Consistency. Finding what works and sticking with it. With consistency in a trading system also goes along with consistency in money management. 2% max risk for me per trade, no more than 2-3 trades open at once.
I used to be crazy intraday trader....awake all hours of European and NY markets....then I discovered you can make just as much money on Daily charts. Now I am more swing trader and it's so much more comfortable. Sticking to the trend and place trades based on Fibonacci retracements, trendlines, and S/R lines. No other indicators. Analyze charts on weekends and maybe once a day. As simple as it gets. Forex is my only 'job,' but since I have spare time I do extracurricular activities and am even working on an economics degree (already have one degree).
You just have to find your style and stick with it. What works for me or someone else might not work for you, everyone is unique.
Looking at your account, you almost win half your trades. April-May 2011 you were profiting....so what happened? Find out why those weeks were profitable. If you had 2:1 reward/risk you would be profiting greatly right now. The key is making winners bigger than losers. Also, you trade too large position size. And you chicken out of trades too soon. (I've never met a scalper who makes a living!) And you should focus on 1-3 pairs not so many. And and and. I'm sure you're not looking for critique 😁
Forex ain't my job, but I have to give props to any and everybody trading on the daily charts. I would compare it with sailing, it may not be the fastest or most exciting mode of transportation but, man you sure learn how to navigate the open sea.
@Splexin, thank you (!!!!) for your response and the critique is welcome from somone willing to take a look at my account record!
Last year, I was trading day bars. I would use the same method every time. I am very good at following rules and my system. I looked and looked and could not find a reason for why my system worked and then didn't. Maybe the volitility was too much for the system. I think you are right about getting out too soon. I like to bank proifits, and maybe that cost me in the long run.
I took several months off and worked a half hour bar system to my liking. I used forex trader 2 to back trade over the previous 6 months on the EUR/USD and the GBD/USD. I tested very positively. I am able to take three pips off the fib bounces of 5 and 13, depending on the trend that is working. I don't trade news events (I use the myFXBook calendar religiously). Like right now US employment numbers are coming out, so I am not in the market this morning.
Here is my fear. I want to make money so I set my stops at 10 pips. I trade 5 lots (which is 2%) onmly looking for 3 pips, plus the spread; 5-6 pips total. Only one trade at a time, two very rarely (my brain can't handle more than one usually 😁). I My fear is that if I set my stop tighter I will lose too many trades, but as it is the stops are wiping out my profits.
I know trading takes a special breed or everyone would do it. I wan tot be one of thoise people who makes a living at this so I can meet my goals of bneing home with my family, not working for anyone else, etc.
I am very postive minded and wrote the post above coming off a bad trading day (as you cans see). Any more suggestions?
One thing about backtesting, since you are looking at the past, it is worthless as an indicative tool of the future. I only rely on what works in the real-world.
IMO, Those stops and targets are way too tight. That's like something you would trade on a 1 minute chart. I'll repeat what I said earlier-- scalpers do not make a living in Forex. I've seen a number of members here who would argue against me (or those who think EAs are profitable in long-term...LOL....they aren't) but I just laugh all the way to the bank. The idea of a forex robot or making $500 in 5 minutes being so 'quick and easy' has popped up from marketers and brokers luring in amateurs, and it's completely the wrong approach to forex.
Think about what Forex really is-- a market collective of the world's central banks and financial institutions. They move currency around based on what's 'safe' as well as overnight interest rates. Do you know what charts the big guys trade on? Private banks use the 1 hour chart (or at least make their decisions on that), the 4 hour chart, and the daily chart. Anything below that is just random and deceptive noise. I trade with the banks since they know more than me!
The ATR for any given currency pair is about 100-150 pips PER DAY, usually in the direction of the general trend. With proper MM, even if you only capitalized on half that much, you would net about $1500 per day! You need to quit thinking about individual trades and think of the series as a whole-- nevermind that you won/lost big on the last trade. Aim for consistency instead. Is it really going to kill you to have a trade open for 3 hours or longer? No. Forex is supposed to give you freedom, not take it away! I also suggest you find a different method of trading-- obviously what you're doing isn't working and it's time to step back and do an evaluation.
Most banks, not all, trade only at the top of the hour on the Hourly chart. They take an institutional perspective (trading by Daily, Weekly, etc) but because the market is so big, every hour one or more banks are making a move (I'm talking high volume sessions, London and NY). I know this because I know a guy who traded for a European bank.
It's unreasonable because it's too small and insignificant to prove profitable over the long term. Spreads don't only widen during news....if you're shooting for such a small target you're paying more spread then you need to. Why would you give your broker more profit than you are getting??
I'm not against people trading their own style...if scalping is profitable to you then stick with it. But in my opinion, the more trades you take the higher the probability of losses and mistakes. 5-10 pips is nothing to the market, someone at a trading firm could misspell a word in their order book and move it that far in one millisecond. It's just not realistic. On the other hand, if you give the market breathing space and you trade in the direction with the highest probability then profit will turn in your favor.
When I try a new method I trade on my real account but use significantly small position sizes (i.e. 1,000 units). Demo or practice accounts are in the same category as backtesting to me. Myfxbook you see a lot of demo accounts, but then the guy goes live and starts making excuses or justifications as to why he's not profiting like he was on demo. Big difference.
I don't really trade Intraday anymore, but here are links to two systems that I've traded successfully:
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.
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Past performance is not indicative of future results.