What are good stats in Forex

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

If you want to start forex trading, you need a good broker first. Do the demo practice under the broker. You have to learn a lot. You have to practice the demo for at least 6 months. You need to learn trading online or from a mentor while practicing the demo. And when you see that you are making a self-sufficient profit in demo trading, then you will join real trading. Always try to trade according to the plan with patience.

thank you for the reply um AliaDare , but that did not answer the question really, aside from account balance what stat values do you use to judge a system and then why, are there ways to say yeah the system is profitable but these two or three stats suck so work on the system more.. and here is why these are important... if the overall stats of a system is subjective, and its really just two factors the price and the balance you end with, then whats the point of this site?

A good thread indeed. I would keep an eye on it to improve my knowledge.

As long as you are making consistent profit, nothing wrong in your trading system. What works for you may not work for and vice versa. Just try to discipline in your trading. And keep a realistic profit goals.

Thank you for your reply, true indeed, i have always believed in developing my own system that fits my personality. I dont want my chart to look like an EKG with to many overlays that was first. Second was that i wanted to have a daily routine. so i went with using the 15min and Daily as my two main... with trades being opened on and closed off of the 15min.. with daily to get a gist on where the mass of men are going... realistic profits have been a little tough... part of me says trade until i am done with the day win or lose, like a normal work day, other parts of me say trade to a specific profit or loss point and then walk away... so trade until i lose 2% or win 2% something like that.. the toughest part for me right now is keeping to the trade sizes i setup in the rules i made... i overtrade on that part.... so if my system says trade 880 units i might do that but later in the day do something like 8800 units just for the heck of it... and that is where i lose the most money, stat wise i have been looking at the %wins and profit factor as well as the balance of course.. i figure if i keep percent wins over 60% i might be ok.. but if i keep overtrading on the size then even at 60% that 4 or 5 trades will wipe out what i made the past 4 days in a heart beat

If you manage money management and risk rewards properly, you will be able to trade healthy. And one of the most important things is to control your emotions.

Dude, it's all about your risk management. If your Risk:Reward ratio is too heavy on the Risk side, then you will outdo your success rate's gains very easily (as you have observed). Read van Tharpe. Ideally you want an R:R of 1:2. This means you could lose 50% of the time and break even. Also note this means you have to have strict Stop Loss analysis and calculate your position according to your Stop Loss and your overall Risk, per trade, of your capital (aka The 2% Rule). Do not, ever, calculate your position size based on what you want to gain.

You need a structured and disciplined calculation system. In doing so you will also be able to get a sense of what stats work for your trading style.

Pax_FX 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

Good stats are low DD <20%
Stable monthly profit
And strategy which is consistent for long term and doesn't stop working after couple of weeks/months

Learn to competently develop and create your own strategy in order to receive not only profit from trading, but also moral satisfaction.

Every trader is different and hence everyone has different expectations from forex. So what are good stats for you, comes from you, yourself.

Pax_FX 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

Answers:
- track record is verified and the connected broker is already known and has a good regulation (FINMA; ESMA/CYSEC; NFA; FCA; BAFIN; IFSC, or any good regulator in your area), so you can be sure the results shown on myfxbook are 100% real
- monthly profits are between 0.50% and 9.50% (some months with more than 10% are still okay) during a period of more than 2 years; this is showing you a consistent and safe long-term trading style
- the overall drawdown is lower than 50%; some spikes are okay, but it should not always be more than 20% per day traded (1-10% is still okay)
- a maximum of 2 or 3 assets are being used at the same time; if you see a system trading with a huge amount of different trades at once it's most probably a very risky system
- more than 50% of all trades are profitable and the profits are always higher than the losses (no matter if money or pips); this shows you a profitable money management
- the lot-size per trade seen on the history is never too much; always remember: 1lot per 100k account size (at a max. account leverage of more than 1:100) is okay
- pips are always positive, not negative; negative pips but still being in huge profits might indicate a risky martingale trading style
- the 'gain' is always around (or even lower than) the 'absolute gain'; only the 'absolute gain' shows you the real profits (without all the deposits)
- the myfxbook-system is being updated minimum 1 time per day (it depends on their server-load, sometimes it takes even 2 days)

You must know how and when to use stop-losses so as to make the most of your trades.

I know that the risk to reward ratio is very important. But your decisions should not be based on it solely. Try to stick to your trading strategy as much as you can.

RR just needs to be a part of your decision-making. There are other things that play a major role.

I think a good statistic is when your percentage starts to rise.

grumpychef posted:
Dude, it's all about your risk management. If your Risk:Reward ratio is too heavy on the Risk side, then you will outdo your success rate's gains very easily (as you have observed). Read van Tharpe. Ideally you want an R:R of 1:2. This means you could lose 50% of the time and break even. Also note this means you have to have strict Stop Loss analysis and calculate your position according to your Stop Loss and your overall Risk, per trade, of your capital (aka The 2% Rule). Do not, ever, calculate your position size based on what you want to gain.

You need a structured and disciplined calculation system. In doing so you will also be able to get a sense of what stats work for your trading style.

I second this, incuding the 'read van Tharpe' part - his book Trade your Way to Financial Freedom offers good advice. He also writes about testing your system, there are methods to quantify the reliability of your trading method, especially your entry.
Other than this the important things have already been mentioned before my post but I would like to add, as you yourself Pax_Fx have mentioned, being disciplined and sticking to your plans is a very important factor, failing to do so can render even the best strategies totally useless.

Femilas posted:
I think a good statistic is when your percentage starts to rise.

Yes. I agree with you.

Ezereombre posted:
You must know how and when to use stop-losses so as to make the most of your trades.

Proper use of stop loss can reduce the losses.