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Forex Trading Formula
What is the best mathematical formula to trade in forex?
There is no best formula for forex trading that will keep generating success again and again. Each currency air is different and so will have a different formula.
One needs to spend time understanding how a particular forex pair trends. Once you get that part well, you can then devise your own best mathematical formula for success in trading.
Though irrespective of what pair you trade in, you should have your loss management well in place. That means you should know for what equity size you can take the maximum loss amount.
The best mathematical formula is taking equal risk in every single trade so that you would lose if and only if 51% of your trades become losers.
All other mathematical formulas like doubling lot, averaging many position at one price etc are extremely detrimental to account.
The bottom line: trading can be done solely based on mathematical formulas, a trader must know how to analyze market technically (on the chart) or economically/fundamentally to find out its direction.
Personally, I use 1:1 risk to reward ratio and stay in overall profit because my 65% trades are profitable. If you trade on basis of a good analysis, majority of your trades will be in profit.
