The main and only thesis, opposed to the possibility of break-even strategies, is the presence of force majeure, which turn the market against the current trend “sharply and simultaneously”, not giving time to close the position in positive territory.
In fact, these theoretical thoughts have nothing to do with reality.
The bottleneck in the application of this technique is the determination of the moment of a trend decay, since opening a position or adding volume to an already open position at the end of a trend is fraught with a minus in a closed position or a strong drawdown in equity.
Consider possible solutions to this problem.
F'yuchersy na neft' Brent (ICE) v techeniye dnya: Indeks otnositel'noy sily (RSI) podayet neodnoznachnyye i negativnyye signaly. Rekomenduyutsya korotkiye pozitsii pri torgovle nizhe 49,45 s tselevymi urovnyami 48,12 i 47,63 dollara. Pri torgovle vyshe 49,45 mozhno ozhidat' dal'neyshego rosta, k 50,27 i 50,70 dollara.
Brent Crude Oil Futures (ICE) throughout the...
As far as you know, trading is a very nervous job, so I want to describe a couple of working methods so that I can effectively increase the psychological stability of the trader.
Often, the trader inserts his own sticks into the wheels.
We built, maximized profit (profit is not bad), we do not really pay attention to losses so far. All is well, but one trouble is a lot of losing trades eating up the lion's share of profit. We look at the schedule where unprofitable transactions take place, and introduce, say, one more MA, which will prohibit us from transactions at certain intervals of the time...
The trader must understand and know the boundaries of optimal entry into the market.
A simple example: entering the trend is almost safe, as “The trend will always take out!”, But entering the market at the end of the trend almost always gives a minus. Therefore, restrictions on a trading strategy should be determined and understood in full, and not just its main points.
