Post your Losing Strategies Here!

UKtradergirl

Established member
825 145
Has your EA turned evil? :devilish:
Are your moving averages conspiring against you?
Is your stop loss always in the wrong place at the wrong time?

I'd love to hear from any of you who have very badly losing strategies, particularly if they have been 'proved' to be awful through real live trading. Please share your strategies here... long term, short term, scalping, whatever.

If you have never had an unsuccessful system (i don't believe you), then think of one and post it here.

I'll start off with one:

The '1 pip per day strategy'. All you need is one pip per day to make a fortune. Place a trade, any trade, any time. As soon as it is 1 pip in profit close it. No stop loss necessary. 100% success rate as no losing trade ever gets closed.

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shadowninja

Legendary member
5,524 642
Daily 20 pips.com. I don't think it is a losing strategy due to it being based more on luck than anything.

Moving average crossovers on fast securities. Works pretty well on stocks if you choose the right MAs.
 

everyonerich

Experienced member
1,109 43
u remind me of those early days when i started trading. i started to read babypips and amazed how moving average seems so powerful in the tutorial but long string of losses in real-live trade. although have heard people always say the indicator will be most accurate in big timeframe like monthly or weekly chart, i guess i just dont have so much time testing it on big timeframe.
 

UKtradergirl

Established member
825 145
Ever tried trading a 'reverse MA' system?

Take the moving average signals and reverse them. A bit scary but i made a little profit doing this (as long as there is no obvious big trend going on!).

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just wanted to add- i don't trade like this as a matter of routine!
 

fibonelli

Experienced member
1,338 288
Very easy

Buy at resistance after a huge rise

Sell at support after a huge fall

without a stop, using massive position size.

I win the prize of a busted account in the quickest time. :devilish:
 
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UKtradergirl

Established member
825 145
The question is.. if it is so easy to lose- why is it not also so easy to win? Just come up with the most awful strategy possible and reverse it.

I know this is being simplistic and not taking into account commissions, etc, but still..?

Keep the ideas coming- liking some of these strategies- going to try them out on demo to see just how fast they can lose money.
 

zupcon

Experienced member
1,162 322
Its quite difficult to design a mechanical losing strategy (other than deliberately eroding away equity by high frequency churning spread and commissions), I'd argue that its as equally difficult to design an unprofitable mechanical strategy, as a profitable strategy basically because in both case the objective is to minimise one variable, and maximise another.

There are staking plans and money management techniques that could theoretically optimise your risk of ruin (but you might have to suffer making serious profits before doing so)

Straddling high volatility news announcements could be a reasonable candidate for a truly crap strategy (with trading arbitarily drawn horiontal lines coming in just a tad behind)

trading in the direction of negative swap, trading ridiculously thin markets, umm running out of ideas now....
 

everyonerich

Experienced member
1,109 43
Ever tried trading a 'reverse MA' system?

Take the moving average signals and reverse them. A bit scary but i made a little profit doing this (as long as there is no obvious big trend going on!).

--

just wanted to add- i don't trade like this as a matter of routine!
hehe.. technically speaking it should work, because 80% market is ranging, 20% is trendy. :LOL:
 

UKtradergirl

Established member
825 145
hehe.. technically speaking it should work, because 80% market is ranging, 20% is trendy. :LOL:
Yeh, but the returns are smaller since nontrending markets by definition are within a range. So less profit.

Trick is in keeping stops small and making sure you stay out of any large trend (pretty easy).
 

everyonerich

Experienced member
1,109 43
based from my experience, follow exactly what you learn in the book will guarantee losing.. :rolleyes:
 

TheRumpledOne

Senior member
2,160 77
Its quite difficult to design a mechanical losing strategy (other than deliberately eroding away equity by high frequency churning spread and commissions), I'd argue that its as equally difficult to design an unprofitable mechanical strategy, as a profitable strategy basically because in both case the objective is to minimise one variable, and maximise another.

There are staking plans and money management techniques that could theoretically optimise your risk of ruin (but you might have to suffer making serious profits before doing so)

Straddling high volatility news announcements could be a reasonable candidate for a truly crap strategy (with trading arbitarily drawn horiontal lines coming in just a tad behind)

trading in the direction of negative swap, trading ridiculously thin markets, umm running out of ideas now....
I challenge you, ZUPCON and here is the challenge.

Then next 3 people reading the thread post one number from 00 - 99.

We'll take those 3 numbers and trade your favorite currency, for a week Zupcon, and see if we win or lose.

We will use a H1 chart and if the H1 candle is green/bullish and price moves up to a price ending in one of those random numbers we go long. If the H1 candle is red/bearish and price moves down to a price ending in one of those random numbers we go short.

ZUPCON, DO YOU ACCEPT THE CHALLENGE?
 

zupcon

Experienced member
1,162 322
ZUPCON, DO YOU ACCEPT THE CHALLENGE?
I have absolutely NO DOUBT WHATSOEVER that by trading with an element of discretion over exits (and cherry picking which trades that are taken), that its possible to profit from entering at the cross of a line.

The moment you attempt to formalise those rules, its altogether a different issue.

If you wish to trade in a discretionary fashion, I'll happily spend some time in your paltalk room and verify the calls.

If you wish to trade this in a more mechanical fashion, I'll knock up an EA next week. At the start of each hourly bar, we'll place a straddle at the levels of your choosing, I'll even allow you to change the levels on each bar if you wish. You can specify initial stops and targets, and I'll allow you to change them at the start of each bar, give me some stop management rules and I'll incorporate those too.

Monday Im travelling back home, but I have some time to play next week.

As for trading for one week, how about we take 400 trades ?
 

TheRumpledOne

Senior member
2,160 77
I have absolutely NO DOUBT WHATSOEVER that by trading with an element of discretion over exits (and cherry picking which trades that are taken), that its possible to profit from entering at the cross of a line.

The moment you attempt to formalise those rules, its altogether a different issue.

If you wish to trade in a discretionary fashion, I'll happily spend some time in your paltalk room and verify the calls.

If you wish to trade this in a more mechanical fashion, I'll knock up an EA next week. At the start of each hourly bar, we'll place a straddle at the levels of your choosing, I'll even allow you to change the levels on each bar if you wish. You can specify initial stops and targets, and I'll allow you to change them at the start of each bar, give me some stop management rules and I'll incorporate those too.

Monday Im travelling back home, but I have some time to play next week.

As for trading for one week, how about we take 400 trades ?
What is your favorite currency, Zupcon?

Cherry picking? I clearly stated the trade entry rules. We will take the first touch of each line each hour if the candle color agrees with the direction. In other words, we don't go long on RED H1 candles and we don't go short on GREEN H1 candles.

400 trades? There's only 24 hours a day or 120 a week. Are you saying a week of trading is NOT enough to determine the winner of this challenge?

Yes, exits are DISCRETIONARY.

No straddle. We already have one price ending number 25. We need 2 more.