consistence profit

Discussion in 'Forex Brokers' started by NeilKruger, Nov 9, 2020.

  1. consistence profit from Forex trading is a big deal , really i have never done this , its only for professional traders. i have seen very few who can bring profit from this market place with consistently.
  2. tomorton


    Does sometimes consistency count?
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  3. Dazz


    what is your definition of consistency in trading? And please be specific.
  4. Consistency needs a context. Number of trades? Number of days? Dollar amount? Percentage amount?

    Interestingly for me, I was able to string together "streaks" and then down periods. After crunching the P/L numbers, it became clear, that the down periods needed to be less frequent and less damaging to the P/L. No surprise there!

    So here is what I did.

    • Found the sweet spot length of the winning streak and just put in a break interval such as a day off or two.
    • Put in mechanisms that when I got results that always proceed a down period, I stop trading before it started going negative P/L

    Turns out two things happened. First the overall winning "streak" started getting effectively longer by the fact, I would just be on a "new streak" after the break. Second, the down periods became less frequent because I could see them coming and stop before damage.

    For example within a day, if I hit more than 4 trades that are BE or underwater for extended time and then BE, I know I am out of step with the market. So I stop and break the cycle. Also if I hit too many winners* I take a break so I do not start thinking I am master of the universe.

    *How could there be too many winners right? IMO, when it causes mistakes, it is too many.
  5. Dazz


    useless to define consistency.
  6. deaddog


    An equity graph that moves smoothly from bottom left to top right.
    birdman likes this.
  7. Dazz


    what is smoothly? what is bottom left? top right? have you measured? This is a worthless discussion.
  8. deaddog


    Smoothly is moving less than 10% from highs to lows, making higher highs and higher lows.

    Bottom left is 2005 when I changed my strategy from buy and hold to market timing. It is also my trading account balance at that time.

    Top right is my balance today. 5 times higher than it was in 2005.

    Yes I have measured.

    You asked for a definition, that's mine.
    birdman likes this.
  9. Dazz


    so what is you expectation and trading strategy - based on your ridiculous definition of consistency - for tomorrow?
  10. deaddog


    Trading strategy remains the same as it has been for the last 15 years. Buy stocks that are trending up and don't hold losers in the portfolio.

    I have no idea what the markets will do tomorrow. I only know how I will react to what they do.
    #10     Nov 9, 2020
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