Showing posts with label money management. Show all posts
Showing posts with label money management. Show all posts
Wednesday, July 18, 2012
EURUSD trade
A new trade is to be taken.
This is on the EURUSD and will be a sell order.
The trade was taken at 1.22739 with a lot size of 0.02.
SL is 1.23167 (43 pips)
TP is 1.21953 (78 pips)
Let's see how this one plays out!
0.02 is the usual lot size going forward according to my money management rules, it is not a win or lose on then double the lot size - martingale systems are destined to fail every single time.
I have some advanced money management software that let's me win 10 and lose 10, and I will still make money - or lose 10 and win 10, and still make money!!!
Monday, December 19, 2011
Upcoming trades
There are a couple of potential trades on the horizon, there was nothing last week except one I missed when i was on holiday which was on the EURCHF.
When we could have got in, there would have been roughly about 120 pips in profit.
Again though, I decided not to trade as the set up was not ideal, and as mentioned over and over again - I would much rather be 1 or 2 pips in profit than have a bif drawdown and look back saying that it was not a perfect setup! This will be waht distinguishes a trader from a gambler...
I know what bracket I would rather be in!
Happy trading!
When we could have got in, there would have been roughly about 120 pips in profit.
Again though, I decided not to trade as the set up was not ideal, and as mentioned over and over again - I would much rather be 1 or 2 pips in profit than have a bif drawdown and look back saying that it was not a perfect setup! This will be waht distinguishes a trader from a gambler...
I know what bracket I would rather be in!
Happy trading!
Wednesday, November 30, 2011
Another trade taken
This one was on the USDCHF. I actually took the trade yesterday evening, but was not close to a computer to update the blog to let everyone know.
I bought at 0.92133 at 17:15 and it was closed out just a few minutes ago at 0.92200 (again I raised my stop to break even, but managed to take a couple of pips in the process.
I have started using a spreadsheet called DDSM which is an automatic spreadsheet that gives you lot sizes against risk. It looks to be very handy, as over the course of 20 trades, if you win 10 trades at 100 pips each, and then lose 100 10 trades at 100 pips each - you will come out with a hefty profit. Likewise if you lose 10 then win 10 you still come out ahead. A very useful tool indeed - it ensures that you have every chances of earning money over the long term.
Anyway, my lot size on this occasion using this spreadsheet and using past performance would have been 0.13, and the account balance would have been $1387.93! Quite a bit more than my other bank balance without using the spreadsheet... This small pip gain would have netted me $9.45,, which for one trade at a very low balance is great!
I think what I will do, is set up another account using the DDSMM money management spreadsheet to track how this spreadheet works - as anything that works well can add to the arsenal!
Happy trading!
I bought at 0.92133 at 17:15 and it was closed out just a few minutes ago at 0.92200 (again I raised my stop to break even, but managed to take a couple of pips in the process.
I have started using a spreadsheet called DDSM which is an automatic spreadsheet that gives you lot sizes against risk. It looks to be very handy, as over the course of 20 trades, if you win 10 trades at 100 pips each, and then lose 100 10 trades at 100 pips each - you will come out with a hefty profit. Likewise if you lose 10 then win 10 you still come out ahead. A very useful tool indeed - it ensures that you have every chances of earning money over the long term.
Anyway, my lot size on this occasion using this spreadsheet and using past performance would have been 0.13, and the account balance would have been $1387.93! Quite a bit more than my other bank balance without using the spreadsheet... This small pip gain would have netted me $9.45,, which for one trade at a very low balance is great!
I think what I will do, is set up another account using the DDSMM money management spreadsheet to track how this spreadheet works - as anything that works well can add to the arsenal!
Happy trading!
Wednesday, November 23, 2011
Stopped out
Well, The trade I took this morning was stopped out with another profit!
This time I was stopped out at a profit of 46.9, as I moved by SL to 1.34000 over the course of the trade.
I should point out that I considered halving my position and putting the SL at 50%, so I would have had some profit, adn the ability to let the remaing half run.
I chose instead jsut to move the SL up when i was in profit by about 65 pips, as I am more than happy to take the full profit early as it means less of an effort in tracking the trade over a course of a few days.
What I am trying ot do at the moment is to reduce the maximum stop loss but keep the risk the same, so when I am in profit, I earn a lot more.
I have detailed this bfore, but by halving the maximum stop loss (from say, 150 to 75) I can double my position sizing (from 0.1 to 0.2 for example). This means that I do not have as much wiggle room in terms of price movement into drawdown, but at the same time I DOUBLE my profits.
So far I have not documented original stop loss levels and position sizes, but maybe I should?
Anyway, another profit!!
Happy trading!
This time I was stopped out at a profit of 46.9, as I moved by SL to 1.34000 over the course of the trade.
I should point out that I considered halving my position and putting the SL at 50%, so I would have had some profit, adn the ability to let the remaing half run.
I chose instead jsut to move the SL up when i was in profit by about 65 pips, as I am more than happy to take the full profit early as it means less of an effort in tracking the trade over a course of a few days.
What I am trying ot do at the moment is to reduce the maximum stop loss but keep the risk the same, so when I am in profit, I earn a lot more.
I have detailed this bfore, but by halving the maximum stop loss (from say, 150 to 75) I can double my position sizing (from 0.1 to 0.2 for example). This means that I do not have as much wiggle room in terms of price movement into drawdown, but at the same time I DOUBLE my profits.
So far I have not documented original stop loss levels and position sizes, but maybe I should?
Anyway, another profit!!
Happy trading!
Friday, November 18, 2011
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!
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!
Tuesday, November 15, 2011
2 trades opened last night
So late last night, there were two trades that opened - one on the GBUSD and one on the USDCHF.
The GBPUSD was a sell order at 1.59003
The USDCHF was a buy order at 0.90856
So far they are both in profit, and what's more important is that I have moved the stop loss to break even. This is something that I will be doing more and more of - moving to breakeven as soon as possible. What this will ensure, is that I will very rarely have a losing trade.
Just a bit of commentary on the trades as they stand -
GPBUSD I am up about 50 pips os far, and it is reaching new lows over the past. It has hit some major support levels, so I will monitor the trade to see whether I will get out or not - if it were to break the resistance, then it could signal a very nice profit! I have locked in 25 pips profit on this trade.
USDCHF - Nearing it's high from September, and I am already in proift by about 100 pips. Again, there are some major resistance levels which will need to be monitored. I have locked in 50 pips aleready on this trade, so regardless of what happens, I am guaranteed a proift which is great!
If for nothing else, this does make the system look better - the more winning trades, the better (but I guess that kind of goes without saying!
What is really heartening about this though, is that in the very very choppy market we have experienced lately, we have not been in it. This is such a major factor - that if you do not knwo how to proift in a market - DON'T GET IN! There are always going to be trades in the market place, so why take rubbish trades??
Anyways- happy trading, and I will keep you posted on how the trades pan out!
The GBPUSD was a sell order at 1.59003
The USDCHF was a buy order at 0.90856
So far they are both in profit, and what's more important is that I have moved the stop loss to break even. This is something that I will be doing more and more of - moving to breakeven as soon as possible. What this will ensure, is that I will very rarely have a losing trade.
Just a bit of commentary on the trades as they stand -
GPBUSD I am up about 50 pips os far, and it is reaching new lows over the past. It has hit some major support levels, so I will monitor the trade to see whether I will get out or not - if it were to break the resistance, then it could signal a very nice profit! I have locked in 25 pips profit on this trade.
USDCHF - Nearing it's high from September, and I am already in proift by about 100 pips. Again, there are some major resistance levels which will need to be monitored. I have locked in 50 pips aleready on this trade, so regardless of what happens, I am guaranteed a proift which is great!
If for nothing else, this does make the system look better - the more winning trades, the better (but I guess that kind of goes without saying!
What is really heartening about this though, is that in the very very choppy market we have experienced lately, we have not been in it. This is such a major factor - that if you do not knwo how to proift in a market - DON'T GET IN! There are always going to be trades in the market place, so why take rubbish trades??
Anyways- happy trading, and I will keep you posted on how the trades pan out!
Monday, November 14, 2011
Possible trades and to take them or not?
So last week was another one which went by without a trade. The important thing here, is that there were some trades which I could have taken. As it turned out, I decided not to take them.
Most people enter into the markets thinking 'This is a great trade set up' and can only see the positive side to the trade with little thought about the potential downside. It is all very well setting stop losses and and position sizing accordingly... that is money management 101, but at the same time, we want to increase the probability that a trade will be successful.
Stop losses and position sizes only control the maximum we are willing to lose - and will not increase or decrease the chances are of winning the trade.
I go into trades thinking 'This is a terrible trade set up' and I try to convince myself that it is a good one.
Stop losses give you a maximum loss per trade - which is great, but minimising the amount of times you lose can be an even more powerful weapon in your arsenal.
If you go into every trade with your guard up - you can look at trades subjectively. I know we all want to have profitable trades, and we want to be in the market to make those profits, but certainly not at the expense of our account. Being subjective and having the mind set that you DO NOT want to trade is key to choosing the correct trades, and the high probability trades. You need to be convinced before you take the trades. The great thing is, is that over time you will be in many trades. Over the course of 5 - 10 years, you will have lots and lots of trades. And the key thing is that if you preserve your capital, you will make more and not lose it. It is far better to be in the game for 20 years with your core capital in tact, than out of the game seeing it sore 100, 200, 1000% percent, only to see it dissapear as quickly as you over trade on 'B' or 'C' trades.
The markets will always be there, but will you? Longevity equals success. That is the bottom line!
Onto the forecast of this weeks trading, the EURO should be settling down a bit after a bailout was agreed, although Italy's prime minister has quit (more uncertainty) and France are possibly next up to default. We are certainly not out of the woods yet, but cross fingers we come out of the other side in tact.
What this means for us, is that we should be getting better trades, and they shoudl be bankers in the next week or so. Here's hoping!
Happy trading!
Most people enter into the markets thinking 'This is a great trade set up' and can only see the positive side to the trade with little thought about the potential downside. It is all very well setting stop losses and and position sizing accordingly... that is money management 101, but at the same time, we want to increase the probability that a trade will be successful.
Stop losses and position sizes only control the maximum we are willing to lose - and will not increase or decrease the chances are of winning the trade.
I go into trades thinking 'This is a terrible trade set up' and I try to convince myself that it is a good one.
Stop losses give you a maximum loss per trade - which is great, but minimising the amount of times you lose can be an even more powerful weapon in your arsenal.
If you go into every trade with your guard up - you can look at trades subjectively. I know we all want to have profitable trades, and we want to be in the market to make those profits, but certainly not at the expense of our account. Being subjective and having the mind set that you DO NOT want to trade is key to choosing the correct trades, and the high probability trades. You need to be convinced before you take the trades. The great thing is, is that over time you will be in many trades. Over the course of 5 - 10 years, you will have lots and lots of trades. And the key thing is that if you preserve your capital, you will make more and not lose it. It is far better to be in the game for 20 years with your core capital in tact, than out of the game seeing it sore 100, 200, 1000% percent, only to see it dissapear as quickly as you over trade on 'B' or 'C' trades.
The markets will always be there, but will you? Longevity equals success. That is the bottom line!
Onto the forecast of this weeks trading, the EURO should be settling down a bit after a bailout was agreed, although Italy's prime minister has quit (more uncertainty) and France are possibly next up to default. We are certainly not out of the woods yet, but cross fingers we come out of the other side in tact.
What this means for us, is that we should be getting better trades, and they shoudl be bankers in the next week or so. Here's hoping!
Happy trading!
Friday, October 28, 2011
review of the weeks trading
Well, what a week it was. We had one trade that netted us 90+ pips. That is a great result. However, my prediction came true, and the USDCAD pair dropped like a stone, and we could have picked up additional pips - the trade set up was actually perfect - but I missed the boat by a couple of hours, and by that time, the opportunity passed. This would have turned into a potential high risk low reward trade. It is easy to look back and say that it would have been a good decision to jump in the trade, but at the time, you do not have the liberty to see what happens in the future!
What was not so great is that we had a trade setup on about 4 different charts which would have netted over 1000 pips all combined (mainly off the back of the Euro). I missed these as I was simply not in time to take the trades and be 'guaranteed' the profitability I was after. I think I could have jumped on the bandwagon and tried to pick up 10 - 50 pips, but the risk was simply not worth it. It does seem a bit silly to try to force these trades. We could happily do 4-8 a month, and with that we should see some nice returns. The trades we are taking are all high percentage trades with high profits attached to them.
All in all, I am pleased with this so far, and hopefully any one who wants to jump on the bandwagon will be pleased as well.
I have been looking at shorter time frames to ramp up the proiftability of my trading, but at the moment, I have not got the time to dedicate to it, although it would be great if I could have the time as I would certainly give it a go. At the same time, the results here would still be strictly for this strategy.
The success and failure of a system is judged on results - so far we are winning more than we are losing, and we are gaining more pips than losing. This is certainly a great start, but I am trying to stay rooted to the ground here, for the very fact that a trading strategy is judged over the long term - hundreds and thousands of trades- so this is still very very much in its infancy.
The trends are very strong in the markets at the moment, so away from this strategy, you may want to jump on the bandwagon and seek a few pips on the ride.
As an aside, if you can use nano lots on your account (1 pip = $0.01), then starting with a $800 account (about £500) you would be now sitting on 881.35 - an increase of just over 10%. This is taking into account the losing trades as well!!!
In actual fact, I am going to add another widget which will show an $800 account (i prefer to work in USD as the pips are easier to calculate).
Anyways, here's to a relaxing weekend, and some more....
Happy trading! :)
What was not so great is that we had a trade setup on about 4 different charts which would have netted over 1000 pips all combined (mainly off the back of the Euro). I missed these as I was simply not in time to take the trades and be 'guaranteed' the profitability I was after. I think I could have jumped on the bandwagon and tried to pick up 10 - 50 pips, but the risk was simply not worth it. It does seem a bit silly to try to force these trades. We could happily do 4-8 a month, and with that we should see some nice returns. The trades we are taking are all high percentage trades with high profits attached to them.
All in all, I am pleased with this so far, and hopefully any one who wants to jump on the bandwagon will be pleased as well.
I have been looking at shorter time frames to ramp up the proiftability of my trading, but at the moment, I have not got the time to dedicate to it, although it would be great if I could have the time as I would certainly give it a go. At the same time, the results here would still be strictly for this strategy.
The success and failure of a system is judged on results - so far we are winning more than we are losing, and we are gaining more pips than losing. This is certainly a great start, but I am trying to stay rooted to the ground here, for the very fact that a trading strategy is judged over the long term - hundreds and thousands of trades- so this is still very very much in its infancy.
The trends are very strong in the markets at the moment, so away from this strategy, you may want to jump on the bandwagon and seek a few pips on the ride.
As an aside, if you can use nano lots on your account (1 pip = $0.01), then starting with a $800 account (about £500) you would be now sitting on 881.35 - an increase of just over 10%. This is taking into account the losing trades as well!!!
In actual fact, I am going to add another widget which will show an $800 account (i prefer to work in USD as the pips are easier to calculate).
Anyways, here's to a relaxing weekend, and some more....
Happy trading! :)
Friday, October 14, 2011
Another week down
So, another week has passed, and so far we have had 2 trades which have been taken and profited, and zero losers.
while on the surface of things, it looks a little bleak - only having two trades, what is important to remember is that overtrading is the worst thing that we can do. Forcing trades=losing trades.
I am actually glad that we have had no trades this week - I know it sounds strange, but the way the markets are moving we are best being out of them at this time - we are looking for high probability trades that have next to no risk. At the moment the system is working. This is the nature of this particular strategy - one thing though, With my broker I can trade gold and silver - these have been added to my watch list, so do not be surprised if I start talking about these - they will work exactly like any currency pair.
I have also set up a bit more of an agressive system that trys to get in a little earlier which will ramp up the profits. Backtesting it, it looks promising, but forward testing is the real litmus test. This is found on
101percentforex.blogspot.com
This is only a demo, and I am not really paying heed to money management - I am only taking small positions, and seeing what the win ratio is - not the risk reward at the moment.
Happy trading, and will see you next week!
while on the surface of things, it looks a little bleak - only having two trades, what is important to remember is that overtrading is the worst thing that we can do. Forcing trades=losing trades.
I am actually glad that we have had no trades this week - I know it sounds strange, but the way the markets are moving we are best being out of them at this time - we are looking for high probability trades that have next to no risk. At the moment the system is working. This is the nature of this particular strategy - one thing though, With my broker I can trade gold and silver - these have been added to my watch list, so do not be surprised if I start talking about these - they will work exactly like any currency pair.
I have also set up a bit more of an agressive system that trys to get in a little earlier which will ramp up the profits. Backtesting it, it looks promising, but forward testing is the real litmus test. This is found on
101percentforex.blogspot.com
This is only a demo, and I am not really paying heed to money management - I am only taking small positions, and seeing what the win ratio is - not the risk reward at the moment.
Happy trading, and will see you next week!
Wednesday, October 5, 2011
Another money maker
Well, the trade closed after the trailing stop was hit with a profit of 231 pips. We got out of the trade at 1.0524.
It is quite difficult getting all the info, as I do not have access to my charts, and what I can access is really quite limited.
Anyway, we have increased our bank by 8.8% in total. Our last trade hit 4.6% which for one trade at our conservative trading, is great - 3% with a stop loss of 150!
If you wanted to be a bit more aggresive, you could double your lot size to 2 micro lots, and you woudl have increased your bank by 16%! This however does come with a downside, as you would have to increase your risk (to 6% per trade) or halve your stop loss... neither was attractive on this trade, as I believed that there was a good chance that this could have gone against us quite a lot. However as it is, I am very happy with the results so far. I hope the above shows just how versatile you can be with your risk, but there are pros and cons to both. I think that in the first trade, there was a big move downwards in one period, and it dropped by about 100 pips, so it could have left you out of a trade that went on to make a nice profit... of course, it does mean that your risk reward is increased, but if you get more losing trades... It all adds up in the end.
Happy trading everyone, and I will start back up next week. The rest is a holiday (albeit a working one at the moment!)
It is quite difficult getting all the info, as I do not have access to my charts, and what I can access is really quite limited.
Anyway, we have increased our bank by 8.8% in total. Our last trade hit 4.6% which for one trade at our conservative trading, is great - 3% with a stop loss of 150!
If you wanted to be a bit more aggresive, you could double your lot size to 2 micro lots, and you woudl have increased your bank by 16%! This however does come with a downside, as you would have to increase your risk (to 6% per trade) or halve your stop loss... neither was attractive on this trade, as I believed that there was a good chance that this could have gone against us quite a lot. However as it is, I am very happy with the results so far. I hope the above shows just how versatile you can be with your risk, but there are pros and cons to both. I think that in the first trade, there was a big move downwards in one period, and it dropped by about 100 pips, so it could have left you out of a trade that went on to make a nice profit... of course, it does mean that your risk reward is increased, but if you get more losing trades... It all adds up in the end.
Happy trading everyone, and I will start back up next week. The rest is a holiday (albeit a working one at the moment!)
Friday, September 30, 2011
Some more guaranteed profits
Well, I have a trailing stop on the USDCAD, and as I am writing, it is up 167 pips, so that is a guaranteed 117 pip profit with no risk of losing it.
The strategy seems to be catching some really good moves that will pay us really quite well.
I will keep up the good work, and I am still looking out for more moves in the other currencies. There is a good chance that this will roll over the weekend, but that is not too much of a problem. 2 weeks, and 2 good profits (although we are still running with this one as it stands!)
We are still only risking 3% of the total account (seriously a drawdow of 3% max on any one position is fantastic)and yet we are still making some really good money. It will work out that we will have been able to increase the account size by nearly 10% by the end of 4 weeks trading if this keeps going.
Do not believe the hype that you can double your account in a month. This will mean that you are risking far to much, and you will be saying bye bye to your account very quickly.
I would have hapy to be banking $50 a month knowing that the risk of me losing $500 is next to minimal.
In a years time, the account could well be up to $5000 making me $500 a month. That is a holiday every month if I were to withdraw!
Risk a lot at your peril!!!
It is still early days for the strategy, so we will see where it takes us, but so far even I am impressed with the results I am getting. Sticking to the trading rules is proving very very important, and more importantly proving that they are valid signals that I am getting.
Do not get me wrong, I m sure that there are some other people out there that can get much better results risking the same amount, but so far I am very happy with the results - it is very low maintenance, and so far (fingers crossed it carries on) I am just banking money every time I put a trade on...
Happy days!
Happy trading everyone, and hope you have a great weekend!
The strategy seems to be catching some really good moves that will pay us really quite well.
I will keep up the good work, and I am still looking out for more moves in the other currencies. There is a good chance that this will roll over the weekend, but that is not too much of a problem. 2 weeks, and 2 good profits (although we are still running with this one as it stands!)
We are still only risking 3% of the total account (seriously a drawdow of 3% max on any one position is fantastic)and yet we are still making some really good money. It will work out that we will have been able to increase the account size by nearly 10% by the end of 4 weeks trading if this keeps going.
Do not believe the hype that you can double your account in a month. This will mean that you are risking far to much, and you will be saying bye bye to your account very quickly.
I would have hapy to be banking $50 a month knowing that the risk of me losing $500 is next to minimal.
In a years time, the account could well be up to $5000 making me $500 a month. That is a holiday every month if I were to withdraw!
Risk a lot at your peril!!!
It is still early days for the strategy, so we will see where it takes us, but so far even I am impressed with the results I am getting. Sticking to the trading rules is proving very very important, and more importantly proving that they are valid signals that I am getting.
Do not get me wrong, I m sure that there are some other people out there that can get much better results risking the same amount, but so far I am very happy with the results - it is very low maintenance, and so far (fingers crossed it carries on) I am just banking money every time I put a trade on...
Happy days!
Happy trading everyone, and hope you have a great weekend!
Wednesday, September 28, 2011
The times they are a changing
Well, it looks like the markets are starting to change, and we are starting to see EUR improve a little bit.
So we are still watching the EURGBP andadded to that a few more currencies. Nothing is going to be triggered anytime within the next day or so, but I am keeping my beady eye out for them when they do come.
I have been looking into my margin call requiremenets, and because I will only ever be looking to risk about 3% on each trade, I could quite happily have 10 open positions going to full loss at any time - this would be 30% of my capital lost, and I would still be very far away from ever receiveing that dreaded margin call.
Money management is key. Minimising your risk is the most important thing in Forex. It is not a case of getting into trades, it is a case of having money availbale to get into trades tomorrow. There is no point in trying to make lots of money. If you commit 100% of your money in each trade, regardless of how much mnoey you make, you will end up with zero. You may be absolutely correct in all your analysis, but the markets do not listen to your analysis!
Some sobering reading in that if you risk 50% of your bankroll and lose, you have to increase your bankroll by 100% to get to the point you started off at.
This is not a get rich quick scheme- that is proven by us not having loads of trades (I want to trade when the markets tell me I can, not when i want).
This is supposed to be striving for financial independence over the long term.
Some stats (based on the trade the other day)
If we started off with a bank of $500, after 10 trades of winning 3% (and compounding the wins to the next trade) You would have $682 - an increase of $182, or increasing your account by 35%.
However, after 20 trades, you would have $903, a profit of $403, that is an increase of 80%,
After 40 trades, you would have $1631, a massive increase of 262%.
This of course does not look at losing trades, however, a 3% increase per trade is well doable (as an average, considering that we increased our account by 4.4% on one trade, and the USDCAD trade we should have been in would have represented an increase of 6.6%!!!)
Hopefully this will give you some idea of just how powerful money management is, and that risking the house on a gamble is not neccesary to get big returns.
Happy trading!
So we are still watching the EURGBP andadded to that a few more currencies. Nothing is going to be triggered anytime within the next day or so, but I am keeping my beady eye out for them when they do come.
I have been looking into my margin call requiremenets, and because I will only ever be looking to risk about 3% on each trade, I could quite happily have 10 open positions going to full loss at any time - this would be 30% of my capital lost, and I would still be very far away from ever receiveing that dreaded margin call.
Money management is key. Minimising your risk is the most important thing in Forex. It is not a case of getting into trades, it is a case of having money availbale to get into trades tomorrow. There is no point in trying to make lots of money. If you commit 100% of your money in each trade, regardless of how much mnoey you make, you will end up with zero. You may be absolutely correct in all your analysis, but the markets do not listen to your analysis!
Some sobering reading in that if you risk 50% of your bankroll and lose, you have to increase your bankroll by 100% to get to the point you started off at.
This is not a get rich quick scheme- that is proven by us not having loads of trades (I want to trade when the markets tell me I can, not when i want).
This is supposed to be striving for financial independence over the long term.
Some stats (based on the trade the other day)
If we started off with a bank of $500, after 10 trades of winning 3% (and compounding the wins to the next trade) You would have $682 - an increase of $182, or increasing your account by 35%.
However, after 20 trades, you would have $903, a profit of $403, that is an increase of 80%,
After 40 trades, you would have $1631, a massive increase of 262%.
This of course does not look at losing trades, however, a 3% increase per trade is well doable (as an average, considering that we increased our account by 4.4% on one trade, and the USDCAD trade we should have been in would have represented an increase of 6.6%!!!)
Hopefully this will give you some idea of just how powerful money management is, and that risking the house on a gamble is not neccesary to get big returns.
Happy trading!
Thursday, September 22, 2011
Trailing stop triggered
My trailing stop was triggered - I had it set at 50 pips, and it was stopped out at 1.34356.
This gives us a massive profit of 220 pips for a 4 days being in the trade.
A great first result i think all round. This has increased my account size by $22 with a max risk of only $15.
So we will now wait until the next trade. I am going to create a table to show all the trades (winners and losers when (hopefully not though!) and if they come.
A great first effort, and gives us a running total of +220 pips.
Normally, I would increase my sizings as my account goes up, but I will only give points results on here for eases sakes for looking at winners and losers. In real terms it is even level stakes.
My belief is that this was on the high side of what I would expect, but certainly not what i want. The EURUSD was in a massive down trend, so when we get these - and we will, we canreally look to proift handsomely off them.
Good trading!!!
This gives us a massive profit of 220 pips for a 4 days being in the trade.
A great first result i think all round. This has increased my account size by $22 with a max risk of only $15.
So we will now wait until the next trade. I am going to create a table to show all the trades (winners and losers when (hopefully not though!) and if they come.
A great first effort, and gives us a running total of +220 pips.
Normally, I would increase my sizings as my account goes up, but I will only give points results on here for eases sakes for looking at winners and losers. In real terms it is even level stakes.
My belief is that this was on the high side of what I would expect, but certainly not what i want. The EURUSD was in a massive down trend, so when we get these - and we will, we canreally look to proift handsomely off them.
Good trading!!!
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