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Originally Posted by forextrades
The idea of switching systems based on the what the market is doing would work well. Using an indicator like ADX to tell you when to scalp and when the market is trending might work. The only problem is that I find the ADX too lagging.
Lately, I've been more interested in taking unprofitable systems and switching some of the parameters in order to make them profitable. There are a lot of systems out that give horrible entry prices. If you buy rather than sell or sell rather than buy when you get a signal, you could make a bundle. Just stop and reverse when price goes against you X number of pips.
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I have to say that I was in that same position probably not too long ago, the problem with finding bad systems is that alot of them actually lose because they do too many trades in a small period of time and die because of the spread. Scorpion has made the remark before that spread has killed many systems, too many even. Many trades can be made making about 5 pips, substracting the spread will give a profit of maybe 2 pips, now thats the gain, the loss would be spread + loss. So say the trade was closed with a 5 pip loss, 5 pips +3 commission results in an 8 pip loss, the profit with the same number of pips was made 2 pips. What this means is that you would need to win 4 consecutive trades to even out the balance. i have been aroun that corner one too many times and I tell you I am thankful that it wasnt a live account. So this leads me to my main point, money managment is key, if it has to be a win, make it worth it and not little 2 pip wins against 8 pip losses.
thats all I have to say