We would like to pay attention to what entrepreneurs, enterprises, corporations are doing, how much they invest and what percentage of profits they have. The larger the business, the smaller the percentage of annual profits. In the money accordingly- more, percentage- less.
After all costs medium profitable legal business brings to its owner an average of 10-30% per year of its investment in the business. Sometimes the business does not bring anything and entrepreneurs incur losses. Have you ever wondered why they do business, keep money in banks, buy securities, don’t they know about the Forex markets, crypto currencies and other markets? They can do business, but they cannot learn how to trade profitably in the financial markets. Why should they pay money to employees, sell something, produce, if there is enough to download from the Internet some automatic advisor and earn 300% per month. For example, Warren Buffett has reached a yield of only 20% per annum. And that 20% a year made him one of the richest people in the world. According to statistics, the yield of the most successful traders does not exceed 15-20% per year. Therefore, when you are offered something with a yield of 10-50-300% per month, you need to at least think.
The yield of 100% at 30% drawdown on Forex, thanks to credit leverage, the same as the yield of 200% at 60% drawdown, and the same as 20% at 5% drawdown on the stock market. Just in the stock market there is no such a large leverage that Forex brokers give and therefore such a low bar. What drawdown to bide depends on you and on your deposit. The more money the investor has, the lower he lowers the bar, reducing the percentage of drawdown and there is always a limit to the amount with which you can make transactions, which will drop to the bar 20%. Having a large amount of money, you will not be able to make a deal at the current price. For example, you send an order to the broker to buy 100 lots, and it is open several orders with a smaller lot and each at a higher price. This means that there are no sellers with such a volume at the current price and transactions are made at an unprofitable price, so you wouldn’t earn much. However, in Forex unlike other financial markets you can earn 300% per month or per week, or per day, and much more you can. The movement of currencies and leverage allow it, but not everyone can do it and not with help of those automatic advisers and strategies that you can found on the Internet whether paid or not. You can achieve high results only by yourself, only with your own head.
It is impossible to get a high percentage of other people's methods, high profits should be achieved independently.
The market is changeable, the reason is the self structure of the market. Let's analyze, for example, the Forex market. There is a lower level of the market –traders and other participants: Central banks, commercial banks, funds, foreign trade companies, brokers, dealing centers. If you look at the statistics, the lower unit -traders are always at a loss, always incur losses. Not every particular trader, someone earns, someone loses, but their total profit is negative. They always feed superior market participants. It can't be any other way. First, the higher participants know what the lower level does, and secondly, if by some miracle the lower level will make a profit, that is to take profit from the higher level, then this link will simply be cut off, simple traders will not be needed and they will close access to the market. That’s why everyone happy to the traders on the market, they brought money and they will be divided between the higher participants.
The first are those who use public methods, because there are a lot of traders and orders are collected together, even if the volumes of all small and long-term transactions are traded and focusing on profits up to 100% per year. Anyway they will not let you earn, because for higher participants this is one large volume. Many traders realize that and continue to look for various free secret techniques for trading in the financial markets. Even if you are an agent of special services and you have access to closed networks of the Internet and found a secret technique for earning in the financial markets, you still earn it will not work. If it comes out, it is a very short period of time and during this time the behavior of the market changes very often and strongly. The method you used yesterday can't be used today or the method you used last week can't be used on this one, depending on the frequency of trades. This is due to the robots-scalpers, not that trade in dealing centers ordinary traders, and those that have a direct access to the exchange. Rent space near the stock markets is worth millions of dollars, these premises are not rented to open shops or offices there, they install servers and powerful computers for robots. Expensive rent of these premises due to the fact that the signal from the exchange to the server comes instantly. There is a struggle between the robots for each microsecond, whose signal is faster and that have an advantage. They fight among themselves for each item. And every robot is watched by dozens or even hundreds of professional traders and programmers who constantly reconfigure them to get ahead of the enemy. The volume of transactions made by these robots is huge, and each change in the robot leads to a change in the behavior of the price. With other people's automatic advisors you will not be able to compete with the exchange robots for which spend a lot of money, because you will not be able to reconfigure the technique in time and even understand what is changing.
You need to analyze each situation, monitor the market evaluate each price breakthrough and make decisions instantly. And in the shorter period you plan to earn the more often you need to adjust the work of your robot. If you do it yourself it is easier to make transactions in manual mode than constantly rewrite the algorithm. Manually it is more real. Many professional traders dispersed the deposit in this way. At first, they just learned to trade on small amounts with a result of up to 100% per year, then having experience of stable long-term trading dispersed the deposit in a short period of time with large volumes. They disperse the deposit, but not always traded. Because in order to get high interest rates every month you need a huge efforts, the human body is not able to work for a long time in this mode. And when it is seen that the deposit at a profit of 100% per year will bring enough money for life it is already necessary to focus on a longer-term trade because of the high probability of losing everything. And the second thing that will prevent you to make a quick profit in the financial markets - it's unscrupulous brokers and dealing centers. First, the market is changed by stock robots, and secondly, brokers periodically change the amount of slippage, the order execution time and so on.
Let's summarize the bar, which you will not be able to overcome by other people's methods and how to overcome this barrier on your own. The bar is negative, this means it is impossible to create an algorithm with which in the long run you will make a profit you will always merge. This means that there can not exist a robot automatic Advisor or indicator that is able to consistently make a profit and not to merge the deposit. Many may think that it is necessary to use non-indicator trading methods. Such methods are called this way only because they do not display information graphically, the algorithm they still used.
An algorithm is a set of actions that you need to perform when this or that information appears. For example, the appearance of a combination of candlesticks by priceaction. To any non-indicator system the indicator can be written.
Let's sum up what you can't.
1. If you are going to exceed the bar, which is described above – you will merge. You might get lucky and you'll get high interest once, twice, three times but eventually you'll merge.
2. If you use other people's public methods-you merge.
3. If you are using robots, which is not watching by people and doesn't adjustment, you will merge
But this does not mean that you need to give up and do nothing.
1. You need to seek, and for this you need to monitor the market constantly. Not the chart of one instrument, but the entire market and for this you need to know clearly the structure of the market, know how the volumes are distributed among all participants, understand what each participant does, identify these participants and their intentions in the price movement. The robot can't do that.
2. Respond quickly and make changes to the system.
3. No one can teach you to do that. There are many various methods and ways but no guaranteed and everyone has his own opinion about the market.
If you decide to use someone's automatic Advisor, signals, account management service and its author says that the drawdown at 30% with a profit for a certain period of about 100-150%, this does not means that you can safely increase the risks 3 times and make a profit of 300-400% with a drawdown of 90%. The range of 30% and 150% is safe and as long as the trade goes within it-the system is stable. But if suddenly the drawdown exceeds 30% with the expected profit of 100-150%, this means that emergency measures need to be taken. To stop trading with a full review of the system. And for those who have increased the risks to 90%, this will be the point of no return.
If you trading in the long term, the less your system is affected by market changes and the less it needs to be reconfigured. Because short-term changes are cyclical. It is impossible to know what market behavior will follow the current, but the fact that the situation will be repeated – we know. With long-term plans we simply wait out the unfavorable market behavior for us with the least losses.