Friday, my BreakON account
reached the 20% profit in two months, so I decided to withdraw, halving the capital but keeping the same trade size: effectively doubling the risk.
Today I got a 140 pip loss, but, having halved the capital, the graph shows a cliff:
Today I lost 30 pips less than I lost on 13th december, but at a first glance it looks like I lost the double. Rightly, since the capital is halved compared to a month ago. (If on a 1000 euro account I lose 9 euro, it’s the 0.9%, but if the account is a 100 euro one, I lose the 9%)
In fact, on the profit
tab, and on ZuluTrade
, the situation is not THAT desperate.
Lesson learned: If you wanna keep a “benchmark” account to show performance on public, DON’T WITHDRAW and DON’T DEPOSIT, otherwise the graph will be distorted.
On the other side, some EA sellers could use this technique to distort the “verified” graph to their profit: if I got a 60 pip win, the graph would look wonderful.
The graph speaks by itself:
The ZuluTrade graph insteas is less “awesome” like the myfxbook one, because the maximum drawdown on a trade marks a negative peak, probably they did this modification to deter risky trading strategies…
…but on my ZuluTrade control panel I see the “right” graph
I opened a new live account with drcrck‘s breakout strategy.
If you have ZuluTrade you can follow the signal BreakON.
Since ZuluTrade doesn’t offer a precise way to calculate the risk, but has just that “risk-o-meter” that doesn’t mean much, I coded a calculator. Choose how much of your equity you can lose in an unlucky day, and it will tell you what’s the right size for you.
The account statement is also available on Myfxbook, by clicking on the graph below:
How it works:
Every day the system makes 6 trades, only 3 at the same time, no hedging. The first trade has a large take profit, the second a less large, and the third is tight, to lock the profit. Each trade has a fixed stop loss at 35 pips, limiting your losses. At midnight all the trades are closed, in profit or not: I don’t like to keep them open for a long time.