Does a Forex system with 0 drawdown really exist? Before that question can be answered let's settle in on what the definition of drawdown is. A drawdown is defined as any dip in equity. For instance, if your account equity is currently $10,000 and the trade you are in goes $1,000 in the wrong direction then at that point you are in a $1,000 drawdown. FAP Turbo Review - FAP Turbo
What many beginning traders do not understand is that drawdowns are a very natural part of trading. A trade that has no drawdown would be the exception in Forex trading and certainly not the rule.
The search for a 0 drawdown Forex trading system is the same as the search for the "holy grail" of trading. Looking for such a system is both unrealistic and counterproductive simply because no such system exist.
Unfortunately, many beginners are exposed to advertisements showing trading systems with ridiculous claims of 95%-100% winning trades. This leads new Forex traders to believe that all they have to do to make money is select from one of these systems and start trading.
Another point that is unfortunate is that while new Forex traders are searching for a Forex system with 0 drawdown they could have been trading and profiting using a real trading system with realistic returns.
Drawdowns are certainly no fun and we all wish that we could trade without them, but that is as unrealistic as trading and never having a loss. Naturally we want to keep our negative equity fluctuations to a minimum...that is why selecting the right Forex trading system is extremely important.
