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I have this question for a long time, what do you guys think? There really is out there a magical strategy that makes certain trade profit, with
a 100% accuracy? if not what % range you think is physically possible?
You do not have to have a 100% winning system to be a successful trader.
At what expense do you "win" when trading?
I could "win" 90% of the time and still "lose".
For example, i take 10 trades and win 9 at an average of 10 pips ie i make 90 pips.
My one and only losing trade is 100 pips ie even though i have a 90% win rate, i lose 10 pips.
I prefer to trade using basic risk management principles(R).
For example, lets' use a $10,000 account.
a/ decide how much is your "risk" per trade in percentage terms(1%,1.25%,2% etc), that is your R
b/ decide what your "reward" per trade is, 2R,3R etc.
Lot sizes will depend on what your R is.
On a 10k account, if risking 1%, you are risking $100 per trade.
If your "reward" is 3R, you are making $300 per trade.
You can lose 70% of the time and still be profitable(7 x $100=$700 losses, 3 x $300=$900 win, profit $200).
thank you all for your responses, as you can see no agreement between the answers, so lets close this topic, i`ll try talking to a theoretical mathematician, he must have the answer.
Haven't read all the thread and maybe someone said the same, but it's not a math question but a logical question.
Suppose there is a magic strategy of 100% - and now suppose every one follows it.
Is it still 100%? of course not because forex is zero sum game (except broker earnings, which can be relinquished for simplicity).
so you can't make 1 USD if someone else does not lose 1 USD.
So - no magic strategy.
I have this question for a long time, what do you guys think? There really is out there a magical strategy that makes certain trade profit, with
a 100% accuracy? if not what % range you think is physically possible?