Uncertainty Principle and Forex
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Thread: Uncertainty Principle and Forex

  1. #1
    According to Uncertainty principle we cant predict any movements on the planet, None of any indiors can reveal to you the future of currency motion

    Whats Next?

    Uncertainty principle
    http://en.wikipedia.org/wiki/Uncertainty_principle

  2. #2
    Quote Originally Posted by ;
    Forex is not a game of prediction but one of chance.
    The majority of time probability win ratio is 50/50

  3. #3
    Quote Originally Posted by ;
    Based on Uncertainty principle we cant predict any movements on the planet, None of some indiors can reveal to you the future of currency motion Whats Next? Uncertainty principle http://en.wikipedia.org/wiki/Uncertainty_principle
    Trading isn't quantum mechanics.

    The trading equivalent will be random walk theory or the efficient market theory. The existence of highly competent traders such as Ed Thorp, who was able to achieve an average annualized compounded return of 19% over 19 years using 98% winning months (227 winning months, 3 losing months), only blows these arguments out of the water. Even if one uses the monkey and the typewriter allegory and added a hundred thousand traders into the equation, the probability of this happening is still infinitesimally tiny. There is a reason why the men and women who are banging the E.M.H. and R.W.T. drums are always academics.

    Those who can not teach, those who can DO.

  4. #4
    Certainty = winning all put trades (100% wins)

    Indeed it isn't possible, yet to profit consistently in trading you do not want'Certainty'
    all you need is a good trading egy and cash management

    This equation is going to be a good explanation:
    (win frequency * win worth ) (lost frequency * misplaced value) = P(v)
    (60% * 1) (40% * -1) = 20%, this means 60% wins with TP:SL = 1:1
    (30 percent * 3) (70% * -1) = 20%, this means 30% wins with TP:SL = 3:1

    As long as the result of the equation is positive you'd have the ability to profit always in trading.
    Thus You can adjust your trading system accordingly:
    either you have a high probability trade with little TP:SL
    or a low probability trade with high TP:SL
    it'd be best to possess HPT and high TP:SL, but definitely cannot be 100 percent

    yet another significant thing that you need to have to be able to trade profitably is:''

    Good luck in you trading

  5. #5
    Thank you for all fantastic answer, I'm trading system which have 75% win ratio based on probability and grid, I had been thinking how [highlight=rgb(244, 246, 249); color:rgb(0, 0, 0); font-family:verdana,helvetica,sans-serif]Uncertainty[/highlight][highlight=rgb(244, 246, 249); color:rgb(0, 0, 0); font-family:verdana,helvetica,sans-serif] concept will effect my system, as you stated we dont need 100% win ratio in forex trading [/highlight]

    [highlight=rgb(244, 246, 249); color:rgb(0, 0, 0); font-family:verdana,helvetica,sans-serif]Happy trading. ! [/highlight]

  6. #6
    Quote Originally Posted by ;
    Thank you for all fantastic reply, I am trading system which have 75% win ratio based on grid and chances, I had been thinking the way Uncertainty theory will effect my own system, as you said we dont want 100% win ratio in forex trading Happy trading. !
    Nobody gets it right, all the time. And as for the uncertainty principle, fine take but no, it doesn't apply to the market.

  7. #7
    The attractiveness of trading is that you do not need to understand or predict what will occur on the market at any given time in order to profit. This is the reason why trading is not about prediction but taking advantage of the likelihood of something happening when the chances are in your favour.

  8. #8
    Quote Originally Posted by ;
    Thanks for all great reply, I'm trading system which have 75% gain ratio based on grid and chances, I was thinking how Uncertainty theory will impact my system, as you said we dont want 100% gain ratio in forex trading Happy trading. !
    75% win ratio is too great enough to earn an excellent income. You can use proper money management techniques to conceal it

  9. #9
    Forex is not a game of forecast but one of probability.

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