This is the second part of the "The Ten Commandments for Successful Trading" post.
I can be the best trader in the world, with the best algorithms, risk management paradigms, trading methods etc. But if I won't have the right broker with me, I would be a complete loser! It took me ages, a lot of reading and disappointments until I found the right one for me, in this case it was Darwinex:
These are the main reasons I chose Darwinex, it helped me to become a better trader and it helped me to get visibility for other investors to buy into my product. So, just like the picture is saying, I work with a broker who helps me to generate money and not eat it away from me.
Get real about your return expectations. Don't aim for imaginary numbers like 100%, 70% or even 10% return per month, this will not happen consistently and you will have to take insane risk which will bite you in the end, just a matter of time.
As a comparison, the hedge funds industry finished the year with an average return of 8.5% - https://www.ft.com/content/cd928772-f08a-11e7-b220-857e26d1aca4! So, I am VERY happy if I manage to make a return of 0.5-2% a month. Even it seems very little compare to the many offers out there, it's realistic, and if you add compounding, a monthly return of 2% ends up with 26% annually.
I was so relived when I finished automated my trading style and let it run. To trade manually took me so much time and effort. Sitting in front of the screen all day, tracking the news, seeing how the currency moves, the volatility, the risk. So, I decided I take it serious, learn to program MQL, the MetaTrader language and did it.
As my trading style is based on technical details, mathematically simple, it took couple of months to work it out and build a reliable algorithm which runs on real money and open for investor to buy in - https://www.darwinex.com/darwin/GFA.4.21.
If you want a really good starting point to start programming your own algorithm, I suggest you attend one of my webinars where I explain step by step how to develop your own expert adviser from scratch, it's only a matter of time until you are able to write your own code, test it and run it. Otherwise, there are numerous of books on the topic like this one - https://www.amazon.com/Expert-Advisor-Programming-Automated-MetaTrader/dp/0982645902. The moment your algorithm will run, you will relieved, you will not have to worry yourself anymore with looking at the charts non-stop, checking the risk, open and close timing and so on. Just let the PC do it for you. In this time, you will be able to do other things like getting more education, learn new things and improve your strategy.
I am not saying it is straightforward thing to build up a successful expert adviser, otherwise, everyone will do so, but it is far more better than sitting and waiting for the right movement to come, plus, there are so many fake signal providers and expert advisers for sale, I wouldn't count on them to do what I do best.
tbc
4th Commandment - Choose the right Broker
I can be the best trader in the world, with the best algorithms, risk management paradigms, trading methods etc. But if I won't have the right broker with me, I would be a complete loser! It took me ages, a lot of reading and disappointments until I found the right one for me, in this case it was Darwinex:
- They have the tightest spread on EURUSD I could get, even over the weekend when the market is, the spread is 0.7 pips and less compare to other brokers who could reach 2.5+ easily. During trading hours EURUSD spread becomes so tiny that I don't even consider it in my algorithm. Since I only trade EURUSD like the 1st Commandment says, I don't care about the other currencies at all.
- Darwinex has a Direct Market Access, meaning they send all of the client orders direct to market with institutional quality spreads and execution speeds of <5ms. They don't mess with your orders, they don't open a trade again you or net it with others, they just execute it without messing around!
- Their team is super nice and supportive, always available via their online chat or phone. I never had an issue getting a response to any of my queries during and after working hours. Their CEO has a startup mentality and bring a lot of innovation to the platform.
- They have the best method to let investors invest in my trading algorithm without giving up my proprietary knowledge. So on top of the equity I invested in my algorithm, investors are able to trade my algorithm as if it is a registered product - https://www.darwinex.com/darwin/GFA.4.21. I don't need to deal with regulation or money management, I leave it up to Darwinex and focus on what I know, to trade.
- On those investors, I earn performance fees equal to 20% every three months, so the more money I make for them, means more money is made for me. There are traders in Darwinex with millions in investment, they basically living off their trading skills. No other broker I know opens up the door for investors like Darwinex does.
- They don't give bonuses for signing up or gifts for nothing. I stay away from all the brokers out there promising you X amount of $$ if you sign up with them. This is so wrong, there is no free money, they only give it away as they know how to get it back from you. For me, a broker who gives money, is a warning sign.
- Darwinex do have a certain method you can earn based on performance. So, the better trader you are, the better changes you win a monthly competition called Darwinia which entitles you to earn X thousands $ to manage.
- Darwinex analyses my algorithm from different statistical and performance angles which helps me to refine and optimise it. Since I started trading with them, I improved my risk management significantly and started to perform much better thanks to their intuitive repots and information, all for free. So they help you to become a better trader instead of working against you like other brokers.
- Deposit and withdrawal is straight forward, no need to wait X days to see my money withdrawn to my account like other brokers out there.
These are the main reasons I chose Darwinex, it helped me to become a better trader and it helped me to get visibility for other investors to buy into my product. So, just like the picture is saying, I work with a broker who helps me to generate money and not eat it away from me.
The 5th Commandment - Be Real
Get real about your return expectations. Don't aim for imaginary numbers like 100%, 70% or even 10% return per month, this will not happen consistently and you will have to take insane risk which will bite you in the end, just a matter of time.
As a comparison, the hedge funds industry finished the year with an average return of 8.5% - https://www.ft.com/content/cd928772-f08a-11e7-b220-857e26d1aca4! So, I am VERY happy if I manage to make a return of 0.5-2% a month. Even it seems very little compare to the many offers out there, it's realistic, and if you add compounding, a monthly return of 2% ends up with 26% annually.
The 6th Commandment - Automate your Trading
I was so relived when I finished automated my trading style and let it run. To trade manually took me so much time and effort. Sitting in front of the screen all day, tracking the news, seeing how the currency moves, the volatility, the risk. So, I decided I take it serious, learn to program MQL, the MetaTrader language and did it.
As my trading style is based on technical details, mathematically simple, it took couple of months to work it out and build a reliable algorithm which runs on real money and open for investor to buy in - https://www.darwinex.com/darwin/GFA.4.21.
If you want a really good starting point to start programming your own algorithm, I suggest you attend one of my webinars where I explain step by step how to develop your own expert adviser from scratch, it's only a matter of time until you are able to write your own code, test it and run it. Otherwise, there are numerous of books on the topic like this one - https://www.amazon.com/Expert-Advisor-Programming-Automated-MetaTrader/dp/0982645902. The moment your algorithm will run, you will relieved, you will not have to worry yourself anymore with looking at the charts non-stop, checking the risk, open and close timing and so on. Just let the PC do it for you. In this time, you will be able to do other things like getting more education, learn new things and improve your strategy.
I am not saying it is straightforward thing to build up a successful expert adviser, otherwise, everyone will do so, but it is far more better than sitting and waiting for the right movement to come, plus, there are so many fake signal providers and expert advisers for sale, I wouldn't count on them to do what I do best.
tbc
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