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Losing.....

  • #1
  • First Post: Jan 27, 2009 11:03pm Jan 27, 2009 11:03pm
I have been trading forex for some time. Previously I am a bank dealer trading on bank's capital. But afterward I start to trade on my own capital. I started out with $5000, once it reached $6500, but now ends up only $4000 something. Although it might sound little to some, I only trade 10K for every trade and put only 40pips S/L. That means that I lose for 25 consecutive times. When I come out with a method of trading which yields quite good results when doing backtesting, once I started to use it, it loses my money. I am very frustrated that I feel that it is impossible for me to win. When I still am a dealer, my trading record is much better. I don't know why I can't copy my performace in bank into live trading.

Do any great traders have similar experience? What should I do? Do I trade forex in business way?
  • #2
  • Jan 27, 2009 11:19pm Jan 27, 2009 11:19pm
Just trade small the same way you trade at work untill you get your confidence and devolope good habits


Best regards


Dale
  • #3
  • Jan 28, 2009 1:22am Jan 28, 2009 1:22am
It doesn't have anything to do with his "habits."

He followed his system with discipline and lost 25 times in a row.

That means he was extremely unlucky or that his system didn't have an edge.



My advise: Use common sense. If you lost 25 times in a row, either stop trading or come up with a new entry/exit strategy. That's about all you can do.
  • #4
  • Jan 28, 2009 6:25am Jan 28, 2009 6:25am
If you went from 6500 down to "4000 and something" with a 40 pip SL you definitely lost more than 25 trades, more like 50 or 60. There is something wrong. If you have experience as a bank trader I find this strange, but anyway. I would review your rules, and then review your charts, go back over each trade and if you are not already doing so I suggest you start a journal. I also save a screenshot of the market each time I place a trade which helps with reviews later. There are plenty of traders on these boards who will help if you have problems.
If there is ever any doubt then there is no doubt.
  • #5
  • Jan 28, 2009 6:41am Jan 28, 2009 6:41am
Are you implying that somebody at FF can turn you from unprofitable to profitable?

Quoting Kristo
There are plenty of traders on these boards who will help if you have problems.
  • #6
  • Jan 28, 2009 8:30am Jan 28, 2009 8:30am
are you suing the same system you were using while at the bank or ?
40 pips S/L is in my opinion tight, but then again, if your system says so...
back testing doesn't equal s*it when trading live. you may backtest a system to see if it has potential, but the you must forward test it at least 6 months to make sure it profitable.
i advise you to stop trading live, and demo-trade with your system for a couple of months.
Twitter: @forexpokerpro
  • #7
  • Jan 28, 2009 8:43am Jan 28, 2009 8:43am
When I am a bank dealer, the minimum trade amount is $1m. My daily limit is $3000, monthly limit is $15000. I then usually risked the whole $1m and place 25 pips S/L, implying maximum loss of $2500 daily. But I still manage to earn about $8000 to $25000 monthly. In addition, I could not take overnight trade, ie. I can only trade within Asian to Europe hours.

Maybe God want to test my fortitude by taking string of loss before I can make a fortune in FX......
  • #8
  • Jan 28, 2009 9:10am Jan 28, 2009 9:10am
Quoting heybrian
When I am a bank dealer, the minimum trade amount is $1m. My daily limit is $3000, monthly limit is $15000. I then usually risked the whole $1m and place 25 pips S/L, implying maximum loss of $2500 daily. But I still manage to earn about $8000 to $25000 monthly. In addition, I could not take overnight trade, ie. I can only trade within Asian to Europe hours.

Maybe God want to test my fortitude by taking string of loss before I can make a fortune in FX......
Write down your system here. We will see if you can improve your edge.
  • #9
  • Jan 28, 2009 9:30am Jan 28, 2009 9:30am
I have come up with a few systems.

1. Given a trend, when the price retraces to 61.8 level of the trend, long or short in the direction of the trend.

2. At 12:00 GMT, trade GBP/JPY, go long at the highest price of the previous twelve bars and vice versa. 100 T/P with 100 S/L.

3. Trade hourly charts, go long at previous hour's hi and go short at previous bar's low. 10 pips per hour with 40 pips S/L for each.

.....

In fact I have come up with many systems. But with dismal luck, I lose the first time I use the system.
  • #10
  • Jan 28, 2009 9:35am Jan 28, 2009 9:35am
When you say you use "10K" for each trade, I will assume you mean 1 mini-lot. In my opinion, with only $5K capital and 40 pip SL 1 mini-lot is WAY to high. For better money management, you should be closer to 0.15 mini-lots for each trade. You're risking too much on each trade
  • #11
  • Jan 28, 2009 9:38am Jan 28, 2009 9:38am
Quoting LongToBeFree
When you say you use "10K" for each trade, I will assume you mean 1 mini-lot. In my opinion, with only $5K capital and 40 pip SL 1 mini-lot is WAY to high. For better money management, you should be closer to 0.15 mini-lots for each trade. You're risking too much on each trade
But 10K is already minimum. Can't be smaller
  • #12
  • Jan 28, 2009 9:40am Jan 28, 2009 9:40am
Quoting heybrian
But 10K is already minimum. Can't be smaller
Sounds like you have a regular account, no a mini account. You need a new broker that offers a mini account. If you dont do this you will be broke in a very short amount of time.
  • #13
  • Jan 28, 2009 3:44pm Jan 28, 2009 3:44pm
Quoting heybrian
Maybe God want to test my fortitude by taking string of loss before I can make a fortune in FX......
I don't think that it's God that you're dealing with here.

Get a mirror ()...and a micro-account!

In all seriousness - I wish you well. Keep at it!
  • #14
  • Jan 28, 2009 4:53pm Jan 28, 2009 4:53pm
Quoting LongToBeFree
When you say you use "10K" for each trade, I will assume you mean 1 mini-lot. In my opinion, with only $5K capital and 40 pip SL 1 mini-lot is WAY to high. For better money management, you should be closer to 0.15 mini-lots for each trade. You're risking too much on each trade
I think you need to update that abacus to one of these new fangled calculators.


1 mini-lot = 10k base currency (for example use USD)

0.15 * 10000USD (1 mini) = $1500 = $0.15 per pip.

40 pip risk * 0.15 = $6

expressed as a percentage of account size = 0.12% risk per trade.

A bit conservative isn't it?

I think you mean 1.5 mini-lots ($15k), in which case the risk per trade would be 1.2% risk per trade. But then, sounds like heybrian has still got to figure out something that has a positive expectancy, and that should be done with 0 risk. Get yo'self on demo, there ain't no shame in it. There is shame in throwing money at the market expecting things to just click when they haven't done before.
  • #15
  • Jan 28, 2009 7:36pm Jan 28, 2009 7:36pm
Thanks for all replies.

Trading at 10K with 40 pips S/L only comprises of 1% risk. I think that sounds reasonable, given that when I was a bank dealer I risk 1m with 30 pips S/L for each trade, when translated to live account it is $100K with $300 S/L per trade.

Also, I live in Hong Kong. I can't find any brokers which provides micro-account.

When I was a bank dealer, we have a platform called EBS or Electronic Broking System. When a deal is done, the name of your counterparty will be shown. By noticing the name of the counterparty you will know which large market players are buying or selling a huge chunk at that prices. Dealers would use this as an information telling what is the support or resistance level. But I doubt if this is a valuable info since there are many broking platforms beside EBS.
  • #16
  • Jan 28, 2009 8:01pm Jan 28, 2009 8:01pm
bank trader? not too sure I believe you.
  • #17
  • Jan 28, 2009 8:31pm Jan 28, 2009 8:31pm
Quoting heybrian
I have come up with a few systems.....

In fact I have come up with many systems. But with dismal luck, I lose the first time I use the system.
I don't know much about systems, but these aren't systems. They're one-line ideas. Each method probably works occasionally, it's just figuring when; lots of other methods on this site explain when they work.

Plus, I don't get the emphasis on how much capital you trade. You lose or win at any level. Margin or #pips to risk, yes, adjusted to a method's ability to target a trade and a chart area's general pip range.
  • #18
  • Jan 31, 2009 11:43am Jan 31, 2009 11:43am
IMHO, because when you're a bank dealer, you'll not only lose other's money but they might kick you out.(there's a pressure). So maybe it's just psychological.
  • #19
  • Last Post: Jan 31, 2009 11:59am Jan 31, 2009 11:59am
Quoting LongToBeFree
When you say you use "10K" for each trade, I will assume you mean 1 mini-lot. In my opinion, with only $5K capital and 40 pip SL 1 mini-lot is WAY to high. For better money management, you should be closer to 0.15 mini-lots for each trade. You're risking too much on each trade
Lol how much would you risk?

Trading 1 mini (10k) you get 1$ per Pip so he risks 40 USD with his 40 SL on 5000. Now divide 40/5000 you get that it's 0.008 which translates to 0.8% Risk. How is that aggresive?
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