Disliked{quote} What would be a realistic profit-to-drawdown ratio? I was thinking that a maximum drawdown of 10% relative to a profit target of 2% per month would be feasible and acceptable.Ignored
The real problem in this discussion is that you are unable to measure risk and reward in trading. Look at a chart and rationally explain where the risk is? Where is the reward? In forex trading, the market is moving from target to target, every day, every week, and every month, all within the structure of the market. Every move is intentional. The charts are a depiction of a narrative of the underlying structure of the market, taking place among market participants. If you understand something about the forex and what is happening in the market, you can measure the best places to enter and exit trades, which is the only thing that matters when discussing risk and reward. Risk is associated with mistiming or mis-reading the intent. Reward is associated with getting both right. If you are to become a trader, you need a framework in your head that facilitates this exercise, which requires knowledge. If you lack knowledge, you have zero basis of analyzing trading strategies, let alone putting one to use. Your approach is 100% dependent on being lucky. In your current approach, you add to the chaotic aspects to markets.
If after entering a trade, you start to wonder if it was a good trade for 2% or a bad trade heading for 10%, then it was a bad trade. Successful traders don't do that. They simply execute their trading plan.
5