CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 66 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

MYQ - Findex Trading - Chema01

Technical and fundamental

Most trading gurus advise you to focus on the technical aspects of the price and leave out the fundamentals. Most individual traders are heavily focused on technical indicators but simply underestimate the fundamentals of the economy.

This is partly understandable, as fundamentals are tedious. They are also often confusing and contradictory. In the words of the famous Yogi Berra: “It is difficult to make predictions, especially about the future”. If predictions are about the long term even worse, as the economy changes faster than the weather in Florida.

The fundamentals are fickle. They require context and this is usually only shown in a clear way a posteriori.

In this order of things, one of the situations I abhor most is when students tell me that they don’t care too much about the economic news that appears every day.

You can be very good at interpreting the technical aspects of charts and price evolution at any given time. But if you don’t take into account that perhaps when you have decided to enter the market it turns out that a relevant news is going to come out, then you will be totally exposed and your previous analyses will have been of little use (Boris Schlossberg).

From May 20, 2019 to May 26, 2019

FINDEX strategies…

Momentum total trades per week: 7
Reversion total trades per week: 0

https://www.darwinex.com/es/darwin/MYQ.4.24/

1 Like

- The difficult path to trading -

Change your system frequently as soon as you find another system that is supposed to make more money. Spend a lot of time and money back-testing your system, going back years and years to the time when dinosaurs inhabited the earth. Don’t share with people what you’re doing, lest someone who copies you can make more money than you.

Operate with really large amounts. Lose money. Cry and finally leave him cursing for not having taken the easy way to do things.

- The easy way to trade -

Choose a trading system that gives you some money and back-test your system a couple of times. It is not necessary to go back too much in time. Decide what the contingency plan will be when the system fails. Trade in such small amounts that losses are never a problem. Do the work that allows you to learn how to improve your system or robot.

Finally, help others repeat this process, which will bring something new to your self as well (Rob Booker).

From May 27, 2019 to June 2, 2019

FINDEX strategies…

Momentum total trades per week: 0
Reversion total trades per week: 0

https://www.darwinex.com/es/darwin/MYQ.4.241

1 Like

Positive expectancy

Think about it… What is your tolerance for risk? Do you know what the real answer is? The real tolerance for risk is ZERO.

Positive expectancy is a foundational concept in our business. The whole point of trading is that you need a method that is not just simply blind luck gambling in order to win in the long run.

The problem comes with expectancy. Expectation is the single most toxic thing in trading. As human beings, we all expect positive results.

You expected success. You are never as vulnerable as when you expect something to happen. It’s almost never the results that kill us psychologically it’s always the expectation.

To win, you actually need to walk into the ring expecting to lose, because lose you will. The only way you will survive the pressure is to step into the arena expecting to lose and because if you expect to lose, you will trade small size. You will control your bankroll. You will take every trade. You won’t lift stops.

By expecting to lose, you will do all the right things to win in the long run (Boris Schlossberg).

From June 3, 2019 to June 9, 2019

FINDEX strategies…

Momentum total trades per week: 5
Reversion total trades per week: 0

https://www.darwinex.com/es/darwin/MYQ.4.241

2 Likes

Learn how to live with losses

Find a system that works. Adjust the parameters you want. Start trading as soon as possible and see what happens when problems arise. Trading is the only way to succeed.

In other words, put an end to endless optimizations. Put an end to eternal retouching. End the search for the Holy Grail. End the search for a system that never loses. Instead, learn to live with the inevitable losses (Rob Booker).

From June 10, 2019 to June 16, 2019

FINDEX strategies…

Momentum total trades per week: 9
Reversion total trades per week: 0

https://www.darwinex.com/es/darwin/MYQ.4.241

3 Likes

Many but positive exits

All those who know me know that I am a master of hasty exits. I almost never wait for the price to reach my profit target. I walk out of positions at the slightest that I see a problem arise. The result is that many of my students have more profitable bottom line results, but almost none reach the percentage of hits I have.

Nothing is as pathetic as observing the narrow profits of most of my trades, yet the hasty exits I make keep me away from many risky situations. This finally protects my account.

Good traders are masters in the art of making many small but positive outflows. Focus on this rather than making big profits quickly (Boris Schlossberg).

From June 17, 2019 to June 23, 2019

FINDEX strategies…

Momentum total trades per week: 11
Reversion total trades per week: 0

https://www.darwinex.com/es/darwin/MYQ.4.241

1 Like

Some_Ideas

The transition in trading

In all my years of experience I can classify the traders I have met into one of these two categories: Those who talk about systems, devote themselves to making strategies, read many books and timidly apply what they have learned. And on the other hand traders who, simply, dedicate themselves to trading.

I can say that building trading systems is fun, but it’s not exactly the same as trading. At some point we will have to take the leap to start really engaging in this activity.

A lot of paralysis analysis. Adapt what you find useful and reject what you find unsound. In particular, keep what suits you best. Always be honest with yourself and avoid following others systematically.

I am more impressed by one who has put an event into practice 10,000 times than by one who has done 10,000 events once… If you spend too much time thinking about something, finally you will never do it again. A lot of paralysis analysis (Rob booker).

__CashBis

From June 24, 2019 to June 30, 2019

FINDEX strategies…

Momentum total trades per week: 0
Reversion total trades per week: 0


https://www.darwinex.com/es/darwin/MYQ.4.241

4 Likes

It’s good to be able to read your updates again, @Chema01!

1 Like

Thank you very much Ignacio, the pleasure is mine. I am very glad that the community forum is fixed :blush:

3 Likes

Some_Ideas

Sensations

If I have open positions that go against me and make me feel bad, what I do is close them as soon as possible. If they are in my favour, I keep them open and control the risk as best I can. The latter is the most important part of trading.

If there is a position that is making us feel bad, the solution is very simple: Close it, because there will be time later to re-enter (Rob Booker).

IMG_Gestion_UpTitWeek

From July 1, 2019 to July 7, 2019

FINDEX strategies…

Momentum total trades per week: 9
Reversion total trades per week: 0


https://www.darwinex.com/es/darwin/MYQ.4.241

3 Likes

Some_Ideas

It can go wrong

What is the main reason why trading fails: Strategy, bad analysis, execution costs? No, none of those reasons. Those are just excuses traders use to justify their losses.

What really works is to assume that we may not be right. Assuming that the ego is playing tricks on us. The ego leads us to fight the market until we are defeated. It took me years of banging my head against a wall until I was able to accept the above statement.

Now I look at the market differently. I only have two impulses when I place an order in the market: Make a small, quick profit or minimize my losses as much as possible. As a result it is not strange that I stop taking advantage of favourable setups or that I leave on the table an enormous amount of pips that I could have added.

The great gurus don’t stop telling us: Let the profits run and cut the losses immediately. But in reality 90% of the winning positions will turn negative if we let them run, especially in the Forex market.

It’s much easier to assume from the outset that the trade could go wrong and risk as little of our capital as possible on each position (Boris Schlossberg).

__CashBis

From July 22, 2019 to July 28, 2019

FINDEX strategies…

Momentum total trades per week: 0
Reversion total trades per week: 0


https://www.darwinex.com/es/darwin/MYQ.4.241

4 Likes

Some_Ideas

A great skill

If you operate as a great part of the traders do, expecting big trends, you will be dedicated to add losers and will operate without stops. This will lead to bankruptcy.

However, if you use a robust entry system with statistical advantage and good capital management, taking advantage of small price impulses, then the results will be in your favour.

Good traders have a great ability to reap profits, close winning positions, open new ones, close winning positions again, etc.

Markets are like the sea. Waves follow one another making the water rise and fall (Boris Schlossberg).

IMG_Gestion_UpTitWeek

From July 29, 2019 to August 4, 2019

FINDEX strategies…

Momentum total trades per week: 2
Reversion total trades per week: 0


https://www.darwinex.com/es/darwin/MYQ.4.241

2 Likes

__Findex2

The exchange rate is always given for a currency pair. A currency by itself is worthless if it is not compared to another currency or other reference, such as gold.

Therefore, whether in a flexible exchange rate or fixed exchange rate system, one always speaks of RELATIVE VALUE.

If a currency is very attractive to foreign investors and speculators, with high demand and attractive interest rates in a stable socio-political environment, it can be said that its value should go up. Now, if we face another even more attractive currency, the exchange rate between the two should go the other way.

2 Likes

__Fundamentos2

FINDEX is an AUTOMATIZED STRATEGY that takes into account, first of all, the CONTEXT based on the RELATIVE VALUE of currencies. What it does is to compare the strength of the two currencies of each cross. This factor constitutes the first sign of an entry into the market that goes in favour of the strongest currency.

The system also uses an EXPONENTIAL MEDIA that indicates the trend and the value of the ADX to know the strength of it. They are two simple technical signals that serve to CONFIRM the signal obtained previously.

2 Likes

Currency_Index_MomentumTitulo03

FINDEX offers three different inputs. The first one is a 'market order’, which is carried out at the same time as the described signals are given. The second and third are ‘pending orders’, which will only be executed if the price initially advances in favour.

The RISK is diversified into nine pairs made up of the major currencies. In each position a maximum loss of 0.2% of the total account is established, to avoid large losses in the case of drawdowns. All positions let the profit run if the price moves decisively.

The operations are intraday and a very active MANAGEMENT is carried out. There are several exit rules that are applied, to secure the position if necessary, before reaching the profit target or stop loss.

1 Like

__CashBis

There will be times when the strategy is stopped while WAITING for a favourable situation to operate, according to the established FILTERS.

An attempt will be made NOT TO OVER OPERATE.

2 Likes

Some_Ideas

How to place stops

Use large stops of losses and small stops of profits. Change your concept of the risk benefit ratio.
Our trading tactics are designed to obtain a large percentage of winning trades based on many small profits, as is the model of insurance companies. In such a volatile market, where the price goes up and down like the waves at sea, having tight targets helps us achieve better results (Boris Schlossberg).

Over the years I have discovered that placing stops further away from the appropriate level, at points where my underlying trading idea is clearly wrong, helps prevent them from skipping me when the idea is right (Henry Carsten).

IMG_Gestion_DownTitWeek

From August 5, 2019 to August 11, 2019

FINDEX strategies…

Momentum total trades per week: 5
Reversion total trades per week: 0

2 Likes

With a 0,3%/0,6% of daily profit and a loss of 2,7% daily (like yesterday) and a 36,74% of winning days all, how can large stop loss be a good choice for your strategy? With a bad day you can cancel 10/5 days in profit.

As Boris Schlossberg advises, it can be a good tactic to look for many small profits, as is the model of insurance companies. Indeed, in this model there are also losses that tend to be greater in amplitude, but smaller in number.

The key to the system is to achieve a success rate of over 60%.

The Findex strategy has not always followed this way of operating, although its evolution brings it closer and closer to this model. Such a changing market, where it is difficult to find lasting trends, forces us to adapt to the environment.

The comment received would be very valid if the real numbers corresponded to the above: indeed, with those numbers the strategy could never be a winner.

However, if there are bad days such as August 15, when it lose don’t always get such negative results and on positive days it also gets longer profits. In fact, in this system there is no fixed limit to the profits, but the operation remains open until it is detected that the advance of the price is weakened.

On the other hand, the ratio of winning days exceeds 60% to date, which would make it possible to use strategies such as those advised by Schlossberg.

2 Likes

Some_Ideas

Abandon a trade without ceasing trading

The best we can practice is how to lose without having an unpleasant feeling and without complaining too much.

If you want to have a long and profitable career as a trader, learn how to get out of a trade on time without abandoning trading forever (Rob Booker).

IMG_Gestion_UpTitWeek

From August 12, 2019 to August 18, 2019

FINDEX strategies…

Momentum total trades per week: 8
Reversion total trades per week: 0


3 Likes

I like your posts Chema01, they are very educational, keep them up!!!
I wish tons of pips for you!