Account In Jeopardy App Idea

Hi. I've been trading for 5 years and I just blew up my umpteenth account. Sounds familiar right.

It got me thinking: cannot there be an app, based on the timely injection of funds from a central pool, into one's trading account at a moment's notice - at the crucial moment of margin call alert for example.

Traders make payment contributions into some escrow-type central account based on registered membership. Once "account in jeopardy" has been salvaged, funds are returned back to the central pool.

I've argued time past that, though FX trading indeed is "zero sum total" in structure, it is a scientific fact that no actuall losses can occur for ALL traders at poibt of closing trades, and I will prove it right here:

1. Assume 5 short-term traders and 5 long-term traders to be all the traders in the FX universe.

2. The 5 shot-termers each enter, and then soon exit winning trades, at the expense of the 5 long-termers whose accounts are showing losses (consistent with zero sum) - but still have their trades open. These are deep-pocketed trades that are prepared for the longer haul.

3. In the course of time, market prices change from purchase pressure from the short-termers who have made new trades in the opposite direction to their initial trades and once more they exit in profit. The long-termers can ride the swings to then pick such a time as when their own open trades are in profit, to then exit.

4. Exiting in profit by the long-termers will be at the expense of the short-termers who were at the wrong end of these exit trades. However, by waiting for their open trades to be in profit before exiting, therefore mean such a cycle between traders at opposite ends of trades, can result in no party having to register actual losses eventually.

The app for accounts in jeopardy can be a useful tool towards that Uhuru.

Can we not form such an association-based app traders? I would like to see this created as open source material for the trading community.

Contributions to this idea, anyone?

Why not just open a smaller position or deposit more money in the first place? That way you can handle the drawdowns better

What you say borders on the standard advice to safeguard one's account from huge drawdown and margin calls: proper money management, reasonable lot sizes, right trade entry points, etc.

And yet accounts still get lost all the time. So I guess my app idea best suites traders with higher risk appetite and the less emotionally disciplined.

One might therefore argue that this goes against the norms of natural selection, survival of the fittest sort of thing. Or that it will hinder growth in trading abilities along a healthy learning curve. And there would be merit to these view points.

In the hands of an already skillful trader however, think what new depths it will bring, being adept at determining when trade direction will undergo a major pivot, and with the safety vakve of the app, able to squeeze a little more profit out of the tread. Even skillful traders, having correctly guessed the pivot area, many times get caught off the trade by just that little bit which would not have been had their stops been a bit deeper.

I have nothing constructive to add.
Good luck!

That's a thread killer right there, that one is.

I hoped for a robust participation amongst traders, many of whom know how to code even.

I dont mean to be rude, but I feel the issue here is far deeper than what your proposed app can solve.

Look, you have blown up a few accounts. This implies that either you do not know have proper money management, or you do not have proper risk management, or you do not have an edge.

Based on your initial posts. You are suggesting a mechanism that will allow you to hold your losing trades until they turn into winners. In reality, a losing trade may take months, years or even never reach back to breakeven level. Take USDTRY for example, if you were to short it anytime from its inception to 2016, you will still be in a drawdown till now. Even the best traders have losing trades.

I sincerely suggest that you revisit the essentials of position sizing, risk management, and learning how to take a losing trade... This is an honest attempt to help...

Surgeon:

Dentist to Doctor. If you have blown umpteen live, real money accounts, then you need to listen to what successful traders do. They have stated it here clearly. We trade carefully, accept a loss when it happens, trade appropriate lot size. Just like the others have said ... money management.

We do not add money to our account if we have screwed up over and over and over with losing trades. That just makes no sense at all. Your presumption that all losing trades will eventually turn into winners is NOT at all correct. Take the time to learn why you are making a trade entry and what return you expect and in what time. If a trade does NOT behave as expected, cut it. YOU and you alone must know exactly what you thought the market should do that brought you to the point of taking the trade. If the market behaves different form expected, get out and re-assess.

NO different from diagnosing a patient medical problem. You have an idea of the problem from what they tell you so you order tests and you know what you expect to see with those results. If the test results come back different, you reassess; you do not proceed to treat or perform surgery. You only treat ONCE you know what is going on and THEN you treat and THEN you assess treatment and IF results of treatment are not what you expect, then you stop that treatment and reassess. AND even with all we know in medicine we do lose patients. You do not continue CPR for instance on someone that has passed, there is a point where you must stop. Trading an medicine are the same.

I suggest if you have blown all these live accounts you need to go back into demo and hone your skills. Take a $200 demo and grow it to $20,000, do it three times at least. When you have done that you will not need this app you are suggesting nor will you require adding funds to a losing account on margin call.

Forex is not a zero sum game.

Everything you've said here is probably very true.

To be honest I see now that my app idea sucks.

Yeah. I guess I was looking to preoccupy my head rather than dwell on my painful losses.

In as much as the broker instantly earns from the spread in whichever trading direction and on all trades... Right.
Okay. Thread is officially wound down.

true; brokers and market makers take part of it; but commercial transactions is the major player in moving the FX market