Rags to Riches in 10 or 20 Trades - Simplicity at its finest | Page 134 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Rags to Riches 21 replies

Rags To Riches 203 replies

rags to more rags.. and even more rags! 19 replies

Rags to rags and ice cream 36 replies

Rags To Riches Take 2 24 replies

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

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

  • #2,661
  • Mar 13, 2019 6:03pm Mar 13, 2019 6:03pm
How can one do this without getting a margin call?
  • #2,662
  • Mar 13, 2019 7:53pm Mar 13, 2019 7:53pm
Quoting SuperPip
{quote} In this case the backtest is far away from truth. RR 1:3 and 80% winrate makes you rich without any rag2richies roulette. 1000 trades with 80% win rate in Monte Carlo simulation gives a next figures: {image} Sequence is wins in row, count how many times it happend. As you see, max amount of consecutive wins is 27. SP
Sorry I don't understand what your table is showing.
You say that this is with a winrate of 80%, yet you get 1 win only 41 times out of a 1000?
  • #2,663
  • Mar 13, 2019 7:57pm Mar 13, 2019 7:57pm
Quoting kafeldom
How can one do this without getting a margin call?
You need a broker with 1:500 leverage to be able to risk half your K on 1 trade.
  • #2,664
  • Mar 18, 2019 8:06am Mar 18, 2019 8:06am
Quoting alt11
{quote} Sorry I don't understand what your table is showing. You say that this is with a winrate of 80%, yet you get 1 win only 41 times out of a 1000?
Hi!

Thank you for asking!
Table shows 41 times happend the sequence: Win->Lose
22 times Win->Win->Lose
22 times Win->Win->Win->Lose
...

It shows how many wins in order there was in 1000 trade.
I hope it makes clear.

With regards,
SP
  • #2,665
  • Edited 6:03am Mar 28, 2019 5:52am | Edited 6:03am
I just want to re-emphasize the benefits of this exercise.
I’m quoting alphaomega from https://www.forexfactory.com/showthr...78#post8612378

What are the benefits from all this?
1. Your maximum risk never exceeds your risk tolerance (your risk capital).
2. You learn how to manage your money. You will not only become more disciplined, but you will become excellent risk manager! You will learn how to survive in the long run. (only the traders who know how survive in the long run will become rich)
3. You will accumulate A LOT of trading experience, and ultimate you will become better trader (there is absolutely no doubt about this)
4. You have the chance to use the power of exponential growth and over time to accumulate large capital base, and so eventually trading could become your major source of income.

This exercise can be done even with Ģ10 and still afford 2 losing streaks before re-loading, assuming that you can trade with 1:500 leverage of course.
Attached Image


I made this excel tool so everyone can use it to make his/her own plan.
This tool will also calculate how many losing streaks you can afford before re-loading, this feature uses Min Balance as reference point.
Min Balance represents the minimum equity the broker allows you to open a position - leverage dependent.
I hope you like it, enjoy!
Attached Image (click to enlarge)
Click to Enlarge Name: 8dfa8ab299.png Size: 46 KB



Attached File(s)
File Type: xlsx RagsToRiches.xlsx   23 KB | 552 downloads
  • #2,666
  • Mar 28, 2019 5:53pm Mar 28, 2019 5:53pm
Quoting TradeToLive
I just want to re-emphasize the benefits of this exercise. I’m quoting alphaomega from https://www.forexfactory.com/showthr...78#post8612378 What are the benefits from all this? 1. Your maximum risk never exceeds your risk tolerance (your risk capital). 2. You learn how to manage your money. You will not only become more disciplined, but you will become excellent risk manager! You will learn how to survive in the long run. (only the traders who know how survive in the long...
Did you tried the money management described on page 1 and did you succeed (or almost)?
Regards
  • #2,667
  • May 21, 2019 11:22am May 21, 2019 11:22am
Quoting TradeToLive
I just want to re-emphasize the benefits of this exercise. I’m quoting alphaomega from https://www.forexfactory.com/showthr...78#post8612378 What are the benefits from all this? 1. Your maximum risk never exceeds your risk tolerance (your risk capital). 2. You learn how to manage your money. You will not only become more disciplined, but you will become excellent risk manager! You will learn how to survive in the long run. (only the traders who know how survive in the long...
I thank you that you have introduced alphaomega's ideas. Until now, his ideas were not known to me.
I agree with you that it is entirely possible and scalping is by far the best way to generate returns fast.
I have done scalping from Jan 21, 2019 until May 15 , 2019. FF Trade Explorer results: 46.6% return. Dragon Dance link is in my signature.
I have not followed his idea of withdrawing amounts and leaving amount for accumulating account equity.
I am 70 and have poor Excel skills. I have a good Modelling Excel sheet. Can you please incorporate alphomega's ideas of splitting returns into withdrawals and accumulation of the account, then I will set up another account to do scalp and follow those ideas.
The Returns analysis Modelling Excel sheet is attached. It also uses concept of withdrawals and accumulting equity for greater returns.
Thank you for your help in advance
Attached File(s)
File Type: xlsx Returns Analysis-Modelling.xlsx   17 KB | 517 downloads
Practice makes a person perfect
  • #2,668
  • Jun 2, 2019 3:24pm Jun 2, 2019 3:24pm
Hey everyone,

Im willing to try this R2R for some fun but would need a little help from whoever wants to help here. (Will share some winnings with whoever can help with the following)

- A broker that will allow this kind of trading. (Good and trustable broker)
- Will be swing trading so will need a broker that allows me to hold positions over the weekends
- Help out with Lots/leverages (i've only ever focused on charts)

If this crazy idea works for some reason or another, it won't be a Rags2Riches because I don't see myself trading large amounts.
  • #2,669
  • Jun 5, 2019 2:43pm Jun 5, 2019 2:43pm
broad my 20$ dead account to live with this method...thanks #tradewars

from 20 to almost 2000. Now about 1K. I think i withdrawal the money on my regular account and start new from 20$
Attached Image (click to enlarge)
Click to Enlarge Name: DetailedStatement.gif Size: 6 KB
  • #2,670
  • Jun 5, 2019 4:40pm Jun 5, 2019 4:40pm
Quoting Minotawr
broad my 20$ dead account to live with this method...thanks #tradewars from 20 to almost 2000. Now about 1K. I think i withdrawal the money on my regular account and start new from 20$ {image}
Really? Could you please provide some more details, TE maybe?
Or what exactly you did, how long can you expect this to roll-on?
Maybe I would be ready to BURN some to test it... 20$->1k seems impressive... Or could you someone sense at 2k or a little before, that it might drop to 1k?
10-20 factor return, wow.
Can you afford to take that chance?
  • #2,671
  • Jun 6, 2019 12:24am Jun 6, 2019 12:24am
Risk and money management has always been something I like to learn more about.

I currently trade risking 1% of my account to make 3%.

Challenge I find is when I move my SL to BE (after +1% profit) it usually takes me out.

So even though mathematically I have a 1:3 Risk:Reward, my account doesnt show that coz usually stopped out at BE and then have full -1% losers.

Any advice on this?

Also if starting with a small account using the strategy in this thread, anyone who has tested this on a real account, anything you would do differently if you were to do it again?

Thanks again guys.
  • #2,672
  • Jun 6, 2019 12:35am Jun 6, 2019 12:35am
Quoting Rag2RichesFX
{quote} How to enter the market, that is not what this thread about. I'm just giving people something else to consider besides the traditional "risk 1% to make 2%". The only reason people risk such small percentages is because they are not confident in their ability to a) win over 50% of their trades with a 1:2 risk/reward b) not have large losing streaks, such as 5 or 10 losing trades in a row (to undo all the hard work)
definitely agree with this Rags2RichesFX. and tbh this is exactly what i struggle with.
the math definitely adds up, but the real challenge is a method to consistently win trades with small SL's
I tend to trade the H4 so SL's are much bigger than a M30 chart etc.

I have a small account. And as you correctly said, I too am risking 1% to try to make 3% or more.
Problem is I either get stopped out, or when the trade goes 1% in my favour, I move my SL to BE and it seems to take me out at BE more times than I care to count.

Always been tempted to try to flip $100 account to something bigger, but in the past when I've tried it, I just blow the account up.
My issue is with a method that consistently works. Tried a ton of systems here at FF, and they do work, but for me so far nothing that I can consistently trade profitably.

It's a tough road....not entire sure what to do, but not gonna give up.
Is there any advice you can give on this?

Many thanks
  • #2,673
  • Jun 6, 2019 4:01am Jun 6, 2019 4:01am
Quoting tom2749
Risk and money management has always been something I like to learn more about. I currently trade risking 1% of my account to make 3%. Challenge I find is when I move my SL to BE (after +1% profit) it usually takes me out. So even though mathematically I have a 1:3 Risk:Reward, my account doesnt show that coz usually stopped out at BE and then have full -1% losers. Any advice on this? Also if starting with a small account using the strategy in this thread, anyone who has tested this on a real account, anything you would do differently if you were...

What will happen if you dont move stop to Be, you just let it be at it original position the whole trade ? If this will not help then you have a to hight target for your strategy it seems and you must adopt your target or your strategy.

Best regards
  • #2,674
  • Jun 6, 2019 9:52am Jun 6, 2019 9:52am
Quoting jgadefelth
{quote} What will happen if you dont move stop to Be, you just let it be at it original position the whole trade ? If this will not help then you have a to hight target for your strategy it seems and you must adopt your target or your strategy. Best regards
hi jgadefelth,
thanks for your reply.

i have tried that on occasion but seems more often it gets my SL....so if i move it to BE at least i don't lose money.

I know i need to find a good strategy and just master it, but still not found something that i'm consistently profitable with.


Anyway i don't want to detract from the topic of the thread, so will keep testing and trying, and keep all the info on this thread in mind for future once i have a successful strategy that i can trade profitably and consistently.

Wishing you all many green pips
  • #2,675
  • Jun 6, 2019 1:34pm Jun 6, 2019 1:34pm
Quoting auricforecas
{quote} Really? Could you please provide some more details, TE maybe? Or what exactly you did, how long can you expect this to roll-on? Maybe I would be ready to BURN some to test it... 20$->1k seems impressive... Or could you someone sense at 2k or a little before, that it might drop to 1k? 10-20 factor return, wow.
Well, you need this:

 

  1. crazy trend . Look on this stunner on G/J . I just play the good, old "the trend is your friend" game
  2. solid trading mentality / stop gambling.
  3. and of course "Balls of STEEL"

Attached Image (click to enlarge)
Click to Enlarge Name: GBPJPYDaily.png Size: 57 KB
  • #2,676
  • Jun 6, 2019 7:55pm Jun 6, 2019 7:55pm
Quoting Minotawr
{quote} Well, you need this: crazy trend . Look on this stunner on G/J . I just play the good, old "the trend is your friend" game solid trading mentality / stop gambling. and of course "Balls of STEEL" {image}
I was playing with those kind of, what I call burners, before. how far would you think you can get?
For example how many WIN trades in a row do you estimate you could make (after trying many times, doesnt matter) and with how tight SL (leverage)?
What were you parameters and could you theoretically increase the leverage and have even higher one, before it crashes..
Since you went from 20->2k->1k.. I would estimate you had margin-call at 50% or was it SL?

I am asking because I have been playing with this for a long time, for example.. We are all 7trades away till becoming a billionaire, starting with 100EUR deposit!
TP200, SL20 500:1 (10% stop/margin-call); that gives you FACTOR x10 return, if I calculated correctly, quickly..
https://www.wolframalpha.com/input/?i=100*10%5E7
Crazy right? How FAR do you think could you/one get, what are the odds?
3 steps? 100EUR->100k EUR Crazy right? just had to buy/sell at basically PEAK (10PIP is nothing) THREE TIMES and you could have a strong buffer or FU position for some time, putin 100eur in, 100k out... and this could happen in a few weeks tops even (not in this market though)
https://www.wolframalpha.com/input/?i=100*10%5E3
Can you afford to take that chance?
  • #2,677
  • Edited Jul 24, 2019 1:24am Jul 23, 2019 10:07pm | Edited Jul 24, 2019 1:24am
I am seriously asking my self if that could be possible:

Keep it simple:

- Andrews Pitchfork
- Usual trendlines
- One or two less or more reliable indicators
- A look on divergences

The main strategy is to localize a common pitchfork setup, using the indies for confirmation. SL at the pitchfork swing high, target towards the center-line. 80% win-rate if you catch the correct swing high or at least close.

100$ in the account, risk size 50% of account balance, fix.
RR fix 1:3 (plus expenses)

Jesus, with this setup it must be possible to collect nine more wins than losses for a profit of 51K!

Simple setup, just nine more wins, how ever long it takes. What can you loose? Time and 100$?!

Is it so "easy?" This could be even automated. And as longer it takes, so smaller gets the required win/loss ratio >50%

IS THIS SO EASY?!?!?
Trying to safe the world...
  • #2,678
  • Jul 23, 2019 10:30pm Jul 23, 2019 10:30pm
Quoting RobertMY
I am seriously asking my self if that could be possible: Keep it simple: - Andrews Pitchfork - Usual trendlines - One or two less or more reliable indicators - A look on divergences The main strategy is to localize a common pitchfork setup, using the indies for confirmation. SL at the pitchfork swing high, target towards the center-line. 80% win-rate if you catch the correct swing high or at least close. 100$ in the account, risk size 50% of account balance, fix. RR fix 1:2 (plus expenses) Jesus, with this setup it must be possible to collect nine...

So please show us some trades/ some chart.

Best regards
  • #2,679
  • Jul 23, 2019 11:02pm Jul 23, 2019 11:02pm
Quoting osjoe2
I'll be attempting this following this strategy. {image}
I am about to try this... lets see..
Extreme gut feeling trader
  • #2,680
  • Edited 2:08am Jul 24, 2019 1:55am | Edited 2:08am
Quoting jgadefelth
{quote} So please show us some trades/ some chart. Best regards
Quoting jgadefelth
{quote} So please show us some trades/ some chart. Best regards
I will do it at the weekend.

I am testing the necessary indicators for the entry and as trend filter. There are further some detail questions to solve:

- Should be the TP really fix? Or is it enough to set a Trail at any minimum RR? (Actually, it must be 1:2 at least)
- What in case of trading this on more than one pair? MM?

The entire key for all is to put the risk per trade to 50% of the account balance. 50% Risk and RR 1:2 doubles the account with every won trade and halves it with every lost trade.

To win 51K from 100$ start balance you need only to win 9 times more often than you lose. If you need 1009 trades to win 509 times and 500 times not, then this would be just 50,45% win rate! ANY serious system must achieve this in 1000 trades. But nicer is to have 27 trades and only 9 losses but 18 wins: Winrate 66,7 %

There are just two real problems: The trader's psychology and a consistent RR 1:2!

So, we have to find a strategy with a win rate of above 60% at a RR of minimum 1:2.

I see that...

What really flashes me is: Whatever you do, you lose only time and 100$ if you spoil it. But you can make pretty fast 51k! I think itīs really worth it to dig in it.
Trying to safe the world...
2 traders viewing now