After each consecutive loss some traders cut their position size for the next trade, some use a fixed position size and some multiple their position size. I encourage my team to master each one of these styles. Doing this extensive work and becoming familiar with the math behind it, and what you need to tweak to make each one of them profitable is the path to success in this game. The combinations of styles and parameters may seem endless but I assure you it is finite. As usual, the game can be mastered. I seek traders that are willing to put in the work.
For those that see the value in focusing on what I've outlined here, think of it this way. There are 20 active hours in a day, 5 days in a week. Thats about 100 samples in one week if you're trading the hourly trend. One week is not enough for an efficacy qualification. Now zoom out to the weekly trend, there are about 100 weeks in a 2year period. The same way one week is not enough, two years is not enough.
I know a few people that have gotten lucky for years leading to inflated convictions. I need at least 5000 samples for elevated conviction levels. This high standard exposes worst case scenarios and produces a focus on sophistcated payment methods for a string of losses. The hit it big for a few years and run approach is not a generational solution. A trader that cannot daytrade if he chooses is no trader at all.
100 15min in 25hours
100 hours in a week
100 4hrs in 20days
100 days in 5months
100 weeks in 2years
100 months in 9years
100 samples is not enough. So 9years is not enough time to confirm a monthly trend system, the same way 2years is not enough for a weekly trend system, the same way 5months is not enough for a daily trend system, and so on. Markets are giant fractals.
A trader overthinking their strategy is a laughable notion. Trading is highly complex and it will take a lifetime of creative thinking to reach superior optimizations. Most of us do not have the intellectual capacity to afford an issue as luxurious as overthinking something. Chances are you're not a genius, don't ever stop developing.
Read all my posts in this thread, connect the dots. You're welcome
There is a point at which risk of ruin goes from 0 to 100. Find it and work back from there. Once you've tested 5000+ samples your conviction raises to absolute certainty, this is where the stress fades. Once you have this optimized extractor in production, you are free to continue gradual development that lowers the 0 to 100 threshold for larger extractions. You don't have to trade this way but having the option to is proof of mastery. We think like a company, having every possible way something can be done. Indefinite research and development.
I encourage my students to apply endless development to life in general. Don't you get bored otherwise, doesn't the apathy get to you? Settling is easy, as a society we admire difficult feats. We are programmed to consider the easy route pathetic. Live effortfully.
Losses are part of forex trading and it is difficult to avoid loss but we can minimize it with a good plan and strategy. If a trader has good strategy and money management he can avoid big loss and maximize his profit.
there is no one who can avoid losses in spite of having good knowledge and experience , so we the traders first of all have to be mature to handle the losses, otherwise survive could be difficult on there.