First I want to say that this goes against most if not all money management rules and it had only been an observation I made the past few months. Setting aside the money management in regards to other systems.
I was scouring the internet for new ways <monetarily> to trade forex and make the money I think I should be trading forex. The entire time I've been trading forex it’s been all about the pips. The more pips I would get would mean the more money I make. So anyway about 3 months ago I was reading and researching on the internet about forex mistakes or other methods to trading forex. I know about the usual 90% of traders lose their accounts etc..
What I found was that even though I was doing ok from the best I could tell. I found out though that I could be doing way better. Like I said before I was focused on getting the most pips possible. So most people say trade 1 lot or 5 lots or 10 depending on the size of your account per trade (or based on your own rules of MM). Get in on the trend early and exit at the last moment and make the most pips you can. Well the problem with that mentality is you never really know where the bottom or top is. Although there may be some systems are pretty reliable at showing you these.
So anyway this philosophy I found on trading forex a few months ago was instead of going for big pip gains. You trade larger lot amounts and instead of worrying about the beginning/end of a big trend, and trying to get the most pips. You trade the middle and get what you know you can and get out. That way you minimize your losses and at the same time increase your gains. How many times have you had an entry signal looking good? Just to get within the 10-15 pips of your first TP and have it retrace?
So you’re trading your favorite currency pair using xyz system you know it has been going long/short for awhile. You wanted to get in early, but missed it. Now you’re not sure how soon it may change direction on you, but you know it may continue for a little while longer, but you aren't sure.
For ex: Once I was trading the eur/jpy exclusively we know it moves a lot through out the trading day. That particular day it went up 100 pips in about 2-3 hours. Normally I enter with 5-10 <std> lots and I still would have made around $500-$1000 on that trade. Not bad at all. Well I had the ability to trade 62 lots starting out on my demo account. So based on what I found on the net a while back I did. I was using a manual stop <basically I was just watching it for a big retrace>. I already knew there were no big news announcements due out. So I wasn't worried about that. So I entered and I would end the trade when the currency pair would retrace a little bit and take my gains, and then re-enter with 72 lots then finally 80 lots before I finished trading that day. So instead of making my usual $500-1000 .I made $4200 that day <6 hrs> after losing a little bit on the retraces. A lot better than the norm. If I could do this or better everyday I could turn this account from 10k to 90k in 1 month. I maybe able to do better than that because the more money I make the larger the lots I can trade, and the less time I would have to carry a trade to make larger amount of money. I wouldn't have to carry a trade for 2-3 days or weeks to make the same money I could in one day.
I think in order to do this you would have to know that you’re in a strong trend. Don't trade it if it is just crossing and you’re trying to get in early. The whole philosophy is to catch the middle. I know there are going to be skeptics and nay sayers. Thats no problem I have dealt with that before until they saw my trades. I do have some charts saved and hopefully I can load them here for everyone to see.
I went a total of 1mo with no losing trades this way. I took at 10k demo account and turned it in to $124k in 1 month. Recently I did have some drawdowns ,but my acct is still no where near my original account size. Most of my drawdowns were from trying to trade the news. I got away from that and I am back to my old method. With the choppiness of the market I have experienced some drawdowns there as well, but its been more like 50/50 on my trades. I lowered my lot sizes to preserve capital and I am going to raise them back up again once I get back to a winning streak. So far this week I have no losing trades if it continues into next week I will raise my lots and go back to raising them 20 lots (mini) or 2 lots (std) for every $10k I make.
I will post my old charts here when I get a chance and I will up date my trades here as well for everyone to see.
I was scouring the internet for new ways <monetarily> to trade forex and make the money I think I should be trading forex. The entire time I've been trading forex it’s been all about the pips. The more pips I would get would mean the more money I make. So anyway about 3 months ago I was reading and researching on the internet about forex mistakes or other methods to trading forex. I know about the usual 90% of traders lose their accounts etc..
What I found was that even though I was doing ok from the best I could tell. I found out though that I could be doing way better. Like I said before I was focused on getting the most pips possible. So most people say trade 1 lot or 5 lots or 10 depending on the size of your account per trade (or based on your own rules of MM). Get in on the trend early and exit at the last moment and make the most pips you can. Well the problem with that mentality is you never really know where the bottom or top is. Although there may be some systems are pretty reliable at showing you these.
So anyway this philosophy I found on trading forex a few months ago was instead of going for big pip gains. You trade larger lot amounts and instead of worrying about the beginning/end of a big trend, and trying to get the most pips. You trade the middle and get what you know you can and get out. That way you minimize your losses and at the same time increase your gains. How many times have you had an entry signal looking good? Just to get within the 10-15 pips of your first TP and have it retrace?
So you’re trading your favorite currency pair using xyz system you know it has been going long/short for awhile. You wanted to get in early, but missed it. Now you’re not sure how soon it may change direction on you, but you know it may continue for a little while longer, but you aren't sure.
For ex: Once I was trading the eur/jpy exclusively we know it moves a lot through out the trading day. That particular day it went up 100 pips in about 2-3 hours. Normally I enter with 5-10 <std> lots and I still would have made around $500-$1000 on that trade. Not bad at all. Well I had the ability to trade 62 lots starting out on my demo account. So based on what I found on the net a while back I did. I was using a manual stop <basically I was just watching it for a big retrace>. I already knew there were no big news announcements due out. So I wasn't worried about that. So I entered and I would end the trade when the currency pair would retrace a little bit and take my gains, and then re-enter with 72 lots then finally 80 lots before I finished trading that day. So instead of making my usual $500-1000 .I made $4200 that day <6 hrs> after losing a little bit on the retraces. A lot better than the norm. If I could do this or better everyday I could turn this account from 10k to 90k in 1 month. I maybe able to do better than that because the more money I make the larger the lots I can trade, and the less time I would have to carry a trade to make larger amount of money. I wouldn't have to carry a trade for 2-3 days or weeks to make the same money I could in one day.
I think in order to do this you would have to know that you’re in a strong trend. Don't trade it if it is just crossing and you’re trying to get in early. The whole philosophy is to catch the middle. I know there are going to be skeptics and nay sayers. Thats no problem I have dealt with that before until they saw my trades. I do have some charts saved and hopefully I can load them here for everyone to see.
I went a total of 1mo with no losing trades this way. I took at 10k demo account and turned it in to $124k in 1 month. Recently I did have some drawdowns ,but my acct is still no where near my original account size. Most of my drawdowns were from trying to trade the news. I got away from that and I am back to my old method. With the choppiness of the market I have experienced some drawdowns there as well, but its been more like 50/50 on my trades. I lowered my lot sizes to preserve capital and I am going to raise them back up again once I get back to a winning streak. So far this week I have no losing trades if it continues into next week I will raise my lots and go back to raising them 20 lots (mini) or 2 lots (std) for every $10k I make.
I will post my old charts here when I get a chance and I will up date my trades here as well for everyone to see.
Anyway you know what would be nice for all the new people that might stumble across this is if you give a name to your system and post your mt4 charting templates here. I know this system is based on Oz's but the style, entry point and mm has evolved so much I think it deserves it's own name for clarity's sake!
Any chance we could get some pictures of the setup later? I pretty much know it, but I bet a lot of people don't!
