{"id":29376,"date":"2018-10-18T14:30:57","date_gmt":"2018-10-18T12:30:57","guid":{"rendered":"https:\/\/ftmo.com\/?p=29376"},"modified":"2024-03-08T15:30:44","modified_gmt":"2024-03-08T14:30:44","slug":"why-do-we-care-about-open-losses","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/why-do-we-care-about-open-losses\/","title":{"rendered":"Why do we care about open losses?"},"content":{"rendered":"
In the following example, we will look at why it\u2019s so important for investors to monitor the open losses, why the equity curve is more important for traders than the balance curve and why they should not take into account MetaTrader statements, myFXbook statements or other external sources. <\/em><\/p>\n This trader has never crossed the Maximum loss<\/a> on his closed positions. His last trade has even hit the desired Profit Target<\/a>. We might say that this trader observes the trend following a system where he awaits break-outs. These trading strategies have something in common. They often have smaller losses, but then the potential profits are really high. If we were not following the open losses, we could consider this FTMO<\/a> Challenge<\/a> being passed and the trader would normally advance into Verification stage.<\/p>\n However, if we look into the open losses, we observe an interesting phenomenon. This trader actually had 92,6% of his account in the floating losses<\/strong>, probably hoping that the market conditions could reverse his losses one day. Or not\u2026 His total open loss was -\u20ac18,524.11 on \u20ac20,000 FTMO<\/a> Challenge<\/a>. In one moment, the trader\u2019s Equity was as low as \u20ac1,475.89, down from the initial \u20ac20,000 .<\/p>\n <\/p>\n