Practice Work #1 (Money Management Exam On Demo)

One calendar month ago, nosotros started this Money Management Exercise, on my Main Facebook Group.
The primary ideas was the importance of the MM inwards trading, the opportunity in addition to how this tin live on managed properly (read to a greater extent than here).

In illustration yous desire to do this exercise, follow the adjacent steps:

1. Open a DEMO account = $10,000
2. Take a money (yes a coin).
3. Establish which money sides volition plough over yous the signals. E.q caput = long, tail=short
4. Open twenty pairs on your platform
(only pairs for non ruining the margins requirement. e.q no gold/silver/oil/indices, etc)
5. Flip the money for start pair.
6. Enter (market order) using 0.01 lots (0.1 for $100,000 account), SL = 30p, TP =90p
7. Go to the adjacent dyad in addition to do the same entry technique, in addition to therefore the next...until twenty pairs
8. After having twenty opened positions, halt trading.
9. Let all the positions to run, untill SL/TP hit.
10. If whatever seat is shut (TP/SL hit), on the adjacent day, opened upwards a novel merchandise past times flipping the coin, again.
* Important note: Practice TEST on DEMO purpose, only!

I know it mightiness audio crazy, but what I ask yous to see, is what actually way to merchandise amongst a expert MM strategy (+ medium R:R ratio 1:3) in addition to no strategy at all (50-50% to live on right, short/long, past times flipping a coin).

Also, this way of doing "automated" trades, mightiness aid you, if yous are the emotional type mortal (bad for trading). You volition sympathize what actually way trading past times the rules.

Average results:

Initial draw concern human relationship repose = $10,000

Total trades = 50-200 trades / week
Positive/Negative = 1/3-5 trades inwards profit, only
Total positive pips = 150-250p / week
Total positive turn a profit = 1.5%-2.5% / week
Negative draw concern human relationship repose = NONE / week

* Total no of trades (and profits) are related to the fourth dimension invested inwards testing this strategy. Some traders couldn't monitor their trading platform whole days, due to their daily schedule, jobs, etc. So their shut positions were topographic point inwards the adjacent day, exclusively (to opened upwards a novel merchandise / that pair). This decrease their total no of trades, pips in addition to profits.


Conclusions:

As I expected, nobody had a negative draw concern human relationship repose / week, past times now. Ofcourse mathematicaly, this is possible, but rare (using math probabilities). But the Draw Down wont live on higher than 5% ( Signals Providers, offering a DD of max 15%, usually)

And equally yous tin see, past times using a expert MM in addition to a real bad strategy, or none - flipping a money is only luck - yous tin nonetheless merchandise profitable, equally a beginner.

The profits, can't live on considered "spectacular", thinking that nosotros are using for this practise a $10,000 account. But if nosotros volition think that past times trading Forex, 95% of the traders wipe out their accounts inwards less than three months... (some statistic information acquaint this no fifty-fifty higher, to a greater extent than or less 99%).

Also, past times using an "automatic" strategy, trim down the fourth dimension involved to your trading activity. Not to mention, the stress.

We volition expire on this exercise, to get together to a greater extent than statistic data. Meanwhile, I volition recommend you, novel exercises, past times replacing this "strategy" (flipping the coin) amongst some existent trading strategies. And nosotros volition upgrade, afterward on, the MM, equally well.


Best Regards,
^^_Lord_Ice_^^