Archive

Last time, I’ve asked about the biggest loss encountered by you in Forex trading. That can be kind of an embarrassing thing to talk about as not many traders like sharing their failures. Now you have a chance to brag about your best success in Forex market. Although it …

Taking losses in an imminent part of Forex trading process. Some traders seek the no-loss strategies (including omitting the stop-loss), but such attempts are rarely successful. On the other hand, any loss can be a serious hit in the emotional state of a currency trader, while some losses may also be …

Following my recent post on “scaling in” in Forex trading, I’ve decided to learn the opinion of my readers about this technique. I’ve already asked about “scaling out” (closing positions partially) a month ago and the results surprised me with more than a half of voters being pro partial position …

Almost a month ago I’ve discussed a technique called “partial profit taking” and its viability in Forex. Another name for this technique is “scaling out” as it allows a trader to scale the exit from his or her position. Today, I’d like to talk about “scaling in” — a technique that’s …

Last week, I’ve described my point of view on the partial profit taking in Forex. In short, I believe (and support my belief with some simple math) that closing a part of profitable position before reaching the main target is a bad technique if you are using entry system with an edge. …

“Cut your losses short and let your profits run.”
— Proverb

Introduction

When a Forex traders decides to open a position, usually he has some profit target in mind. Often such target is set as a take-profit order for the position. Sometimes, traders set multiple profit targets for one position and close …

Every Forex trader wants to know how risky his strategy is and what’s the chance to lose a part of the account or the whole balance. This chance is called risk of ruin. Since usually Forex traders know their win/loss ratio and the average size of winning and losing positions, calculating the risk of ruin …

Last week, I’ve posted a general overview of various position sizing rules. Today, I’d like to know, which of those methods are most used among the common Forex traders. It seems to me that the fixed position size method should be more popular with the newbie traders, …

Following a small discussion I had about advantages and disadvantages of using different position sizing techniques in the ATC 2011 championship of the expert advisors I decided to talk a bit more about various position sizing rules that can used in Forex trading. It’s a very important topic and this blog’s readers …

So, let’s continue with our preparations for the upcoming ATC 2011. I’ve decided to start with the very beginning and outline the most important components of a successful MetaTrader EA. Please note that while some of the properties described below are good only for participation in ATC, others can be used …