You only pay tax when you withdraw, so it doesn't affect your equity curve. Don't include tax in your drawdown, because tax requirements are different for each country whereas drawdown calculations are a universal measure of system performance. When ...

Should drawdown include tax?

My point, now you are thinking 3 dimensionally. When GJ hits resistance and traders predict it to stall or reverse, they are predicting GU and/or UJ to do likewise. Most traders don't realise that though, they think only of the pair currently on ...

Here is what you should know: The Consensus!

hi redlion wow, this is quite a read. I also like the top down approach to trading - learn all you can about macroeconomics, then gradually reduce and condense your knowledge into a simple, targetted trading plan. Most people get it backwards - they ...

Looking at Exchange Rates in a Scientific way

LMAO. Triberry started this thread to declare that he has lost faith in technical indicators and there are only two absolute truths left to believe in - trends and support/resistance. I am doing my best to tear up his belief in support/resistance, ...

Here is what you should know: The Consensus!

I am not suggesting that s/r levels don't exist, only that they are far, far weaker than they are widely given credit for. And I don't think correlations and s/r are seperate topics - my whole point is that they should be thought of together. Each ...

Here is what you should know: The Consensus!

Central banks have been known to protect certain levels on very rare occasions - very rare when you consider how often prices test these levels. Flick back and forward between eur/usd and eur/gbp, you will easily see the two are highly correlated. ...

Here is what you should know: The Consensus!

I don't even believe in support/resistance or its variants - round numbers, fibs, pivots whatever. IMO the whole idea of support and resistance is in direct conflict with the idea of currency correlation and intermarket correlation. People who use ...

Here is what you should know: The Consensus!

Remember that price has no timeframe - it moves continuously from monday morning until friday afternoon. On any timeframe less than weekly, all the "opens" and "closes" you put on a chart are imaginary.

The Optimum Time Frame for Trading

I hold positions for several months, and the swap is little more than a blip on the bottom line. Sometimes it is positive, sometimes negative, it tends to even out over time (though it is slightly tilted to the negative like Noloqy says). As long as ...

Why can we not invest long term in Forex?

If you traded in such a way as to survive the maximum possible swing against you with no stoploss, I think your position sizing would be so low that any profits would be miniscule.

No Loss Strategy?

Its very thorough, you seem to be using almost every form of analysis known to man and will likely suffer analysis paralysis. Keep at it though, eventually you will figure out which methods are working for you and which aren't. Be patient, you are ...

Help 4 Struggling Trader

I trade very long term based almost entirely on technicals - when I enter a trade my aim is to stay in it for 6 months to a year or more and catch major trends. I only use fundamentals very sparingly to choose the best pair to trade - if USD/JPY and ...

Fundamentals, Technical or Both?

I agree, I think MM is as important as, if not more important than picking entries. Good MM and psychology will make money with an average system, bad MM or psychology will go broke with even the best system. The greater direction may be more biased ...

No Loss Strategy?

I agree that the market is dominated most of the time by random walk theory, and a lot of the time it is impossible to tell if price action is random or biased. I only trade when I can tell with reasonable certainty that current price action is more ...

No Loss Strategy?

Open? Price only opens once a week, 8am monday morning. Any other "opens" you see are not made by price, they are artificial marker points imposed on an endless continuum. The other things you mention - strength of movements, momentum etc. can also ...

What time frame do you trade and why?

Sounds a lot like the way I trade, have you checked out my thread in trading systems? edit: not trying to advertise or promote, but would always appreciate advice/criticism

No Loss Strategy?

Price has no timeframe, it starts moving on monday morning and doesn't stop until friday evening. When you look at any timeframe lower than 1W you see a whole lot of "opens" and "closes" which aren't really there - they are imaginary. Trying to find ...

What time frame do you trade and why?

If I understand erock correctly he is claiming that price movements are random, and all 'patterns' in forex are part of a random walk. If that is true then trading profitably long term is impossible and everything he is saying is right - except his ...

Do you guys find that forex trading sucks?

There are people who don't use stop-losses, but I wouldn't call them no-loss strategies. I call them one-loss strategies, meaning you only lose once then you are finished - these strategies often seem successful because people who suffer that one ...

No Loss Strategy?

The main reason that almost nobody can compound small accounts into the millions - Imagine somebody suddenly handed you half a million dollars. What would you do with that half mil? Would you dump the whole lot in a forex account knowing the risks ...

Do you guys find that forex trading sucks?