How do YOU do your trading? | Forex Factory

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How do YOU do your trading?

  • #1
  • First Post: May 25, 2007 3:39pm May 25, 2007 3:39pm

Hi to everybody,

This is Bogdan from Bucharest and this is my very first post out the many more to come, hopefully!!!

I am relative new to Forex but I find it quite challenging and potentially rewarding, should we all stick to the rules of the system (entry, discipline, money management, etc).

Anyway, I would like to ask you a bunch of questions in order to see other's approaches. Feedback is very welcome!!!

So, here goes:

1. How long have you been trading FOREX?
2. Are you able to trade full time?
3. What timeframes do you trade?
4. How much (%) do you risk per trade, relative to your equity?
5. What is your average risk / reward ratio?
6. What is your maximum leverage you are willing to take?
7. Do you trade based on technical, fundamental or both?
8. What is your average monthly profit target (pips and return on equity?)
9. What was the actual equity increase month on month or year on year?
10. What was your maximum drawback?
11. How many pairs do you trade?
12. I've seen many sites offering signals, Expert Advisors that promise you the world - do you use them?

Since I posted all these questions, let me answer them myself first so that hopefully others will too - thanks

1. I have been interested in FOREX for about two and a half years and actively interested for the last two. I opened a micro account of EUR 350 in Oct-2007 which I blew in about two months due to my inability to recognize that the trade I had placed was against the trend. Valuable lesson and I vowed not to repeat the mistakes I made back then.

Opened a second acount on Mar-15 and currently am drawn back about about 12% due to two trades that went bad onto which I used a 10:1 leverage and rather large stops (100 pips - I trade mainly daily charts)

2. Currently I am not able to trade independently full time as the day job keeps still my cash-flow running. I hope I will someday though.

3. I trade mainly 4H, D1 and W1.

4. It happened that I risked 10% per trade – I am not proud of it. The plan was 2% so I’ve performed a rather unfortunate adjustment.

5. 3:1
6. 10:1 although I used 30:1 and 50:1 for one trade. I am also considering 15:1 to be the “new” maximum allowed level for me.
7. Mainly technical with an eye on fundamentals that can either make my trade either go very well or can make me more cautious.
8. 200 pips per month is my target which I did not achieve thus far. The targeted ROE for me is 2.5% or 30% per annum.
9. Currently, after 2.25 months it is -11% or so.
10. Maximum drawback was around 22% due to two trades onto which I had a 10:1 leverage and allowed a rather wide stop loss due to the fact that the trades were based on the daily charts.
11. Two pairs so fair mainly USDJPY and EURUSD.
12. I believe that the majority are scams. I don’t know what to think about the various EA for Metatrader out of which some are available for purchase.

Okay, that’s all for now, hope you found my questions somewhat interesting and it would be nice to get feedback from you for all or some of them.

Regards to everyone and have a good weekend!

Bogdan.
  • #2
  • Edited 7:07pm May 25, 2007 6:41pm | Edited 7:07pm
Quoting BGrigore
Hi to everybody,

This is Bogdan from Bucharest and this is my very first post out the many more to come, hopefully!!!

... hope you found my questions somewhat interesting and it would be nice to get feedback from you for all or some of them.

Regards to everyone and have a good weekend!

Bogdan.
Hey Bo. and welcome to The Factory.

 Put yer steel toed boots on. 'Cause this is a serious workplace.

1. How long have you been trading FOREX?
1) Forex > 5 years. Currency Futures > 15.

2. Are you able to trade full time?
2) Did for a Decade but presently working on a 2 year contract I agreed to to build 100 houses. Therefore, I presently trade the same hours as an aspiring full timer.

3. What timeframes do you trade?
3) Presently, my trades are triggered by a 5 Min TF but they are based in Daily info.

4. How much (%) do you risk per trade, relative to your equity?
 4) See Comments Below.

5. What is your average risk / reward ratio?
5) No Comment

6. What is your maximum leverage you are willing to take?
6) 100:1

7. Do you trade based on technical, fundamental or both?
7) Both. Fundical or Technimental. Take your pick.

8. What is your average monthly profit target (pips and return on equity?)
8) +

9. What was the actual equity increase month on month or year on year?
9) No Comment

10. What was your maximum drawback?
10) Ugly when I started.

11. How many pairs do you trade?
11) Now that I have less time, 2. Previously, all of them.

12. I've seen many sites offering signals, Expert Advisors that promise you the world - do you use them?
12) Not anymore. Never once did I gain from paying someone for their method. And I paid $3,000.00 in total for a couple.



Comments:
When I Traded a Futures Fund {active in most Futures. Indicies, Metals, Meats, Grains, Softs...etc} I created "The 30:8 Rule"
30:8 defined.
30. No More than 30% of the account exposed to Margin @ any given time.
8. No More than 8% OF THE 30% EXPOSED TO ANY INDIVIDUAL MARKET SECTOR.

eg. $1M account.
Max Margin = $300,000.00
Max Margin/Sector = $300,000.00 * 8% = $24,000.00

This method allowed for error without putting the account at risk although it did require diligence.
  • #3
  • May 25, 2007 7:42pm May 25, 2007 7:42pm
see below
Quoting BGrigore


This is Bogdan from Bucharest and this is my very first post out the many more to come, hopefully!!!
Hey Bogdan always nice to see new posters(although looks like you have been lurking eh?)

I am relative new to Forex but I find it quite challenging and potentially rewarding, should we all stick to the rules of the system (entry, discipline, money management, etc).
I concur!
Anyway, I would like to ask you a bunch of questions in order to see other's approaches. Feedback is very welcome!!!

So, here goes:

1. How long have you been trading FOREX?
Almost a year exactly-dabbled in it 3 years ago for a summer just trading random indicators, then stopped while in college
 2. Are you able to trade full time?
yes
 3. What timeframes do you trade?
4hr/daily/weekly/monthly and none
 4. How much (%) do you risk per trade, relative to your equity?
1-2%
 5. What is your average risk / reward ratio?
varies greatly
 6. What is your maximum leverage you are willing to take?
100
 7. Do you trade based on technical, fundamental or both?
techs and other i suppose
 8. What is your average monthly profit target (pips and return on equity?)
ehh monthly is too small of a timeframe too be worried about imo
 9. What was the actual equity increase month on month or year on year?
300-500% annu
 10. What was your maximum drawback?
---
 11. How many pairs do you trade?
a lot
 12. I've seen many sites offering signals, Expert Advisors that promise you the world - do you use them?
anyone who promises you the world what do you think --NO
I will give a shout out too James16 PF that completly changed my life and trading. It is far from promising the world or a signal service. This is the easiest hard game ever in my eyes
  • #4
  • Last Post: Edited May 26, 2007 11:13am May 25, 2007 9:42pm | Edited May 26, 2007 11:13am
1. How long have you been trading FOREX?
1) 1 year demoing, a little over a month live

2. Are you able to trade full time?
2) Yes full time, actually a lot more most times

3. What time frames do you trade?
3) mostly 1-4h, although if I see nice action I will move to 1-15 minute charts (40+ pip range)

4. How much (%) do you risk per trade, relative to your equity?
 4) 5% capitol per trade and 2% risk with stop loses. Preferring to never risk more then 6% (3 open trades) although I do sometimes go to 10% (5 open trades)

5. What is your average risk / reward ratio?
5) none set in stone, preferably 2:1 or greater, although if I see a nice setup at 1:1 I might likely take the trade.

6. What is your maximum leverage you are willing to take?
6) Currently a mini account 400:1, but just because I have it doesn't mean I use it, once I my account gets larger 100:1

7. Do you trade based on technical, fundamental or both?
7) Mostly tech, although I give fundies their due.

8. What is your average monthly profit target (pips and return on equity?)
8) None, just a consistent profit.

9. What was the actual equity increase month on month or year on year?
9) To early to see live. Demoing, it was any where between 2-3% a day. but live I don't plan to be so aggressive. At least at first, maybe a few years in.

10. What was your maximum drawback?
10) The first 4 months of demoing, nada never lost a trade. Until one day my father asked if I had even lost a trade. It went to hell after that for a few months. Blew through a few demo accounts.

11. How many pairs do you trade?
11) About 20 pairs, mostly focusing on about 10 of them

12. I've seen many sites offering signals, Expert Advisors that promise you the world - do you use them?
12) When I first started going through hell after my 4 month luck or blessing streak. I turned to anything I could. But found most to be wrong more often then I was, so no.
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