My way to highway

foreword?
bos still there are members taking the time to read this journal, a small update to motivate:
setting personal goals and working on them is a good way to strive to be better.
those who read the journal probably remember when i have made my 60 consecutive winning days, then my best....then some times later i broke that bets to a 78 consecutive days.
i broke that on the 6thMay2019 this year.
and it took nearly 6 calendar months ( some vacation, etc in it) but today just clocked once again the 78th consecutive day! daytrading, no overnight positions, no carried dd...
fingers crossed, November will see this record stretched further.
set a goal, work for it! 1 day a time, a little better each day!
i know my next goal, and keep working toward that!
happy trading!




hi

as many, i have been trading for a while (to make clear, a lot longer than joining that would suggest).
must be a slow learner?!
probably.
many things i learnt seem to go against many things the gurus teach:
i use no SL most of the time, but mental ones, that consider more the total equity protection.
i use grids, to scale into trades. ok, nothing fixed size, but still a grid. on the other hand, aim for single entries where possible.
i may or may not use martingale when adding to a position ( yes, losers mostly!) although tend not to use full martingale.
i dont risk a fixed % of equity per trade, that vary from the setup, and my analysis of it.
i ignore profit in pips, results counted in $$$! if the pips green, it is added plus to my feel good about it, but secondary at best.
i do scalp (too)
and most importantly perhaps
i dont aim for max profits, happy to take part of a move. re-enter or not later. my top priority is manage drawdown, and ultimately to have a monthly return that is higher than drawdown.
that also summarize it up.
no fixed monthly return targets, only to be positive, and beat the bank's interest rate enough to compensate for the added risk involved.

that said,
my aim to move from hobby/part time trading toward full time.
this phase is all about finding consistency in my results, and about proper capitalization for full time trading.

Realistic profit expectations

I don't think this should be a high % number.
Sure enough 100% a month sounds great, or 10% a week sounds great, and going from 200$ to 100k sounds great.
Only I don't see myself doing it consistently.
If I want to truly trade for a living I need a somewhat consistent profit.
Let's say I am pretty satisfied with 2-10% a month, as that beats bank's risk free interest rates handsomely.

Of course, profits if consistent, not derived from 1 or few lucky trades.
The above 2-10% a month suggest average 0.1-0.5% a day profit.
Nothing to make it worthwhile to spend days in the front of the computer, trying to achieve such 2-10% a month on a 200$ account, or even on a 1000$ account,not to mention to make a living from. 10-100$ a month just won't make ends meet, even with my low cost quiet lifestyle.

Trading account size

To continue on last post, it is a necessity to have a trading account balance that can generally allow me to make a living on above mentioned 2-10% a month.
It is clear that 200-1000$ balance won't do the trick, unless I can make 100-500% or more return monthly... Which I can't!

For a simple number, let's use 1000$ a month for the number I need to withdraw monthly for covering my basic living costs, to 2000$ monthly to give a more comfortable life.
( yes, this numbers different for each individual, but I am not a hyper consumer, and live simple).
The reverse math lives me with 20-100k as desirable account balance...where 2% gain on a 100k account can provide already with a comfortable living from withdrawals, something equal to 10% of a 20k account, what obviously a bit more adventurous as profit target, but within doable generally.

My target account size thus lies between these numbers, say around 30-50k.
A lots of capital for some, me included.
However, I have been thru my fair share of 100-2000$ accounts in the past, where one shoot for the star, does good for a short time, then crush.
All done with high risk, high drawdown, but fun to trade for 3-5-10%+ gains. The problem, that they don't last consistently, or more precisely they didn't for myself.
And to make a living from trading, it is not about fun, but about what I can withdraw in the end of the month.

All above also refers back somehow to the point made in first post, and the need of capital preservation, and low drawdown, as the account balance needed to be at least the same of growing, after allow similar monthly withdrawals for living.

The task:
Get my trading account size to the 30-50k level.

Xaron is doing the grid trip right now in Trading Journals, so maybe you want to have a look at it?

could you outline in general how you do the grid?

wishing you every success on your journey

hi yonnie!

thanks for the well wishes.
i am aware of Xaron's thread. only to see that he deviated from it quickly. ( silver trade?)
the idea that it started out with is quite good, grid on positive swap pair. maybe i missed the edge to start to grid, but cant recall beyond the swap.

i think i mentioned that i dont use fixed grid steps, i dont see how one size fit all condition/pair.
also since i am trading both direction on pairs, looking to be out rather sooner than later.
and another point, may use different lot sizes as scaling into a trade.

i use RSI. and visual on support and resistance. and that is about it.
will include some chart if there is need for it, although really not that much to look at.
position trades based on H4, scalps on M5.

A few note to self...

Due some recently added fund, still getting familiar with the larger account, and in turn with the larger numbers of drawdowns too.
Best to continue the same way as prior, and concentrate more on the drawdown as %age, vs. $$$ amount.
Current EJ trade caught me a bit off guard today, after the past week or two being smaller daily range, thus got into some drawdown bit quickly...-2% running.
No, not the end of the world, as my target drawdown is to remain under -10%...just suddenly the dollar amount seemed a bit larger than what i used to.
Until recently, i was trading infrequently, as daily 10-11 hours work and strict no phone didnt allow me much time to linger around.
That also had benefits, obviously, had been a bit more patient about waiting for the right setup, and taking my profits.
A way to go!
Now, on the other hand, having more screen time at hand, i can use more scalping. Those little guys can and do add up in the end.

The month is soon over, and here where at stands currently...
May or may not some point make myfxbook or TE public, right now i dont think that is of interest
Notes:
Abs. gain reflects that funds were added to the account, multiple times.
There were multiple accounts traded side by side, this account doesnt represent all trading history/track record.

this ugly "scalping" trade still saved the day.
hard to believe, but after being a sucker to start to sell EJ too early for position trade, on top scaling in tight...
managed to repeat almost the same on this GU scalping too. ( of course lessen commitment, as this account isnt based on scalping mainly).
anyway, EJ bailed out with little loss, few little scalps, and this GU one in the end was enough to finish the day in green, although in a measly 0.06% green, but i can take that any day vs. ending in loss.

for position trades I am short on EJ and UCad today.
right now it looks like both overnight positions, but changes can come quickly.
this week is definitely weak jpy and usd, but i strongly believe if not before than by next week there should be a reversal toward the mean.
in the meantime, i think both carry positive swap, and with a combined current working drawdown of approx. 0.6%, there is little to be concerned about.

picking up "pennies"...scalping can compliment the result, and help to pass time waiting for the position trades to do their move.
they are little slower at it, but expected to carry them over to tomorrow, and seems that is to happen.
positive swap, no hard feel.

results: gain today, 0.05% on the scalps.
position trades are lingering around BE.

the position trade on EJ closed, there is always a debate in me as too early, but it was opened a little too early to start with, and it did miss an adding opportunity pending order by few pips, so, take what is given, and move on to the next one.
EJ added +0.55% to the account.
Also had a single GU short, s smaller one, never got the chance to be something more important, part because i had already 2 pairs with positions ( EJ + UC), and part of the low drawdown money management is to has limited number of setups traded, thus get a firmer control of the drawdown.
GU short added +0.1% to the account, nevertheless. ( no pic)

and that left UC long as open trade.
in 3 hours there will be some CAD related news coming, so, might bring the turn. if not, then a waiting game, swap is positive, running drawdon is 0.4-0.5%...plenty room to go against me, and build it up, or to turn and get out. as a rule of thumb, i am looking approx 0.5-1% equity gain on it.

June ends...
i am happy with the result, as the attachment shows it is the 3rd very consistent month return wise.
drawdown was throughout the month under control, myfxbook shows a 2.26% as high, i kind a recall seeing maybe as much as 3.5%...
left the analytics if someone care, this month was rather eclectic looking back.
but the results are also proof that the approach can be successful across a wide range of different assets, there was apart from the forex some trades in oil, gas, stock indices too.
while there is no target for July, and i will have a 2 weeks vacation where trading wont be everyday, i sincerely expect to see another positive month for the next too

happy weekend!

ps: the Ucad trade is open and running, with a minuscule drawdown currently that doesnt effect the overall result of the month.

initiated a new fund deposit to the account, assume during the week it would arrive. with that i will be about halfway toward the target account size.
for trial will include a custom starting dated (1st July) TE for the thread, so, i can see where it is different from myfxbook.

primary target: the July target will be no more than 8-10% max drawdown. ( in line with previous months)
profit target is 2-10%, but whatever comes comes.
secondary target: no losing week.

today most of my time was spent taking the car to the service...5 min work, 6 hours driving.

the position is UCad started to show improvement, as well reopened EJ position. combined a small running 'working drawdown' with small positive swap. they are not immediate concern, as often, waiting.

did manage some scalps, a nice way to compliment the waiting.
US30 had a double, and missed the easy third entry chance. such is life.
gold and UsdMxn were uneventful both, similar fashion, wont post pic.

all in all, approx. +0.25% gain from scalps, and a positive start for the month.

it is always a good feel to wake up to see a position trade to hit TP.
i was hoping that yesterday since the UC position was showing some turning signs, it might be the one, but instead it was the EJ short from last night.
well, just as good, though a lessen size, it is +65 pips, now in the bank. a nice start of the day.

well, since the morning a boring trading day, really.
apart from the EJ position, managed a tiny 11 pips scalp on GCad. together approx +0.3% booked.

the UC position is open, and running, got some added to it too. currently it is in a 1.3% drawdown.
target somewhat lowered, in reflection of further fall, but still expect at least a 100 pips recovery, about 1.3050+
percent wise, equity gain should be about 0.5-1x risk...historically.

today trading activity is catching up, some seem to collide exactly to my afternoon jogging today.
anyway, there is always another trade, right?

earlier had a UMxn short scalp set, in retrospect it could be better if i stay patiently, but that is wishful thinking only.
it did book however +0.06% to the equity.
i hear you saying, that is such a little amount, why even bother? but i tend to disagree!
while waiting for a position trade to come around, or work out, these little innocent scalps can add up a lot, on average 0.05-0.1% a day!
the quick math says it can be anywhere between 1-2% a month to the balance! and while my balance is not huge, it is neither a 100$ account, put it that way that i think those scalps can pay this month for my son's new mobile phone...
an update on UC position, it has improved some, currently in a drawdown, 0.75%.

update:
UC position half closed for taking profit, the rest is running at -0.35% drawdown.
few more small scalping trades for fun, mexican peso mainly...

today total: combined the above 2, approx +1% closed ( thanks for the UC position trade start to work out, just as planned).
the week is a little slow, but start to look a lot better

today wasnt feeling well, and as per rule, no trading if not in 100% conditions. or 95% at least

the only activity was checking on sometimes the open UC trade.
the bottom leg, after yesterday's partial profit taking got re-opened, at a little better entry price.
the position still in a drawdown, currently it showing -0.41%.

due the re-opened part, the current average price is better than it was yesterday, my outlook is still positive on the pair, the swap rate is still positive on the pair, no changes there.
today's news had little effect on UC, generally both currencies showing mostly similar strength during the day, thus little move, about 60 pips range vs. the 10 or20 days median 90 pips...(unless it does a final jump to the end of the day).

update:
UC closed just slightly over BE, a total gain of +0.05%. ( yesterday some leg was closed with decent return already).
decided to close up trade, tomorrow is news heavy, prefer to go into flat, if there is a choice, and there was.
still bullish on the pair, and might put back on the trade on a pullback.

just an interesting observation:
myfxbook and TE and i-profittracker.

i know deposits were made to the account, but just pay attention to the current month, where no transactions were made, only trading...
myfxbook: +1.26%
i-profittracker: +2.04%
forex factory TE: +2.30%

So, what is correct?
it is not only the % gain, the pips made also has disagreement too, all 3 with its own math.

the only what all seem to show correct is the current equity, at least something is working correctly!!