Reversing forex trading system with no SL and limited TP

There are 1000's of forex trading system around the world with less than 5% working on all brokers.

It leads me to a theory "blow the demo account,make $$ in live account by reversing"

Reversing any forex trading system which has fixed reward that is limited take profits say 10 or 20pips Vs unlimited risk no stoploss at all.

Assume if you are trading daily on different pairs and fixed lots say 0.10 lot per 1000$ with 10 or 20pips has Take profits without any stoploss , by law of averages you can have more take profits to be hit but its at the risk of losing your account since you don't have stoploss whatsoever to protect your account.(Hence reversing this trading systems will make you profitable in the longrun)


So now these are the kinda of trading systems I would like to reverse and make profits . Anyone feels this theory is correct or incorrect ... my 2 cents. awaiting to hear more inputs on it




cheers fellas,
scooobi

This idea might sound rubbish to some people so enough of speaking theory. Lets get to some practical sessions.

I have added a trading explorer above started on 3/29 (March) with one of the trading system looking for 20pips on each trade on a 1000$ account with 0.1 lot with no stoploss whatsover.

So far you guys can see it has made profits of 1264 usd (1521 pips) and with open orders drawdown around -575usd. ( -627pips)

Eventually this system will run out of luck with no stoploss and losers will be far big and blast the account its just matter of weeks/month max.

Anyone feel this concept won't work (or) the trade explorer account account traded with (1k, 0.1 lot,20pips TP/ no SL) won't go kaput to let us gain on reversed live a/c..

I feel like it won't ESP without stops gl

its just matter of time since tp limited sl none. lets see the acct next week

Folks latest stats on the system :

Total trades 155

Total winners 141 ( 20pip TP hit with no SL)

Open orders 14 (orders not hitting 20pip TP and no SL)

Total pips made : 2,565

Open order pips : -1823


Though the trading system has a winning rate of 89% 141/155 winners so far in gaining 20pips TP with no SL, remaining 14 open orders are losing the pips gained and eventually will lead to blowing the account as per my proof of concept ----> Reversing Forex trading system like this with no SL and limited TP works and seems to be safe bet...

Scoob,

For whatever it's worth, I posted some possible reasons why reversing a losing strategy won't necessarily create a winning strategy: part 1 and part 2.

If I understand you correctly, you're taking a strategy that limits return (finite TP) for unlimited risk (no SL), to create a strategy that limits risk (finite SL) for unlimited potential return (no TP). The latter is akin to Joel Rensink's 'infinite yield' concept that's used in strategies like DIBS and millipede, and (in the hands of a capable trader) I believe it can deliver a small edge. Back in 2013 my trader/programmer buddy mim2005 wrote some EAs that backtested profitably using much the same concept (more here).

If the entries fall into the category of ineffectual/edgeless (explained in my earlier links) rather than 'losing', then there will be no advantage in reversing them. Hence any edge would need to exist in the 'infinite yield' mechanism in your exits.

Anyway, good luck with your project.

David

I'm wondering where are all the noobs who reversed their losing strategies?

They must be billionaires by now.

ROFL

Thanks Hanover for the very insightful reply.

I am looking for finite TP(20) and unlimited SL till the master signal account(demo) gets blown over. Also the live account should be 5x times the demo size in my project plus the lot size used in demo is literally used "as-is" without using multiplier factor.

The algorithm that I have used to look for finite TP and unlimited SL is not a very bad strategy (Finding world's worst strategy (or) holygrail is equally tall order)

It has good winning rate of 85-90% to finite TP (20) however the rest 10-15% non TP hitting orders will make sure they create kios on the master signal demo account like the gbpjpy order(refer to the trade explorer -master signal acct) below which is still running over 500pips dd looking for 20pip tp implies on the live account reversed case ==> risk:reward (1:25)

I thought about hiring noobs to trade and reversing but the problem is they won't adhere to finite (TP) and unlimited (SL) on the master demo signal account for us to reverse on the live account Flipper..

If they don't restrict the TP to finite like 20pips their ladyluck and string of wins some times can cause catostrophe on the reversed live account , hence I went ahead with this project using one of my algo to actually to do this signal provider job of looking at all times for finite tp with no SL.

cheers mate!