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The Lazy Forex Trader's Way to Riches

  • #1
  • First Post: Edited 11:38am Sep 19, 2007 11:01am | Edited 11:38am
I am sure you must have read the subject somewhere .. and was told, its not possible.

now here is 1 scenario, I need your comment.............


A friend of mine, who introduce me to this business, has a system, which he use since several month ago.. he never had a loss using it... since he just carry any losing trade like forever or 1000 pip whichever come first.. both of which never came yet...

here is the system for trading GBP/JPY

Buy every 100 pip.. TP 100-200pip...... SL1000
if 1 position achieve its TP put another buy limit for that price again & repeat.
max open position 10 in any given time.

only using micro lot i.e 10cent/pip with 1000$ account, which theorycally can stand 1500 pip dive without ever doing any retracement for other position to achieve its TP.

This system only work with marketmaker or any place that allow closing individual position in same currency pair without averaging.
---------------

Will this system work in long term..?
I am sure some people has use it before.. please tell me your experience.

at first i dont like this strategy as it has no adventure in the trade ..
But since i trade, all my loss would have been profit if i just kept it for a few more days. so i am reconsidering this strategy.....

another reason is another person that learn forex from my friend & start trading the same week as i am, now already double his account using this system........ while I lose some good % from my account.....

Can anyone do a script to backtest this system, how many time it would have failed to achieve TP and actually achieve the 1000 SL?

Flame is welcomed !
Comment is appreciated !
Advice is Thanked.

God Bless
Syafi
  • #2
  • Sep 19, 2007 11:24am Sep 19, 2007 11:24am
Quoting Syafi
..

here is the system for trading GBP/JPY

Buy every 100 pip.. TP 100-200pip...... SL1000
...

Will this system work in long term..?
No, but.. that's just IMO.
RR ratio is terrible.. and I see that $1k being lost eventually..

... but, I wish you all the best.

R.
  • #3
  • Sep 19, 2007 11:37am Sep 19, 2007 11:37am
yea very bad R&R ratio with the possibility for it to ever hit the SL is very thin, I think in 1998 1 position and august 2007 2 position ....

I need to know how to do back test without manually calculating this by hand on MT4 .... so i can see how many time actually it hit SL without ever had a chance to hit its TP.
  • #4
  • Sep 19, 2007 11:41am Sep 19, 2007 11:41am
Where is the trading in this idea? The biggest problem I see with it is it is not balanced. There either needs to be a stop loss for each trade or there needs to be a corresponding counter trade in the same or some other instrument. Eventually, this is going to catch up and fail. It all depends on how much money you have. As in gambling, there is no method of money management that can turn a negative expectancy game into a long term winner.

There will be short term successes and if you knew when to stop you could walk away a winner, but that is all it is. It is winning and losing, it is not speculating based on an edge.
  • #5
  • Sep 19, 2007 11:49am Sep 19, 2007 11:49am
yes there is a stop loss 1000 pip for each position.
forward test until last night, real account was up 100% in 5 week trading.
none hit SL and all hit TP....several position still floating,

I need a way to back test this.....so i can know what's worst case scenario to expect
  • #6
  • Sep 19, 2007 12:09pm Sep 19, 2007 12:09pm
I tried 2 versions of this strategy, this one where you buy every 100, and another where you buy once a day. on the every 100 strategy I had each trade set to 1% of account. this failed miserably in the feb and july 1000+ pip drops. the only way I could see this possibly working is doing 1 cent pips on a $10,000 account, and if interest rates never change.

but where is the fun in that.

The daily version also failed, dont remember the exact reason, could have been a discipline issue.

There are at least 2 versions of this posted here at FF.
  • #7
  • Sep 19, 2007 2:12pm Sep 19, 2007 2:12pm
Quoting Syafi
I am sure you must have read the subject somewhere .. and was told, its not possible.

now here is 1 scenario, I need your comment.............


A friend of mine, who introduce me to this business, has a system, which he use since several month ago.. he never had a loss using it... since he just carry any losing trade like forever or 1000 pip whichever come first.. both of which never came yet...

here is the system for trading GBP/JPY

Buy every 100 pip.. TP 100-200pip...... SL1000
if 1 position achieve its TP put another buy limit for that price again & repeat.
max open position 10 in any given time.

only using micro lot i.e 10cent/pip with 1000$ account, which theorycally can stand 1500 pip dive without ever doing any retracement for other position to achieve its TP.

This system only work with marketmaker or any place that allow closing individual position in same currency pair without averaging.
---------------

Will this system work in long term..?
I am sure some people has use it before.. please tell me your experience.

at first i dont like this strategy as it has no adventure in the trade ..
But since i trade, all my loss would have been profit if i just kept it for a few more days. so i am reconsidering this strategy.....

another reason is another person that learn forex from my friend & start trading the same week as i am, now already double his account using this system........ while I lose some good % from my account.....

Can anyone do a script to backtest this system, how many time it would have failed to achieve TP and actually achieve the 1000 SL?

Flame is welcomed !
Comment is appreciated !
Advice is Thanked.

God Bless
Syafi
I have used a variation of this one.... Feasible only on Oanda. Buy every 5 pips TP @ 25 pips... No SL.. I have closed every day 2-3 loosers from the top and whenever a TP has been hit I have reloded the coresponding orders. Used the interest rate to finance the loosers.. Achieved approx 2-3 % a week. due to the micro-mini-lots... I have counted in a 2000 pips range to cover... did very very very well... Abandoned for whatever reason.. I could not support the floating 1000s pips anymore and the fear was growing. I have decided to simple trend follower systems though I am using the experience from that system... Learnt that you do not know where the market will go and just wait until it gets there. Pateince. LOL
.
  • #8
  • Sep 19, 2007 2:51pm Sep 19, 2007 2:51pm
Have no idea for how long time all these positions are gonna be open.
Attached Image (click to enlarge)
Click to Enlarge Name: still_open_forever.JPG Size: 143 KB
  • #9
  • Sep 19, 2007 3:01pm Sep 19, 2007 3:01pm
  •  MPP
  • Joined Jun 2007 | Status: Be yourself, everyone else is taken | 2,734 Posts
I think GJ to damn violent for this sometimes, you need to only take trades when the trend is strong. i would look to a more reliable pair to test it on. like EU.
in essence it is very much like Jacko's trade system and someone there is testing a similar idea.

however the difference is they are setting a SL but no TP, the SL is the TP.

i would suggest that in the EU with 1000pip SL you would have a very good chance with this, but the profit would be slow.

I would start by finding a good trend indicator and setting TL's up, SL outside one TL and TP 100pips inside other.

best of pips to you.
  • #10
  • Sep 19, 2007 5:15pm Sep 19, 2007 5:15pm
this is scale trading, which has a following in futures. however, it is much more manageable with futures, and tends to have huge drawdowns. the principle is buying when price is in its lower 20-30% range. for example, corn fluctuates between $1 and $6 a bushel (using random figures, i am not going to look up the actual range). one would buy when price is under $2 a bushel. the theory is that price will never reach $0, and will turn around and put you in profit on all your trades... no stops are used. In forex, using a $1000 account on guppy is not a big enough account. micro pips, using a 1000 pip stop, thats $100 per trade... that gives you 10 total trades... nano pips gives you 100 trades...

IF you like huge drawdowns... and have a big account, martingale works better, buy every 200 pips with a 200 pip tp, 100 pip sl... lose a trade, double the next. I wouldnt do this, and i dont recommend it, but it would be more effective than a 1000 pip stop.
  • #11
  • Sep 19, 2007 8:17pm Sep 19, 2007 8:17pm
Yes the maximum open position is 10.. with micro lot.

For example, Since start of last week trade until yesterday US close, with 100 TP..
We could bank in ~2400 pip. all except 1 position is closed. max drawdown were 1800 pip at early this week which were closed also yesterday. and give profit.. well with this system there its possible to have max 10000 pip drawdown before go broke....

even on august fall, there were only 4 position which never arrive to its TP and hit the SL... while we could bank ~6000 pip.. which mean its is still a winner month.

well it make ~25% monthly .... and had this 1000 pip dive in feb & august.. so still good..

How to make a backtest script for this ?

Buy every 100 pip
TP 100
SL 1000
place limit buy in same price level once the prior position in that price achieve its TP. example, position 231.12 TP 232.12, it close in 232.12, place another orders for buy @231.12... If prior position in that price is not yet closed, dont buy, so basically only 1 position in 1 price.
  • #12
  • Sep 19, 2007 8:22pm Sep 19, 2007 8:22pm
Quoting trevwest
In forex, using a $1000 account on guppy is not a big enough account. micro pips, using a 1000 pip stop, thats $100 per trade... that gives you 10 total trades... nano pips gives you 100 trades...
don't need 100 trades because we open 1 position in 1 price level once.. no 2 position in same price level.

Quoting trevwest
IF you like huge drawdowns... and have a big account, martingale works better, buy every 200 pips with a 200 pip tp, 100 pip sl... lose a trade, double the next. I wouldnt do this, and i dont recommend it, but it would be more effective than a 1000 pip stop.
martingale sound better, but the story of a doubling rice on each rectangle of chess board with chinese emperor explained it well......

so its a no no system for me.


------------
  • #13
  • Sep 19, 2007 11:24pm Sep 19, 2007 11:24pm
Syafi,

You can use the MakeGrid EA for this strategy.

TimeFreedom

Quoting Syafi
Yes the maximum open position is 10.. with micro lot.

For example, Since start of last week trade until yesterday US close, with 100 TP..
We could bank in ~2400 pip. all except 1 position is closed. max drawdown were 1800 pip at early this week which were closed also yesterday. and give profit.. well with this system there its possible to have max 10000 pip drawdown before go broke....

even on august fall, there were only 4 position which never arrive to its TP and hit the SL... while we could bank ~6000 pip.. which mean its is still a winner month.

well it make ~25% monthly .... and had this 1000 pip dive in feb & august.. so still good..

How to make a backtest script for this ?

Buy every 100 pip
TP 100
SL 1000
place limit buy in same price level once the prior position in that price achieve its TP. example, position 231.12 TP 232.12, it close in 232.12, place another orders for buy @231.12... If prior position in that price is not yet closed, dont buy, so basically only 1 position in 1 price.
Attached File(s)
File Type: mq4 [ea]_MakeGrid193_1.mq4   28 KB | 749 downloads
  • #14
  • Sep 20, 2007 2:27am Sep 20, 2007 2:27am
Great EA.. Thank you,

How to make it start order at 210.10 instead of 231.00 etc :?
  • #15
  • Sep 20, 2007 2:35am Sep 20, 2007 2:35am
Warning, dont use this system before you test...

It sure double my friend account this month... back test confirm the % is almost the same as his live account,

BUT> when ever there is sharp price movement like on July & August, everything just go bye bye.....

there is no Lazy way to riches.......

you will find CyroxMMA thousand time better...

http://www.forexfactory.com/showthread.php?t=38436
  • #16
  • Sep 23, 2007 5:57am Sep 23, 2007 5:57am
further test show, if use only

0.25 % margin per each position,
you wont double money but Still you get ~25% monthly average profit...
each pos only give you soooo few cash...... but if you are lazy and dont want to pull hair learning all stuff, then maybe this system is for you.
  • #17
  • Last Post: Sep 24, 2007 3:45am Sep 24, 2007 3:45am
Quoting Syafi
I am sure you must have read the subject somewhere .. and was told, its not possible.

now here is 1 scenario, I need your comment.............


A friend of mine, who introduce me to this business, has a system, which he use since several month ago.. he never had a loss using it... since he just carry any losing trade like forever or 1000 pip whichever come first.. both of which never came yet...

here is the system for trading GBP/JPY

Buy every 100 pip.. TP 100-200pip...... SL1000
if 1 position achieve its TP put another buy limit for that price again & repeat.
max open position 10 in any given time.

only using micro lot i.e 10cent/pip with 1000$ account, which theorycally can stand 1500 pip dive without ever doing any retracement for other position to achieve its TP.

This system only work with marketmaker or any place that allow closing individual position in same currency pair without averaging.
---------------

Will this system work in long term..?
I am sure some people has use it before.. please tell me your experience.

at first i dont like this strategy as it has no adventure in the trade ..
But since i trade, all my loss would have been profit if i just kept it for a few more days. so i am reconsidering this strategy.....

another reason is another person that learn forex from my friend & start trading the same week as i am, now already double his account using this system........ while I lose some good % from my account.....

Can anyone do a script to backtest this system, how many time it would have failed to achieve TP and actually achieve the 1000 SL?

Flame is welcomed !
Comment is appreciated !
Advice is Thanked.

God Bless
Syafi

Hello, 1st of all, i'm using this method and it works even with the recent sub prime issue. but there's one thing you need to change in order for it to work completely. Winning is 100% in tis method but there's error in yours.

With 1k account, i'm only aiming to double my account in 1 yr time. This is not the way to get rich QUICKLY but is the onli way to get rich easily... if you want to get rich quickly, you need 100k account. haha... thats the hint i give you... so now you all should be able to figure out what went wrong.

One more thing for me to add is that not many people will wan to try this system as it is damn boring n there's a chance you equity will be decreasing during the 1st few mths...

I dont wan to spoonfeed you with full detailed because i wan you all to explore urself so you can make changes urself if market chge the ways it goes...
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