Less Is More In Forex Auto Trading
If there is one thing I have learned in the last 4 months while paper trading the Forex Goldmine EA, it is that the more I try to hurry it along by investing larger amounts, the more counterproductive that is to my long term profit targets. That’s what I mean by “less is more” – the less you invest in each trade the more you make in the long run.
Since reducing the lot size to 0.2 lots per $10,000 on the 3rd of September, there has been an increase of over $1000 in my account even if I don’t include the larger trades that I opened before the wipeout on the 2nd. That is an increase of more than 10% in less than a month. I now have a minimal drawdown of about $200, or just over 2% of the account, so can look forward to a similar growth pattern over the next few months.
So what is the moral of the story? Just build your account trade by trade and be patient. I estimate that even if I had left my Robominer trading at the minimum lot size of 0.01 I would probably have more in my trading account now than I have as the result of boosting it up to 1.o when I did. Even 0.5 was too high.
Let’s face it, if I had put $8000 in a bank term deposit a month ago I would now have less than $50 interest. So why would I complain about “only” having gained $1000? Putting these figures in perspective helps me be patient with my trading. And of course having a paper trading account to play with makes the whole testing process a lot less painful than if I had risked real money. And that brings me back to the major advantage Forex Goldmine has over its competitors: the free demo version of Robominer which they are confident enough to let people download for testing purposes. ‘Nuff said.
