@Sky
This is the sort of system that works fantastically till it doesn’t. I’ve got strategies that back test to a 98% win rate and still lose long term because of that one time.
Great if you are doing a prop firm because hopefully you get some profits before it blows.
@Kade
You can offset that by withdrawing profit regularly. Also, you can set yourself a max open drawdown to avoid blowing it.
@Kade
The best strategy for DCA is taking profits out when account size is doubled or 50+% depending on your account size.
Small lots and withdraw once in a while. If you get out more than you originally invested then all is good.
@Sky
I consider that you don’t trade in volatile times, such as news events or FOMC, NFP, correct? May I ask which pairs you trade?
Zan said:
@Sky
I consider that you don’t trade in volatile times, such as news events or FOMC, NFP, correct? May I ask which pairs you trade?
I try to avoid them, yes, but if I am stuck in a trade then at least I don’t add any positions until after the news. Most red news are not a problem anyway as long as you don’t add positions too close to each other 
.
I trade only EU, GU, AU, and UJ. Nothing else. Only one pair at a time to limit drawdown.
@Sky
Thanks! Opening positions too close was my major fault as I traded like this. Would be nice to know how big your distance is in between. I usually did 50-100 pips in EUR/USD and always had an SL set!
@Zan
Haha, my distance is between 10-15 pips. That is way smaller than you. Personally, I just like to resolve the trades within 1-2 days. Just need to watch out for massive movements from red news.
Sky said:
@Zan
Haha, my distance is between 10-15 pips. That is way smaller than you. Personally, I just like to resolve the trades within 1-2 days. Just need to watch out for massive movements from red news.
Wow, that’s really close, but if it works for you, keep on going:+1:
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Sky said:
@Zan
Haha, my distance is between 10-15 pips. That is way smaller than you. Personally, I just like to resolve the trades within 1-2 days. Just need to watch out for massive movements from red news.
Careful. The dollar might just stop flying up.
Any resource I can read up on this dynamic DCA?
Roux said:
Any resource I can read up on this dynamic DCA?
You can check out Nick Shawn’s videos in the past few months. My style is an adaptation to that. I only trade 1 pair at a time and only hold trades for a max of 2 days.
@Sky
I’ve followed Nick Shawn for some time, and he’s somewhat recently been using DCA. I stayed away from that style because I didn’t want to deal with such heavy drawdowns, and he has money to spare. I just wasn’t sure this was a good strategy for my first prop firm challenge. Are you using a prop firm?
@Bennett
Yes, he does have a high-risk tolerance. I dial it down by playing a ‘safer’ approach than him (trading fewer pairs at a time, smaller position sizing etc). No, I don’t use a prop firm personally.
@Sky
Can I ask what amount you started with since you used your own capital? I won’t pry into you too much; I’ve just been readying myself to finally take the plunge and put real money on the line after months of learning. Thanks!
Jory said:
@Sky
Why max 2 days? So you exit even if in loss?
No, it’s just because they almost always resolve into profits within 2 days, as I space my positions 10-15 pips away.
Meh. I was doing 12% on average daily for 10 days once… Lots of small trades. Then gold went ballistic and I was too stubborn to get out.
It took gold nearly 2 months to fall below 2650 and it was as high as 2790… shorted at 2690…
Luckily, it was not that much money that I lost… 300 USD plus all the gains.
I was the opposite of the captain of the Titanic when I went down with the ship. Next time I will say screw women and children and will be jumping the ship the moment I see it sprung a leak…
Anyway be careful. Don’t risk anything you are not prepared to lose.
Good job mate, keep following your plan.
That’s great man, congrats!
