Is my strategy OK?

Azlan00IM

Private
Messages
33
Hi everyone,
I'm still new in fx and currently testing on demo account. I used Stochastic, Parabolic SAR, Simple Moving Average 10 and 20, Relative Strength Index and Average Directional Movement Index (ADX). I entered a trade whenever three of these indicators gave me signals. For example, when Parabolic, ADX and MA gave me sign that the trend is uptrend, I entered buy. And vice versa. However, I was suffering 1 loss in 8 trades. I want to know, is there any way I can avoid losses as much as possible? Do I need to wait until all indicators give me the one and only signal? What else should I use in order to increase profit?
 

RahmanSL

Major
Messages
2,536
"........I used Stochastic, Parabolic SAR, Simple Moving Average 10 and 20, Relative Strength Index and Average Directional Movement Index (ADX)...."

...hehehe.....sounds like a formula cocktail to turn lead into gold (i.e trades into pips)?:p

Technical Traders might agree that you can never have enough indicators, BUT I would say keep your trading system/strategy simple, easy to understand, that you are confident with, and works for you.

Everybody can teach you about the forex market, BUT nobody can teach you what system will work for you as every Trader have their own trading system/strategy and you just have to find the one that is most suitable for you.
 

Pharaoh

Colonel
Messages
19,771
Although it sounds a little complicated, if it works for you, then there's no reason not to use it.

Of course, you need to make sure that 1 losing trade in 8 isn't wiping out the profits from the other 7.
 

stephane

Private, 1st Class
Messages
114
Hi,

There is no such thing as a system with no loosing trades. Actually 1 loss in 8 trades is pretty good, so may be instead of trying to improve your win/loose ratio you can work on average gain/average loss. IMO, with your system this is where you will improve your profitability.
 

Tahntaman

Private
Messages
12
Don't chase gold strategies, you'll always have negative deals and certain losses...
You need to learn how to distribute capital so that you can immediately block the drawdown and profit from other orders...
 

Manalmeena

Recruit
Messages
1
Well, look, 1 nonprofit trade out of 8 is more than a good result. I think that you have managed to understand the strategy that will bring you profit, you can already move on to normal trading, the main thing is that you do not increase the risks.
 

Anthonyhay

Recruit
Messages
3
At some place, you will lose and there is no way of avoiding it. The only answer to this is you should be more careful and alert in terms of making more profits. Trade as per the indicators signals and if your trades are going in a loss direction - analyse those trades & see your mistakes. You can try different indicators that will work well for you. Practice them in a demo and if the results are good - do it in your live.
 
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