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Once you are confident that your system will make profits on the long run, you can always increase your account size at any given time.
A stable equity curve means a lower risk, and a lower risk can be traded with less capital. Brokers know their numbers and they know that you will most likely be history in six months or less.
With a multi currency system, you can still make bigger profits with the other currency pairs, if you know how to properly adjust your trading risk. No indicator can see what will happen. All indicators are visual representations of past events.
Whatever trading style you prefer, I think that results are far more important than opinions. Don’t you agree?
You can automate the exact same rules for each and every trade. If you have rules and think you could beat random entries, wouldn’t you like to know for sure?
A lot of people can’t do proper trading, and they all will be able to come up with a dozen excuses.
If you want to trade something like an SMA, you need to decide how it is calculated.
If you think you found a market advantage, the next logical step would now be to prove that the opposite is also true. I always encourage the premium course members to start with a small risk. It is always no problem to increase it later.
One big advantage of small and steady growth is that you can close your open positions as soon as your balance and equity are almost balanced.
I usually use the same setup for my testing environment. That means that I also use demo accounts, and I always test for one year. When I do that, I will get an end result for the system.
If you flip a coin only five times, you might get three times heads and two times tails. But that doesn’t mean that one side of the coin works better than the other one. Historical data does not need to be imported. It is automatically downloaded when you start a back test for the first time.
Actually, there is nothing that will work all the time because no indicator is able to predict the future based on past events.
Little decisions can have a big impact, and I really like the fact that it is possible to see all the different results. With an automated trading system, if you don’t have strict rules, you can expect to do the exact wrong thing at exactly the time when it causes the biggest damage.
Maybe you fight against the wish to get up in the night and check your account stats on your PC. When you really measure the stop loss cost, you will find something that is really interesting.
CNN will not beg you for an interview in the evening news because you know how to make $0.16, but maybe even the position size that you used to make those $0.16 might be too big.
Common sense doesn’t help anything. I had to find out that actually a lot of the stuff that is taught doesn’t work.
Everybody is talking about entry signals, but once you have traded a few thousand positions, you will see that dependable entry signals are necessary but totally overrated.
Even if the account growth is smaller, a smaller drawdown is often worth it.
Drawdowns are unavoidable, but when the equity and the balance curve are almost equal, it is no problem to close all open positions.