This is a log of my attempt at taking $300 and turning it into 100K in a year. First with a demo account then with a live account.
Disclaimer: This is a log, not trading signals! This is what has happened in my adventures in forex. Forex trading contains very high risk as well as possible high reward. This system has the possibility for high margin usage above what is typical normal margin risk. If you use anything in this log for your own trading, it is completely at your own risk. You are responsible for your trades, amount of margin used, system used, etc.
System 42, the short description.
Make a given percentage (2.8735%) or more every trading day of the prior days account balance. This is based on 250 trading days and has allowances for quarterly tax payments of 33% (Maximum tax possible). Pick your own pair and trading style/system. For a $300 start your profits per day are as follows for the first few days and last few days so you can see how it works.
Day 1 Start $300.00 End $308.62 Profit $8.62
Day 2 Start $308.62 End $317.49 Profit $8.87
Day 3 Start $317.49 End $326.61 Profit $9.12
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Day 248 Start $126,365.29 End $129,996.40 Profit $3,631.11
Day 249 Start $129,996.40 End $133,731.84 Profit $3,735.45
Day 250 Start $133,731.84 End $137,574.63 Profit $3,842.78
Tax’s QT 4 ($37,561.10)
Net for 250 days of trading after tax’s $100,013.52
Depending on your leverage and risk, you are willing to assume, these are quite reasonable targets to achieve on a daily basis. Assume 50:1 leverage and 2k trade size, you only need a 44 PIP’s total movement of your trades to get your daily profit. Trading at 50:1 leverage to make your target will use anywhere from 15% - 50% of your account margin depending on if you are trying to make it all in one trade or over several trades in a day, so there is substantial risk involved. As the account increases in value, your margin required to make daily target should decrease but it will most likely be above the normally accepted levels.
System 42, the long description.
That is what this journal is for. I would be foolish if I thought that a trading system would not evolve over a year as the market and global economy are not static.
System 42, the rules.
1) Look at the data available to make your trade, plan your trade.
2) Make the trade, follow the plan.
3) If you have a loss, STOP! Shut down the software! DO NOT CHASE A TREND THAT MOVED AGAINST YOU! There is tomorrow.
4) If you have made a profit for the day and you have no open positions, STOP! Shut down the software!
5) If you have made your profit for the day and have open positions that are adding to your profit, set SL /TS to protect your profits and continue until you are done or SL/TS triggers, then see #4.
6) You made a profit substantially greater than your target? GREAT! See #4!
7) You made profit but have not made your target for the day? See #1 and #4, the choice is yours.
The hardest part of this system is the closing of the software. This is not to say that you cannot monitor the markets, you are just not trading! Use software other than what you use to trade for monitoring so you will not be tempted to just place one more position, make a few more PIP’s. For me, just the act of one more trade has killed more demo accounts than I can remember.
Currently I am in search of a broker and I have narrowed it down to two and am demoing accounts to learn their software. When I am very comfortable with the broker and their software, I will be going live. I will be updating this journal at the end of most trading days.
Feel free to ask questions and comment as I progress in this adventure.
Disclaimer: This is a log, not trading signals! This is what has happened in my adventures in forex. Forex trading contains very high risk as well as possible high reward. This system has the possibility for high margin usage above what is typical normal margin risk. If you use anything in this log for your own trading, it is completely at your own risk. You are responsible for your trades, amount of margin used, system used, etc.
System 42, the short description.
Make a given percentage (2.8735%) or more every trading day of the prior days account balance. This is based on 250 trading days and has allowances for quarterly tax payments of 33% (Maximum tax possible). Pick your own pair and trading style/system. For a $300 start your profits per day are as follows for the first few days and last few days so you can see how it works.
Day 1 Start $300.00 End $308.62 Profit $8.62
Day 2 Start $308.62 End $317.49 Profit $8.87
Day 3 Start $317.49 End $326.61 Profit $9.12
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Day 248 Start $126,365.29 End $129,996.40 Profit $3,631.11
Day 249 Start $129,996.40 End $133,731.84 Profit $3,735.45
Day 250 Start $133,731.84 End $137,574.63 Profit $3,842.78
Tax’s QT 4 ($37,561.10)
Net for 250 days of trading after tax’s $100,013.52
Depending on your leverage and risk, you are willing to assume, these are quite reasonable targets to achieve on a daily basis. Assume 50:1 leverage and 2k trade size, you only need a 44 PIP’s total movement of your trades to get your daily profit. Trading at 50:1 leverage to make your target will use anywhere from 15% - 50% of your account margin depending on if you are trying to make it all in one trade or over several trades in a day, so there is substantial risk involved. As the account increases in value, your margin required to make daily target should decrease but it will most likely be above the normally accepted levels.
System 42, the long description.
That is what this journal is for. I would be foolish if I thought that a trading system would not evolve over a year as the market and global economy are not static.
System 42, the rules.
1) Look at the data available to make your trade, plan your trade.
2) Make the trade, follow the plan.
3) If you have a loss, STOP! Shut down the software! DO NOT CHASE A TREND THAT MOVED AGAINST YOU! There is tomorrow.
4) If you have made a profit for the day and you have no open positions, STOP! Shut down the software!
5) If you have made your profit for the day and have open positions that are adding to your profit, set SL /TS to protect your profits and continue until you are done or SL/TS triggers, then see #4.
6) You made a profit substantially greater than your target? GREAT! See #4!
7) You made profit but have not made your target for the day? See #1 and #4, the choice is yours.
The hardest part of this system is the closing of the software. This is not to say that you cannot monitor the markets, you are just not trading! Use software other than what you use to trade for monitoring so you will not be tempted to just place one more position, make a few more PIP’s. For me, just the act of one more trade has killed more demo accounts than I can remember.
Currently I am in search of a broker and I have narrowed it down to two and am demoing accounts to learn their software. When I am very comfortable with the broker and their software, I will be going live. I will be updating this journal at the end of most trading days.
Feel free to ask questions and comment as I progress in this adventure.
