This journal is purely insprational, keep up with the logs, and well done on it's 3 month anniversary.
- #662
- Jan 31, 2007 3:29pm Jan 31, 2007 3:29pm
- Joined Jun 2006 | Status: Trader | 5,709 Posts
Yes, I understand that - I am well aware of the correlation between the pairs. I trade with 2% of my account balance on each pair and keep tight stop losses when I first enter a trade so my losses are always much smaller than my gains.
Thanks for your advice and yes, I'm still in my trades from last Sunday
Kind Regards
Steve
- #663
- Jan 31, 2007 3:40pm Jan 31, 2007 3:40pm
- Joined Jun 2006 | Status: Trader | 2,512 Posts
I have always strived to clear 10% profits in the business I own.
Your average of 9.87% for a 4 month period shows well.
With this month almost behind us, you should start making nicer profits once the market goes back into full swing for the year, especially USD/CAD.
Your .13% from making a 10% average, my business associates would applaud your discipline along with your money management system.
Ken
(monarch)
Yes, its time for a nice trend methinks
Kind Regards
Steve
- #664
- Jan 31, 2007 3:40pm Jan 31, 2007 3:40pm
- Joined Jun 2006 | Status: Trader | 2,512 Posts
Steve... keep up the good job.
- #665
- Jan 31, 2007 3:41pm Jan 31, 2007 3:41pm
- Joined Jun 2006 | Status: Trader | 2,512 Posts
This journal is purely insprational, keep up with the logs, and well done on it's 3 month anniversary.
- #666
- Jan 31, 2007 3:45pm Jan 31, 2007 3:45pm
- Joined Jun 2006 | Status: Trader | 2,512 Posts
but since you use 2% every trade, you will always lose 2% (assuming first day stop out) regardless of how many pips you risked right??
To clarify, I use 2% of my account balance on each trade which would equate to a 2% loss if my initial s/l was 100 pips on a /USD pair or a little more on a USD/ pair. In reality my initial stop losses are under 100 pips so therefore the risk is under 2%.
Today will be an exception to the rule as we have seen large moves but remember I've yet to lose 100 pips (2%) on a single trade so far.
Famous last words
Kind Regards
Steve
- #667
- Jan 31, 2007 3:48pm Jan 31, 2007 3:48pm
- Joined Jun 2006 | Status: Trader | 5,709 Posts
Nope,
To clarify, I use 2% of my account balance on each trade which would equate to a 2% loss if my initial s/l was 100 pips on a /USD pair or a little more on a USD/ pair. In reality my initial stop losses are under 100 pips so therefore the risk is under 2%.
Today will be an exception to the rule as we have seen large moves but remember I've yet to lose 100 pips (2%) on a single trade so far.
Famous last words
Kind Regards
Steve
- #669
- Jan 31, 2007 4:11pm Jan 31, 2007 4:11pm
- Joined Jun 2006 | Status: Trader | 2,512 Posts
OK, another day over - who else was up over 140 pips on GU and their stop loss now looks like being hit for minus 54 pips??? No-one??? Just me then But thems the rules & I must stick with them.
Existing trades....
GBPUSD short from 1.9624 (s/l 1.9678 guarantees minus 54 pips)
USDCAD short from 1.1792 (s/l 1.1852 guarantees minus 60 pips)
New trades....
USDCHF short from 1.2437 (s/l 1.2582 guarantees minus 145 pips)
USDJPY short from 120.65 (s/l 121.86 guarantees minus 121 pips)
EURUSD long from 1.3032 (s/l 1.2914 guarantees minus 118 pips)
I think we may have a new record for initial stop losses but should be able to tighten them somewhat this time tomorrow. If not, new record losses will be created lol
Same time tomorrow I guess
Kind Regards
Steve
But thems the rules & I must stick with them.Existing trades....
GBPUSD short from 1.9624 (s/l 1.9678 guarantees minus 54 pips)
USDCAD short from 1.1792 (s/l 1.1852 guarantees minus 60 pips)
New trades....
USDCHF short from 1.2437 (s/l 1.2582 guarantees minus 145 pips)
USDJPY short from 120.65 (s/l 121.86 guarantees minus 121 pips)
EURUSD long from 1.3032 (s/l 1.2914 guarantees minus 118 pips)
I think we may have a new record for initial stop losses but should be able to tighten them somewhat this time tomorrow. If not, new record losses will be created lol Same time tomorrow I guess
Kind Regards
Steve
- #670
- Jan 31, 2007 4:14pm Jan 31, 2007 4:14pm
- | Joined Jul 2006 | Status: Will take it all off for Pips! | 1,105 Posts
Congrats mate!
I thought I had ya then I dropped the ball.
I'm planing a trip to Argentina in July or August maybe I'll see ya there
I thought I had ya then I dropped the ball.
I'm planing a trip to Argentina in July or August maybe I'll see ya there
- #671
- Jan 31, 2007 4:23pm Jan 31, 2007 4:23pm
- Joined Jun 2006 | Status: Trader | 2,512 Posts
Congrats mate!
I thought I had ya then I dropped the ball.
I'm planing a trip to Argentina in July or August maybe I'll see ya there
Well turbo, I calculate that if these stop losses are hit tomorrow, you'll have a 498 pip head start for Feb
Best of luck for Feb
Kind Regards
Steve
- #673
- Jan 31, 2007 4:38pm Jan 31, 2007 4:38pm
- Joined Jun 2006 | Status: Trader | 2,512 Posts
So Steve, can I assume that if a 2% risk tolerance allows you to take (say) 1 lot with a 100 pip stop, you will take 2 lots if the initial stop is 50, 4 lots if 25 etc etc. ? or are you in fact just taking a single lot (whatever that may be for you) on each pairing. I am also assuming your results are pips per 1 lot.
It would be interesting to compare the pips per lot results to results from using a constant 2% exposure on initial entry...something I might do on a rainy day, but intuitively this means your smallest lot size is almost always going to be GBP/USD, which of course has been your biggest earner, so the issue is by scaling up the other pairs, might this improve an account balance, or wreck it....
Of course the alternative is exactly as you are doing, keeping lot size fairly constant throughout - this in fact is giving you most 'risk exposure' to GBP/USD, and less to the others, which could possibly be the best way to do it....
But I'm curious to find out...lol
I don't suppose you have kept an Excel log of the entry/intial stop details for your live testing, that would allow a quick and dirty overlay of differing lot sizing to see how the '2% on every position' set-up compares?
cheers
I always take 1 trade on each pair using 2% of account balance on each, whatever the stop loss. As you probably know if you've read the previous 672 posts with due diligence (
), some days the initial stop losses across the pairs may average 50 pips per pair & therefore the risk there would be closer to 1% if they all stopped out on day 1.Once we're into day 2, 3 etc of a trade and the stop loss has moved into positive territory we essentially have a free trade and let the trade run until the market dictates I've had enough.
I'm only trading with a couple of hundred dollars & therefore I'm only trading a micro at 4 cents a pip on /USD pairs lol. When I get to $250, I'll trade 5 cents, $300, 6 cents etc.
The important thing is I'm getting very comfortable with the system & I concentrate on pips & % increase in account balance. As I move up money wise, the idea is not to look at the $ and just concentrate on the job in hand.
Unfortunately for you, the only documentation of trades taken is right here - the idea is to keep me honest and to show every trade, good, bad & ugly. I've considered fiddling around with risk & lot sizing but so far, after backtesting and now live at around 10% each month, I don't want to change a winning formula.
Kind Regards
Steve
stevie,
i still watch your progress almost daily and admire your attitude, interest, and diligence more and more, you've even rubbed a little of your "relaxation" off on me, it's like when i read this thread everything gets peaceful around me.
keep it going.
its amazing how addicted to forex we all are
.
i guess theres worse things we could be doing with our time and money, right?
i still watch your progress almost daily and admire your attitude, interest, and diligence more and more, you've even rubbed a little of your "relaxation" off on me, it's like when i read this thread everything gets peaceful around me.
keep it going.its amazing how addicted to forex we all are
.i guess theres worse things we could be doing with our time and money, right?
- #675
- Jan 31, 2007 4:53pm Jan 31, 2007 4:53pm
- Joined Jun 2006 | Status: Trader | 2,512 Posts
stevie,
i still watch your progress almost daily and admire your attitude, interest, and diligence more and more, you've even rubbed a little of your "relaxation" off on me, it's like when i read this thread everything gets peaceful around me.
its amazing how addicted to forex we all are
i guess theres worse things we could be doing with our time and money, right?
Good to see you here again & pleased you are enjoying the journal. I'll keep going for the full year test & maybe we can get up to a million views by then
Hmm, that's a thought......maybe I can start charging a dollar for each view
Kind Regards
Steve
- #676
- Jan 31, 2007 5:16pm Jan 31, 2007 5:16pm
Yeah, OK, so in fact you're logging the pip result but not adjusting for trade size, however, you have recorded your monthly % returns on capital, which probably should satisfy my 'curiousity' when I think about it.
I fully understand your method, and commend you for remaining totally unmoved by the constant stream of suggestions for change. I was only seeking clarity on position size and that is now clear enough, thanks
- I knew you were going to say that...
regards
Xerof
I fully understand your method, and commend you for remaining totally unmoved by the constant stream of suggestions for change. I was only seeking clarity on position size and that is now clear enough, thanks
Unfortunately for you, the only documentation ....
regards
Xerof
- #677
- Jan 31, 2007 5:22pm Jan 31, 2007 5:22pm
- Joined Jun 2006 | Status: Trader | 2,512 Posts
Yeah, OK, so in fact you're logging the pip result but not adjusting for trade size, however, you have recorded your monthly % returns on capital, which probably should satisfy my 'curiousity' when I think about it.
I fully understand your method, and commend you for remaining totally unmoved by the constant stream of suggestions for change. I was only seeking clarity on position size and that is now clear enough, thanks
- I knew you were going to say that...
regards
Xerof
Even if I had that excel file, I would have had to take into account the whipping your boys gave our 'cricketers' the last couple of one-dayers, so you may not have got them anyway
: (joking)Thanks for your interest
Kind regards
Steve
Hi Steve,
You could be in danger of becoming famous (as well as rich) .
You mentioned in your a couple of posts back about increasing your lot size as the account grows to 250, 300 and so on.
Have you considered doing this on a daily or at least weekly basis. If your balance has grown by 1% increase your lot size by 1% (I presume you are able to do this as you trade a micro lots.) If your account decreases by 1% you would reduce it by the same amount. Your risk would then always stay the same instead of reducing as the balance grows before reaching the next compounding waypoint.
It occures to me that by doing this you would greatly improve the compounding power without compromising the method and more importantly the discipline you exercise.
Some of the more experienced traders here on FF will no doubt find a flaw here, but thats Ok.
I presently do this with my account and it works great (especially now that I am becoming consistantly profitable, well most of the time).
Just seems a common sense approach to make the most of compounding.
Regards.
Chris.
You could be in danger of becoming famous (as well as rich)
.You mentioned in your a couple of posts back about increasing your lot size as the account grows to 250, 300 and so on.
Have you considered doing this on a daily or at least weekly basis. If your balance has grown by 1% increase your lot size by 1% (I presume you are able to do this as you trade a micro lots.) If your account decreases by 1% you would reduce it by the same amount. Your risk would then always stay the same instead of reducing as the balance grows before reaching the next compounding waypoint.
It occures to me that by doing this you would greatly improve the compounding power without compromising the method and more importantly the discipline you exercise.
Some of the more experienced traders here on FF will no doubt find a flaw here, but thats Ok.
I presently do this with my account and it works great (especially now that I am becoming consistantly profitable, well most of the time).
Just seems a common sense approach to make the most of compounding.
Regards.
Chris.
- #680
- Jan 31, 2007 5:46pm Jan 31, 2007 5:46pm
- Joined Jun 2006 | Status: Trader | 2,512 Posts
Hi Steve,
You could be in danger of becoming famous (as well as rich)
You mentioned in your a couple of posts back about increasing your lot size as the account grows to 250, 300 and so on.
Have you considered doing this on a daily or at least weekly basis. If your balance has grown by 1% increase your lot size by 1% (I presume you are able to do this as you trade a micro lots.) If your account decreases by 1% you would reduce it by the same amount. Your risk would then always stay the same instead of reducing as the balance grows before reaching the next compounding waypoint.
It occures to me that by doing this you would greatly improve the compounding power without compromising the method and more importantly the discipline you exercise.
Some of the more experienced traders here on FF will no doubt find a flaw here, but thats Ok.
I presently do this with my account and it works great (especially now that I am becoming consistantly profitable, well most of the time).
Just seems a common sense approach to make the most of compounding.
Regards.
Chris.
OK, you raise a couple of valid points here.
I could do exactly as you say and calculate my lot size that way - to be honest it has just been easier the way I have done it but I do get your point. It may be too much for my brain to handle if I over complicate matters
. Seriously, my feeling was that by doing it this way the risk was reduced and being a cautious person......lolAs I've stated earlier, I'm hoping to be able to place some money into the account in the summer to bring it up to $1000 and that may be worth looking into then.
As far as reducing the size is concerned when the balance dips down, yes I do that too - the balance straddled the $200 mark for a week or so which meant that new trades were placed to reflect that.
Thanks for your interest & comments
Kind Regards
Steve