DTFL Forex Bank Trading Strategy: http://www.daytradingforexlive.com/day-trading-forex-education-course/ One of the biggest strong suits of the DTFL Forex Bank Trading Strategy, is an aspect that most people don't give enough attention. What is it? The size of our draw downs. This is such a critical aspect of any successful forex trading strategy. Any experienced full time forex trader knows the importance of draw downs, but new traders often focus only on the potential upside of a trading strategy. Without a doubt a day trading strategies upside is critical to long term success. With that being said, as important as upside is, the down side of your strategy or trading system is far more important. Why is it so critical? One of the biggest factors in successful trading is the psychological factors that influence your decision making. When you begin to have a draw down what starts to happen? You start distrusting a trading strategy you might have used for months or years successfully. You begin to push trades that you should in an effort to 'make back' or 'get back' at the market. You start watching your Profit and Loss instead of watching for the correct setups and trade management. Can you relate to one of more of these points? Anyone with any experience in the world of forex will no doubt say yes. These are the things that cause an otherwise profitable trader to spiral out of control and sometimes give back months of profit in only a few days or less. Therefore, if you do not focus on how well your strategy plays defense, you are going to have serious issues. This is a major reason that we don't have large draw downs, and this is a major reason our bad months end up being only break even or slightly down. This strategy is not over optimized for any one type of market and therefore it stands up regardless of market conditions. Over optimization is a traders worst enemy when it comes to long term success. August and September have been our toughest months of trading in over a year and a half. September ended up at break even, and we are currently sitting on a +328% compounded gain over the last 17 months. This is all based off of trading just two pairs, the EUR/USD and GBP/USD. Additionally, all trades results are based on 2% risk per trade. I hope you enjoy the latest video in the Month End Review Series and if you have any questions feel free to shoot us an email through the 'Contact Us' page on the site. http://www.DayTradingForexLive.com
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Duration: 32m 49s
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