My guess is that a large number of us do not engage in vigorous testing of our trading methods i.e. running complex statistical models, etc. I belong to that camp. I treat fx trading like speculation, and try to improve my returns over time. I was inspired by the simplicity of tkimble's strategies and if I dare to say, that I share certain similarities with his trading mindset.
This discussion is not about complicated methods of charting, but one that uses basic math to try to increase the account balance.
Here's my thought process and requirements:
This discussion is not about complicated methods of charting, but one that uses basic math to try to increase the account balance.
Here's my thought process and requirements:
- Fixed time - I have a full time job, reluctant to say that it's a day job since I end work frequently way past dinner time. So I should be trading not very frequently, maybe once a day at a specific time?
- Minimum R:R - Not good at timing the market. So I try to increase my reward:risk. minimum 2:1, preferably more.
- Simplicity - No complex indicators, just the very basic ones.
- High(er) Returns - Speculation =/= investing. I definitely want returns that are way above 3-5% per annum. Add a zero behind please.
- Volatility (optional) - The majors do not move quickly enough for me to profit (hopefully not lose) frequently. Unless you can convince me otherwise.
The 2 largest issues that I am facing are points 1 & 2
- I'm on a fixed r:r that does not give me the possibility to enjoy higher returns without sacrificing accuracy (& hence profitability) significantly. I'm biased towards more consistent wins, but history has proven time and again that the biggest winners are the multi-baggers.
- Profitability is heavily affected by timing of entry, which is restricted by a consistent specific time. How can I reduce this dependency?
I welcome discussions that build upon the above premise.