For a long time, many traders have been searching and asking if Holy Grail exists in Forex trading. We’ll be considering two schools of thoughts concerning the Holy Grail.
This is going to be short and straight to the point.
Some people call a system a holy grail if it makes 100% win every time with no single loss, others call a system a holy grail if it makes more winning trades than losses every time.
So, let’s talk about the two schools of thoughts.
First: A System With 100% Win Every Time With No Loss
This is Very funny, hope you know that starting from the first order you place on the trading platform, a spread will be deducted?
It may be 2, 3 or more pip deduction and even if you close your trade immediately without the tick (price) movement, the spread deduction is not your money. It’s a loss. Even high frequency traders make losses and strive to make wins to cover their losses.
Forex Trading is like any other business where you will need to risk, invest, risk again, manage, make losses, or gain.
So why will anyone say Forex will always make you profits all the time with no loss?
One of the richest men in the world is Bill Gates. If you are investing in his Microsoft Inc. shares, are you saying there won’t be ups and downs? Think about it.
What most traders don’t know is that some certain percentage of profitable traders control the foreign exchange market itself.
Have you forgotten that big banks that have a lot of money are also in this business just like you?
Think about these:
If you own 90% shares in a stock market, you are the main controller, so any action you make affects the market.
Who are you, a retail trader, to tell me you will be 100% perfect making profit without any losses? I doubt that system.
Think about news trading, Hope you know that some traders are now seeing the news figures before you do.
Funny business, some people have had access to the data before you do and that is the reason some brokers increases their spread during this economic movement to prevent retails traders from making profitable trades.
Think about this again, while more than 90 percent traders make use of internet connection to place trades, the remaining 10 percent elite traders make use of [HSC]-high speed connections
Do you know how the Forex market is being manipulated? – This video below is your eye-opener if you are not informed. It is the toughest Forex debate so far. This is a must watch for you.
You want to know the truth? And that’s what I’ll tell you. But first, let’s talk about the second school of thought about the Holy Grail and see the other side of the coin.
Also Read: Should I use forex trading robots to trade?
Second: System With More Winning Trades than Losses
On the other side of the coin, some forex traders believe that a system with more winning trades than losses is the Holy Grail.
Yea, but people have forgotten this:-
“YOU can have more wins than losses and still be dollar negative”. That’s a question of how well you manage your money. And that’s why money management must be strongly injected into any crafted/developed trading strategy”
The secret of every successful Forex trader is that they manage their losses. They know what they stand to lose in every trade they place and that takes stress out of trading.
There won’t be surprises if you know what’s at stake each time you enter for a position.
Related: Should I trade Forex or CFDs
The Moment of Truth About Holy Grail
I am going to be straight with this. There’s nothing like Holy Grail or 100% trading system in forex trading. You are your Holy Grail.
You can make real money; I mean endless pips and also make endless losses. It all depends on your content. (I mean your believe, your rules, philosophy, your trading experience, your choices, thoughts, fears, attitudes and doubts to any trading strategy).
A trader may use just one indicator to make pips and when another trader tries that indicator, he may fail.
Nothing may be wrong with the system or strategy that the other trader was given, something may be wrong with just him, I mean his trade management skills, his greed and emotional check, control strategies and trading attitudes.
Managing your risks to the best possible level is the most necessary thing and this comes from your proper understanding of how each of the trading system, including EAs or semi-automated robot works.
Some people have trading strategies or systems that works well for them and they are really pulling it. That’s their Holy Grail.
The strategies or systems they use manages their trading risk so well that they make more wins, little losses and most especially without losing their invested capital.
Be rest assured, there’s a way out to make your money and keep making more of it. Don’t forget, there are few profiting traders and there are so many losing traders. You need to be among the elite traders. You just need to. It’s simple; Use the right systems.
At Theforexprogrammer.com you can turn your manual trading strategies into automated trading systems (EAs, indicators, etc.)
Let’s check out how to determine the reliability of a trading system or strategy.
How to Determine a Trustworthy & Reliable Trading System or Strategy
The EA/system should be able to stand the test of time. You are not the market; you can’t decide its movement and none of your trading tools can.
But since we can’t go into the future to see what will happen in the market, we can go backwards, and that’s called back-testing.
So the only way, to know if an Expert Advisor EA or strategy would perform well and continue to do so in the future is to back-test and from there you can see the draw-down of the strategy or EA yourself.
You’ve heard it all, there’s no Holy grail in Forex trading, NO one has it, You are your holy grail and it comes from your trading Context (your beliefs, your philosophy, your greed and emotional control, and most especially, your risk management skills).
So take your time, analyze trading strategies you feel will be profitable with more winning trades than losses or better still, craft out your own trading system or strategy, back-test it, scrutinize it, automate it and be rest assured you have something reliable working for you.