Balanced and diversified FX management.

Yes, it has been a brutal couple of weeks, I want to blame the present societal issues on the movements, but when is the currency market not volatile. No matter how long you have done something a certain way, at the most critical time one is tested. I am going to take this as that. In the end the situation will give me and viewers more confidence in my strategy.

I have balanced the account. The position value remains at 112k USD.
Current balance $100,631.34 USD

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Good luck with your demo but live account is completely different (in many aspects). I was surprised to see how little I understand my own decision-making process when I face uncertainty and real money is at stake :)
 
kroxobor said:
Good luck with your demo but live account is completely different (in many aspects). I was surprised to see how little I understand my own decision-making process when I face uncertainty and real money is at stake :)
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There is zero truth to that statement. If it was easy to trade a demo account, this forum would be full of people doing that trying to get backing. I guarantee you can not keep a demo account profitable for any length of time. I have been on this forum for over a decade and have yet to see anybody live or demo maintain an account. Out of 100,000 traders, I doubt one can even properly hedge across different pairs.
Not only that, I am positioning all these trades within my live account. I am using a demo account to free up my personal savings, in case I want to trade other products.
Since it's so easy, show us how it's done. The floor is yours.
 
DepthTrade said:
There is zero truth to that statement. If it was easy to trade a demo account, this forum would be full of people doing that trying to get backing. I guarantee you can not keep a demo account profitable for any length of time. I have been on this forum for over a decade and have yet to see anybody live or demo maintain an account. Out of 100,000 traders, I doubt one can even properly hedge across different pairs.
Not only that, I am positioning all these trades within my live account. I am using a demo account to free up my personal savings, in case I want to trade other products.
Since it's so easy, show us how it's done. The floor is yours.
More...

Go and see broker demo contests, for example from Hotforex https://www.hotforex.com/sv/en/contest/demo-contest.html. Check the rankings. Their top 10 winners generate stably >10000% monthly. The key is... instant execution. A lot of winning strategies especially based on momentum are excellent for demo but only because of transaction costs.
 
kroxobor said:
Go and see broker demo contests, for example from Hotforex https://www.hotforex.com/sv/en/contest/demo-contest.html. Check the rankings. Their top 10 winners generate stably >10000% monthly. The key is... instant execution. A lot of winning strategies especially based on momentum are excellent for demo but only because of transaction costs.
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Hello Kroxobor, thank you for your interest in this thread.
Write down the names of those 10 winners, you will never see their name on that list again. Those winners are nothing more than probability outliers, that had a good run of luck. If they were capable of those feats consistently, they would not need to be in a competition. I have scanned many competitions and you never see the same names. When you do see the same person holding a high ranking as in FundSeeder or MyFxBook, their max annual gains are closer to 20 to 100% yearly with double digit drawdowns. Even with those consistent stats, no real money will back them either because of their acceptable draw-down, the pip distance on Stops or them focusing on a single pair or few pairs.
There is a reason we do not see high quality traders. It is one thing to be profitable, it is another to know what you are doing in every aspect of position management.
 
DepthTrade said:
There is zero truth to that statement. If it was easy to trade a demo account, this forum would be full of people doing that trying to get backing. I guarantee you can not keep a demo account profitable for any length of time. I have been on this forum for over a decade and have yet to see anybody live or demo maintain an account. Out of 100,000 traders, I doubt one can even properly hedge across different pairs.
Not only that, I am positioning all these trades within my live account. I am using a demo account to free up my personal savings, in case I want to trade other products.
Since it's so easy, show us how it's done. The floor is yours.
More...


He's implying that if you can't manage to earn on demo then you have no hope on a production account.
 
Diversifying your money is always the best option. In forex trading use your money on different currency pairs with different methods to earn profits in an equal way. Even if you make some loss, it will not affect you much since you are making some profit on the other side.
 
For diversification you have to find uncorrelated assets, it's not easy to do that in times of downturn because traditional correlations break. You can instead bet on something like pro cyclical vs. cyclical, value vs. growth (rotation bet actually) but I would rely on statistical relationships too much because of various central banks policies which promote risk taking.
 
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