{"id":591414,"date":"2023-09-06T15:50:47","date_gmt":"2023-09-06T13:50:47","guid":{"rendered":"https:\/\/ftmo.com\/?p=591414"},"modified":"2023-09-11T10:48:48","modified_gmt":"2023-09-11T08:48:48","slug":"the-path-to-interesting-profits-through-patience-and-a-conservative-approach","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/the-path-to-interesting-profits-through-patience-and-a-conservative-approach\/","title":{"rendered":"The path to interesting profits through patience and a conservative approach"},"content":{"rendered":"
Many Forex traders believe that the more trades they execute in a relatively short period of time, the better their chances of success. In reality, however, this approach will only bring long-term success to a handful of traders. As we will show in today’s series on successful traders, a long-term and disciplined approach may be a better choice for many traders.<\/em><\/p>\n A bad start, but a good ending. I guess that’s how you could describe the first trader’s balance curve. Despite a misstep at the beginning that cost him nearly $17,000 and meant he was dangerously close to the Max Daily Loss limit, he managed to make very good money in the end. The initial slump was not the only time the trader failed, but in the end, we can say that history does not ask for it.<\/p>\n <\/p>\n Making a cool profit of almost $140,000 on an account of $400,000 is not for everyone. It’s not just the absolute amount, even the percentage is almost 35%, which in itself is very good. The average profit and average loss are not very different from each other, so the average RRR is “only” 1.25, but with a success rate of 72.73%, that’s completely sufficient. The number of lots was 245 with 66 trades, which is 3.71 per trade, and the trader traded practically the whole month.<\/p>\n <\/p>\n Although the trader reached the maximum possible allocation at FTMO, his positions were far from the highest. Even after opening multiple positions, the total position size on one instrument was rarely more than 15 lots, which is really fine for the size of the account. In the course of one day, the trader opened positions on a maximum of two instruments.<\/p>\n <\/a><\/p>\n The problem we see with the trader is that he sometimes commits to adding to losing positions, so-called scaling in<\/a>. With this approach, we repeatedly remind in these articles that it is not intended for beginners and inexperienced traders, nor for those who already have some trading experience, it is better to avoid this style of trading. In this case, it almost backfired for the trader, because thanks to these positions that he opened at a loss, he almost attacked the mentioned Max Daily Loss limit.<\/p>\n <\/p>\n In the following days, he avoided such trades and instead used an approach where he increased his winning positions, known as pyramiding<\/a>. In this approach, the trader uses the strength of the trend and gradually increases his potential profit by increasing his positions, while gradually reducing the potential risk of loss. However, it takes patience and often a longer period of time before the trader can exploit the entire trend.<\/p>\n However, it is not uncommon for this trader to hold positions for several days, for example, he closed trades on the last day of the trading period with a profit of over $40,000. Of course, the small disadvantage of such trades is the fact that they eat up a lot of money for the trader in the form of swap fees. On the other hand, the above-average return from a strong long-term trend will certainly offset these partial losses.<\/p>\n