Forums ProRealTime English forum General trading discussions Is there anybody really winning? Reply To: Is there anybody really winning?

#91024

This is one of my demo accounts and I can say exactly how the nice gain was achieved. I decided to put some averaging down strategies on forward test – really just to see how long it took before an account killing event occurred. For some reason I keep coming back to averaging down ideas and I know that I shouldn’t so I thought that if I killed an account it would stop me from looking at them again. Killing an account hasn’t happened yet but I came close once. Before testing I massively increased my starting balance and I have a lot of very correlated strategies so it is a very high risk of death portfolio! What it has so far proved is that averaging down (buying an index as price falls and selling when price rises – which is what all the big banks do every day) is very profitable if you have a big enough starting capital. So if you have lots of money it is easy to make lots of money and if you don’t have much money then it is easy to lose it quickly.

The equity curve is not very consistent because at the end of last year I had a lot of platform issues that meant that most of my strategies stopped opening positions for about three months and I have had many other problems with individual trades that have been orphaned and so are not shown in the results so basically as a forward test the results are pretty meaningless.

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