Risks of over-optimization of Forex market trading
The thing you don’t want to do is over optimize so you don’t want to know what this type of trading means, I’m only trading at this moment of this hour of this session, I’m only trading like this entry pattern at this specific time on this particular pair but you can Improving What I Used to Do I’ve gotten into the nitty-gritty like over-analyzing the timing of trades.
Risks of over-optimization of Forex market trading
This will tell you objectively what changes you need to make I have almost 300 trades recorded with a win rate of 56% which is profitable How can I improve and improve this These are all my different entry types if I just enter type 3 56 goes to 74 if I added drily that 74 goes to 83 so two changes improved to what I’m looking for and now my win rate improves and I’m more profitable with this improvement.
I’ve been trading 2nd-hour Asia for about 1-2 hours and I’m looking for just one entry form and you can add things as you might go here and then it’s like okay I just took a look at day now I want to like I feel like this has good relation.
And I want to add that back so you might go back to adding something else and then test it and see how that affects it so you can stick to one model ah one time and two hours and one model and day with gold and then you have like an improvement that you can only improve so far if you keep going forward like you’re not going to You improve the way you already love to improve.
Follow the results of Forex session trading
You can only do this by having a journal, so if you haven’t started one yet the longer you wait or put it off, the longer your consistent profitability situation will be, that will tell you what you need to do, I can’t tell you exactly what you should do objectively.
And that’s what made it worse because I was focusing on just trying to find a type three trade and not trying to do that with the overall price action never-ending refinement that you’re using this with your intuition, the least is the least amount of things you can improve to get the biggest improvements in your system, So it’s just screenshots of all the deals as well.
Find objective data for Forex trading
So this is like finding objective data so you have kind of like two ways to improve your goal which is like getting data from your journal and then you have a subjective goal which is your intuition, your gut feeling, are you more confident in taking a certain type of trade, you just really want to make decisions where these two like to align.
So or not you want to love endlessly like analyzing your objective data to find a way to improve you want to wait until you have a subjective feeling that I feel when I trade at this time I am less profitable in this I feel that when I trade with the dollar index my winning rate improves, this is the subject of my feeling.
And then I look at the data in my journal that supports that feeling and then I can make a change using that data, what you don’t want to do is make some trades maybe like five trades, and then have like some data have a sub sentiment like I keep making these Types of deals.
Reducing your profitability in Forex trades
Here, you keep losing but you don’t have enough objective data to support that subjective feeling so you make a bad change but that’s not bad, you’re still learning you’re still making a good mistake you don’t like that you’re going to over-improve you want to make a change This will reduce your profitability, which is not a bad thing, it just pushes you in the right direction as a kind of usage.
Like this example, I’ve been through this a lot of times but for every loss you make PES you close it out for profitability you can’t do that, let’s just say you have a trading period of 50 here maybe 100 trades, this little trunk here, you’ve made 100 trades, I lost maybe 20%, which isn’t too bad” I’m not profitable but then I have that subjective feeling or looking at that data objectively using both of those things.
I’m not going to trade anymore at this time okay I’ve taken a step in the right direction and I’m still not profitable after 100 trades I’m let’s just say 15% okay there are new learnings now like 100 trades again it’s not just 100 trades now I have 200 Deal so I can provide more accurate information but maybe I’m refining too much and then focusing on the wrong thing minus 22%.
Input forex trading using correlation
I focused on this that didn’t work, 100 trades, I’ve got 300 trades, and I still haven’t won, but I’m a lot closer to that goal than if I were to switch from one strategy to another and ignore that data or if I didn’t write down my trades and it’s like you’re making a lot of progress here because you’ve just recorded those losses and accept them so that you have traded.
You have a lot of data now to like it, you can make a new change, I’m going to trade this entry at this time using this link now, you might be at the negative breakeven point Le of this positive 2% and then get back to positive 5% and so on.
Summary
Consistent profitability is not a state of being, it continues to operate as if there is no strict limit or rule on what you can achieve, you can do like plus 10% plus 20, there is no strict rule but that is if you keep improving, keep learning, you can That’s just refining a lot, yeah so there can be a party to that but refining objectively but you’re continuing to learn personally.
