as explained earlier in the thread the cumulative risk reward ratio (auto calc'd on a spread sheet) plotted on the chart with the win rate is absolutely fool proof in revealing if a strategy is profitable of not. Also if you make any changes to the strategy the result will show up quickly in the stats so revealing whether the change was advantageous or not.
Without hard statistics people have a habit of misleading themselves as to how well they and their strategy are really doing.
Bitcoin is teetering on the brisk of going below its 20 DMA on the 'daily'. This signal would be very bearish for me.
I do wonder if there is an attractive short play here with the potential for Bitcoin to go below $5k. I would like to see the recent bottom tested again with some strong consolidation but I am not sure at this stage with the markets the way they are that we will necessarily see 'text book' price movements.
Investing is an art and it requires capital to be allocated efficiently to maximise returns. There will be many who are trying to succeed in trading yet they have not succeeded in investing. There will be many who are not successful investors who are consistently profitable over the long term yet they want to risk their capital on trading.
Just like a child will learn to crawl before it can walk and learn to walk before it can run a trader needs to succeed at investing before they can succeed at trading. This is of course is just my personal opinion. There are many people who do not invest or have not succeeded in investing. One must ask the question why?
I have been investing for many years now and continue to do so now and will do so in the future. This is my 'bread and butter' and my 'solid foundation'. The trading part is only a small part of my overall investment strategy.
I am an investor first and trader second. There are many who are a trader first and an investor never.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.
The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.
CFD, share dealing and stocks and shares ISA accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. Both IG Markets Ltd (Register number 195355) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.