Introduction. Universal scheme of distribution of funds on accounts with used of trading systems Setslav_S1.
This must be understood:
- Do not consider the drawdowns as something terrible, and in no case associate them with failure, because trading in the forex market without drawdowns DOES NOT HAPPEN! On the contrary, this is an additional opportunity to earn even more.
- It is necessary to learn how to treat the drawdowns calmly and be able to take advantage of it.
All trade with EAs of Setslav_S1 is systemicaly, therefore, and manage funds in the accounts we will be systemicaly. What does it mean systemicaly trading, it's when losses are fixed and do not hang in the form of an open order(s) for an indefinite time before, for get a minimum profit, or a full LOSS of balance. In all trading systems Setslav_S1 we have drawdowns fixed, that is, all losing trades are closed and there are no floating drawdowns. Thus, we have the time (opportunity) to take all the necessary actions for faster recovery of the account from the drawdown. I can say with confidence that with a competent allocation of funds at drawdowns/profits, the system will come out of any drawdown. Even if you have unprofitable accounts with drawdowns of 70% - 80%, we can easily bring them to their original state.
ATTENTION! Very important points:
- Trade without drawdowns in the Forex market does not happen.
- If you are not ready for drawdowns, do not even start trading on Forex.
- If you think you can trade without losses, or you are assured that some system can trade without losses - you can immediately say goodbye to your deposit.
- The following methods of distributing funds for trading are applicable only to Setslav_S1 systems. I can not guarantee you that this money management will work with your trading system. I can only vouch for my products (EAs).
So, we begin competent management of funds!
This is how it will work, for example, we have an account with a balance of $500. Suppose, after a month of trading we get a drawdown of -40%. The loss was $200 and the account balance became $300. Now, in order to restore the account to the original $500, we will need a profit of approximately +67%:
If we replenish this account for 2 times the loss of $200x2 = $400, we will need a profit of about +30% to fully exit the drawdown:
Abbreviations to be used:
Start Balance = SB (starting account balance at the beginning of the month / the beginning of the next month)
DrawDown = L (drawdown / loss for the previous month)
Profit = P (profit for the previous month)
Current Balance = CB (current account balance after the trading month)
Deposit = D (replenishment of money)
Withdraw = W (withdrawal of money)
Let's analyze a concrete example with the starting balance SB = $500. We simulate the situation, for example, in the first month, a loss of -15% was received, in the second loss -20%. In this situation, to recover the account to the original $500, you will need a profit of about + 47%. If you apply the scheme of funds management, then for a complete exit from the drawdown, enough profit + 28%.
Situations on different accounts of different systems can be different. I will show in detail what actions will be applied to a particular account, a particular project, so it will not be difficult to understand how everything works.
Detailed reports of real trading of all Project Setslav_S1 + Distribution of funds for reporting periods:
Here all is honest, without any surprises, deceptions, concealment of drawdowns or adverse periods. Calm and stable trading without worries and constant control of each trade.
I am always open to communication:
- if you have difficulties with the calculation of your account(s),
- doubt the correctness of calculations,
- have any questions,
just contact me.