Gold Phoenix: How It Works
In this thread, I will provide a detailed explanation of how the copy-trading service "Gold Phoenix" functions. Before delving into the specifics, it's essential to note that this represents a singular strategy implemented across various time frames, characterized by its simplicity and effectiveness.
The theory governing this strategy is based on fundamental statistical assumptions, derived from years of research and continuous improvements. I will outline the conditions and reasoning that make this strategy understandable:
Emotional Management in Trading: The personal sentiment that leads us to perceive a strategy as extraordinary often tempts us to invest our entire capital. As is often the case, a single misstep can result in losing everything. Emotions in this profession must be managed.
Optimal Entry Signals: The entry signal with the highest probability of success is the breakout, and with some experience, the pullback. To interpret these entries correctly, we need levels called support and resistance, where the price either adheres to or breaks the market's will.
Statistical Probability of Perfect Entry: The statistical probability of achieving the perfect entry is very low. Almost always, with each entry, one must anticipate price slippage that tends toward the stop loss. I refer to trades with a target of at least 20 pips. The market is rife with false signals, and these are often interpreted as good.
Gold Phoenix aims to address these challenges. Based on my personal experience, I have constructed a trading system that has stood the test of time. Everything I teach my followers is encapsulated in this strategy. Here's how it works:
Asset: I don't utilize my entire capital, and I recommend against doing so with this strategy. Instead, I use only a fraction, in this case, 10% (€500). As the capital increases, the asset also increases proportionally. I have set a maximum of 3 assets that I manage with 3 different strategies, all sharing the same basic theory. Therefore, in addition to this strategy, there are two others.
Trigger: Fundamental analysis takes precedence. If one currency is weaker than others and the news is dramatic, I anticipate that things may worsen for that currency. I choose a pair near a level of support or resistance and act accordingly. In this sense, I consider myself a "follower," tracking the strength and weakness trends of a currency pair.
Positioning: I am aware that I will never achieve a perfect, risk-free entry. Instead of opening a single trade of 1 lot, I divide it into 5 trades of 0.20, placing them in a grid within the desired price range. The distance between them is never equal because the price range can vary based on supports and resistances. Recovery occurs only if the fundamental conditions allow it and only within another price range. Beyond these conditions, the stop loss kicks in, never exceeding 30% (3% of the capital), and in rare cases, 50% (5% of the capital).
There are negative aspects for those who provide this type of operational strategy, including those related to money management. Understanding these aspects is crucial; otherwise, there is a risk of giving a negative judgment to the strategy itself. References such as the profit factor rather than those of Sortino or Sharpe are distorted precisely because positioning, although of extreme importance in these formulas, produces poor or barely sufficient results. The only way to see if this trading system works is through periodic withdrawals and the regular increase in the asset. This indicates a strong gain, and consequently, the strategy endures over time. So, focus on equity and not on ROI, and most importantly, diversify.
The most important signals with all analyses are shared on Twitter, while for assistance with this service, you can refer to our official cTrader Guru group.
I hope to have been clear and comprehensive. I look forward to your active participation https://ct.spotware.com/copy/strategy/74912