It can be done, you would have to wait for the best possible set-up and have a strategy that only the really Best knows how to put together. It may sound a little crazy but its amazing what the mind can do once used to full potential.
Do you think FX trading systems etc are a waste of time? 2 replies
Waste time and money decyphering a market on its closing price 10 replies
Back testing...is it a waste of time? 17 replies
How to spot a waste of time trading day... 14 replies
DislikedThanks for the response Perm...
Let me make sure I understand this correctly, as I've only ever traded 100:1. My mentor always taught me that trading any higher is disastrous and too tempting when we are first starting, as well as not needed if we follow proper MM and get to "the next level."
So with 400:1 and risking $1000, you wold be able to trade 4 full lots with a TP and SL of 25? ...I'm thinking about this correctly, right?Ignored
DislikedOk – this will be a ten trade process… and we are going to assume we are right 10x in a row. The stop loss would be set at 100, as well as the take profit. Let the criticisms fly!!! Alright, so I’d deposit $1000. I would only trade a USD/xxx pair, or AUD/USD or NZD/USD… basically a pair in which I could trade a full lot or 10 mini’s with only $1000 in the account (check with broker to see if I would have a minimum margin, in which case, I may need to deposit a little more $$$).Ignored
DislikedThanks for the response Perm...
Let me make sure I understand this correctly, as I've only ever traded 100:1. My mentor always taught me that trading any higher is disastrous and too tempting when we are first starting, as well as not needed if we follow proper MM and get to "the next level."
So with 400:1 and risking $1000, you wold be able to trade 4 full lots with a TP and SL of 25? ...I'm thinking about this correctly, right?Ignored
DislikedThis scheme, however, is not intended to be a smart way to trade... it's just straight-up gambling.Ignored
Dislikedthere is one VERY big problem with your scheme, its called math you cant fool math with fancy money management tricks, it is simply impossible. this is what so many casual vegas goers do, they concoct betting schemes and think it will overcome the math ingrained in the tables. the mathematical expectancy of your trading system is the mathematical expectancy of your trading system, period! yes, if you have a successful system your scheme would be possible, but then again if you have a successful system, why trade with such huge risk? how much you bet is a function of the risk you are willing to take, but whether you win or lose is a function of expectancy.
also, lets take a look at what your scheme is equivalent to. i find this helps understand many MM issues. essentially what you are doing here you have a large trading account (all the money you are willing to invest in this scheme) but only have a small portion of the money with the broker (the $1,000). and you have a specific process for withdrawing and depositing. it doesnt sound that trick when you put it in perspective!
my advice after many years of study and reading on this subject is to stick to the simple %R mm strategy and save your time for researching your strategies.Ignored
Disliked
Thus the probability of attaining 10 consecutive wins (if that's the goal) anywhere within a sequence of 50 trades is:
If the system win rate is, for example, 50%, the probability is 4%
If the system win rate is, for example, 60%, the probability is 22%
If the system win rate is, for example, 70%, the probability is 69%
Ignored