I know you would love to know more about why MOST OF MY TRADES have a high Reward ratio compared to risk. To fiqure that out you would simply have to LOOK AT MY TRADES. Once you do you'll find patterns in my trading history. Identify the pattern and you will fiqure out about how to keep your a Pip-drawdown low.
Ok lets look at the trades of Codemonkey.... It is clear to see that CodeMonkey isn't scalping. What he is actually doing is wagering very small lots, to counter trade the price action which lead to the price. Have a look at some of his floating losses. What do you notice?
Notice that he is placing .01 orders against his pair of choose, but notice the amount of orders. Also look at the time, and the price of the currency as he continues to add orders.For example he sees that price is moving up, and because he has a perceived idea that the price above is 'resistance' he will place counter trades of the short term trend (in this case the move up) every .1 or every 1 pip apart. Ladies and gentlemen his system isn't special at all. If all of a sudden the market decides to trend hard, he will end up losing 100-200 pips in about 2 days, and although his dd % will be LOW (because he is placing .01 wagers in a 5k account) it will take him a very long time just to break even.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.