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The Key to Success Focus On Draw Down

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The Key to Success Focus On Draw Down in General Forex Discussion_xx

I want to discuss one important thing in this forex business, the important thing is Drawdown, how to suppress drawdown as low as possible

1. Set the risk in opening the position as small as possible, with a count of lots or a calculation of what percentage will be risked every open position, the best is only 1 percent of capital, if we lose successively up to 10 times, then our balance is only reduced 10 percent, but this is not a factor that can be underestimated, maybe we should stop first and review our trading plan by practicing using a cent or demo account

2. Reducing the risk if we keep losing, the understanding is, if we lose more than 10 times, maybe we press our risk again by reducing the ratio to 0.5 percent per open position, instead we double our lot for revenge, and after capital or our balance goes up and recovers 100 percent, we can increase the risk again to 1 percent

3. Set the amount of risk per month, the understanding is that if we set a risk of 10 percent per month, and within two weeks our capital has lost 10 percent, then we will stop entering the market and open positions in that month, and we must wait for the next month , why is that, because sometimes sometimes our trading plan and trading strategy are not suitable for this month, but next month is very good and in accordance with our plan, then why should it be forced

4. If the three tips above all fail, maybe we should improve ourselves and see ourselves, what's wrong with us, because the forex market is never wrong,

the picture below is just a supplement to my thread, there is no intention of promotion, if traders in this forum want to add or correct my thread, I thank you





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#1 - October 12, 2019, 09:50:07 PM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx
just focusing on drawdown isn't good either.
#2 - October 16, 2019, 09:34:03 AM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx

if our drawdown is low that means our trading is safe and sound, not high risk



#3 - October 31, 2019, 04:06:57 AM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx

indeed one indication of successful trading is when the drawdown is small
#4 - November 02, 2019, 02:59:16 AM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx
indeed I see seldom traders who pay attention to this draw down, and many who let their draw down even up to more than 50%
#5 - November 24, 2019, 10:53:07 PM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx
In my opinion, drawdown is important, but it is not the only important thing, there are still many other important things besides drawdown that must be considered like a strategy, for example, without a drawdown strategy it will not be good either. I rarely see drawdowns even though I am conducting an evaluation because I focus on risk reward and output per period.
#6 - November 25, 2019, 04:05:26 AM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx
In my opinion, drawdown is only a measure of trading performance, not just focus on it if you want to successfully build profitable trading strategies and systems, but drawdown also has an important role in analysis.
#7 - February 10, 2020, 07:29:38 AM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx
successful trading is not only focused on drawdown but on strategy and MM and psychology, those are the 3 pillars that determine success in forex trading.
#8 - February 10, 2020, 09:52:32 AM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx
it is better to focus on strategy and money management because those two things can lead us to the correct and safe way of trading, strategies to maximize profits and MM to minimize losses.
#9 - February 11, 2020, 09:14:36 AM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx
Drawdown is quite important and we can use it to evaluate it so that we can know the extent of our trading progress and performance, focus on drwadown is also good as long as we don't force our skills.
#10 - February 12, 2020, 12:24:20 AM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx
drawdown is only used to measure our trading performance, not to focus on strategy because we have a system / strategy that can improve trading performance and drawdown will be more stable.
#11 - March 02, 2020, 04:12:31 PM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx
to succeed in improving trading performance or successfully forming a profitable system not in drawdown but discipline, drawdown only serves as an indicator to see the progress of our trading performance.
#12 - May 26, 2020, 03:02:21 PM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx
Drawdon is just a presentation that shows the development of a trading system whether going forward or decreasing, not just focusing on the drawdown but more importantly is the correction and development of our trading system.
#13 - May 26, 2020, 05:34:13 PM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx
when we know that our skills are not well monitored then the drawdown can show the development of our skills and trading system but we are not focused on the drawdown but on the strategy that we have.
#14 - May 27, 2020, 02:24:41 AM

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The Key to Success Focus On Draw Down in General Forex Discussion_xx
In my opinion drawdown is like an indicator that is to visualize our trading results from period to period not as a tool for training so we can improve skills, but drawdowns in my opinion are quite helpful.
#15 - June 03, 2020, 11:03:31 AM

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