The Trading Tracker is your trading assistant designed to analyze your activity and give advice on how to improve your trading strategy.
- What is it? This is a handy tool that measures the level and progress of your trading.
- Why do I need it? You can use it to improve your skills as a trader by receiving hints about potential risks and possible errors, starting with your very first transaction in a real account.
- How is it calculated? Pretty simply. Let's assume, for example, that you completed two transactions, one that is profitable and an unprofitable second one. The first transaction lasted 60 minutes, and the second one only 40 minutes. In that case, the indicator will be equal to: 60/(60+40)*100%=60%
Please note that only closed transactions on a real trading account are taken into account in the calculations.
How will I be able to tell if I’m a good trader?
The first sign will be if you’re making successful deals. Technically, your goal is to reach the indicator of 55% or above by taking gradual steps. This is easy, but it will require you to study and follow the three "golden rules" of trading:
- Trade in the direction of the trend
- The trend is your friend! If you see that the price moves in a certain direction, make deals that follow the same direction because it is always easier to swim with the current.
- Increase the number of profitable deals that you conclude and limit your losses
- It's simple: your profitable trades should be large, and your unprofitable trades should be kept as small as possible. It's the same principle that you follow in life: try to earn more than you spend. Try to maintain a profit/risk ratio of 2:1 or greater.
- Manage your capital so that any loss from the transaction does not exceed 2%-3% of your capital.
- At the initial stage, choose a transaction amount and multiplier that keep your risks from exceeding 2% of the funds in your account. That way, an unprofitable transaction will not set you back by anything more than the fare for a taxi ride.
Improve your trading skills, follow the prompts, and use the "Trading Tracker" to assess your progress.
Why 55%?
We have been tracking the actions of successful traders for a long time, and we have noticed that the types of skills that they possess are very similar. The level of these skills can be measured using a simple and understandable indicator that avoids the use of complicated financial terminology and calculations. The "Trading Tracker" keeps a clear track of profitable transactions throughout the entire trading period. It produces insights that are just as good as classic financial indicators of trading performance.
Our observations have shown that successful traders post indicators that are greater than 55%. We took this level as a model or benchmark, which is the term that is used in trading circles. Studies have confirmed that keeping this indicator above 55% allows you to obtain stable long-term financial results. An indicator of less than 55% can produce a positive result only over the short term and, as a rule, when there is a random confluence of circumstances.
Based on the value generated by "Trading Tracker" and your progress, we will promptly warn you about potential risks and possible errors. You can always find practical knowledge and tips that will lead you to success in the training section, which could lead to more potential profits for you.
OnsaFX, a regulated, global & zero-commission broker, is strengthening its presence in Africa by preparing to enter the Ghanaian market.