End of the “ZuluTrade scalping” experiment

A month ago I wrote about my ZuluTrade scalping strategy.
In
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

That’s why I don’t like “normal” signal providers in ZuluTrade

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 try the daily breakout strategy EA

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…

Second day of the PipDefender experiment

A disaster.
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.

Greediness it’s a problem

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.