{"id":641248,"date":"2024-09-18T16:30:57","date_gmt":"2024-09-18T14:30:57","guid":{"rendered":"https:\/\/ftmo.com\/?p=641248"},"modified":"2024-09-18T17:11:40","modified_gmt":"2024-09-18T15:11:40","slug":"profit-from-rising-and-falling-markets","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/profit-from-rising-and-falling-markets\/","title":{"rendered":"Profit from rising and falling markets"},"content":{"rendered":"
In the next part of the series on successful FTMO Traders, we will look at a trader who made very good use of the opportunity to open short and long positions on FTMO index instruments. He was thus able to realise interesting profits even in markets that are in a consolidation phase, and it is difficult to identify a clear trend.<\/em><\/p>\n One of the biggest advantages of trading forex and CFD instruments is that, apart from the possibility to use leverage, you can also open positions in both directions, i.e. long and short, without any restrictions. Thus, traders can hold their positions for short periods of time as leverage increases the return potential (but there is also a higher risk to think about) and can speculate on the rise and fall of the instrument at their discretion.<\/p>\n Even though the stock markets hit their all-time highs at the end of August and the beginning of September, which meant that the uptrend stopped, our trader managed to realise a very interesting profit. From the balance curve, it even looked like a really above-average return at the beginning, but in the middle of the trading period the trader’s losing trades started to prevail and the curve “straightened” a bit. However, thanks to a consistent approach (consistency score of 81%), the trader was able to hold on to his gains in the end.<\/p>\n Once he was in danger of breaking the maximum daily loss rule (-4.88%), but in the end it was his only losing day, the other trading days ended in the green. During the eleven trading days, the trader executed 61 trades with a total size of 2,715 lots, which means an average of 44.5 lots per trade. For index instruments, this size is not such a big problem, especially when the trader adjusted the size of positions according to the instrument he was opening.<\/p>\n The average RRR per trade of 1.52 is not bad, and the win rate of around half of the trades (52.46%) is also average. Together, however, it makes for a combination that can yield interesting returns, as in this case.<\/p>\n The log clearly shows that in this case it is a scalper holding his positions for a few minutes to a few tens of minutes. The trader has held his trades for more than an hour on only four occasions. We must commend the placing of Stop Loss orders on all trades, which is certainly reasonable in the case of such large positions, and without it, we would certainly not recommend trading in this style to anyone. The trader, due to his trading style, set Take Profits only in exceptional cases.<\/p>\n Interestingly, despite the fact that the trader did not trade in explicitly growth markets, the comparison of the success of long and short positions is clear. It would seem that the trader was still speculating on rising markets and therefore losing money after the trend reversal, but the opposite is true. Just the day after the biggest sell-off, the client started speculating on a decline in the DAX 40 index (GER40.cash), which unfortunately did not pay off, and this is one of the reasons why the trader’s results in short positions are negative. Up to half of all short positions were executed by the trader at that time.<\/p>\n<\/a><\/p>\n
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