Here's a real story. And from today. About an hour ago, while engaging in one of the trading groups on social media... not one of our groups because you'd never find this there—I came across a message from someone. I'll keep their identity private because this isn't about shaming, it's about educating. The message essentially said: "Good morning, friends. Whoever trades futures, come check out this Futures Indicator that generates tens of percent of profit in every trade. Here’s the trade from this morning with 98% profits."
Think about it: if one day you found yourself misled by such promises, wouldn't you wonder, "Why didn't anyone warn me?" That's exactly why we should help each other.
The reality is, consistently achieving extremely high profits or win rates like 98% is practically impossible when you're trading frequently enough to absorb normal drawdowns. Even in options trading, where selling options might give you a statistical edge and higher win rate, it often takes just one big loss to erase all previous gains.
Market conditions vary: Bullish phases, bearish phases, trading ranges, and indicators can be deceptively "optimized" or cherry-picked for specific periods. Developers might unintentionally mislead others, mislead themselves, or simply lack the experience to realize their errors. So, always approach such claims with skepticism.
Thank you,
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Debunked: Can Trading Indicators Really Deliver "Tens of Percent" Profits Each Trade?
Q: Is it possible to consistently earn tens of percent profits on every futures trade using a special indicator? A: No. Claims of "tens of percent profit" or "98% profit per trade" contradict fundamental market principles. Reliable, consistent high-percentage returns without corresponding high risks are impossible due to the unbreakable laws of financial markets, specifically the risk-return tradeoff.
Q: What is the risk-return tradeoff, and why does it matter? A: The risk-return tradeoff means higher potential profits inevitably involve greater risks. Any claim promising substantial profits without significant risks violates this fundamental financial principle. High returns always require proportionally high risks.
Q: Why can't indicators consistently outperform the market? A: Financial markets are highly efficient. According to the Efficient Market Hypothesis (EMH), asset prices quickly reflect all available information. Thus, consistent, significant profits from exploiting "market inefficiencies" with simple indicators are improbable, as professional traders and High-Frequency Trading (HFT) firms rapidly close these gaps.
Q: How do probability and risk-reward ratios impact trading profitability? A: Trading success isn't about frequent wins alone (win rate) but balancing the win rate with the risk-reward ratio (RRR). Even with a high win rate, poor RRR can still result in net losses. Successful traders often maintain win rates below 60%, ensuring their winning trades significantly outweigh losses.
Claims of extraordinary returns and extremely high win rates like 98% imply a mathematically improbable scenario of near-perfect predictive ability.
Q: What about drawdowns and trade frequency? A: Drawdowns—periods of losses—are inevitable in trading. Indicators promising constant high profits suggest minimal drawdowns, which contradicts market realities. Additionally, highly profitable setups might occur rarely, such as once every decade, making them impractical due to insufficient trade frequency and limited statistical significance.
Q: Why can't technical analysis (TA) guarantee consistent, high-profit trades? A: Technical analysis has inherent limitations, including:
False signals: Frequent misleading signals generate losses.
Thus, TA-based indicators claiming continual high profitability ignore these critical weaknesses.
Q: Can historical backtesting validate extraordinary profit claims? A: Historical backtesting can be misleading due to biases such as:
Survivorship bias: Ignoring failed assets inflates perceived success.
Critically evaluating backtest claims for these biases is essential.
Q: What do real-world statistics say about trading profitability? A: Studies consistently show the majority of traders lose money:
Fewer than 1% achieve sustainable profitability after fees.
If indicators genuinely offered guaranteed profits, these statistics would differ drastically.
Q: How do hidden costs affect actual trading profitability? A: Real trading incurs substantial hidden costs:
Commissions and spreads: Accumulating fees over many trades.
These costs significantly reduce net profits, particularly in high-frequency trading, potentially turning theoretically profitable strategies into actual losses.
Q: How does psychology impact trading success? A: Psychological factors significantly influence trader performance, including:
Overconfidence: Results in excessive risk-taking after initial wins.
False promises of easy profits amplify these psychological biases, negatively impacting trader outcomes.
Q: What are realistic expectations for sustainable trading? A: Sustainable trading involves:
Focusing on disciplined risk management and consistent execution.
Recognizing that long-term success stems from consistent gains, not occasional enormous wins.
Traders should avoid "get-rich-quick" mindsets, cultivating a disciplined, realistic approach instead.
So, traders and investors (even in investing anywhere, if you are promised spectacular returns... watch the f** out...). Trading indicators promising extraordinary, risk-free profits are fundamentally misleading. True success requires realistic expectations, disciplined risk management, and thorough understanding of market realities.
Educate yourself thoroughly, we're at investingLive.com have your back in your education path. Focus on consistent execution, and remember: Sustainable profits arise from patience, discipline, and experience, not magic indicators, special courses, fantastic signals services or some wizard guru, website or app that promise consistent, unrealistic profits. Now you know.
This article was written by Itai Levitan at investinglive.com.Hence then, the article about can trading indicators really deliver tens of percent profits each trade was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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