How to recover equity from heavy losses?

wait my research in martingale not completed

martingale works in side ways market but we humans cant predict the ranging time period of side ways, noobs should loss cause loss is the best teacher but to learn forex you have to spend 3 to 4 years that may wipe out your all assets

I will emphasize what Ferrux told ya. Close the trades and start trading properly. You have more than 20 open positions.
Why would you do that?
Ease the martingale and adopt a simple manual system. You will be fine

Danny

I would say :

- Martingale (not doubling but correlated with statistics) on a very limited basis can be valuable.
- And i stop trading at all and change my strategy if i see my account dropping of 20% of my initial capital. Either strategy is bad, either this is not the time to enter the market with it. Some strategies are good in summer or winter, with big news, without big news, etc... You can be profitable at the end but can have losing and winning streaks. Better to start at the beginning of a winning streak...

But more than 2 or 3 trades at a time... not valuable at all for me.

And i NEVER try to recover from losses. If you lose this is because your scenario is wrong. So better stop and wait for a new scenario setup to come.

PATIENCE IS THE KEY !

Don't do any trade without stop loss. Think about loss and then profit. Don't enter in any trade without strategy as your trades are such.

Personally, i would re-evaluate the strategy… For me, the matrix system is looking like it has potential.

you can't and if you try you'll go broke.start on a new slate.risk half of what you think is optimum.

Date:- 06/10/13 Sunday - now on closing of Friday Status of Trades are following. Now i would try to close all trades in upcoming week and plan for new Strategy.
I'll tell you in forum.
Thank you very much for your Co-Operation.

Hi all
i have finally got tips from you and closed all orders and now i have take one sided trend wise orders as you see in image......
thanks to all of you
if any one give me trading Technics kindly........................

next step :

1. try to take trade that have good profit potential (20,50 or 100 pis)
2. know your risk , s/l is a good way to limit your risk
3. avoid holding trade over weekend , it can open any where on Monday, s/l not respected

Interesting. But when do you exit the hedge?

lately I see a lot of people putting small size orders and I still do not understand what kind of strategy it is

How come 99% losers can tell you how to start winning??
Best advice for your situation is quit trading and close your account.

It can get so much worse. You have no idea.

TRD

You mean segment trading? Just a way of not exposing your whole risk in one go

Not trying to diss anyone but I keep emphasising for time immemorial that the only way to survive in this business no matter whether it is martingale, scalping or any other method, is if you don't have a built in indicator to identify when PA is topping or basing you wouldn't stand a chance. The very least is an intra-day PA reversal identifier indicator for those who only swing trade but with a bigger risks tolerance.
There are quite a number of seasoned trader who already know and aware what they need to know to avoid losses but still searching to know what is needed to know to win optimally and consistently. I call them no win and small losses traders. Most still trying but a lot gave up. So far I have not seen anyone in FF advocating and using this method, maybe some already knew but they are not telling and that's understandable.
Take good care and my first and last post in this thread.

Cheers

Martingale LOL.. works great till that one day come... when it just goes and goes. And you lose it all!

You must deal with your issue about always wanting to be right!

Trading is probability and you must be able to except that your wrong once in a while , with out blowing up your account.

Try reading market mind games by D. Schull, with the $15 on amazon!

do you try to sell something? lol, people will doubt it.

No need to buy any book regarding mind games. I believe that simply conquering our fear is the key. FEAR OF LOSS LEADS TO LOSS! If we look back on our trades over the last week, the vast majority were the correct call - so why are we still losing money?

A good template and a simple and effective strategy is vital of course. I would agree with a previous post regarding identifying price reversal points. They are important especially when allied with currency strength/weakness on the day. I think currency strength/weakness is not utilised enough by newbies and even seasoned traders. Never trade against the prevailing sentiment on a particular trading pair (which can change abruptly from one trading session to another trading session) and never adopt a position regarding what you think the price should be doing, go with the flow and use ema's to help in this regard. A fine combination are the 6,12,24 ema's. Then use the 200m ema as a simple buy/sell rule of thumb indi. Never sell when price action is above the 200 ema and never buy when price action is below the 200 ema. A simple but effective rule that applies to all time frames! Learn how price action reacts to specific ema's/levels and build your strategy around it.

are you thinking that guy still here that post since 2013 probably he dead now .... he was how i can say that!!! he just said i closed all my orders but he still do the same again :v, you can imagine what type of person is that , probably best advice given to him is quite trading and close his account

Well it's an interesting thread because a lot of us have been there although few will admit it

Maybe we can isolate the cause of heavy losses - avoiding them in the first place is of course absolutely vital

Of course conquering our fear is easier said then done! One needs to build confidence and that only comes from consistently winning as opposed to consistently losing. I just thought that giving people an idea of a good trading strategy that could help achieve this goal (as I did above) will help build confidence.

Well that's my input - perhaps others have different ideas in avoiding heavy losses.

I think the best way and "THE WAY" to avoid greater losses is to start trading properly. What i can so far tell from provided screenshots is, it doesnt really look like you are having a "proper" plan of where you are going to enter the market and where you likely going to get out of the market and if the market is actually proving you wrong, you just scale in further based on hope, but not on any objective factors.

Speaking for myself after years of prop firm and commercial capital management, you need to have a plan (Strategy) which results are proven statistically.

You need to work out some sort of scheme for yourself, which you are able to identify at any time. Beside that, liquidity caps ( Available capital per day to lose) before you are out and not allowed to take any further positions is very key.

That forces you to manage your available daily cap very mindful, because there is no beyond trading anymore and whatever the result is, you got to take it as it is. After every loss, take a break, come back later and see what the market then is presenting you. Do not try to find anything in the markets, because you would like to get into a transaction right now. Markets have to show you what is tradable in your set of terms not vice versa.


Divide your capital and ask yourself this - What am i willing to lose on a daily base?

Whatever it is, split it into a batch to take multiple possible entries. Do not scale in existing positions which are moving against you, because you might be wrong, else it wouldnt go against you. Instead close it according to your daily risks / Batch value and wait for the next opportunity. If your trading is based on RR ratios and its actually a must have, you gonna be fine if executed properly.

Evaluate your average possible RR and make the math.

Lets say u want to risk 2% of your entire capital per day, not per transaction. This 2% is going to be your daily cap. From there on u gonna need to consider your win ratios. Whats the percentage of my winning trades. Lets say you gonna win 50% of all trades in the long run, which is probably more in the lower range of retail traders. The sample size i am going to use is 10 ( you might use 5 or less, but with a greater winning ratio, aprox 60-65% at least.


2% Daily Risk

50% Win ratio / Sample Size 10

2% divided by 10 trades are 0.2% per transaction. Your average RR of the 50% you win is 3:1.

Now, if you gonna win 50% of all trades with a RR of 3:1, u gonna return 3% per day, which is 1% above your daily cap ( Very Important! Always make more than your daily cap allows to ensure not to blow up in the long run). 1% are losses, which equals a net daily gain of 2%. 22x 2% are 44% on a monthly base with a transaction risk of only 0.2%.

These gains are massive in itself and not even based on any weekly / monthly compound model, which then very likely is going to multiply all gains per annum massively, ofc only if u compound the entire year without taking anything out. But once u got there, no need to pay out monthly. Yearly payments are just fine.

I never get why people come up with 1-2% or even more risk of your entire balance per transcation as the narratives of retailers tell - thats truely not necessary to make good profits.


Hope that helps everyone a little bit.

Cheers

Asset Vulture