When you are looking at forex systems, one of the factors that you might see mentioned in a good system review or summary is drawdown.
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So do your analysis as best as you can. Define the entry points. Define the stop loss and take profit levels. Calculate the position size and risk. Once the price comes to the entry point, execute the trade. Then leave it to mature. Go do something else. Come back after some time to see the results of your trade. This approach will save you time and psychological energy. Loss is just the discrepancy between mathematical model and reality. The most interesting thing is that in this case unexpected profit is the same as loss. If profit or the size of it was not planned by your trading system that means the reality stepped away from the model. Head and Shoulder is a trading chart pattern that is used in technical analysis. It forms at the top of the ascending trend. Head and Shoulders is a strong signal about trend reversal. On the other hand the reverse “Head and Shoulders” forms at the bottom of descending trend signaling soon to become up trend. I usually see many traders are looking for a trading system that would make them profit continuously. I was one of them some time ago. What I come to realization that a trading system must fit one’s personality to be a successful one. |
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