Marathon І. Battle of two styles.

Marathon І. Battle of two styles.


P_S_trade

Experiment. Battle of two styles.

We ran an experiment for two weeks. This experiment gave an answer to the question: "What is better, short trades with leverage, or medium-term trades without leverage?"

For many people, the concept of margin trading is unacceptable due to fear or negative experience. However, predicting short-term movement is much easier than predicting movement over a longer period of time. In addition, medium-term trades are influenced by much more factors that can change the price behavior. And it is very disappointing to see the changed market conditions and the reversed price that did not reach the take-profit by only 1-2%. In best case, the trader remains in breakeven, although some time ago he was happy with the “paper profit” (positive, but not fixed by P&L active position). Also much depends on the exit strategy. But it is a topic for another article about which we intend to talk soon.

Experiment conditions.

We have created two different accounts. For simplicity of further calculations, we added $200 to them, which we divided into two halves - $100 each.

On the first account (we will call it "A") we traded trades where the profit was 4-5% or more of the price movement. This account used 3x leverage.

The second account (we will call it "B") we traded trades, the target profit of which was 14-15% of the price movement. However, in this case, we used 1x leverage (or, in fact, we just traded with capital).

One trade was entered with half of the account's deposit.

Profit/loss ratio: 3:1 (not less)

General statistics of trades for 2 weeks.

Account "A".

In two trading weeks on account "A" were 19 trades:

- Unprofitable - 4 pcs (-10.13% of the account "A" deposit )

- Breakeven - 9 pcs

-Profitable - 6 pcs (+ 68.9% to the account "A" deposit )

Total result: + 58.77% taken from the total price movement.

Since we did not withdraw any income, "compound interest" worked.

The total result on the deposit: + 78.3% (from $200 to $356)

Below are the trades, which are divided into 2 tables by color. According to the green table - the position was entered with the first part of the deposit. Orange table - trades for the second part of the deposit.


Interesting statistics. As you can see, the first half of the deposit had the best profitability. And the second part of the deposit was constantly pursued by breakeven stops. The conclusion is very simple - the risks should be diversified and the entire deposit should not go into one position.

Account "B".

In two trading weeks on account "B" were 8 trades:

- Loss - 0 pcs

- Breakeven - 4 pcs

-Profitable - 4 pcs (+ 26.5% to the account "B" deposit)

Total result: + 26.5% taken from the total price movement.

Since we did not withdraw any income, "compound interest" worked.

Total result on the deposit: + 29.5% (from $200 to $259.03)

Below are the trades, which are divided into 2 tables by color. According to the gray table, the position was entered with the first part of the deposit. Blue table - trades for the second part of the deposit.

Please note that there were 4 breakevens from 8 trades, since the price did not reach the take profit. However, if we did not expect a big price movement, but were content with 5%, then 3 out of 4 trades would be profitable.

This trading style is less profitable, but less risky and is suitable for people who do not have a lot of time to control their positions. In fact, 2 times fewer trades.

Outcome.

In general, $400, which was divided in half into account "A" and account "B" in two weeks turned into $615.03 (+ 53.75% to the deposit).

Of course, the market will not always give such a profit. However, we hope that such statistics will cheer you up and give an impulse to new financial victories.

P.S. Confirmation of all trades from the tables is available in our premium telegram channel. If necessary, we will provide proof without any problems!


On 14 September 2020 a new experiment begins, lasting 3 months. If you are interested in taking part in it - write to us!

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