Forex strategies revealed are always the buzz words that are mentioned in any email I get, promising the easiest way to earn money in Forex. How many do I get? At least 5 a day. This is largely due to my first tentative steps into the World of Forex, and looking for a broker etc... You give them your details, and then pretty quickly you are left with a system that is shoddy at best, downright dangerous at worst. And on top of that, you are bombarded with the next great big thing in the World of Forex. Talk to 99% of people, and they can not resist the temptation to find out what it is and discover if this really is the hidden gem that has been missing from their lives for so long.... Let me give you a hint... It is not!!!
The good thing though, is that if you implement and test these strategies, after a while you will be able to make something up yourself that you can actually make work! Yes that is right, if you are willing to put the effort in, you can be successful. How successful? That is down to you and only to you. This can either be daunting, or empowering. Your failure is in your hands, but counter intuitively, more worringly, so is your success.
So how do you go from buying the latest fad, to creating a winning strategy that will actually work?
The process is easy, but very time consuming. If I could give you a guarantee that you would be earning a million pounds, how long would you dedicate to it? A month, a Year, a decade even?
Forex promises riches beyond your wildest dreams, and you can start turning that £10 into £1 million within 3 months (yes they actually expect you to believe that) and I am sure for that 1 person out of millions has been able to do that very thing – the laws of probability says that it can be done, but the laws of probability says that it probably won’t be you...
The most important thing to do is to start on the higher time frames – more people can lose more the lower the time frame they use. There is nothing glorious in losing your hard earned cash within a week... staying in the game is key! This is why Demo accounts are available.
I will say that demo accounts have their pros and cons. What you want to test out on your demo account is simply the strategy that you use. You are testing to see if the mechanics of the system are repeatable and are successful. You are not demoing to become a millionaire, on a live account things change dramatically. What you need to know is that if you were to lift the system from demo to live, the system would work. This is also why using the higher timeframes are key, as profits should be greater, which means that you will not be lulled into a false sense of security when you see only profit – live accounts come with a multitude of fees that are not shown on a demo account.
So you start on a demo account, what should you be looking for? I always start my demo account with an amount of money that I actually have to play with. If you have $1000, why demo an account with $50,000? Is that going to give you realistic expectations? It also trains you to accept that, certainly at the beginning, you are going to be trading with a view to earning $5 per trade as opposed to $1000. There is nothing as disheartening as demoing a huge account, and then start dreaming of what you could spend your money on, and then to start only making a couple of dollars on your real account – human nature says that you will start to take bigger risks as you try to fulfil your expectations. When you do this, say goodbye to Mr. Account!
So you now have your demo account at a level that you can afford, you now need to start thinking about how much you can risk on each trade. This would generally be between 1% - 3% per trade. Your goal is to make 2%-6% on each trade to cover your losses and still be in profit. So how do you go about this?
1 standard lot = $10 per pip
1 mini lot (0.1 of a standard lot) = $1 per pip
1 micro lot (0.01 of a standard lot) = $0.1 per pip
1 nano lot (0.001 of a standard lot) = $0.01 per pip
If you have a $1000 account, each trade should have a maximum risk of $30.
You position your stop loss, ie 150 pips, and then work out how much you can afford per pip – $30/ 150 =0.2.
So your lot size would be 2 micro lots... $0.2 per pip.
A handy formula would is:
#lots = Acct_ size$ x %risk_per_trade x 0.1 / stoploss_pips
So, with a $1000 account X 0.03 X 0.1 / 150 = 0.02 (which is the micro lot)
You could halve your stop loss to 75, and you would be trading with $0.4 per pip. Your risk is still $30 though. Hopefully you can see how this works. If you want to compound your earnings, you can feed the new account details into the above formula. Or you could set this for a week, and then change the levels.
Either way comes with pros and cons, but this is down to the individual as to how they would like to play it.
The change from demo to real should be within a year if the testing is going well (why would you go live with a system that does not work?). The biggest problem that you have on a live account – is YOU! You have to deal with the emotions of seeing your account showing minus numbers. It does happen, and you have to accept that it is something that will happen. Don’t deviate from your max stop loss, as if you were doing everything right in your demo, then this would just be a normal fluctuation. At the end of the day, you would only be losing a max of $30, and should be able to easily grab that back on the next trade..
Happy trading, and hope this helps a little way!
Showing posts with label forex. Show all posts
Showing posts with label forex. Show all posts
Friday, November 18, 2011
Monday, November 7, 2011
Forthcoming week in a nutshell
Well, here we are again - a new week with some new trading opportunities.
The first one that I can see straight off the bat is some major resistance on the USDCAD on the 4 hour chart and all the charts below that, 1h, 30 min, 15 m, 5m and 1 m. The only chart that does not have this resistance is the daily chart. In fact I have taken a sell position in this already - it is not part of this system, so it will not go to the results, but there is a really solid resistance line that it should be a gimme.... although we all know there is no such thing!
As for the other pairs, there is a potential trade on the EURUSD... although I have not taken it. It is not a brilliant set up - ie, it was overbought to long ago to believe that it even fits into the system - it is touch and go at best, so I am leaving this trade. If you wanted ot take a position, it would be a sell, but if it were taken, t'were best be taken quickly and brought to Breakeven point very quickly to lock in profits and limit the losses that could well come from it - it is quickly moving to oversold, so you can probably expect a bounce back.
The issue we have at the moment is the ongoing crisis in Greece that is having a major impact on most of the markets. Greece still does not truly know what it is doing, and from going from a place of security, the PM called a referendum and caused chos through out the Euro zone. No one truly knows how this will play out, so apart from the EURCHF, the waters are very choppy at the moment and hence why there has been no trades recenely - that is not to say that things will not pick up, but certainly I do not want to get into anything until I know which way the trend is blowing.
As always, I will be updating any trades as they become apparant, but expect nothing in the next couple of days (certainly on this strategy, as it will not be producing anything for the time being that I can see...)
Happy trading!
The first one that I can see straight off the bat is some major resistance on the USDCAD on the 4 hour chart and all the charts below that, 1h, 30 min, 15 m, 5m and 1 m. The only chart that does not have this resistance is the daily chart. In fact I have taken a sell position in this already - it is not part of this system, so it will not go to the results, but there is a really solid resistance line that it should be a gimme.... although we all know there is no such thing!
As for the other pairs, there is a potential trade on the EURUSD... although I have not taken it. It is not a brilliant set up - ie, it was overbought to long ago to believe that it even fits into the system - it is touch and go at best, so I am leaving this trade. If you wanted ot take a position, it would be a sell, but if it were taken, t'were best be taken quickly and brought to Breakeven point very quickly to lock in profits and limit the losses that could well come from it - it is quickly moving to oversold, so you can probably expect a bounce back.
The issue we have at the moment is the ongoing crisis in Greece that is having a major impact on most of the markets. Greece still does not truly know what it is doing, and from going from a place of security, the PM called a referendum and caused chos through out the Euro zone. No one truly knows how this will play out, so apart from the EURCHF, the waters are very choppy at the moment and hence why there has been no trades recenely - that is not to say that things will not pick up, but certainly I do not want to get into anything until I know which way the trend is blowing.
As always, I will be updating any trades as they become apparant, but expect nothing in the next couple of days (certainly on this strategy, as it will not be producing anything for the time being that I can see...)
Happy trading!
Friday, November 4, 2011
Review of the weeks trading
Well, in a nutshell, there has been none... or so it seems!
The time frame is such that I do not expect trades everyday, and having those expectations means that I am not wanting to trade every day. If the indicators line up - then I will take a trade, if not, I will not!
One of the key reasons people fail at Forex is going in on substandard signals, and trading too much. By trading less, you improve your chances of success. On top of that, you should also be able to adapt to market conditions, and use all the availale tools to help you succeed. What this means, is that this method relies on a long time frame, and all indicators lining up. In the current market conditions, we have had massive trends with no retracements, which means that this strategy has not produced any trades. However, at the same time, you could have taken a trade on one of these heavily trending markets and still been very profitable. I do trade away from this method, but what I want is a method that is low impact in terms of time, is very proiftable and is stress free. The signals are for the most part automated - there is only a discretionary piece of the jigsaw to decide on the trend - is it strong enough to sustain itself for another 3-4 days where we know that this system will be successful? If the answer is no, then a trade is not taken - depsite all the indicators effectively lining up.
Some of the best guitarists know that it is not what you fill the song with, but the spaces in between which make their tunes great - the same applies with trading. It is not the trades that you are profitable with that makes you a success, it is all the other trades that you did not take that makes you successful.
Trading does not start and end at the charts either. To be a full rounded, confident trader, you need to be reading around the subject (which I have been doing a lot of in the abscence of any trades) and understanding the market drivers. This can only help you make the correct decision in the future to make the trade or not.
Quite frankly, anyone can come onto this blog and look at the open trades, take them, and then come back and close them when I do. They (hopefully) should make a profit... but why settle for that? This is only one strategy I am running, there are plenty of other opportunities out there on shorter time frames - and longer time frames. Reading through this blog will actually help you understand my thinking which could help you to make better calls.
The major things I have been looking at this week include Price action - trying to get a deeper understanding of why things happen, what are the market drivers, and from a couple of simple changes in thought could have netter in man many more pips than is seen on here - and this is a scalable model on time frames too. Bringing the stop loss figures closer to the entry point (which means more profits).
The strategy I use here is very conservative - 3% at risk per trade with a stop loss of 150. This means that the lot sizes are very low for a small account - at the most 0.01, looking at gaining $0.10 per pip. Granted when you hit the 200 pip moves, it is some very stress free ways to make $20, but let's face it, you are hardly going to be able to live on this. But what happens when you have a s/l of 75 pips... suddenly you are onto 0.2 lots... but then again, what happens when you have a stop loss of 50, 25, 10 or even 5 pips... your lot size goes up dramatically, and suddenly those small proifts turn into some very big profits risking the same amount - 3% of your account. Using price action is one way to do this, and catch it right, and you can make lots more cash (which is why we are in this game). This is doable, but takes lots of practice, but that is the position I want to get too.
We shall see!
Here's to next weeks trading, and may it be successful!
The time frame is such that I do not expect trades everyday, and having those expectations means that I am not wanting to trade every day. If the indicators line up - then I will take a trade, if not, I will not!
One of the key reasons people fail at Forex is going in on substandard signals, and trading too much. By trading less, you improve your chances of success. On top of that, you should also be able to adapt to market conditions, and use all the availale tools to help you succeed. What this means, is that this method relies on a long time frame, and all indicators lining up. In the current market conditions, we have had massive trends with no retracements, which means that this strategy has not produced any trades. However, at the same time, you could have taken a trade on one of these heavily trending markets and still been very profitable. I do trade away from this method, but what I want is a method that is low impact in terms of time, is very proiftable and is stress free. The signals are for the most part automated - there is only a discretionary piece of the jigsaw to decide on the trend - is it strong enough to sustain itself for another 3-4 days where we know that this system will be successful? If the answer is no, then a trade is not taken - depsite all the indicators effectively lining up.
Some of the best guitarists know that it is not what you fill the song with, but the spaces in between which make their tunes great - the same applies with trading. It is not the trades that you are profitable with that makes you a success, it is all the other trades that you did not take that makes you successful.
Trading does not start and end at the charts either. To be a full rounded, confident trader, you need to be reading around the subject (which I have been doing a lot of in the abscence of any trades) and understanding the market drivers. This can only help you make the correct decision in the future to make the trade or not.
Quite frankly, anyone can come onto this blog and look at the open trades, take them, and then come back and close them when I do. They (hopefully) should make a profit... but why settle for that? This is only one strategy I am running, there are plenty of other opportunities out there on shorter time frames - and longer time frames. Reading through this blog will actually help you understand my thinking which could help you to make better calls.
The major things I have been looking at this week include Price action - trying to get a deeper understanding of why things happen, what are the market drivers, and from a couple of simple changes in thought could have netter in man many more pips than is seen on here - and this is a scalable model on time frames too. Bringing the stop loss figures closer to the entry point (which means more profits).
The strategy I use here is very conservative - 3% at risk per trade with a stop loss of 150. This means that the lot sizes are very low for a small account - at the most 0.01, looking at gaining $0.10 per pip. Granted when you hit the 200 pip moves, it is some very stress free ways to make $20, but let's face it, you are hardly going to be able to live on this. But what happens when you have a s/l of 75 pips... suddenly you are onto 0.2 lots... but then again, what happens when you have a stop loss of 50, 25, 10 or even 5 pips... your lot size goes up dramatically, and suddenly those small proifts turn into some very big profits risking the same amount - 3% of your account. Using price action is one way to do this, and catch it right, and you can make lots more cash (which is why we are in this game). This is doable, but takes lots of practice, but that is the position I want to get too.
We shall see!
Here's to next weeks trading, and may it be successful!
Tuesday, November 1, 2011
The markets this week
So far this week we have had one potential trade on the EURGBP, however, the trend direction was not sufficient enough to warrant getting into the trade, so I decided to leave it be. It could have easily pinged straight back up, so better trade trade on the better side of valour to save our cash! So far, I think we could have made about 60 pips on when I would have been able to enter the trade, but the potential downside outweighed the risk much more.
The rest of the currency's are either in consolidation mode or have been trending so much, there has not been a pull back good enough for us to enter with confidence.
I am still on the look out for some good trades, and there may be one setup on the horizon, but the trades I am looking for generally have a set up over about 8-12 hours, so depending on how they go, I should be alerted to them pretty early... It is only a problem when the set up lasts longer - as I am generally in bed when they do happen. Happily however, we do tend to long runners, so getting in a couple of hours late is not so much of a problem.
I have been doing lots of reading recently regarding getting better entries to fully take advantage of a move. This would work for this, but the only problem is that we woudl only get an extra 1 - 5 pips. It is certainly something I shall be implementing as those couple of pips will soon add up, but at the same time it is not core to the strategy. It would only represent beteen 1-2% of the total trade, so I won't get too hung up about it.
An additional note on the table for the running bank balance - I am having issues with putting a table in the gadgets on the right hand side (basic stuff I know, but still...) so this is taking a back seat at the moment. I am going to look at trying to have a feed of the trading account, but it will start from $800 again, and I will trade only on MT4. The issue I have, is that I trade on propriety software, mobile software and MT4, so the results I would be able to post would be sketchy at best, and not sure if they would be able to be consolidated into one... No isssue, as the trades as I see them are posted up each day as they happen in any case, and are clolsed when they happen (except maybe for a couple of hours delay due to not being able to update the blog), so at least there is verifiable trades that are occuring which is most important to me. How many times do you see trading services that propose great returns, but then you only get half the returns when you sign up!
I am not selling anything, so that should not be much of a problem, but verifiable proof is most important for anyone who wants to follow the trades I make.
Anyways, I have gone on for quite a bit, so I shall leave it there!
Happy Trading!
The rest of the currency's are either in consolidation mode or have been trending so much, there has not been a pull back good enough for us to enter with confidence.
I am still on the look out for some good trades, and there may be one setup on the horizon, but the trades I am looking for generally have a set up over about 8-12 hours, so depending on how they go, I should be alerted to them pretty early... It is only a problem when the set up lasts longer - as I am generally in bed when they do happen. Happily however, we do tend to long runners, so getting in a couple of hours late is not so much of a problem.
I have been doing lots of reading recently regarding getting better entries to fully take advantage of a move. This would work for this, but the only problem is that we woudl only get an extra 1 - 5 pips. It is certainly something I shall be implementing as those couple of pips will soon add up, but at the same time it is not core to the strategy. It would only represent beteen 1-2% of the total trade, so I won't get too hung up about it.
An additional note on the table for the running bank balance - I am having issues with putting a table in the gadgets on the right hand side (basic stuff I know, but still...) so this is taking a back seat at the moment. I am going to look at trying to have a feed of the trading account, but it will start from $800 again, and I will trade only on MT4. The issue I have, is that I trade on propriety software, mobile software and MT4, so the results I would be able to post would be sketchy at best, and not sure if they would be able to be consolidated into one... No isssue, as the trades as I see them are posted up each day as they happen in any case, and are clolsed when they happen (except maybe for a couple of hours delay due to not being able to update the blog), so at least there is verifiable trades that are occuring which is most important to me. How many times do you see trading services that propose great returns, but then you only get half the returns when you sign up!
I am not selling anything, so that should not be much of a problem, but verifiable proof is most important for anyone who wants to follow the trades I make.
Anyways, I have gone on for quite a bit, so I shall leave it there!
Happy Trading!
Friday, September 23, 2011
Trading rules
So after yesterdays closing result of +220 pips, we now need to look to the future.
Looking at the charts, most of them seem to be trending quite strongly, which is great for getting on the band wagon, however this does not suit with the trading rules of getting into a trade - all the analysis is off at the moment (well except for one indicator, but I need all of my indicators to line up before I enter a trade - which makes this strategy so powerful). This means that we have 2 options:
1) Look at shortening the timeframe of the charts - I am trading on a 4 hourly time frame, which means that I have lots of opportunity for the trade to go in the direction I want, and also for it to get the maximum profit while at the same time minimising my risk- this marying off the best profit conditions, with either the ndicators pointing to get out of the trade due to sudden movements - this will actually mean we get out before a stop loss is hit, or if it is a slow moving turn in the charts, we simply go to the stop loss and get out automatically.
2) Wait until the markets change.
There is a great book called market wizards, which goes into detail about incredibly successful traders and their ability to ride the highs and lows - it is a really intriguing read (you can get it from Amazon - see the link on the right. The reoccurring thoughts in the book is that trading has to be emotionless, and the more greedy you are, the more you will lose. For that reason, I am not overly bothered about jumping into another trade, especially one where the trade is on a shorter timeframe where I am not prepared to sit in front of the charts waiting for something good - or bad to happen.
From this, the option 2 is the prefered solution. We will wait until a good trade comes our way. This system will make money regardless if we have to wait 100 more days for them to change (which lets face it, it won't happen). This was shown with my earlier analysis on the USDCAD pair, where, if I had not been so focused on the EURUSD pair we actually traded, We could have been up about 500 pips by today (although I think we would have been stopped out at during one of the previous days...). Out of two trades - one actual, and one promised, but not executed, already the system is looking good. I still will not be drawn into believeing that it is foolproof just yet, but the signs are looking promising at the moment.
Anyways, here's to a good weekend, and let's hope that next week we can get even more winners as the markets hit their peaks and bottoms and start to look to change (of course, in this climate, who can say if that will happen?....... ok My strategy can ;-) )
Looking at the charts, most of them seem to be trending quite strongly, which is great for getting on the band wagon, however this does not suit with the trading rules of getting into a trade - all the analysis is off at the moment (well except for one indicator, but I need all of my indicators to line up before I enter a trade - which makes this strategy so powerful). This means that we have 2 options:
1) Look at shortening the timeframe of the charts - I am trading on a 4 hourly time frame, which means that I have lots of opportunity for the trade to go in the direction I want, and also for it to get the maximum profit while at the same time minimising my risk- this marying off the best profit conditions, with either the ndicators pointing to get out of the trade due to sudden movements - this will actually mean we get out before a stop loss is hit, or if it is a slow moving turn in the charts, we simply go to the stop loss and get out automatically.
2) Wait until the markets change.
There is a great book called market wizards, which goes into detail about incredibly successful traders and their ability to ride the highs and lows - it is a really intriguing read (you can get it from Amazon - see the link on the right. The reoccurring thoughts in the book is that trading has to be emotionless, and the more greedy you are, the more you will lose. For that reason, I am not overly bothered about jumping into another trade, especially one where the trade is on a shorter timeframe where I am not prepared to sit in front of the charts waiting for something good - or bad to happen.
From this, the option 2 is the prefered solution. We will wait until a good trade comes our way. This system will make money regardless if we have to wait 100 more days for them to change (which lets face it, it won't happen). This was shown with my earlier analysis on the USDCAD pair, where, if I had not been so focused on the EURUSD pair we actually traded, We could have been up about 500 pips by today (although I think we would have been stopped out at during one of the previous days...). Out of two trades - one actual, and one promised, but not executed, already the system is looking good. I still will not be drawn into believeing that it is foolproof just yet, but the signs are looking promising at the moment.
Anyways, here's to a good weekend, and let's hope that next week we can get even more winners as the markets hit their peaks and bottoms and start to look to change (of course, in this climate, who can say if that will happen?....... ok My strategy can ;-) )
Thursday, September 22, 2011
The profits are coming in and guaranteed
So the EURUSD has sunk again, and we are firmly in profit on our trade, 100+ pips. All this and not risking 3% of our account. With an account of $500 (which i have) I had a stop loss at 150 pips, so this would equate to $15 in real money (as i am only using micro lots - 1 pip = $0.10). It did get a little bit hairy yesterday, as there was a massive jump, but the real point is having firm rules to get in and out of trades is a must.
As of writing, the EURUSD is sitting at 1.35272, and is on a downward trend (although I expect it to bounce back up and then continue it's downward trend further). Due to having a guranteed profit, I want to let my profits run, and especially because the recent trend, and the breakthrough of the resistance says it is going to go lower. This is where having a trailing stop comes in very handy. The trick is choosing by how much you let it trail to allow enough room for you to get more profit, without losing all your gains. I have my own rules, and expect there to be more to be had out of this trade.
I could have been in another trade on the USDCAD, but missed the boat through one reason or another, so we missed out on that. Not the worst thing to happen as there will be more trades. The first and most important thing is to be making money, and this has been achieved in this trade.
Heres to some more profit in the next couple of days!
Happy trading!
As of writing, the EURUSD is sitting at 1.35272, and is on a downward trend (although I expect it to bounce back up and then continue it's downward trend further). Due to having a guranteed profit, I want to let my profits run, and especially because the recent trend, and the breakthrough of the resistance says it is going to go lower. This is where having a trailing stop comes in very handy. The trick is choosing by how much you let it trail to allow enough room for you to get more profit, without losing all your gains. I have my own rules, and expect there to be more to be had out of this trade.
I could have been in another trade on the USDCAD, but missed the boat through one reason or another, so we missed out on that. Not the worst thing to happen as there will be more trades. The first and most important thing is to be making money, and this has been achieved in this trade.
Heres to some more profit in the next couple of days!
Happy trading!
Friday, September 16, 2011
EURUSD to watch
My next currecny to watch is the EURUSD. I hav eseen some movement which may be profitable. Obviously over the last few days, the EURUSD has been falling quite substantially and I would not be suprised if it had just about bottomed out, however, my charts are telling me that it could continue a decline.
If I had started this test a few months ago, I could well have been quids in, and increased my account by about 100% by holding this one currency alone. As it stands though, I might be coming into this party once all the good alcohol has been drunk, and I am left with the non alcoholic drinks... refreshing but not quite satisfactory!!!
Any ways, whether I make a lot of profit or a small profit, the main thing is making a profit. Getting plus numbers is the only name of the game here.
In actual fact, I woudl not be surprised with some interesting movements in the next few weeks, and certainly trades will offer themselves over time. Patience is definately a virute, although the excitemtn and impatience to just place a trade is sometimes a tad overwhelming, having a great trading plan, with firm rules in place will stop silly trades being entered into.
Happy trading as always!
If I had started this test a few months ago, I could well have been quids in, and increased my account by about 100% by holding this one currency alone. As it stands though, I might be coming into this party once all the good alcohol has been drunk, and I am left with the non alcoholic drinks... refreshing but not quite satisfactory!!!
Any ways, whether I make a lot of profit or a small profit, the main thing is making a profit. Getting plus numbers is the only name of the game here.
In actual fact, I woudl not be surprised with some interesting movements in the next few weeks, and certainly trades will offer themselves over time. Patience is definately a virute, although the excitemtn and impatience to just place a trade is sometimes a tad overwhelming, having a great trading plan, with firm rules in place will stop silly trades being entered into.
Happy trading as always!
Wednesday, September 14, 2011
The first currency pair to look at
Well, I know that I have just posted the first blog, but time waits for no man.
The first currency trade is almost set up. This is on the USDCAD currecny pair. I am only waiting for confirmation, and then we could be in our first trade. I am also looking at trying to get some easy spot currency widgets on the blog to make it nice and easy for everyone to see what the current prices are- this would give everyone visiting an easy reference guide to when I am in profit.... and I suppose when I am not!
The great thing about this, is that all my results are there for everyone to see, and hopefully in the future, if I were to sell the strategy, I will have lots of backed up 'live' results for everyone to see.
Happy days!
The first currency trade is almost set up. This is on the USDCAD currecny pair. I am only waiting for confirmation, and then we could be in our first trade. I am also looking at trying to get some easy spot currency widgets on the blog to make it nice and easy for everyone to see what the current prices are- this would give everyone visiting an easy reference guide to when I am in profit.... and I suppose when I am not!
The great thing about this, is that all my results are there for everyone to see, and hopefully in the future, if I were to sell the strategy, I will have lots of backed up 'live' results for everyone to see.
Happy days!
What is it
100percentforex is a new blog that I am creating to show how having a good strategy in Forex will make you money.
I will be starting off on a demo account to show the basics. Moving to a real money account is slightly different, as there are a lot more fees to pay which will muddy the waters in terms of gross profit for the strategy.
A few ground rules:
1) I will not reveal my signals, so please do not ask. By all means follow the trades, I will post what trades I am in, however, it may be that you get in too late so any losses you experience, I will not take accountability for! I want this to show you that making money on forex is not pie in the sky, but tangible.
2) I base my trades on technicals, although fundamentals in the market will of course play their part - for example, the uncertainty of Greece's debt will affect the Euro, however, the fundametals play into our hands, as the technicals I use will catch these movements as well
3) I use stop losses to manage my risk. Forex is all about stayin in the game. Profits are nice, avoiding big losses is key. I am confident that my strategy will provide lots of winners and only a few losers, but this is a forward test. I can look back and see that all the trades would end up as a winner... of course they would, or I would not be forward testing it! Losers should be expected, and they will happen. This does not mean that it is a losing system.
4) I will be starting with a 'deposit' that is in everyone's reach. I have thought long and hard about this, and I will be using $250 as my starting point. The reason being is that anyone who is serious about making money, needs an investment that matches the ambition. However, not everyone can deposit $1 million to make money with. What this emans fundamentally, is that the profit and subsequent losses will be on the small side in terms of actual money. What we shall be focusing on however is the percentage return (again this is gross starting out, as it is a demo account and will not take into account the taxes and so forth that a real money account will do.
5) After a successful period of testing, I will go live with a deposit in the region of c. $800 (£500 in GBP - although that depends on the markets!)
6) I shall stick as much as possible to the majors. The reason for this, is that broker spreads are less on the majors, although if there is a good trade set up, then I would rather take the spread than the loss of not being in the trade!
7) I shall not be trading every day. I have a fixed set of rules to get into a trade, and these shall not be broken. These are part of my trading plan, and if I were to break these - even to keep the interest of this blog up and going, I will find that I have a losing system. There will always be trades to be had as long as I have money to put into them - missing a poor trade is better than losing!
8) My time frame for a trade will be quite long. I will be using the H4 (every bar on the chart is 4 hours) so I will be in trades for approx. 5 - 20 days. I have tried testing this system in other time frames and it does not seem to work particularly well. What this does mean, is that I will go far down into a drawdown (per trade not against the overall account) but at the same time, my profits should be that much greater as well.
9) Taking profits shall be from the chart. I have firm rules to get out of a trade-either it goes to full loss because it was never in profit or the rules I have set out mean that it has a small loss or a small gain - or it has a gain somewhere in between a lot, or a little. I will also be making use of trailing stops so that if a trade were to go against me, I am protected (although I would prefer not to use them to let the profits run. Saying that the Trailing stop will be quite big).
That is it really. I will give some commentary of the markets as I see them, and will be back from time to time. This blog will proabbly not be updated every day, but I will give information on the trades - when i get into them, What lot size I am using, the max risk to the account what currency I am long/short on and all the other data you will need to either trade them or simply to verify the trades I am making.
What does the future hold for 100percentforex?
Well if this is successful, I would like to aim to sell my system - Afterall, why not? The first 10 followers of this blog will get the strategy for free, and if i release any products, then they will get 50% off. The strategy itself is pretty simple and straightforward, but as I have found out, the simple strategies are often the best when it comes to making unclouded decisions. Just because it is simple does not mean it will not make money!
I will be starting off on a demo account to show the basics. Moving to a real money account is slightly different, as there are a lot more fees to pay which will muddy the waters in terms of gross profit for the strategy.
A few ground rules:
1) I will not reveal my signals, so please do not ask. By all means follow the trades, I will post what trades I am in, however, it may be that you get in too late so any losses you experience, I will not take accountability for! I want this to show you that making money on forex is not pie in the sky, but tangible.
2) I base my trades on technicals, although fundamentals in the market will of course play their part - for example, the uncertainty of Greece's debt will affect the Euro, however, the fundametals play into our hands, as the technicals I use will catch these movements as well
3) I use stop losses to manage my risk. Forex is all about stayin in the game. Profits are nice, avoiding big losses is key. I am confident that my strategy will provide lots of winners and only a few losers, but this is a forward test. I can look back and see that all the trades would end up as a winner... of course they would, or I would not be forward testing it! Losers should be expected, and they will happen. This does not mean that it is a losing system.
4) I will be starting with a 'deposit' that is in everyone's reach. I have thought long and hard about this, and I will be using $250 as my starting point. The reason being is that anyone who is serious about making money, needs an investment that matches the ambition. However, not everyone can deposit $1 million to make money with. What this emans fundamentally, is that the profit and subsequent losses will be on the small side in terms of actual money. What we shall be focusing on however is the percentage return (again this is gross starting out, as it is a demo account and will not take into account the taxes and so forth that a real money account will do.
5) After a successful period of testing, I will go live with a deposit in the region of c. $800 (£500 in GBP - although that depends on the markets!)
6) I shall stick as much as possible to the majors. The reason for this, is that broker spreads are less on the majors, although if there is a good trade set up, then I would rather take the spread than the loss of not being in the trade!
7) I shall not be trading every day. I have a fixed set of rules to get into a trade, and these shall not be broken. These are part of my trading plan, and if I were to break these - even to keep the interest of this blog up and going, I will find that I have a losing system. There will always be trades to be had as long as I have money to put into them - missing a poor trade is better than losing!
8) My time frame for a trade will be quite long. I will be using the H4 (every bar on the chart is 4 hours) so I will be in trades for approx. 5 - 20 days. I have tried testing this system in other time frames and it does not seem to work particularly well. What this does mean, is that I will go far down into a drawdown (per trade not against the overall account) but at the same time, my profits should be that much greater as well.
9) Taking profits shall be from the chart. I have firm rules to get out of a trade-either it goes to full loss because it was never in profit or the rules I have set out mean that it has a small loss or a small gain - or it has a gain somewhere in between a lot, or a little. I will also be making use of trailing stops so that if a trade were to go against me, I am protected (although I would prefer not to use them to let the profits run. Saying that the Trailing stop will be quite big).
That is it really. I will give some commentary of the markets as I see them, and will be back from time to time. This blog will proabbly not be updated every day, but I will give information on the trades - when i get into them, What lot size I am using, the max risk to the account what currency I am long/short on and all the other data you will need to either trade them or simply to verify the trades I am making.
What does the future hold for 100percentforex?
Well if this is successful, I would like to aim to sell my system - Afterall, why not? The first 10 followers of this blog will get the strategy for free, and if i release any products, then they will get 50% off. The strategy itself is pretty simple and straightforward, but as I have found out, the simple strategies are often the best when it comes to making unclouded decisions. Just because it is simple does not mean it will not make money!
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