High profitable transaction ratio?

Updated: Jun 9

Observing the behavior of forex market traders on forums and social trading sites, I noticed a phenomenon that has a very negative impact on the process of creating investment strategies

This is the pursuit to obtain the highest rate of profitable transactions, both in historical tests and in real trading.

In the historical test, you can get this factor in two ways:

1. Adjust the strategy parameters to historical data

2. You can use a very negative risk/reward ratio, e.g. 10/1

However, remember that the above examples are purely theoretical in real trade will only bring losses.

Another behavior is the correct creation of the strategy but you will remove stop-loss orders from it or worse, manually increasing its levels when the price approaches them. In both cases, you risk all the available capital in each transaction and you will not be able to rely on historical tests

This is a particularly dangerous role model for beginner investors who are ready to risk everything, seeing great but theoretical profits

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