Yes, let's make it clear in this post as from time to time, some people like to tell others that "this guy (DLavrov) knows nothing about trading, and all his trading ideas are useless and with poor quality! If you follow his trading ideas, you will fail!"
So, I decided to make an experiment. What if a random trader uses at least 100 trading ideas which I posted for the previous months? Which benefits this trader would get from following these trading ideas?
It was interesting for me as well as I don't care about my personal statistics. Here, I share my thoughts about different markets that I like and I think should be discussed. It is far from the proper trading rules where we have to be consistent and follow all signals which trading strategies generate in the exact markets. Such an approach allows us to realize the full potential of a trading strategy. When you pick just some trades from this market, some trades from that market, you have good chances to skip a lot of profitable trades and it will break your trading strategy.
I spent several hours passing through my previous posts, and I tried to follow recommendations as close to the main idea as possible and to act as a neutral person. My goal was to act as a real trader and honestly show the real picture.
The whole posts should be divided into parts: - there are posts like market reviews, where there are no exact "call to action" instructions. I skipped such posts - there are posts with variants how to trade, and these trading opportunities were described with possible entry and exit points. I followed these recommendations, and they are included in the Statistics. - there are posts where I could use the exact entry and exit points for the exact direction.
Also, for better understanding of how I tested my trading ideas, I divided the trades into several categories: - "Profit" trades, where the market moved at least 85% toward the profit target. These trades are obvious profitable - "Breakeven" trades, where we could move stop orders to the breakeven because the market moved in our direction. Some of these trades could give enough profit, and some of them could be closed with a profit like 1 pip. These trades are counted as profitable because it is a standard approach, but they are not included in possible trading results - "Stop" trades, where we could not move stop orders to the breakeven, and the price reached stop level. These trades are obvious as well - "Profit?" trades, where we had more chances to get profit than a trade closed by stop. These trades are not so obvious, and the trading result depends on a trader's experience and knowledge basis. The main statists include such trades as one of the variants. - "Stop?" trades, where we had more chances to get a trade closed by stop that a profitable trade. These trades are not so obvious, and the trading result depends on a trader's experience and knowledge basis. The main statists include such trades as one of the variants.
There are 100 obvious trades and 43 additional trades. The total number of trades = 143.
So, let's imagine, there is a random trader, who started following my 100 trades with 1000$ account. Which trading results he or she would get from 04.03.2020 to 25.07.2020?
What if the risk / reward ratio = 1 / 1 where Stop = 1 point / Profit = 1 point 1 point = 1$ Profit for this period could be between 150$-280$
What if the risk / reward ratio = 1 / 2 where Stop = 1 point / Profit = 2 points 1 point = 1$ Profit for this period could be between 610$-1020$
What if the risk / reward ratio = 1 / 3 where Stop = 1 point / Profit = 3 points 1 point = 1$ Profit for this period could be between 1070$-1760$
As you can see different risk/reward ratio with the same entry point gives different profit. For some trades, where the exact entry and exit points were described, we could have risk/reward ratio more than 1/2 or even 1/3. I suggest to focus on the risk/reward ratio for the whole number of trades, something like 1/1,5 - 1/2 and it will be a relevant result. We have a profit range because for the 1st value, I used only 100 obvious trades, and for the 2nd value, I used the whole trades.
So, for the period from 04.03.2020 to 25.07.2020 a trader could get something between 200$ - 610$. It is something between 20% and 61% profit to 1000$ capital.
What I want to say: - People who don't read the message below the chart and look at the charts only, they will fail. - In order to be a profitable trader, you MUST have knowledge and experience. If you think that trading signals will make you rich, you are a very naive person and you should not trade in the financial markets. - I tried to act as a random trader with at least minimum knowledge. I 'm sure that such a trader could get all obvious trades and make profit. I'm sure that a trader with more experience and better knowledge could get the maximum from these trades and increased the profit in 2-3 times. You can look at profit size with risk/reward ratio like 1/2 and 1/3 with all 143 trades. - I want to say one more time, I don't provide trading signals! These posts are for educational and informative purposes only. I don't believe in trading signals service as a product that will make people successful in the financial markets. I wrote several posts where I pushed you to stop searching for trading signals but focus on getting priceless knowledge and experience. - It is obvious that with the proper money management and the quality of information I offer for everyone and for free, it is very difficult to destroy a trading account. If you succeed with this task, you probably need to get additional knowledge and change your trading approach. Trading Signals won't make you rich! But knowledge and experience will be able to become a solid basis for your future success in trading! Please, don't forget about it!
Why did I decide to write this post? I don't want to prove someone that I'm a trader or an expert in the financial World. I really don't care what people think about me. I just don't like when some people try to show "the truth" without supporting their position by solid arguments. Now, you can note that not all my trades are useless. If you want to succeed following my posts, you must read the description of a possible trade opportunity, use the charts and THINK!
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