HOW-TO Losses can and will unfold

2020년 12월 30일In this video, we take a look at losses. Losses, or losing trades are important, because every trading system will have losses. I just think it is important that vendors talk about losses to make it clear to everybody that no matter how good a system looks or appears to be, it will have losing trades.

In the video we take a look at our "History Triangles" (which are the small green triangles on the chart), these show trade setups that would have been printed on the chart at the time, and would have been filed on the next bar, but would have been recalculated if the market moves through the setup without enough Bars having unfolded to create a new swing Pivot . These are not always losing trades, as they can also appear at double tops/bottom (where the stop level would not have been breached), but are usually losses.

Position Sizing is used to keep these losses small, at just -1R, or 1 risk unit.

I hope you all enjoyed this video, as it is an important reminder, that all systems have losses and it is important that vendors talk about losses in their posts.