Original post by Seven Summits Trader

If you are losing with currency exchange, you probably wish to have a currency trading course which will turn those losses into profits. Naturally this is the purpose of any forex trading course, but only in the sense of the base line.

No-one can have moneymaking trades 100% of the time. Even the most perfect trader who never makes a single dumb mistake will have times where the market just doesn’t follow his plan. Then for many of us, we aren’t that perfect trader in the first place. So a certain amount of losses must be accepted. It’s not an issue of shedding the losses, but of reducing them so they come out to less than the profits. To do this, it is really important to learn how to lose successfully : to paraphrase, to deal with the unavoidable losses in the best way. Then push on. There’s no need to research it to death at this time. You can look at all your trading at the end of the week or month and see whether any patterns are emerging. But aside from that there’s no point in getting wired about a loss. But you can cut back your anxiety about losses by knowing your system really totally. You’ll have seen that happening in back tests, if your back tests were thorough.

From those back test results you should be able to ready a calculation of the drawdown of your system. This is the most that you would expect to lose during a bad run. It is the low point that your funds would reach between two highs, subtracted from the high.

So go looking for the worst run of losses in the back testing results. At the worst point during the bad run it was down to 650. Then it slowly began to recover, and made it back up to one thousand. The drawdown here is the difference between one thousand and 650, i.e.