a perfect world, it’s safe money: 10-15 pips per trade, about 6 consecutive wins, and in an unlucky day you lose just 35 pips.
But, with the high spread, off quotes, stop level, I got just 4-6 pips per trade and it’s hard to even go breakeven.
In demo it was working wonderfully, with real money it did not work at all, giving me a 100 euro loss in a month, so the strategy will be put on a shelf
In the last post, a commenter asked me why on my ZuluTrade account
I only follow losing signals, reversing their trades.
The answer is this:
Even if Hertcz
at the end of the month has a great result, I hate that, like many others, he continues to insist on a losing trade.
Yes, if AUD/USD comes back to the predicted price, we get a great result, with a good recovery, but the problem is that nobody can predict the market with a 100% certainty
, and a such behaviour can lead to huge losses (see the Forex Cruise Control disaster and many others)
Instead, a losing signal won’t care to recover.
Of course, it won’t be “set and forget”: the situation won’t last forever, probably, or you can get profits killed by the spread, when you invert the trades, making a manual/automatic management via Metatrader 4 mandatory. Or you can just find a “cheating” signal that just sends an intentionally losing signal just to make money out of commissions (for example, there was an Italian gui that opened an closed a lot of trades: the spread made them instant losers… and reversing tham you got the same result…)
I used SteadyWinner Free for 5 months. If you watch the win/lose ratio, it’s not bad. The problem it’s that, when it loses, it loses too much. It takes months to recover a single “unlucky” trade, and what will happen if meanwhile it continues to lose?
Luckily the free version uses just a microlot.
Some time ago I found System Hour Signal as a good Forex Cruise Control replacement on Zulutrade.
It looks perfect, I like the style, but how it will perform when the market acts unpredictably?
I’ve enabled it on an unlimited demo to see if some crazy action happens some times:
Five trades, almost identical to each other? No, thanks.
From almost one month I’m trying in demo a free EA fround on the Forexometro forums: the Daily Breakout. (Right now the link doesn’t work as their forum has been infected by a malware that redirects pages on a fake page – if you can’t find the link to download, or don’t understand the settings, just comment and I will upload it somewhere)
It worked very well in demo, from yesterday it’s working in a live account.
Of course my luck let me enter the system at the wrong time… yeah! Let’s see this week what will happen…
This is how I describe the experiment I started on monday.
20pips winers, as usual, behaved like crazy. But his trades on GBPUSD weren’t managed by PipDefender for an error of mine: by default the EA is paused… so it ignored them.
The result? What could be a beautiful 120 pip gain became a 280 pip loss…… (because, 20pips winers likes to miss the right time to close a trade)
And with Tecnotrader? When should happen the only 300 pip trade in three months???? Just in the same day I placed it in reverse!!! FFFFFFUUUUUUUUUUUUU……
In total -580 pip, a disaster.
I knew that it was risky to choose some signal providers.
But they showed so nice profits!
I calculated to double my capital every 3 months with this signals… too good to be true?
Yes, too good to be true.
The reason of that they were so “winning” it’s that they never lose... they continue to buy and buy losing position until they are winning.
Moral: I wiped the profits made in the last 3 months.
I already got a similar experience in demo, but with virtual money you don’t get the same lesson and experience that you get with real money.
I remove every “get rich quick” signals like Gainers-Mx, GOLD MAX FX, ap-zulu and Thirty Pips, I replaced them with other signals with a decent money management, and I am ready to start again!
Yes, some of this systems win only in 30% of the cases, but with the right money management, they are much safer and profitable than the “100% winning” ones.
And trading starts again!
I hope to get better results than december, ended badly.
I have a new strategy, testing in a demo account, it looks very promising, let’s see how it will perform in january, then I will decide what to do.
The last weeks were useless, I complained on this blog.
Then, on Monday, the north korean leader died, signals operating in asian market times acted crazily, both Forex Cruise Control and High Profit Factor, went down a lot…
Why? In my opinion this is due to the new compensation policy of ZuluTrade: if the month ends in a loss, the provider won’t get commissions.
Since both providers made just 150 pips in December, closing the positions would have meant renounce to a lot of money to both… they preferred to keep them opened, betting on a raise.
Forex Cruise Control kept them open until today, closing in loss, but trying to end the month positively, opening other 5 position “outside the usual” (so my account did not open them, due to the 3 positions limit that I gave); High Profit Factor kept them open for a while, closed them, and, even if the market had low liquidity, opened new positions and closed them in loss trying to recover the commissions!!!
In the end I lost 50 euro.
ZuluTrade, thanks for changing the policy. You say it’s to protect the followers, but it’s obvious that you just want to make more money,