This journal is purely insprational, keep up with the logs, and well done on it's 3 month anniversary.
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DislikedYes, I understand that - I am well aware of the correlation between the pairs. I trade with 2% of my account balance on each pair and keep tight stop losses when I first enter a trade so my losses are always much smaller than my gains.
Thanks for your advice and yes, I'm still in my trades from last Sunday
Kind Regards
SteveIgnored
DislikedI have always strived to clear 10% profits in the business I own.
Your average of 9.87% for a 4 month period shows well.
With this month almost behind us, you should start making nicer profits once the market goes back into full swing for the year, especially USD/CAD.
Your .13% from making a 10% average, my business associates would applaud your discipline along with your money management system.
Ken
(monarch)Ignored
DislikedThis journal is purely insprational, keep up with the logs, and well done on it's 3 month anniversary.Ignored
Dislikedbut since you use 2% every trade, you will always lose 2% (assuming first day stop out) regardless of how many pips you risked right??Ignored
DislikedNope,
To clarify, I use 2% of my account balance on each trade which would equate to a 2% loss if my initial s/l was 100 pips on a /USD pair or a little more on a USD/ pair. In reality my initial stop losses are under 100 pips so therefore the risk is under 2%.
Today will be an exception to the rule as we have seen large moves but remember I've yet to lose 100 pips (2%) on a single trade so far.
Famous last words
Kind Regards
SteveIgnored
DislikedCongrats mate!
I thought I had ya then I dropped the ball.
I'm planing a trip to Argentina in July or August maybe I'll see ya thereIgnored
DislikedSo Steve, can I assume that if a 2% risk tolerance allows you to take (say) 1 lot with a 100 pip stop, you will take 2 lots if the initial stop is 50, 4 lots if 25 etc etc. ? or are you in fact just taking a single lot (whatever that may be for you) on each pairing. I am also assuming your results are pips per 1 lot.
It would be interesting to compare the pips per lot results to results from using a constant 2% exposure on initial entry...something I might do on a rainy day, but intuitively this means your smallest lot size is almost always going to be GBP/USD, which of course has been your biggest earner, so the issue is by scaling up the other pairs, might this improve an account balance, or wreck it....
Of course the alternative is exactly as you are doing, keeping lot size fairly constant throughout - this in fact is giving you most 'risk exposure' to GBP/USD, and less to the others, which could possibly be the best way to do it....
But I'm curious to find out...lol
I don't suppose you have kept an Excel log of the entry/intial stop details for your live testing, that would allow a quick and dirty overlay of differing lot sizing to see how the '2% on every position' set-up compares?
cheersIgnored
Dislikedstevie,
i still watch your progress almost daily and admire your attitude, interest, and diligence more and more, you've even rubbed a little of your "relaxation" off on me, it's like when i read this thread everything gets peaceful around me.
keep it going.
its amazing how addicted to forex we all are .
i guess theres worse things we could be doing with our time and money, right?Ignored
QuoteDislikedUnfortunately for you, the only documentation ....
DislikedYeah, OK, so in fact you're logging the pip result but not adjusting for trade size, however, you have recorded your monthly % returns on capital, which probably should satisfy my 'curiousity' when I think about it.
I fully understand your method, and commend you for remaining totally unmoved by the constant stream of suggestions for change. I was only seeking clarity on position size and that is now clear enough, thanks
- I knew you were going to say that...
regards
XerofIgnored
DislikedHi Steve,
You could be in danger of becoming famous (as well as rich) .
You mentioned in your a couple of posts back about increasing your lot size as the account grows to 250, 300 and so on.
Have you considered doing this on a daily or at least weekly basis. If your balance has grown by 1% increase your lot size by 1% (I presume you are able to do this as you trade a micro lots.) If your account decreases by 1% you would reduce it by the same amount. Your risk would then always stay the same instead of reducing as the balance grows before reaching the next compounding waypoint.
It occures to me that by doing this you would greatly improve the compounding power without compromising the method and more importantly the discipline you exercise.
Some of the more experienced traders here on FF will no doubt find a flaw here, but thats Ok.
I presently do this with my account and it works great (especially now that I am becoming consistantly profitable, well most of the time).
Just seems a common sense approach to make the most of compounding.
Regards.
Chris.Ignored