Worst strategy ever

Tell me about the worst strategies that you have used in your forex trading journey, would love to hear and avoid them, thanks in advance.

Anything from Youtube where they show flashy cars and piles of cash

Even the goofiest system can be profitable with discipline and good money management. I would say the worst strategy is one where the trader does not follow his own rules, has no real money management, and refuses to accept a loss (letting a losing trade run wild).

The least profitable strategies always always start off with a high Reward/Risk, followed by strategies that tell you where to place your stops at (below swing low, above swing highs). Pretty much everything that is taught on the most popular websites. Brokers promote only the worst sites, now they're promoting the worst social media influencers. Easy money for them.

Oh, you hit the nail on the head with that one! It doesn't matter if your strategy is as goofy as wearing a chicken suit while trading. If you've got discipline and rock-solid money management, you can still make it rain in the market.

Bad strategies are as hard to find as good ones, since if you had a bad strategy, you'd just need to invert the trades to turn it into a good one. Except for those scalping high-frequency ones, where the bad part about the strategy is to give away too much money to the broker through the bid-ask spread.

Those basic strategies you find online with the same old indicators and TA should be as good as trading randomly, which is neither positive nor negative.

In my opinion only and experience.

Having rewards equal to less than the risk.

This is an interesting point but also a debatable one, providing I can first clarify, that any 'concrete' 1+2=3 strategy, is almost certainly a bad strategy. For every example a tarder can show of his MA cross strategy, divergence reversal or flag break out strategy turning into a winner, I could find ten examples, buried within the price action, where the very same strategies set-up, drew the tarders in, and then stopped them all out, as the market tends to like to do.

A lot depends on the sort of strategies that trader deploys. But if a trader has infact instilled in his mind, a solid template of how the market is 'meant to work', but most of the time in reality doesn't work, then a form of strategy inversion (which is not quite the same as simply turning the trade box on it's head) will infact pay dividends, and I am speaking from experience here.

I would say to anyone struggling, next time you see a trade setup, that conforms to all the rules of the hairbrained strategy u paid anything between a few hundred bucks to a few grand to learn, put the trade box on ur chart, but don't take the trade. Wait for the market to fill ur notional trade, dick around a bit, and then start to conspire against your stop loss. If you have been instructed properly in how to be a proper textbook tarding hapless chump in the market, by some other hapless chump tarder who just doesn't get it, and who has instead moved into the education space to prepare yet more future fodder for the algos and market makers, then the chances are, your original trade entry, will mark an area where all the other hapless chumps are trapped, and thus will be an area where you may want to consider fading any move towards, as the market doesn't want to let a ripe juicy mass of trapped traders out their positions with their shirts still on their backs. And of course, your first TP, will be around the area of your original trades SL.

The thing to understand about the markets, is that the financial markets aren't a battle place between buyers and sellers as you have likely been told. They are rigged environments, controlled by the big banks, who run the markets with the purpose of depriving the mass aggregate of market participants, of their capital. The market is there to take your money off you. Understand that, and adjust your behaviour accordingly. And if you do start to suss out an effective take on the markets (which will take literally thousands of hours to hone and calibrate), understand that it only works, cos most other traders are doing something else, and are on the wrong side of your trade.

While I haven't personally tried it myself, one of the strategies that's often considered risky and not recommended is the Martingale strategy. It involves doubling your trade size after each loss with the idea that eventually, a winning trade will recover all previous losses and bring a profit.

99% risk 1% reward.

Worst trading strategy huh?I don’t know. It seems like even the random opening and closing deals can have a decent profitability rate. And it can’t be worse than that right?
So the point is it’s not about the badness of the trading strategy per se, rather than inappropriate behavior of the person who uses the strategy.

Thanks y'all for the responses, wow we are hurt

trade against the news

Could you flip the worst strategy to the best strategy, by just doing opposite trades? (Ex: Instead of a Buy you place a Sell)

The worst strategy is trading without a strategy and also not using Stop-Losses

Well I think when you're risk to reward ratio is negative, then it's pretty much guaranteed you're going to lose all your money.

The opposite of this

Trading before news with a very small stop loss.

Any strategy that you can’t easily backtest is the worst strategy ever! They come in two flavours:
1). Complicated strategies: where past data is difficult to come by and verify. Examples are the moon cycles and planet motion stuff. You need to be a NASA scientist with telescopes and rockets to know where Jupiter was in April 2022!
2). Subjective strategies: they point out what they think is obvious on the current chart, but different people will interpret differently! (Elliott Wave being the worst in my opinion)
If you want to develop a good strategy, keep-it-simple and objective, and dont forget to manage risk: consider volatility/ATR of the timeframe, and then set your SL/TP accordingly!

I believe that if he wanted to use chatgpt, he could do it by himself.