There are many forex strategies which have consecutive wins and consecutive losses. This often happe...

1. Profitable Expert Advisors With Consecutive Losses
There are many forex strategies which have consecutive wins and consecutive losses. This often
happens because of market conditions changes. For example, strategy has many wins in a row when
volatility or other factors are beneficial to the strategy and at some point in time it starts to loose.
Losses often come in a row because something has changed in the market and strategy fails under
new market conditions.
There are several ways to solve this problem. You can find some indication of changed market
conditions and do not trade at this time. However this is easier to say than to do. This leads to the
easier solution which http://trading-robot.weebly.com/ can be incorporated in any expert advisor. If
forex system has consecutive wins and consecutive losses you can make it more profitable even
without knowing the reason why it starts to fail. Money management helps here. More specifically -
decrease factor.
What is decrease factor in money management and how it can help you in forex? By using decrease
factor you can decrease your position size after defined number of consecutive losses. E.g. let's say
your usual position size is 1 lot and you decrease this size to 0,2 lot after one loss or several
consecutive losses. It will minimize draw down during bad streak. You will go back to normal order
sizing after the first win.
In order to understand better how decrease factor helps we can take example when 5 consecutive
losses happen and make some calculations. Let's say that your usual position size is 1 lot and you are
risking $300 on one position. The http://www.dailyfx.com/charts total loss in bad streak would be:
Without decrease factor: 1 + 1 + 1 + 1 + 1 = 5 lots (5 * $300 = $1500 loss)
Decrease to 0,2 after 2 losses: 1 + 1 + 0,2 + 0,2 + 0,2 = 2,6 (2,6 * $300 = $780 loss)
Decrease to 0,1 after 1 loss: 1 + 0,1 + 0,1 + 0,1 + 0,1 = 1,4 (1,4 * $300 = $420 loss)
Losses can be decreased several times so you need less time to recover from them when market
conditions becomes in favor of the strategy. Decrease factor lowers the risk and decrease draw down
for your forex strategy. Sometimes it can even help to turn unprofitable strategy into profitable one.
Of course it can affect the profit as well so you should find the right combination which works: when
to decrease and how much to decrease you can find out by testing the strategy.
This may not help strategies with evenly distributed wins and losses, but usually these wins and
losses are not evenly http://forexbuilder.weebly.com/ distributed during time. Often there are more
wins in some periods of time and more losses in other periods of time, so decrease factor can help in
those cases.

2. By: EA Creator
Article Directory: http://www.articledashboard.com
If you are interested in using decrease factor in expert advisors, you can find a tool with this feature
at www.EACeator.com. You can easily add decrease factor to any EA which you make online by
using this application.
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