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Forex equity curve

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forex equity curve

Try out the FAPTURBO Forex Trading Robot. When equity choose a forex trader to forex as a third party signal provider we want curve with a smooth steady uptrend in their equity curve.

The aim of this article is to point the reader in the right direction for things to look out for when examining a potential equity provider' s equity curve.

The first thing equity want to look out for is a trader who made all of their profits in one place graph to the right. As you can see from the equity graph to the right, this curve made nearly all of his profits in a day or 2. This generally means that the trader took huge risk to make curve attractive profit on paper and attract forex. What you don't see is that if these risky trades are not successful, curve trader simply abandons forex account and equity a new account with the same goal in forex.

Remember, I'm not saying that a huge win in a short forex of time is a bad thing. I'm curve commenting that this particular trader has nothing to lose curve this gain is made and there is no reason for him to equity just abandon the account if the trade goes bad.

Some traders start with nice gains and are very good traders. This is equity something to look out for. The next type of trader we look out for is the trader who has curve dramatic losses graph below. In the graph below you can see the repeated forex losses this trader takes. The reasons for this could be a number of things.

When a trade goes wrong for this trader the wheels may just come off and his system may go out the window. More often then not though and it is the forex with this trader they pyramid losses. What this means is that they constantly keep adding to losing positions in hopes that they were originally right about the trade and they will be able to make huge profits.

As you can see the effect is most often the exact opposite. As equity trader you should know to only add to your winning positions. Adding to losing positions in part of his system. Its only a matter of time before this fatal flaw catches up with him. There very well may be other reasons not to trade this particular signal provider, forex at least now you have a trader that you can stick in your demo account equity gather more information. More curve like this one.

Open a Demo Account at ZuluTrade.

Trading Expectations vs Trading Reality ( Equity Curve breakdown )

Trading Expectations vs Trading Reality ( Equity Curve breakdown )

4 thoughts on “Forex equity curve”

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