Escon deOjo's Forex

If you’re losing with forex, you probably need a foreign exchange trading course that may turn those losses into profits. Of course this is the aim of any currency trading course, but only in the sense of the bottom line. No-one can have profitable trades one hundred pc of the time. Even the most perfect trader who never makes a single dumb mistake will have times where the market just doesn’t follow his plan. So a specific amount of losses must be accepted. It isn’t a matter of getting rid of the losses, but of reducing them so that they come out to less than the profits.

To do that, it’s very important to learn how to lose successfully : in other words, to deal with the inevitable losses in the only way. The best way is just to record the loss on the spreadsheet where you record all your trades, together with the trigger, the stop loss that you set, and what occurred. Then push on. But aside from that there’s no point in getting wired about a loss. It has occurred and that’s it.

Quicker said than done, I know. But you can scale back your anxiety about losses by knowing your system very thoroughly. All systems go thru bad instances when they just seem to lose and lose, even when you are doing everything by the book. From those back test results you should be able to ready a calculation of the drawdown of your system. This is the most that you would expect to lose in a bad run.

So go looking for the worst run of losses in the back testing results. Before the bad run, shall we say that the highest point the account balance would have reached was 1000 points. At the worst point in the bad run it was down to 650. Then it slowly began to recover, and made it back up to one thousand. The drawdown here is the difference between 1000 and 650, i.e.