Being a successful trader means winning a mental war – Miscellaneous – January 2, 2024

I have never met a successful trader. I only know of struggling traders who initially won $$$ but then greed killed them or they fell into depression while running their account with a new YouTube strategy or they were highly profitable in the short term.

I also don’t consider myself successful because the continued development of the MQL program isn’t making the huge amount of money I should be making.

But after months of losing, I would like to share my winning experience.

When I find something that works based on my research. It felt like the holy grail, I was consistently making money and growing my account, but then a tragic event took it all away. So I stopped trading for a few months and continued research and development on the same system that was working well for me to make money. If you were distracted by a bunch of new systems, you would still be failing today.

Once ABC was validated, we kept the target in a single system based on a single logic: buy or sell in projection D.

We also continued to analyze only the single symbol $SOL.

Previously I was a multi-symbol trader, but I learned that coins in cryptocurrency and forex pairs in forex are like different animals. Some are lions and some are dogs. It’s impossible to pet them all. trust me. You can’t tame a lion, but you can tame a dog, so don’t change your preferences until you absolutely have to. Choose a single symbol, such as gold. If you choose to research gold, don’t look at the Silver or Crude charts.

If you keep searching for a formula that applies to all symbols, you won’t find it and you may end up wasting your life on R&D.

Another point is that market movers such as hedge funds and prop desk firms are the main channels that provide liquidity to the market. If you buy a coin and don’t track it until next month, you are called an investor. Investors do not help provide liquidity to this market. They still can’t control all the symbols present, but they can’t control the main symbols that have trading volume/liquidity.

Therefore, to become a successful trader, you need to focus on hedge fund and prop desk skills. We all know that they are not manual traders and they use algos for trading automation.

Therefore, cracking algos is not impossible if a trader tries to practice reading charts for months and years.

But the biggest problem is that they don’t always work. They too fail, so we need to measure them in a rewarding way.

Traders usually think beyond 1:2 risk reward, but honestly I haven’t found a high win rate system. All high odds systems are either grid-based or martingale-based.

So, if you are searching for a 1:2 or 1:3 RR trading system, you should know that it is almost common to find a system with an accuracy rate of 50% or higher. The same goes for LTFs like the 1-minute chart. In HTFs like H1 and H4, it is always possible to find a system that is compatible with 1:2 or higher and has a high win rate.

Key issues in salary:

Algos are very complex to understand, but not impossible to decipher.

If you are interested in deciphering the algos that work in the market. You must be a programmer or be able to afford to hire an in-house programmer who works 9 to 5 in your office.

Typically, a programmer can be hired for a salary of $1,000 to $3,000 per month.

This is necessary because your trading system may need to constantly change and be updated depending on trading events. Backtesting alone does not achieve success. Forward or real-time market testing must be conducted using real funds.

Once the system is ready, you will face errors and bugs and often your account will be deleted as well, but this should not cause you to panic, you should not lose hope and continue trading. In the end, you will get huge profits like you have never seen before in your life.

However, I will share the problems I encountered while developing Algo. For several months I did not receive a salary and lived only on my savings. I had to cut back on expenses for a few months, but it all paid off for me. I took my time and it paid off for me. Others fail because they are afraid to do so.

R&D work on an Algo does not take months. It depends on your analysis and development skills.

Cracking an algo requires perfection in both development and analysis.

Most developers I know have very little knowledge of trading, so they continue to code probability-based methods, such as using machine learning to code based on probabilistic logic, such as soccer betting.

But I stay away from that machine learning field. I’m just focusing on my analytical skills.

When all is said and done, Winning feels very good. The whole problem is that life is solved. I had to cut off contact with people. They can demotivate you or, like my friend buying a BMW, they can distract you from your success. So you might feel bad because as a research analyst you can now only buy peanuts. So, to be successful, you may need to avoid distractions because your time will soon come.

Finding algorithms requires problem-solving skills, not a programmer or an analyst, and a thorough understanding of algebra, geometry, mathematics, statistics, probability, and trigonometry.

This alone is enough. You need to study computer science topics such as data structures and big data analysis.

You will need to learn computer search algorithms, a method commonly used to code algorithms. For example, combinations of 1 to 6 candles can be used to code an algo. If 3 candles are green, 2 are red and 5 are green, sell on the 8th red candle. For example:

Another skill you need to find the perfect algo is understanding how optimization and strategy testers work in MT5. Manually backtesting the last 10 years of data is nearly impossible, so learning is essential.

I hope this article helps. Have fun trading.