Accounts are blown in Gold Buying and selling for 2 causes:
1) You didn’t wait lengthy sufficient
2) You catch too many cease losses (or only one margin name)
The entire buying and selling neighborhood is spoiled by the articles and pretend social media accounts from brokers and prop corporations, who advocate one particular behaviour:
They need you to maintain your trades as brief as attainable.
As a result of they’re afraid of merchants who commerce like this:
You most likely acknowledge parts like commerce historical past strains from the picture above. Let me clarify the core concept.
Purpose for the large fish
What do you see? Sure, its going up.
Will it proceed going up?
Can we merely open a 1 lot with a 10k account and wait the worth to succeed in $5000?
NO! The dips would blow up the account.
Nevertheless, the answer is so easy!
Like in a backyard, we plant a number of orange timber one after one other. If one dies, the others can continue to grow.
However this fashion of buying and selling requires completely different considering:
We have to surrender the concept that there ever will probably be a “one grasp make-me-super-rich-trade”. (there isn’t a orange tree, that carries 1000 oranges – even when the gross sales man from the bazar give you such one)
We nonetheless can harvest 1000 oranges. However we have to plant a number of timber AND allow them to develop for a while.
What does it need to do with buying and selling?
The Objective
Our objective is to convey our account right into a state of affairs the place the fairness is way greater than the steadiness (many advantageous, open positions).
So if the worth begins to go down and the current trades turn into detrimental, we will nonetheless keep a constructive fairness over steadiness whereas ready for the up development to proceed.
The Technique
We place one small commerce (first star ⭐️ from the left)
If the worth goes up, we add the second commerce. And so forth.
Now think about the worth goes down after we add the second commerce.
At first, whereas the second commerce could have detrimental PnL, the primary commerce will nonetheless be in revenue.
The overal drawdown will nonetheless be constructive – or least a lot smaller in comparison with the state of affairs after we would have closed the primary commerce earlier than opening the second.
Lastly, if the 4. thrade causes drawdown, there are nonetheless 3 trades which are in revenue.
If utilizing this method, the chance of blowing up a prop agency account is tremendous small. The most important problem is firstly, after we begin rising and nonetheless have zero worthwhile open positions.
This system requires a software program to trace and handle every commerce individually.
With a view to automate it, you should use the brand new product GOLD ORACLE, the place this concept is efficiently applied. GOLD ORACLE licensed the tech from ai-backbone. The product targets skilled merchants who worth long run profitability over fast, dangerous positive aspects.
If you need to use the thought manually, go to the free webinar. In addition they clarify how this may be achieved manually with free instruments.
