10 Apr Ever Get Tired of Losing Trades?
Ever Get Tired of Losing Trades?
Apr. 10, 2023
What’s the number one cause of traders failing?
A few losing trades.
What’s the number one trick of internet marketers?
Offering systems that have very high win percentages.
But that doesn’t change the unavoidable fact: winning all the time is fun.
Years ago, I wrote about a ridiculous system that never lost. Ah, the folly of youth.
Here’s the article: https://scottwelshstrategies.com/trading-blog/is-this-chart-too-good-to-be-true/
As expected, there were all sorts of things wrong with this system. First, it was on the Australian Dollar futures contract (@AD). Huh? And it was Long Only. That makes no fundamental sense.
But at the time of the video (4 years ago), there were some crazy results. This system never suffered a losing series of trades and never had a losing year (stats via Portfolio Architect):
The win rate was “100%” and there were no down years. See all the details for this system in this old YouTube video: https://www.youtube.com/watch?v=RgPy-3NrHWw
But, of course, that’s an old system. Surely it’s failed during the crash of late 2018, the pandemic, and the horrible Bear Market:
Nope. It’s kept on winning “100%” of its series of trades and kept on having winning years. Here’s the Report:
But that’s futures. Does it work on Forex? Using the BB Fair Value (aka BB Multi Trade) robot I made years ago, here’s the MT4 Equity Curve using the AUDUSD on a Daily Chart (using the same settings as the ones in the video except that I allowed up to 5 additional entries and used $125 as a target):
It has one scary drawdown period in 2013 and then nothing but pretty easy winning since.
Does this system make a million dollars? No. It doesn’t make nearly as much as some other systems.
But it wins.
It wins and wins and wins.
And some traders like that.
In our next Newsletters, we’ll talk about more systems that don’t use stoplosses and win all the time.
Talk to you soon.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. Examples presented on these sites are for educational purposes only. These set-ups are not solicitations of any order to buy or sell. The authors, the publisher, and all affiliates assume no responsibility for your trading results. There is a high degree of risk in trading.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.