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5% average monthly profit for at least 2 years (with less than 25% max. DD)

Donex
Jan 16 2014 at 11:12
90 posts
myfxday posted:
Hello there, I have now a new DEMO account for 2014 January running on myfxbook.
Please leave your all comments (negative or positive).
Below is the Main link to my 2014 January DEMO account:
https://www.myfxbook.com/members/myfxday/2014-january-myfxday/806447
myfxday


Can't see the system. Says it's private

Hate your losers more than you like your winners
traderpamm
Jan 21 2014 at 09:36
9 posts
Anmaric_LTD
Jan 21 2014 at 12:43
61 posts
Impressive results for 1 and 2 weeks ;)

FxMasterGuru (FxMasterGuru)
Jan 22 2014 at 02:02
1607 posts
Donex posted:
I suppose DD is relative to your risk tolerance and the amount money traded relative to what you can afford to lose. If for EG, you can afford to lose 5k without it really affecting your life then you could easily trade that 5K into a high risk high DD system. 30% 40% 50% DD no big deal.

Now the flip side is the amount of money that would affect your lifestyle. Eg lets say 100K, You think you could tolerate a 30%, 40% 50% DD?

Many of these systems that have incredible gains with high DD usually have small amounts of money. Can they turn that $250 into 100K? Maybe if they're lucky enough, I suppose, don't know, doubt it.


DD is a significant psychological component of trading. In case you trade with large enough funds to make a decent living with, then probably you would not tolerate larger than 20% DD. I guess, you would start jittering at 10% already.

So - in my opinion - any strategy is useless for the purpose of making a living which has a >20% DD. These strategies are good only as HOBBY activities and to show off on MyFxBook.

Please click "Vouch" if you liked my post. If not, just put me on your Blocked list. :o)
PTG (ProTradersGroup)
Jan 25 2014 at 13:41
386 posts
If you want to trade for living you would minimum your risk. Max DD 5% is good enough for long run.

Thanks

FxMasterGuru (FxMasterGuru)
Jan 26 2014 at 03:26
1607 posts
ProTradersGroup posted:
If you want to trade for living you would minimum your risk. Max DD 5% is good enough for long run.

Thanks


Yes, I totally agree. Personally I would not risk more than 5% DD if I traded with more than 100k on my account.

Please click "Vouch" if you liked my post. If not, just put me on your Blocked list. :o)
Donex
Jan 26 2014 at 05:19
90 posts
I think 5% is extremely conservative, albeit I too don't like DD, but the whole idea of trading FOREX, Futures, options or any other highly leveraged instrument is to have higher than average returns and higher DDs are part of the package. Otherwise why trade these instruments? Better off trading less leveraged instruments, blue chip stocks for eg.

Personally I could accept as high as 20% (as long as the return is worth it) but would find it hard to sleep. 10% to 15% would be a lot more comfortable. 5% DD with exceptional returns, well that would be heaven.

Hate your losers more than you like your winners
FxMasterGuru (FxMasterGuru)
Jan 26 2014 at 06:17
1607 posts
If you have a strategy with a Monthly Profit/Max.DD ratio at least at 1:1 (preferable at 2:1 or better) for at least 8-10 months, then you can scale the strategy to reduce the DD <5%. You may become millionaire a little bit later, but at least you can sleep better.

In other words the DD itself does not matter on any showcase account, as any strategy can be scaled down to fit one's individual risk tolerance. What really matters is the Monthly Profit/Max.DD ratio.

Please click "Vouch" if you liked my post. If not, just put me on your Blocked list. :o)
forexpipcatcha
Jan 27 2014 at 07:59
325 posts
ProTradersGroup posted:
If you want to trade for living you would minimum your risk. Max DD 5% is good enough for long run.

Thanks


You sound like the scam group trying to live off someone that works hard...off course I could be proven wrong by showing me 2 years worth of skill trading which includes a profitable trading portfolio, otherwise go hide in your hole

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