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Attachments: Is it possible to make 2% in month with 50k
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Is it possible to make 2% in month with 50k

  • Post #1
  • Quote
  • First Post: Edited Jul 27, 2010 4:02am Jun 4, 2008 6:33pm | Edited Jul 27, 2010 4:02am
Hello,

i am a mql4 programmer and study the forex some time ago but dont have a strategy for me, because of that i want to ask people here if it is possible to make 2% gain in a month with a 50k forex account but without so much risiko, i always read here some topics where people tell about hedging, carry trading pip values and so thinks but if i trie a strategy self with backtesting i always dont do it with succes and dont can use it at least.

What did you say here people do you think its possible 2% in month with a easy strategy, can you give me a tip?
Quoting Heino
Hello,

i am a mql4 programmer and study the forex some time ago but dont have a strategy for me, because of that i want to ask people here if it is possible to make 2% gain in a month with a 50k forex account but without so much risiko, i always read here some topics where people tell about hedging, carry trading pip values and so thinks but if i trie a strategy self with backtesting i always dont do it with succes and dont can use it at least.

What did you say here people do you think its possible 2% in month with a easy strategy, can you give me a tip?
Not is it only possible, i been averaging 1% per day for the past three years.
"i wake up in the morning, and i piss excellence"
yes
simply do lots of trades, your attitude, eyes and finger will adjusted to the risk.
the question is , is it ok for you to lose the same $$$ , mostly you shouldn't exceed your expectation beyond your fear, it will be too exciting or depressing.
Quoting Gwan
simply do lots of trades, your attitude, eyes and finger will adjusted to the risk.
the question is , is it ok for you to lose the same $$$ , mostly you shouldn't exceed your expectation beyond your fear, it will be too exciting or depressing.

By simply trading alot, imo, you're increasing your risk to an unhealthy level. I'd rather have 1 quality trade than 100 "shotgun" trades. Once you have a working strategy for trading, money management becomes the key to profitability or otherwise. I NEVER expect to lose the amount i make. I'm not denying the possibility of it happening, but my reward:risk is 5:1..ish (SL isn't set, but depends on movement). And i think, 99% of my trades are high probability.

Once you find what works for you, keep with it and you will find that 2%/month you're looking for. But don't cap yourself at that 2%...
Yes it is possible
Trade what you see, not what you think.
wich strategy is the best for do this?
Quoting Heino
Hello,

i am a mql4 programmer and study the forex some time ago but dont have a strategy for me, because of that i want to ask people here if it is possible to make 2% gain in a month with a 50k forex account but without so much risiko, i always read here some topics where people tell about hedging, carry trading pip values and so thinks but if i trie a strategy self with backtesting i always dont do it with succes and dont can use it at least.

What did you say here people do you think its possible 2% in month with a easy strategy, can you give me a tip?
Not only is it possible I could average that per trade easily with the methods I use. I don't want to keep rewriting everything I have already said and done. Just check out my thread.

http://www.forexfactory.com/showthread.php?t=89930
Maybe this is a stupid question, but...

Isn't the size of one's account irrelevant as to whether or not one
can make 2% a month? Or maybe I'm just thinking from an Oanda point of view.

http://img368.imageshack.us/img368/63/hypnoticax7.gif

You can if you believe you can!

Power of the mind and whatnot, etc...etc...

When I snap my fingers...

Not all sins are created equal
Quoting howdytest
By simply trading alot, imo, you're increasing your risk to an unhealthy level. I'd rather have 1 quality trade than 100 "shotgun" trades. Once you have a working strategy for trading, money management becomes the key to profitability or otherwise. I NEVER expect to lose the amount i make. I'm not denying the possibility of it happening, but my reward:risk is 5:1..ish (SL isn't set, but depends on movement). And i think, 99% of my trades are high probability.

Once you find what works for you, keep with it and you will find that 2%/month you're looking for. But don't cap yourself at that 2%...
we eat 2 or 3 or 5 times a day, after few thousands plates we reach few feet high.... plenty, but accodingly....
Quoting trader69
Not is it only possible, i been averaging 1% per day for the past three years.
So you multiplied your account by 2347 ?

Yeah sure...
  •  onu
  • | Joined Feb 2006 | Status: superior senior member | 746 Posts
Hello Heino
Of course its possible.
Take a look at this :
http://www.trading-challenge.com/dow...tion_FX_TC.pdf
to get a clue how many traders are able to reach way higher goals(glad to be one of them) . Average on my own 50.000 acc. round about 7%/month

Before you ask how to get it....3 years manual trading til break down mentally and monetary, than 2 years developing countless programed trading systems together with trading friends.
Just be patient, watch the market until you understand whats going on there. I did it ca.15.000 hours since i started 2003
if you cant give a 5% at least in a month with 50k then you better

dont try forex
I think one can only make such as 2% in month when he have a profitable strategy and trade this without changing always the rules, but I dont have find a profitable strategy with all in money Management Rukes and so on.
Quoting melpheos
So you multiplied your account by 2347 ?
Yeah sure...
I was waiting for somebody to say something, if this guy had started with say...$1000 he would be a multi-millionaire by now. I think its important to remember that whatever you make, you stand to lose a lot more, the first thing a 'rookie' should think about is not how much they want to make, but how not to lose money and/or blow their account (which seems to be all the rage lately), get that sorted before worrying about how much you might make.
The breaking of a wave cannot explain the whole sea.
Quoting Craig
I was waiting for somebody to say something, if this guy had started with say...$1000 he would be a multi-millionaire by now...
Not quite true, everybody always thinks that if someone is profitable and averages x% a day or x% a week or x% month etc. that they would own all the money in the world in due time. What most people fail to forget is that when someone is capable of making these theoretical percentages per the stated timeframe they will very quickly run into liquidity issues depending on their style of trading. To make x% a day one would have to be a scalper or intraday trader meaning liquidity DOES become an issue IF one compounded their earning every day to the point that slippage would be huge thus their trading plan would start to fail once they have REAL money. Who's to say that the individual claiming 1% a day compounds his earnings every day? They may simply pull out their earnings (or most of them) at any given time. Is it smart to pull out all earnings? Depends on the traders plan, it may not be the smartest thing to pull all earnings but a good trader understands it's unprobable to compound and multiply their entire account EVERY day to infinity. Just my .02
  • Post #18
  • Quote
  • Edited at 10:21pm Jun 7, 2008 5:29pm | Edited at 10:21pm
Quoting Heino
Hello,

i am a mql4 programmer and study the forex some time ago but dont have a strategy for me, because of that i want to ask people here if it is possible to make 2% gain in a month with a 50k forex account but without so much risiko, i always read here some topics where people tell about hedging, carry trading pip values and so thinks but if i trie a strategy self with backtesting i always dont do it with succes and dont can use it at least.

What did you say here people do you think its possible 2% in month with a easy strategy, can you give me a tip?
Hi Heino,

As many before me already confirmed, it is possible. I’ll go one step further and will show you how. Below is one of my methods I use on more conservative account. The trade entries and targets in example below are real, but % risk, stops and account size used here is strictly for demonstration.

So let’s start. The story goes like this:

A decent, honest and established trader wanted to help less fortunate traders to be happy and live the dream.

He said: Here is your system, and some rules:

1. You will only trade daily PBs which appear at the swing low/high.
2. You will establish your position on 23fib retracement of that pin with 90 pips stop.
3. You will only risk maximum of 2% of your account per trade.
4. You will never, ever go down to 1hr or 5min charts. You will only look at charts once or twice per day and only at a daily chart.
By doing this you will have enough time to spend with your family and friends, be happy and you will NEVER have needs to spend $$$$$ on forex trading courses from the internet or expensive forex seminars?
5.I showed you where to take initial entries, but you will have to work hard to figure out exits by yourself...

Quick math before jumping in the trade:

Acc size - $ 50k

Trading lot size = mini (10,000) / pip value =$ 1

Stop per trade = 90pips

Risk per trade = 2 % = $ 1000 for the first trade ( 50k * .02)


TRADE 1 (march 21)

Position size for the first trade = 11.11 mini ($ 1000/ 90) Round down to lower number = 11 mini lots
Long at 1.9848, TP 2.0032, Profit loss = 184 pips

Account balance = $52,024 (50k + 184pips * 11mini lots * $1)

TRADE 2 (march 28)

Risk 2% = $ 1040.48
Position size for trade 2 = 11 lots (1040.48 / 90 ). Remember to round down to lower, even number.
Short at 2.0063, TP 1.9885, Profit/loss = 178 pips = $ 1958

Account balance = $ 53,982

Trade 3 (april 6)

Risk = 2% = $ 1079 (53,982 *.02)
Position size for trade 3 = 11.99. (Use 11)
Short at 1.9941, TP 1.9761, Profit/loss = 180 pips = $ 1980

Account balance = $ 55,962

Trade 4 (may 15)

Risk 2% = $ 1119.24
Pos size for trade 4 = 12.43 (1119.24/90) (remember to lower it to 12))
Long at 1.9446, TP 1,9576, Profit/loss = 130pips = $ 1560 (130x12x1)

Account balance = $ 57,522

Trade 5 (june 6)

Risk 2% = $1150.44
Pos size for trade 4 = 12.78 (use 12 minis)
Long at 1.9566, TP 1.9700, Profit/loss = 134 pips ($ 1608)

Account balance after 5 trades = $59,130

Summary :
5 trades in 4 months on one pair only. There are virtually very good, tradable pin bars every couple months on any given forex pair,futures or stock stock market.
During those four months account balanced increased 18.26 %, which is around 4.56%/month and this is very conservative in forex. I hope I answered your question and above example will be of some help to new traders jumping from system to system. This real example was based on $1/per pip only and there are traders in the private forum whose trades are worth over $500 and more per pip. You do the math..

P.S.
If you were fine tune this method (as I have already done), so your stop loss will be around 45 pips, this is what your account balance would looked like:

After trade 1 - $ 54,048
After trade 2 - $ 58,320
After trade 3 - $ 62,820
After trade 4 - $ 66,330
After trade 5 - $ 70,216

That’s about 40.43 % profit for your account in 4 months or around 10.1 % /month. I ‘m sure many would be happy..
.
Attached Image (click to enlarge)
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Heino:
Yes it can be done by some traders - the real question is - 'Can it be done by you? - My answer is NO.
Not to be mean or anything - but you haven't got a clue what you are doing.
Put that 50K in a CD treasury note and LOCK it in for 3 years. Then take that 3 years and learn to trade. When u have an inkling of what you are doing - open an acct. Then you have a good chance of making your 2%

Good luck what ever you decide.
In trading, there is no bullshit. You either make money or you don't.
Quoting raczekfx
Hi Heino,

As many before me already confirmed, it is possible. ...
Here is an example from the PF on fine-tuned entry on last PB that formed on cable on May 5th....
Just an example and I will not go into details. My stop was 30ps and long entry (slipped ) at 1.9482
Attached File
File Type: doc Fine-tuned entry cable.doc   126 KB | 814 downloads
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