It’s happening again. I’m sad to see this happening again.
The most followed trader in Zulutrade, with more than 3M is suffering a draw down with 8 trades. The people is starting to send him very negative comments.
The process with grid-martingale traders is always the same. They open multiple trades at same time and same price. In case of going positive they would close them with 5-10 pips each one, however if market go against them they will mantain losers. Now his draw down is more than 400 pips.
Let’s see…400 draw down…from a balance of 2400 pips in closed trades, it a draw down of 16% in one unique strategy. And it could go worse, until 20% or 25% (depends on the market, and the trader decision, to close or not to close).
The problem is not to lose in one strategy (in Forex we have to face negative trades), the problem is that risk is being multiplied n times. When trading forex as swing trader we face negative trades of 50-100 pips every day (scalpers must face lower stops). The problem is when you open multiple trades. If you open 10 trades in the same pair and same time, and lose -100 pips, you lose -1000 pips. And followers lose x10, as they opened 10 positions.
Very high risk. The same story as always. Martingale and grid traders don’t use SL, they could wait until the end: recovery or disaster.
Visit my profile to know more about stable trading, with real account, and low draw down: https://www.zulutrade.com/trader/374158/trading