section:How much do you believe traders have in their trading accounts on
average?
How much profit do they expect to make per month in % terms?
A VIDEO
version of this article is available on YouTube at http://www.youtube.com/watch?v=-N8BJzjyUnk
Note 1: If
clicking on the video link doesn’t work just copy the link into your browser.
Note 2: The
text below is not an exact transcript of the video.
1st
survey question: How much money do you have?
This question addressed the overall financial
situation of the respondends i.e. in life in general, not just in trading.
Enough or …
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Furian avatar
Furian 24 May

greed and emotion alway put money out of our pockets. caoution. Thanks for any support. +1

belman avatar
belman 24 May

great success for the systematic and good trading strategy +1

samijoe avatar
samijoe 19 July

is this survey for european markets or world wide ?

RobertBric avatar
RobertBric 19 July

@samijoe I don't know the exact nationalities of the people present on that webinar. Based on the time of day when it was held I would venture to say that attendees were from US and Europe because it was night time in Asia and Australia.

PrinceChoco avatar

Very big article, good job

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