Article from Forex Ultimate System

If you’re losing with currency exchange, you probably want a forex trading course which will turn those losses into profits. Naturally this is the purpose of any foreign exchange trading course, but only in the sense of the final analysis. Then for most of us, we’re not that perfect trader in the 1st place. So a certain amount of losses must be accepted. It’s not an issue of getting rid of the losses, but of reducing them in order that they come out to less than the profits.

To try this, it is really important to learn how to lose successfully : to paraphrase, to deal with the unavoidable losses in the only way. Then move on . There is not any need to investigate it to death at the moment. You can look at all your trading at the end of the week or month and see whether any patterns are developing. But apart from that there’s no point in getting strung out about a loss. Quicker said than done, I know. But you can cut back your anxiety about losses by knowing your system extraordinarily thoroughly. All systems go thru bad times when they just seem to lose and lose, even when you are doing everything by the book.

From those back test results you should be able to prepare a calculation of the drawdown of your system. This is the most that you would expect to lose in a bad run. It is the lowest point that your funds would reach between 2 highs, subtracted from the high.

So look for the worst run of losses in the back testing results. At the worst point in the bad run it was down to 650. The drawdown here is the difference between 1000 and 650, i.e. 350 or thirty five percent.