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What kind of DrawDown can I expect? |
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DrawDown (or DrawDowns or DD) is when a trade goes negative before returning to break-even and subsequently profit. This can be expected with any trading system. The market never moves in only one direction, it goes back and forth and trends more strongly in one direction. We are 100% accurate as in we always close with a profit. However, we do have drawdown.
Drawdown is not necessarily a bad thing and can be used to your advantage to increase your profits. Our trade rules account for up to a 600 pip drawdown scenario for extreme safety. We will never have that much drawdown. Our largest drawdown has been ~350 pips. This is very rare however and usual drawdown runs from 5-40 pips.
There are 3 ways to deal with drawdown:
- If you enter the trade immediately as we do, just ignore the drawdown. You are completely safe. Follow our trade rules and walk away. We always close with a profit.
- If are a little late and our trade has entered some drawdown, you can immediately enter with half or all your intended lot size. If the drawdown continues, wait until you think there will be a reversal and open another trade with your remaining lot size. You know the trade will close from where we enter so you will make much more profit because you entered at a much better price. Instead of the drawdown, it will be your profit.
- If you are very late, you run the risk of losing out on the trade if we already closed the position. Nothing lost, just wait until the next one. However, if according to our trade rules you can still enter and we haven't closed the trade yet, enter with your full intended lot size. You will get the drawdown as profit plus our standard TP 20 or TS 5. For example, if we are at -35 pips, you will enter at break-even. When we hit our break-even, you will already be at +35 pips.
No matter what the case is, you will close with a profit and drawdown can actually earn you much more profits. You can mix and match these styles to suit your needs and desires. This is the beauty of our 100% accurate signals. You know exactly where the market will be sooner or later. Instead of being lost, you can almost see into the future because of this.
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