All I have come for 7 years in trading – this is what, that the market is efficient, more than ever.
Any strategies, promising mind-blowing returns are either killed or extremely unstable and short-lived. Already no one makes thousands of% at the LPI.
Don't waste time trading with very short stops – I figured it out a few years ago, but every year I am convinced of this more and more.
No strategy can give a good probability of profit with a stop at 1-5 ticks or close to it. Just forget about it.
Simple proof to the contrary – if such strategies existed – any account could be overclocked exponentially, because. you can enter with a huge leverage without going out to 2% risk per trade.
You risk 2%, you get 10%-20% to the account? :) This is a utopia.. you just count in Excel to what numbers it leads))
No one has and never will. All these ratios 1:5, 1:7, 1:10 – it only gives you an edge in your imagination.
Do you know at least one trader, which makes thousands % profitability, without resorting to HFT?? Stable and long-term? Didn't do “когда-то”… but does in the current market at least for a year? NO!
А вот людей, closing every year with a plus, but with an average profitability, I personally know a sufficient number of. And they don't 5 stop ticks.. and not even 10.
I already wrote about this several times in LJ, but decided to remind. The topic is not new.
Don't think, that a small stop limits your losses – this is the biggest nonsense, what have I ever heard in trading.
Limits your losses to position size only… and what is your stop.. 10 points or 100 points.. and what is the ratio.. 1k1 or 1x10 – it does not matter, and there and there you can have 2% risk per trade and everything within the framework of risk management.
I do not speak, that there are no profitable short stop strategies. Exist. But the final yield is not exponential there. – she is killed by a big one % unprofitable transactions.
It's better to trade with big stops., small ratio and small shoulder – this also reduces your profitability, but it was not awl-on-soap! % there will be fewer unprofitable trades!
Don't you forget, what losses – will always be from the larger amount on the account, what was the previous profit, if the bill really rises sharply.
I'm not even talking about the psychological impact of any losing streak.. Than it is less likely – the more adequate you are and the more comfortable your Trading. And of course, more stable.
Undercapitalized, no need to strive to concoct capital for yourself with high profitability. Trade with low leverage, big stops and within the framework of risk management. Count on stability.
And raise capital from outside. This is the only common truth, which is becoming more and more relevant in the current market. This was my last .
Yes, I personally managed to spin up the account in due time… but blt, what market was. Inefficiency versus inefficiency. This will never happen again.
but, no matter how efficient the market is – he never succeeds in completely eliminating the possibility of earning on it. But… limited profit.
Because any opportunities to vacuum from the market more, than allowed, the market is killing… and it cannot be otherwise. Who will argue with this?
I understand, that the thirst for easy money overshadows the mind and prevents the adoption of the above… But you must try to keep it within the bounds of what is permitted. – this is discipline.
