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Rags to Riches in 10 or 20 Trades - Simplicity at its finest

  • #2,281
  • Oct 3, 2017 1:56am Oct 3, 2017 1:56am
please who among us has tried to do this( i mean 50 pips target for 100%) or currently doing this and which broker are you using, please can you you share your broker because i can't do this with mine. thanks
THE TRUTH IS SIMPLE,ACCEPTING THE SIMPLICITY OF THE TRUTH IS WHAT IS HARD
  • #2,282
  • Oct 3, 2017 3:47am Oct 3, 2017 3:47am
Quoting martinez1
please who among us has tried to do this( i mean 50 pips target for 100%) or currently doing this and which broker are you using, please can you you share your broker because i can't do this with mine. thanks
I tried this with pepperstone, but any other broker as Fxpro, Fxcm, and whatever would fit. The broker is not an issue if it gives you access to at least a 1:500 leverage. The main problem is to find a strategy to fit this, and the big problem is to have guts to risk half of your capital when you'll reach a certain level.
I hardly imagine risking 12.500€ at the almost final step
but i stil say that this is higly achievable !
  • #2,283
  • Oct 3, 2017 4:29am Oct 3, 2017 4:29am
Quoting pipmaster77
What all the negative posters are not understanding is this....you do not need a system of 2:1 RR with a long term winning % above 50, you need a 2:1 RR system where at some point, in some short term sample, you have 8 or 9 more winners than losers. This could be 8 -0, 100-92,200-192, etc. Flip a coin 10000 times and the result will probably be 5000-5000 but numerous times throughout those 10,000 flips, Heads or tails came up 8+ times in a row. Take a baseball player with a career .250 average over 20 years, at many points he had individual weeks...
I really hope that everyone will read this answer, it's the best in the whole thread, because it explains what many believers in this type of money management are saying since the beginning( including me). Thumbs up Pipmaster !
  • #2,284
  • Oct 3, 2017 4:35am Oct 3, 2017 4:35am
Hello all,

Ok so the logic is sound.

What are the next steps to get started???

Thanks
  • #2,285
  • Oct 3, 2017 5:02am Oct 3, 2017 5:02am
Quoting josker
{quote} I tried this with pepperstone, but any other broker as Fxpro, Fxcm, and whatever would fit. The broker is not an issue if it gives you access to at least a 1:500 leverage. The main problem is to find a strategy to fit this, and the big problem is to have guts to risk half of your capital when you'll reach a certain level. I hardly imagine risking 12.500€ at the almost final step but i still say that this is higly achievable !
Please believe me strategy is not the problem for me, for example yesterday i made + 4 trades with PA strat and today +1 trade but the not only problem for me is that am not able to put my the perfect lotsize, i use perpperstone broker and TP 80/Sl 40 but difficult to insert the proper lot size( TP 80/40 Sl). am getting mad over this and very angry.......
THE TRUTH IS SIMPLE,ACCEPTING THE SIMPLICITY OF THE TRUTH IS WHAT IS HARD
  • #2,286
  • Oct 3, 2017 5:06am Oct 3, 2017 5:06am
Quoting Rafaz1
Hello all, Ok so the logic is sound. What are the next steps to get started??? Thanks
Find a good strategy, risk half of your account size each time you launch a trade, and aim always for a 1:2 risk reward ratio. Make 8 or 10 more winner trades than loosers, and enjoy your money. Then, repeat...
  • #2,287
  • Oct 3, 2017 5:10am Oct 3, 2017 5:10am
Quoting martinez1
{quote} Please believe me strategy is not the problem for me, for example yesterday i made + 4 trades with PA strat and today +1 trade but the not only problem for me is that am not able to put my the perfect lotsize, i use perpperstone broker and TP 80/Sl 40 but difficult to insert the proper lot size( TP 80/40 Sl). am getting mad over this and very angry.......
Lot size is not difficult to calculate.
For pairs like EU , GU , NU , AU , etc where 1 pip value = $10 for 1 full lot , $1 for 0.10 (10,000) and $0.10 for 0.01 (1000).
As you say you are risking 40 pips for a reward of 80 pips then
If you are trading 1 full lot the 40 pips risk = $400 for return of $800 , if you are trading 0.10(10,000) then you are risking $40 for return of $80 and if you are trading 0.01 (1000) then you are risking $4 for return of $8.
Hope I have been able to make you understand this.
When the going gets tough , the tough get going
  • #2,288
  • Oct 3, 2017 5:14am Oct 3, 2017 5:14am
Quoting martinez1
{quote} Please believe me strategy is not the problem for me, for example yesterday i made + 4 trades with PA strat and today +1 trade but the not only problem for me is that am not able to put my the perfect lotsize, i use perpperstone broker and TP 80/Sl 40 but difficult to insert the proper lot size( TP 80/40 Sl). am getting mad over this and very angry.......
I don't understand why you have a problem with the correct size. How many years of experience do you have in forex?
Ok, listen, if you can't do it using Mt4 i do understand, because mt4 is not good to grasp the money management aspects when you launch a trade.
So open an account with a reputable regulated broker( pepperstone, fxpro, etc) allowing you to use "Ctrader" as trading platform, watch intensively videos on youtube about launching an order with Ctrader, it's an outstanding trading platform for money management when you launch orders, you can set a various levels of TP, breakeven, etc and more of all, what you need is there; i mean knowing before launching the trade, how much you're risking (Sl) and aiming (TP) according to the trading lot size you'll set.
Do this and come back to thank me
  • #2,289
  • Oct 3, 2017 5:17am Oct 3, 2017 5:17am
Quoting martinez1
{quote} Please believe me strategy is not the problem for me, for example yesterday i made + 4 trades with PA strat and today +1 trade but the not only problem for me is that am not able to put my the perfect lotsize, i use perpperstone broker and TP 80/Sl 40 but difficult to insert the proper lot size( TP 80/40 Sl). am getting mad over this and very angry.......
I have personally been trying this with little modifications of my own for the last 18 months but have never had more than 3 consecutive wins so far.
When the going gets tough , the tough get going
  • #2,290
  • Oct 3, 2017 5:18am Oct 3, 2017 5:18am
Quoting Stubborn
{quote} I have personally been trying this with little modifications of my own for the last 18 months but have never had more than 3 consecutive wins so far.
As Pipsmaster explained it recently, no need to have winner in a row.
  • #2,291
  • Oct 3, 2017 5:23am Oct 3, 2017 5:23am
Quoting josker
{quote} As Pipsmaster explained it recently, no need to have winner in a row.
If i don't have more than 3 consecutive wins, any way I try it doesn't help much. Hence I have made modifications to get the same desired results.
My risk:reward ratio > is 1:2.5 . I don't get more than 30% of my trades hitting my target. Around 35% trades close in losses and another 35% trades close near break even. With this strategy even though I make small income however it is very difficult to replicate this money management.
When the going gets tough , the tough get going
  • #2,292
  • Oct 3, 2017 5:35am Oct 3, 2017 5:35am
Quoting josker
{quote} I really hope that everyone will read this answer, it's the best in the whole thread, because it explains what many believers in this type of money management are saying since the beginning( including me). Thumbs up Pipmaster !
It is nice and beautiful but wrong. Say you have N net winners thus far. What is the expected number of winners at the next trade?

If you win that's N+1. If you lose that's N-1. Thus if your winrate is w the expected increase of net winners is[1]: w-(1-w) = 2w-1
If your winrate is <50% you expect the number of net winners to keep decreasing forever. That's why you cannot win this game with a wr < 50%.

(Of course if your WR is equal or above 50% while keeping the RR=2 you needn't this MM at all because you're already rich.)

[1] Proof: The expectation is the sum of the value of each outcome weighted by their probability: winrate * (+1) + (1-winrate) * (-1)

EDIT: added an excel
Attached File(s)
File Type: xlsx RagToTheHmm.xlsx   79 KB | 493 downloads
No greed. No fear. Just maths.
  • #2,293
  • Oct 3, 2017 5:45am Oct 3, 2017 5:45am
Quoting Stubborn
{quote} I have personally been trying this with little modifications of my own for the last 18 months but have never had more than 3 consecutive wins so far.
Just to add and explain how I do it.
I don't risk my whole account.
I start off with 0.01 lot for each pair I trade risking around $2 for a gain of $5 or more. If the trade is a winner then the next trade for that pair is 0.02. If this is a loser then I again start with 0.01 lot. If it is a winner then I increase to 0.04. If this is a loser I again start with 0.01. If it is a winner then I increase it to 0.08. And so on.
There is one small modification added. Now many trades gets closed around break even. Here is what I do. If the trade closed in green ( even if it is 1 pip positive) then I continue with the increased lot size (same lot size repeated ) and if it is closed in red ( even if it is 1 pip negative) then I go back to first step of 0.01 lot. Swaps are not considered as these trades are intraday and closed before the end of the business day.
I will continue this way till I trade.
When the going gets tough , the tough get going
  • #2,294
  • Oct 3, 2017 5:50am Oct 3, 2017 5:50am
Quoting Stubborn
{quote} I have personally been trying this with little modifications of my own for the last 18 months but have never had more than 3 consecutive wins so far.
thats is a little bit easy for me and you don't actually need wins a row but also make you losses don't come so much to deep before your next win, But i still have the lot size problem
THE TRUTH IS SIMPLE,ACCEPTING THE SIMPLICITY OF THE TRUTH IS WHAT IS HARD
  • #2,295
  • Oct 3, 2017 5:51am Oct 3, 2017 5:51am
Quoting pipmaster77
What all the negative posters are not understanding is this....you do not need a system of 2:1 RR with a long term winning % above 50, you need a 2:1 RR system where at some point, in some short term sample, you have 8 or 9 more winners than losers. This could be 8 -0, 100-92,200-192, etc. Flip a coin 10000 times and the result will probably be 5000-5000 but numerous times throughout those 10,000 flips, Heads or tails came up 8+ times in a row. Take a baseball player with a career .250 average over 20 years, at many points he had individual weeks...
yes the math is correct.
But it is very very difficult to have a consistent streak of 8 or more 2:1 ...
  • #2,296
  • Oct 3, 2017 5:52am Oct 3, 2017 5:52am
Quoting martinez1
{quote} thats is a little bit easy for me and you don't actually need wins a row but also make you losses don't come so much to deep before your next win, But i still have the lot size problem
You have mentioned Risk:reward = 40 pips : 80 pips.
State the $ amount for 40 pips and also which pair and I will tell you the lot size you require to trade.
When the going gets tough , the tough get going
  • #2,297
  • Oct 3, 2017 5:54am Oct 3, 2017 5:54am
Please everyone this is the screen short, in my broker pperperstone, 1 = 1 dollars per pip, 2 = 2 dollars per pip, 5= 5 dollars per pip, etc but for an account of 1300 dollars i should be able to insert 16 in the space which to my understanding following the other numbers should equal 16 dollars per pip but its telling me not enough money.
Attached Image (click to enlarge)
Click to Enlarge Name: lot size.png Size: 88 KB
THE TRUTH IS SIMPLE,ACCEPTING THE SIMPLICITY OF THE TRUTH IS WHAT IS HARD
  • #2,298
  • Oct 3, 2017 6:01am Oct 3, 2017 6:01am
Quoting martinez1
Please everyone this is the screen short, in my broker pperperstone, 1 = 1 dollars per pip, 2 = 2 dollars per pip, 5= 5 dollars per pip, etc but for an account of 1300 dollars i should be able to insert 16 in the space which to my understanding following the other numbers should equal 16 dollars per pip but its telling me not enough money. {image}
pepperstone does not have mini accounts or mini lots.
hence your account is standard lot where 1 full lot = 100,000 units.
If your leverage is 1:500 then the margin money for 1 lot will be around $200.
For 16 lots the margin required is $3200.
Hope I could explain myself and clear things for you.
When the going gets tough , the tough get going
  • #2,299
  • Edited Jun 25, 2018 4:07am Oct 3, 2017 6:06am | Edited Jun 25, 2018 4:07am
Quoting martinez1
{quote} Please believe me strategy is not the problem for me, for example yesterday i made + 4 trades with PA strat and today +1 trade but the not only problem for me is that am not able to put my the perfect lotsize, i use perpperstone broker and TP 80/Sl 40 but difficult to insert the proper lot size( TP 80/40 Sl). am getting mad over this and very angry.......
Here is an EA I wrote which I'm sure can help you to get the proper lot size.
Instructions are inside the zip file.
If you need some more info and history of the tool, please see next posts:
https://www.forexfactory.com/showthr...53#post8847453

{ copyrighted attachment deleted by staff }
  • #2,300
  • Oct 3, 2017 6:07am Oct 3, 2017 6:07am
Quoting Stubborn
{quote} pepperstone does not have mini accounts or mini lots. hence your account is standard lot where 1 full lot = 100,000 units. If your leverage is 1:500 then the margin money for 1 lot will be around $200. For 16 lots the margin required is $3200. Hope I could explain myself and clear things for you.
just to add : If you are wanting 1 pip = $1 then you need to trade 0.10 lot (10,000).
Instead of 16 try 1.6.
It will solve your lot issue and margin required will be around $320.
When the going gets tough , the tough get going
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