Trading System - page 3
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Lets start from Zero
Dear All,
This is my first post after trading for about 10 years in shares, commodity and forex market. I have concluded that everything is price. No one can beat the price.
Because price is very thing, you can see by naked eyes.
I give you one example. suppose think about one gaming machine in which rate is continuously displaying, It go up and down, there is no logic behind its up and down, but some person have tried to find out the way of its zig zag by three way 1. Fundamental 2. Technical 3. Related news which effect on that. In this way some of them have found that when it will start to go up and down but no one has assured about how much price will go up or down. so if you are lucky enough, you can get into the trend and also out with profit before trend change. Out of 100 people only 10 people will start to tell their lucky story.......... and so on........ Only broker can get money.
Let us put in other way..... Suppose I trade only EUR/USD. Spread is 2 pips and I trade 10 trades a week. My profit target is 20 pips and SL also 20 pips. Suppose I am new comer and I do not know anything. As per probability out of ten trade most of the time 5 times I win and 5 times I loose. So at the end of every trade I loose 2 pips as spread means 2 pips in 20 pips is about 10%. So after ten trades I loose 2*10=20 pips which is equal to my one time 20 pips profit. So even though, I have 50; 50 change to win, my loose equal to one trade loose.
So what should be the strategy to avoid this?
Suppose one can thing about ten trades for 100 pips TL and 100 pips SL. so every trade 2 pips spread become 2% only of a one trade instead of 10% in last example. In this example, if some one win 5 time and loose 5 times, one has to pay 2pips*10 trade=20 pips is 20% loose of 100 pips TP or SL. So in this way after 50 trade one has finish his limit of 100 pips trade (every time 2 pips loose).
So what should be the strategy to avoid this?
There is no alternative to avoid 2% loose. But strategy should at least 100 pips profit/loose target. Not less than that otherwise one has to loose his all money in long way.
At the second stage new comer starts to win 6 trade of 100 pips profit target out of 10 trade. Means he still lose 4. So after every 10 trade he can make only 200 pips as per probability and loose 20 pips for spread. Means still he work for 2 profitable trades after every 10 trade and lost 10% from his profit. but I assured you that one can not do more than 7 profitable trade out of 10 trade with 100 pips profit target in long run.
So maximum one can get 400 pips (minus 20 pips) after trying so hard and yes with money management.
Please find out 100 pips targeted profit system in which at least we can win 7 trade out of 10, this is not hard task because if I am not applying any strategy I can win 5 times as per probability. Rests of all short pips target are only hard work to loose your money in long way.
Pankaj patel
Lets start from Zero
Dear All,
This is my first post after trading for about 10 years in shares, commodity and forex market. I have concluded that everything is price. No one can beat the price.
Because price is very thing, you can see by naked eyes.
I give you one example. suppose think about one gaming machine in which rate is continuously displaying, It go up and down, there is no logic behind its up and down, but some person have tried to find out the way of its zig zag by three way 1. fundamental 2. Technical 3. related news which effect on that. In this way some of them have found that when it will start to go up and down but no one have assured about how much price will go up or down. so if you are lucky enough, you can get into the trend and also out with profit before trend change. Out of 100 people only 10 people will start to tell their lucky story.......... and so on........ Only broker can get money.
Let us put in other way..... suppose I trade only EUR/USD. spread is 2 pips and I trade 10 trade a week. My profit target is 20 pips and SL also 20 pips. Suppose I am new comer and I do not know anything. As per probability out of ten trade most of the time 5 times I win and 5 times I loose. so at the end of every trade I loose 2 pips as spread means 2 pips in 20 pips is about 10%. So after ten trade I loose 2*10=20 pips which is equal to my one time 20 pips profit. So even though, I have have 50;50 change to win, my loose equal to one trade loose.
So what should be the strategy to avoid this?
Suppose one can thing about ten trade for 100 pips TL and 100 pips SL. so every trade 2 pips spread become 2% only of a one trade instead of 10% in last example. In this example, if some one win 5 time and loose 5 times, one has to pay 2pips*10 trade=20 pips is 20% loose of 100 pips TP or SL. So in this way after 50 trade one has finish his limit of 100 pips trade (every time 2 pips loose).
So what should be the strategy to avoid this?
There is no alternative to avoid 2% loose. but strategy should at least 100 pips profit/loose target. not less than that otherwise one has to loose his all money in long way.
At the second stage new comer start to win 6 trade of 100 pips profit target out of 10 trade. means he still lose 4. So after every 10 trade he can make only 200 pips as per probability and loose 20 pips for spread. Means still he work for 2 profitable trade after every 10 trade and lost 10% from his profit. but I assured you that one can not do more than 7 profitable trade out of 10 trade with 100 pips profit target in long run.
So maximum one can get 400 pips (minus 20 pips) after trying so hard and yes with money management.
Please find out 100 pips targeted profit system in which at least we can win 7 trade out of 10, this is not hard task because if I am not applying any strategy I can win 5 times as per probability.
Rests of all short pips target are only hard work to loose your money in long way.
One method like LMT is best because it will give chance for profit at initially and half lot will continue with trend, till trend end.
The trading system is a set of instructions for a trader based on technical or fundamental analyses. Technical analysis determines entry and exit points (signals) for a position. Such signals are marked on a chart and help to understand current trend. There are many trading systems nowadays and every trader can choose what suit him much.
The trading system is a set of instructions for a trader based on technical or fundamental analyses. ...
It is not complete explanation.
Complete explanation is the following:
Trading system = indicators/software + rules/set of instructions + trading statements/trading results for at least of 3 months made by developer(s).
Trading system without trading statement is nothing (it is just "good looking indicators on the charts").
Some developers are installing indicators on the chart and estimating the rules for traders. If the developer is not trading his system with uploading his trading statements for the people so it is not a system. It is just a raw idea only.
So, the traders need set of instructions and some proof for the developer that he is trading/traded his trading system (statement). And authorship of course ... generally - the authors of the system are programmer anyway, or all the developers:
- programmer (indicators/software),
and
- general developer (rules),
and
- tester/beta tester.