patience on forex.

the second half of the last week, on my selected currencies, there was in average a stable situation without significant volatility (actually i even haven’t looked at the graphs at all, placing orders on my smartphone — i know the relative stability by the results) .. which resulted in a small total loss. this is how it should be, if you wish not to risk lose everything. the net loss was due to increasing my bets (little by little, total by 15% by now) on losing currency pairs more than decreasing on winning side, to counter spread. if you look in my book Random Fluctuations, the one month trading example, then you see i was steadily increasing my bets on low volatility conditions, which in the end of the month resulted on some currency pairs in over ten times increase in bets.. only the last few days of the month, during a high volatility situation, i recovered all my losses, closing all positions (including losing ones) cashing in over 17% in total profit from the initial investment. (sometimes you can generate profit every week, but sometimes you must wait several months, before being able to cash in profits.. you never know in advance). if you know exactly what your formulas do in which situations, then patience is the only thing you need on top of correct calculations. you cannot just tinker around with values in formulas, in hope to generate faster profit, on daily/weekly basis. if you do so, then in a sudden high volatility you will run out of available cash in no time. your formulas must be arranged such a way that you stay just a little bit above spread/swap cumulative losses in normal market conditions, while during low volatility you keep your patience and during high volatility you act fast to cash in all you can, and after making overall profit close all positions, to begin again with your minimum. of course, if you use trading robots, you can adjust values in formulas on particular currency pairs, and adjust also values in formulas for all your bets depending on average volatility across your portfolio. the problem is, brokers won’t always execute your trades correctly regardless it’s automated or manual execution of the trades. you better keep an eye on your portfolio. you can program into your trading robots also alarm notifications, for the case if there begin error messages on your orders, but you can’t preview all the possible market situations with your automated trading systems. better to trade manually, and again.. just patience.. since if you have tested your formulas in countless years worth of data, you know exactly in which market conditions which kind of results you should expect, and continue trading waiting for the right moment, to cash in profits covering temporary losses, and close all positions. the latter is the most important rule — i repeat it over and over again — as soon as you have generated overall profit, force yourself to suspend all your emotions to generate even more profit with higher bets, and trust the mathematical reality of random fluctuations. the reality is, that if you’ve been able to make profit overcoming spreads and swaps, the odds will be highly against you if you continue with the same bets.. you will need ten times as much backup cash to succeed, if your stakes are already ten times the minimum amount, with wich you began betting. don’t forget — mathematics rules the universe.. your wishes and prayers have no say against mathematics.

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