Sep 16 2021 at 19:18
Ezereombre posted:Proper use of stop loss can reduce the losses.
You must know how and when to use stop-losses so as to make the most of your trades.
I believe that the best metrics to estimate your trading success is whether you have consistent and predictable profits which you can prognose. If these profits are decent and you can live on them, then your trading is successful.
I measure success in consistency. I think that the number of percentages is not the most important factor that you should pay attention to while analysing your trading results. I feel that consistency is more important. For example, if you make 5% every month during a year, it is a fantastic results. It signifies that you know the market and your trading strategy is reliable. You can modify your trading strategy if you want to earn more, but from this moment you can be sure about your knowledge of the market.
posted:
I wanted to create a thread that asked the following questions...
What are good stats in forex?
Are there stat values that show a system still has problems even if it is profitable?
Thank you for your time
A good stat is anything with a + in front of it!
Your second question is not so clear, what do you mean by a system that has problems? Do you mean losses? If so, all systems will have losses, as this part of Forex and must be accepted.
SaltaLargo posted:Risk rewards are very important for survival in trading. You can't make a profit with a good strategy if you don't have a good risk ratio.
Risk reward is important but do not place too much importance on it. You also need to identify the right trades so that your win rate is high enough to still make profit
Oct 18 2021 at 07:00
posted:
I wanted to create a thread that asked the following questions...
What are good stats in forex?
Are there stat values that show a system still has problems even if it is profitable?
Thank you for your time
It all depends on how you're trading but in general you want at least 2:1/3:1 on your trades. This gives you room to make sure you are not pressurising yourself for high accuracy. All in all, the strategy you learn will give you the right risk to reward so the 'stats' will be individual to each person. Like i aim for trades 3:1 up but i know ill have 'x' amount of percent accuracy and im fine with that but some may be scalpers and going for 1:1 and want a lot higher accuracy so the stats change per person and per strategy
The good stats in forex are the ones that show a profitable trading system. There are many statistical indicators that work well in forex. The stats value you can consider are:
Calmar Ratio (targets reward/risk, over 3 is good)
Profit Factor (average win/loss ratio, over 2 is good)
Heiken Ashi (buy when green, sell when red)
Moving Averages (higher is better).
Calmar Ratio (targets reward/risk, over 3 is good)
Profit Factor (average win/loss ratio, over 2 is good)
Heiken Ashi (buy when green, sell when red)
Moving Averages (higher is better).
Long term profitabilty is ultimately what dictates 'good' stats in trading.
If you can't spot the liquidity then you are the liquidity.
Oct 25 2021 at 23:18
sebking1986 posted:Long term trading is much less risky. And one should never think unrealistically.
Long term profitabilty is ultimately what dictates 'good' stats in trading.
Bern in profit overall really just turning a profit more so than been stuck in DD .
As for strike rate anything over 50% is doing a great
As for strike rate anything over 50% is doing a great
Dec 08 2021 at 14:33
Trading is a probability game and the more you understand ratios, percentages, etc trading becomes easier.
Dec 10 2021 at 11:16
The trader needs to create a balance between the win-rate and risk-reward ratios in order to be successful.
Dec 12 2021 at 20:06
It all depends on your Risk : Reward ratio.
A great formula to know is:
Minimum Win % = Risk ÷ (Risk + Reward) x 100
So, for example, if you have a 2:1 average reward-to-risk ratio then you only need to be winning 33% of your trades over the long term in order to break-even.
1 ÷ (1 + 2) x 100 = 33%
Exceed that win rate and you will be making money.
**This assumes you have the psychological discipline to honour your SL and only take trades which are greater than or equal to the R:R you have chosen as your target. This is a whole other game.**
A great formula to know is:
Minimum Win % = Risk ÷ (Risk + Reward) x 100
So, for example, if you have a 2:1 average reward-to-risk ratio then you only need to be winning 33% of your trades over the long term in order to break-even.
1 ÷ (1 + 2) x 100 = 33%
Exceed that win rate and you will be making money.
**This assumes you have the psychological discipline to honour your SL and only take trades which are greater than or equal to the R:R you have chosen as your target. This is a whole other game.**
Dec 13 2021 at 03:19
If you want to start and be successful in forex you must learn forex first and after choose a reliable and trusted broker and start practising with a demo account. It will help you a lot to become a good trader.
I think that the right measurement to see whether the trading is good or not so good is consistency. I mean that everyone can have a streak of good luck from time to time and it is normal. THat is why it becomes hard to tell whether this or that trader is a success or he was just lucky. However, when we look at the stats in the perspective of several years and we can notice that there is some sort of consistency there, we can say that this person knows what he does and his profits can be small, but they are real which is a very difficult thing to achieve in trading.
Dec 19 2021 at 08:39
RobertFerrari posted:knowledge can be useless if there is no regular level of practice , so we the traders should focus on practicing besides acquiring knowledge.Davidfx89 posted:Yes. the most important thing to become successful is to have proper knowledge about trading.
to become a successful trader is a long time issue , first of all need a long time experience with great level of patience.
Dec 19 2021 at 19:27
skihav posted:To decide what should you do, you need to have proper knowledge and skills,
This is already purely individual. Someone is just fine not to go to a loss, someone is aimed at making a profit.
croisssan posted:Each one is trading using a different strategy. So there is nothing confusing here. I can make profit with indicator and I can also make profit with technical analysis.
For me, a positive indicator of performance is profit. I always focus on this.
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