Methods like DIBS are kind of "brute force" strategies. You enter over and over and over again because statistically (so I'm told) eventually you will score the "long tail" that gives you the profit, the edge. In the meantime you wait weeks or months or years as the account suffers potentially large drawdowns or meanders sideways. Psychologically, this is the killer for so many traders. We are unable to wait. Moreover, we are worried that we will miss the winner when it happens because we took our holidays that week or month, or just panicked and exited because we'd lost faith in the system just when it was ready to pay us for our perseverance.
If I could have the choice, I think I would prefer a system that gave slow and steady gains, rather than one that offered big payouts from time to time, perhaps months or years apart. Even if the former meant the gains would be smaller than the latter.
Most who trade forex are under-capitalized. These are the people most vulnerable with systems like DIBS. If the returns aren't steady, it can become a simple battle for survival, mentally as well as financially.
So basically my question is - is it necessary to consider large drawdowns and large timeframes as the only means to success? The larger the drawdown you are able to tolerate, the greater the likelihood you will witness large gains at some point down the track. How often do you "cut your loser short" only to see it resume its original trajectory after horsing around for a few days or weeks? Or is it possible to grow steadily and surely without the need for large drawdowns and large timeframes? Help Bob make some money.
Bob
If I could have the choice, I think I would prefer a system that gave slow and steady gains, rather than one that offered big payouts from time to time, perhaps months or years apart. Even if the former meant the gains would be smaller than the latter.
Most who trade forex are under-capitalized. These are the people most vulnerable with systems like DIBS. If the returns aren't steady, it can become a simple battle for survival, mentally as well as financially.
So basically my question is - is it necessary to consider large drawdowns and large timeframes as the only means to success? The larger the drawdown you are able to tolerate, the greater the likelihood you will witness large gains at some point down the track. How often do you "cut your loser short" only to see it resume its original trajectory after horsing around for a few days or weeks? Or is it possible to grow steadily and surely without the need for large drawdowns and large timeframes? Help Bob make some money.
Bob