Some time ago I purchased a forex trading system ( yes I know but check out my name). The vendors promised a success rate of 75% and a money back guarantee if buyers could prove it made had a loss over a 120 day period.
I thought there was nothing to lose since the promoters of the system always honoured there money back guarantee, so I purchased the system and waited expectantly for it to arrive
As you have probably guessed the system was laughably puerile but I set about paper trading so I could prove it was rubbish and reclaim my money. Sure enough, loss followed loss and the 'success' rate was less than 10%.
At the end of the 120 day period I calculated the profit/loss and to my amazement it had actually made a profit. The reason, of course was that the losses were strictly limited ( never exceeding 7 points) while the profits were allowed to run and run (until a moving average was crossed.)
Now if a crappy, low win rate system can achieve a profit using low risk along with strict money management how profitable could a system be with a high win rate using a similar money management model?
So I am starting this thread with a few ideas of my own and would welcome the input of others with the aim of developing a profitable strategy with a 'low risk and letting profits run' philosophy.
More to follow
I thought there was nothing to lose since the promoters of the system always honoured there money back guarantee, so I purchased the system and waited expectantly for it to arrive
As you have probably guessed the system was laughably puerile but I set about paper trading so I could prove it was rubbish and reclaim my money. Sure enough, loss followed loss and the 'success' rate was less than 10%.
At the end of the 120 day period I calculated the profit/loss and to my amazement it had actually made a profit. The reason, of course was that the losses were strictly limited ( never exceeding 7 points) while the profits were allowed to run and run (until a moving average was crossed.)
Now if a crappy, low win rate system can achieve a profit using low risk along with strict money management how profitable could a system be with a high win rate using a similar money management model?
So I am starting this thread with a few ideas of my own and would welcome the input of others with the aim of developing a profitable strategy with a 'low risk and letting profits run' philosophy.
More to follow