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

  • #2,621
  • Nov 25, 2018 12:36pm Nov 25, 2018 12:36pm
Quoting Rag2RichesFX
Man, no one realizes the power of this huh? It's incredible to think everyone uses traditional risk reward on an account that is made up of their life savings (highly non affordable risk) Rather than using this type of risk reward on FREE MONEY (highly affordable risk is essentially free money, money you never needed)
No I'm pretty sure everyone is aware of the geometric growth model. Even if you had a 1:2 risk to reward strategy that had a good win rate, let's say more than 50%, try computing the probability that it would get 9 right in a row, especially right from the start with that $50. This is not how things work in the real life market.
  • #2,622
  • Nov 25, 2018 12:55pm Nov 25, 2018 12:55pm
Quoting Merka
{quote} I agree with you. It's necessary to find a reliable setup. What are these price based charts?


range bars, renko, 3 line brake (nice when you know how they work), etc you can google "price based charts" and discover them on your own.. i personally use renko now, super easy, reliable and above all 100% constant variables (other than some crazy high impact news moving the market) wich give me the same entry signal every time and the results are very predictable

Quoting Merka
{quote}My compliments if you completed the sequence
Thank you! but i havent done this exact sequence as planted on this thread, ive done it with a little less % per trade and a bit smaller TP in average, but yes its doable and for me after A LOT of live trades and living from this, its the only way to trade and actually grow and account !! the "internet knowledge" its VERY flawed in this topic, almost no one understand how much to risk, how to handle the capital and why.. and thats not even talking about the actual process of filtering/placing a trade
  • #2,623
  • Nov 25, 2018 1:08pm Nov 25, 2018 1:08pm
Quoting spotrate
{quote} No I'm pretty sure everyone is aware of the geometric growth model. Even if you had a 1:2 risk to reward strategy that had a good win rate, let's say more than 50%, try computing the probability that it would get 9 right in a row, especially right from the start with that $50. This is not how things work in the real life market.
You don't get it, it's not about 9 wins in a row It's about 9 netto wins in whatever sequence you like.
Re read first couple pages.
Persistence will get it. Consistency will keep it.
  • #2,624
  • Nov 25, 2018 2:43pm Nov 25, 2018 2:43pm
Quoting yalgaar
{quote}{quote} Show me any method that can make 50 pips while risking 25 pips and winning 70% of the trades. Can you?
The pivot thread and system will give you high win rate, Its a good place to start if you can stand the verbal garbage that goes with it.

I tried to use additional confluence for entries. As for stop loss I dont know, I never really used them, at least for the first 2-3 trades anyway, after that process I see it as market money and not my own, so I dont get attached to the outcome, I think this is key, but everyone else here make very valid points, especially about averaging in.
life is a reflection of what we allow ourselves to see
  • #2,625
  • Nov 25, 2018 4:21pm Nov 25, 2018 4:21pm
Quoting Merka
{quote} Even your idea is ok for someone willing to be more conservative. Can I ask you what is your W%? The point is not just having 1:2 RR but is the related w%. Normal trader has w% around 30% and these aggressive MM are not suitable. To use these compounding aggressive MM we need to have a reliable setup that give with regularity anything above 50% win rate. I didn't found myself such setup. Thanks
Granted this is kind of an apples oranges thing sine I don't trade FX, I trade futures, YM and NQ but it should still work with FX. Here are my stats since inception and October and November....
Attached Images
  • #2,626
  • Nov 25, 2018 7:52pm Nov 25, 2018 7:52pm
Quoting havo
{quote} the "internet knowledge" its VERY flawed in this topic, almost no one understand how much to risk, how to handle the capital and why.. and thats not even talking about the actual process of filtering/placing a trade
Though I am relatively new to using range and renko bars , started on 9/18/18 but had done as much research as I could on the internet and you are absolutely correct in the dismal info available. I absolutely agree with you .....
I have managed to do pretty well so far.... In fact far better than I have with any other chart type. But there are still a few nuances I think I have missed.... But I am getting there.
I would be interested in anything you would care to share in your findings.
  • #2,627
  • Nov 28, 2018 4:56pm Nov 28, 2018 4:56pm
Just an idea came to my mind
Can we just do it with brokers bonous ?
There are plenty of brokers that offer you welcome bonus around 50$ .
What do you think guys ?
Do you think they will give us our money when we have done this ?
  • #2,628
  • Nov 28, 2018 11:22pm Nov 28, 2018 11:22pm
Quoting hesameddin
Just an idea came to my mind Can we just do it with brokers bonous ? There are plenty of brokers that offer you welcome bonus around 50$ . What do you think guys ? Do you think they will give us our money when we have done this ?
I guess NO
  • #2,629
  • Nov 28, 2018 11:23pm Nov 28, 2018 11:23pm
Quoting tradestar1
{quote} Granted this is kind of an apples oranges thing sine I don't trade FX, I trade futures, YM and NQ but it should still work with FX. Here are my stats since inception and October and November.... {image} {image} {image}
Wow
60% win rate in this business is huge.
My compliments sir
  • #2,630
  • Dec 3, 2018 2:43am Dec 3, 2018 2:43am
this is possible with a small target. According to my calculations, with the lever at 1: 500, my tp would be 24 pips.
I divide these 24 pips and I only take 3.5 pips per trade 2 times a day, every 4 days I have about 28 pips.
With this method, starting from one hundred dollars, in just over a month you get to 10,000.
To prove that this is possible, I did a backtest with a very simple strategy (cross the 5-period moving average in the 200 periods) as you see, the consecutive victories are much higher than those required by our calculation. This is therefore possible.
I also wanted to specify that I did the calculation using the lots as if they were normal 1: 2 operations.
In the backtest I did not enter this money management, I'm not able to program it, always invests in 0.50 lot.
Attached Image (click to enlarge)
Click to Enlarge Name: backtest.jpg Size: 65 KB
  • #2,631
  • Dec 3, 2018 4:04am Dec 3, 2018 4:04am
Quoting Rdr
this is possible with a small target. According to my calculations, with the lever at 1: 500, my tp would be 24 pips. I divide these 24 pips and I only take 3.5 pips per trade 2 times a day, every 4 days I have about 28 pips. With this method, starting from one hundred dollars, in just over a month you get to 10,000. To prove that this is possible, I did a backtest with a very simple strategy (cross the 5-period moving average in the 200 periods) as you see, the consecutive victories are much higher than those required by our calculation. This is...

What broker will provide this leverage ? And also so low spread that you can take 3.5 pips ?

Thank You.

Best regards
  • #2,632
  • Dec 3, 2018 4:53am Dec 3, 2018 4:53am
Quoting Rdr
this is possible with a small target. According to my calculations, with the lever at 1: 500, my tp would be 24 pips. I divide these 24 pips and I only take 3.5 pips per trade 2 times a day, every 4 days I have about 28 pips. With this method, starting from one hundred dollars, in just over a month you get to 10,000. To prove that this is possible, I did a backtest with a very simple strategy (cross the 5-period moving average in the 200 periods) as you see, the consecutive victories are much higher than those required by our calculation. This is...
Hi!

Thank you for posting!
Did I understood you correctly,
you are planning to risk 50% of account with SL 12 pips and TP 4 pips (including spread)?
What pair you tested and in what period.

With thanks,
SP
  • #2,633
  • Edited 8:39am Dec 3, 2018 8:22am | Edited 8:39am
Quoting SuperPip
{quote} Hi! Thank you for posting! Did I understood you correctly, you are planning to risk 50% of account with SL 12 pips and TP 4 pips (including spread)? What pair you tested and in what period. With thanks, SP
no, I prefer without stoploss. You can also enter a stop loss that equals 50% of the account, if you want. For me it is better to double immediately the 100 and withdraw, so as to continue without risk.
The backtest is done only to show that it is possible. On euro dollar, for a year. 107 consecutive victories, of course those few losses clear the account, but we just withdraw after 20 consecutive and start again do not you think?
I already counted the spread. Many brokers offer 0.5, which is fine, would be 3 pips clean and you would reach the weekly goal. You would reach it even with 2.5 pips cleaned, so spreads are not a problem for me.
  • #2,634
  • Dec 3, 2018 9:01am Dec 3, 2018 9:01am
Quoting jgadefelth
{quote} What broker will provide this leverage ? And also so low spread that you can take 3.5 pips ? Thank You. Best regards
ICMarkets for example but there are much more out there
  • #2,635
  • Dec 3, 2018 9:13am Dec 3, 2018 9:13am
Quoting Rdr
this is possible with a small target. According to my calculations, with the lever at 1: 500, my tp would be 24 pips. I divide these 24 pips and I only take 3.5 pips per trade 2 times a day, every 4 days I have about 28 pips. With this method, starting from one hundred dollars, in just over a month you get to 10,000. To prove that this is possible, I did a backtest with a very simple strategy (cross the 5-period moving average in the 200 periods) as you see, the consecutive victories are much higher than those required by our calculation. This is...
Ciao
I didn't get your calculation
If you are trading 0.5lots, than every pip=5$.
You are getting 7 pips/day and this means 140pips per month (if you consider 20 days/month).
5*140=700$
Where does the 10000$ comes from?
Thanks
  • #2,636
  • Dec 3, 2018 9:34am Dec 3, 2018 9:34am
Quoting Rdr
{quote} no, I prefer without stoploss. You can also enter a stop loss that equals 50% of the account, if you want. For me it is better to double immediately the 100 and withdraw, so as to continue without risk. The backtest is done only to show that it is possible. On euro dollar, for a year. 107 consecutive victories, of course those few losses clear the account, but we just withdraw after 20 consecutive and start again do not you think? I already counted the spread. Many brokers offer 0.5, which is fine, would be 3 pips clean and you would reach...
And you are planning to double account with 8 trades?
SP
  • #2,637
  • Dec 3, 2018 10:54am Dec 3, 2018 10:54am
perhaps this is clearer. every stage, 7 operations are needed to double the bill. With only 2 operations a day, in a week are already 10.
Attached Image
  • #2,638
  • Edited 12:34pm Dec 3, 2018 11:43am | Edited 12:34pm
Quoting Rdr
perhaps this is clearer. every stage, 7 operations are needed to double the bill. With only 2 operations a day, in a week are already 10. {image}
With compounding you can double account with 5 trades, but you need to look the Stop Out level.
IC Markets has it on 50% of margin.
If you open 0,5 lot trade with 100 balance, then margin is used 100%.
In case when trade goes against you 10 pips, it will be 50 bucks in loss and broker will stop you out.
It is a sweat dream to have 100 wins in row with trading 3,5 pip TP and 10 pip SL.
Even 7 wins is a lucky strike.

Please prove me I'm wrong.

SP
  • #2,639
  • Dec 3, 2018 11:52am Dec 3, 2018 11:52am
Quoting Merka
{quote} Ciao I didn't get your calculation If you are trading 0.5lots, than every pip=5$. You are getting 7 pips/day and this means 140pips per month (if you consider 20 days/month). 5*140=700$ Where does the 10000$ comes from? Thanks
compounding?
As Above, So Below
  • #2,640
  • Dec 3, 2018 12:07pm Dec 3, 2018 12:07pm
Quoting SuperPip
{quote} With compounding you can double account with 5 trades, but you need to look the Stop Out level. IC Markets has it on 50% of margin. If you open 0,5 lot trade with 100 balance, then margin is used 100%. In case when trade goes against you 50 bucks, it will be 10 pips in loss and broker will stop you out. It is sweat dream to have 100 wins in row with trading 3,5 pip TP and 10 pip SL. Even 7 is a lucky strike. Please prove me I'm wrong. SP
what leverage?
As Above, So Below
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