5 Star YOLO Trading

What is 5 Star YOLO Trading?

In another thread, someone mentioned the term in relation to taking a very good trade, at the right time and right size to basically carry you through the end line in a funding challenge.

So, it is a perfect trade, a home run. the trophy getter.

Of course, this is not meant for a real account.
It is not meant for newbs and even the intermediate level. That's because it teaches them bad habbits.
In fact, it is not good for anyone. That's why it is called YOLO. It is suicidal to trade like that.
I know to live to trade another day, is a virtue but, this is on the opposite spectrum.

Because I have always avoided trading like that or even avoided practicing like that even in a demo ,( I just can't bring myself to), I have developed a need to do it.

So, I'm not obviously an expert on the subject but I am looking/hoping to have a meaningful discussion on the subject.
What is it that prompts a trader to literally bet the farm, or at least the kitchen on one move...and be right too?
I am hoping for something replicable. Something that happens with regularity enough that just put you on the next level.
An indicator? An event that is always the precursor to a sure move in another instrument?
The mojo basically.

Screenshots would be great...anything.
I'm not sure other than 'scalping' this topic has been much explored. Scalping is a grind. If someone could make 10% in 1, 2, 3 or so trades, is that still scalping? Maybe but even scalpers want to live another day to scalp.

I'll try to figure out something but for now, just looking for a reliable method to start.

You would need something that has a high enough Winrate for you to not blow 5 Challenges befor you make it. Since most propfirms have abandoned their maximum trading days requierement we got a little bit of time on our hand (dont know if prop firms are the right way to go right now since the MFF incident. To me it seems like FTMO is the only reliable Prop Firm out there at the moment). So my thought went to something like the RSI-2 Strat on S&P. It is algoproven that using the right Setting you can get up to a 90% WR depending on Settings but the trades are rare (3-10 a year) and win per trade isnt very high. Now trading it not with an Expert but manually instead with having a bit of trading experience I belive one could get the average return up by a lot (I know this because I have done it in the past). Just an idea

I think, in this kind of trading, a SL is a must because you are not gradually building a position or averaging out. So you have to place a wager equal to the SL.
The rest is how many losses you can handle and if you can let a good trade run and leave not much on the table. So, I think, there is always that 'gamble' element at work because otherwise, if you were so sure, you wouldn't have bothered with a sl unless placed per habit.

Personally, I need to learn to lose. I hate losing. Even in a demo.

That is what I am looking for. 1- precision entries that are like walking through a wide open gate with fanfare and kinda like when you get to Disneyland, you just know which way to go to get to all the goodies. And clever hardly scratched on the skin exits that saves your life like dodging a sword just in time. That's all I need.

On an hourly or even M5 there are lots of ;sure' moments confirmed by hindsight 20/20 but at the heat of the moment, it is all a rouse, a fake and a diversion. Need clarity of laser and skin of a crock.
Or a good EA.

Ok, so for manual trading, I guess as suggested below, a set of rules needed. This is a good start.

https://www.forexfactory.com/thread/...8#post14568798

Some of the best risk management strategies for day trading:

 

1. Determine your risk appetite and exposure upfront. This means knowing how much you are willing to risk on each trade and how much you are comfortable losing.
2. Use stop-loss and take-profit orders. These orders will automatically close your position when the price reaches a certain level, which can help you limit your losses or lock in your profits.
3. Diversify your portfolio. This means investing in different assets or markets, which can help reduce your overall risk.
4. Keep your risk consistent. This means risking the same amount on each trade, regardless of the size of the trade.
5. Manage your emotions. Trading can be emotional, but it's important to stay calm and make decisions based on your trading plan.
6. Maintain a positive risk-reward ratio. This means risking less than you expect to gain on each trade.

Additional tips for risk management in day trading:

1. Backtest your trading strategies. This means testing your strategies on historical data to see how they would have performed.
2. Use a trading journal. This will help you track your trades and identify areas where you can improve.
3. Be patient. It takes time to develop a successful trading strategy and to master risk management.

Personally I don't understand why anyone would manually trade since EA's are by far more superior at trading but the main difference is just what this thread is about. Coming in and picking the best trades and then getting out quick. I guess EA's can't quite bring all the sets of considerations it takes to go heavy on a split second and reap a lot of profit in a short time.

Determine your risk appetite and exposure upfront.
This is about the daily trading I think. You risk say 1 or 2% on each trade and keep it going. Here, I don't know yet how we are going to approach risk appetite cause the lower the risk, chances are the lower the reward, so if we want higher reward, it is natural we are risking more. No matter how big a risk, a SL is supposed to put a number to it. So, undetermined for now.

Use stop-loss and take-profit orders.
I think as much as I dislike using SL, for this method, I'm afraid there is going to be no choice but to set SL. What the distance should be and if 'moving SL is warranted in some situations or strictly not, is still to be decided.

Diversify your portfolio.
That is for long term trade planning. We just want to rob the house once in a while. I think gold is a good instrument just because it is a general subject of interest and acts as a thermometer for just about any news in the world.
Keep your risk consistent.

In relation to this method of wanting to make say 10% in one shot, maybe a few, I don't know how keeping risk consistent is going to help. So, one decides they want to max lose $100 on each trade? So, is it saying just set the same stop for every trade and that's all?

Manage your emotions.
That is going to be the hard part. If I really want to keep calm, I set an EA on the job but they want me to manually take trades and manage my emotions? Lol. Tough.

Maintain a positive risk-reward ratio.
This is really vague. Of course you can just set up your SL and TP like 1:3 or 1:4 but that's just a mechanical step. I think it is best dealt with using a trade manager EA. I know this is supposed to be manual but I am definitely going to give that job to an EA cause it is tedious to do it manually.


Additional tips for risk management in day trading:

Backtest your trading strategies.
Backtest your trading strategy...does it mean I need to have a way of manually trade in the backtester? I have found one free trade panel that works in the backtester but I think itb is limited unless you buy the full program. I am totally open to suggestions as to which preferably free trade panel to use for backtesting manually.

Use a trading journal.
This is it I guess but this thread is about general setups and strategies too. Maybe a personal trading journal later.

Be patient.
Haha, the whole point of doing this is because we are not patient and want big chunks of money overnight. So I take it this is going to be patient in a short time span like instead of waiting minutes, wait a few hours. Can do that.

There is going to be a huge gambling element to this. I think the above list is going to be mostly irrelevant.
Trading like this, 2 or 5 or 8% a shot is not going to fit within the known 'safe' parameters and approaches that are taught in order to become a good trader.
This is trading badass. The idea is to take shortcuts to riches. Right?

Boulder is really the reason for me to find ways for quick profits. That is not just to make money quickly but to achieve something in trading that is hard to do.

I really have got to get 'the levels and MTF trading' down pat.

Here is her explanation but I will need to really look into it later in depth. https://www.forexfactory.com/thread/...2#post14569062

Anyone else who can expand on this, I appreciate it.

This is the list of supplies I'm going to need:

-Trade panel that works in backtester.
-Trade panel that works in real.
-Some sort of news feed program. FF's news is here but if there is an indicator that pops up the news right on the chart, it is even better.
-A good indy that plots trades on the chart.
-An indicator showing average trade in case there are multiple trades.
-A risk/reward indy.
-A trade manager
-An equity stop/protector
-Means of measuring margin used even historically.
-A performance analyzer

Probably more items too.
I have a few things in mind already and post later but if anyone has some good stuff they can post, please by all means.

What's the point of it, then?

What value does the "trophy" have, if you can't use it on a real account?

Why pay a funding company to qualify for an account by using a system you can't then use on that account once you've "earned" it?

What am I missing, here?

It is about acquiring the skill to do huge lots in hopes of huge gains.
Once one does this several (hundred) times, then the actual occasion to use it could be anything based on your discretion.
The trophy is the knowledge/skill and the ability to pull the trigger.
It doesn't even have to be such huge lots. It can be made to work using any size lot.

Reading the book "The man who solved the market" - about Jim Simons & Renaissance Technologies.

It appears now that not only George Soross made a fortune on GBPUSD but Jim Simons did something similar and with GBPUSD too - and some 5-8 years earlier than Soross (1992), ok Jim gains were not so abnormal as for Soross but enough to "run away" what Jim did not - he continued trading with bigger capital and scaled it to billions.

But what I see.. both of them spend quite a long years in learning on subject they operate (about 20 years). Jim used pure technical, and Soross seems more political/fundamental info or "gut feeling" which he trained over the years.

As we do not have access to political or insider info like maybe Soross had (who knows..) - then we have better chances to use technical data or/and "gut feeling".

It seems to me that at least 10 years of practice failures learning process is needed before attempting such possibilities. When a longer time is spent in any business there develops a "gut feeling" to pick up better deals.



here with risk/reward 1:20 we have 6 entries (for shorting) in 10 years and you can see that some entries can hit SL but some TP..

Let's say you have a total capital 50000 usd then split that for 10000 usd for each try. use for example Darwinex with leverage 1:200 (Cyprus regulation, not FCA.. but ok).

Each winner brings you 100000$ profit and each loser -5000$ because of 50% margin call. We can afford SL 1% if the price moves opposite 1%.

After 1st win can scale and for the next attempt go with 20000 usd for each try. Win - again scale. Analyze other pairs and wait for those rare entries. Maybe in 3-5 years can accumulate solid capital..If 10 losses (because we still have 50% account after each lose so only 5000$ needed to add to continue) in a row - game over.

But shorting might not work in future.. there were years from 2001 till 2007 when gpb get stronger.. so this strategy could fail then because never hit 20% TP if shorting.