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Consistent daily/weekly profits

  • #1
  • First Post: Aug 15, 2009 4:19am Aug 15, 2009 4:19am
Hello all!

I would like to take the time and ask all of you fellow traders a very important question.

I have already forged my long term wealth building strategy for forex trading. Due to the huge gains I saw with it near the end of last year, and the beginning of this year, I quit my full time job to actively pursue a career as a professional forex trader. Since then, I have been living off of the income I have been making using my strategy. However, for the last few months I have come into a dry spell with my system. Trades are now few and far between, and I am getting worried as to whether or not I can rely on my system to consistently make me money so I can pay my bills and live. I don't place as many trades as I once did due to market indecision, and lack of trend. With that said, I would like to ask all of you for some advice and knowledge on the concept of CONSISTENT daily or weekly profitable trading.

I am searching for a 2nd strategy now, so I can start generating a somewhat consistent income for myself, while using my long term strategy to build my financial independence.

1. In all of your experiences and knowledge trading this market, do any of you have any idea if this is a viable concept?

2. If so, what type of trading systems/styles should I be looking for specifically? IE: scalping, intraday, etc?

3. I have been looking very seriously at momentum based strategies lately. For example, taking trades based on how fast the price moves on a certain pair, in a small amount of time. Taking small profits, and eliminating losses to a very few, and keeping those losses extremely small. For anyone who is familiar with this type of trading, whats your experience or advice on this kind of methodology?


Thank you all very much for your input. I have been a long term "lurker" and reader of FF, and you have all helped me so much in my trading career as of late. After all, if it wasn't for all of you, I wouldn't be driving in my new car

Any input at all would be overwhelmingly appreciated! Thank you again!
-2 SCOOPS OF PROFITABLE RAISINS
  • #2
  • Aug 15, 2009 6:44am Aug 15, 2009 6:44am
God help you!!!!!
  • #3
  • Aug 15, 2009 7:10am Aug 15, 2009 7:10am
Quoting scoops

[...]

I don't place as many trades as I once did due to market indecision, and lack of trend.

I am searching for a 2nd strategy now, so I can start generating a somewhat consistent income for myself, while using my long term strategy to build my financial independence.

1. In all of your experiences and knowledge trading this market, do any of you have any idea if this is a viable concept?

2. If so, what type of trading systems/styles should I be looking for specifically? IE: scalping, intraday, etc?
Ummm... ok, two things from somebody who is not a pro:

1) I am not sure how realistic it is to expect a consistent income from a business like forex. If you rely on a single system, I'd say it is unrealistic. Markets go through different phases, change and evolve constantly... an a system may work wonderfully for six months, then stall for another six, then work again... That does not mean it is not a good system. It is a good system under certain market conditions. It is just the way things are.

There may be exceptions, but professional traders don't generally expect consistent weekly income. They have negative months and positive months... and if their systems/strategies work, some of these months may be wildly positive and make up for the rest of the year. Joel Resnik says it better:

http://www.forexfactory.com/showpost...9&postcount=32

Now regarding a second system... From your words it appears you have a trend-following system, so an obvious choice to complement it could be a countertrend system (for example you could develop something around momentum-based price action trades like pin bars, it seems you are already toying with that sort of idea). Without getting into details, one of the systems will tend to make money in the periods when the other one is not working too well, and viceversa. Of course the losses of one system in its "bad" periods will modulate the gains you are having with the other system in that very period -which is its "good" one-, but it seems that is what you are after, smoothing the equity curve.
  • #4
  • Edited 10:24am Aug 15, 2009 7:35am | Edited 10:24am
This is pretty much how I trade all the time strong long term trend or not. We first have to realize that trends exist on all timeframes and capitalize on those opportunities.

This is purely an intraday strategy. On the 15min chart place the following moving averages.

5 ema set to close
10 ema set to close
21 ema set to close

you can use others but this will get you started.

wait for the 3 emas to be running parallel to on another in a defined direction and for them to be spread out a bit. When price pulls back to the ema and "bounces off" of it take the trade in the trend direction at the close of the candle that bounced off of the ema. Put your SL on the other side of the next ema so if the price bounced off of the 5 ema you would put your sl on the other side of the 10 ema.
  • #5
  • Aug 16, 2009 6:13pm Aug 16, 2009 6:13pm
Quoting endroute
This is pretty much how I trade all the time strong long term trend or not....

Thanks for the idea, I'll look into it!

PIPADDER, thank you for the information.




Any other ideas guys?
-2 SCOOPS OF PROFITABLE RAISINS
  • #6
  • Aug 17, 2009 3:00am Aug 17, 2009 3:00am
no one?
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  • #7
  • Aug 17, 2009 3:05am Aug 17, 2009 3:05am
Quoting endroute
This is pretty much how I trade all the time strong long term trend or not....
Upon looking more closely at the strategy, I am a bit confused endroute.


What EMA are we looking for the price to bounce off of? Do we re-enter if price bounces off one of the EMAs, but goes on to bounce off another EMA of the same direction?
-2 SCOOPS OF PROFITABLE RAISINS
  • #8
  • Aug 23, 2009 4:04am Aug 23, 2009 4:04am
Quoting scoops
Hello all!

I would like to take the time and ask all of you fellow traders a very important question.

I have already forged my long term wealth building strategy for forex trading. Due to the huge gains I saw with it near the end of last year, and the beginning of this year, I quit my full time job to actively pursue a career as a professional forex trader. Since then, I have been living off of the income I have been making using my strategy. However, for the last few months I have come into a dry spell with my system. Trades are now few and...

Get trashed and put it all on red and spin the wheel.
Better yet spend it on your basic needs and find a new lousy job.
  • #9
  • Aug 23, 2009 11:55am Aug 23, 2009 11:55am
You're under-capitalised to be a professional trader if you are worrying about next months bills. Get a job.
  • #10
  • Aug 23, 2009 12:01pm Aug 23, 2009 12:01pm
Quoting scoops
I have already forged my long term wealth building strategy for forex trading. Due to the huge gains I saw with it near the end of last year, and the beginning of this year, I quit my full time job to actively pursue a career as a professional forex trader. Since then, I have been living off of the income I have been making using my strategy. However, for the last few months I have come into a dry spell with my system.
Don't let the rat beat you, Mate.
  • #11
  • Aug 23, 2009 12:15pm Aug 23, 2009 12:15pm
Quoting scoops
2. If so, what type of trading systems/styles should I be looking for specifically? IE: scalping, intraday, etc?
Trading is simple, Mate. Price goes up and down, each and every day while the market is open. There is no need to predict what price is going to do because price shows you what it is doing at all times. If you can ride a train, then you can trade.

If you want to go north, would you get on the south bound train? If you got on the south bound trade by mistake, would you get off as so as it pulls into the next station and wait for the next north bound train? If you always get off a train headed in the wrong direction quickly, you won't have much ground to make up.

There are different types of trains: local commuter, express and rocket. If you want to go north and only get on north bound trains, sooner or later you will find yourself on an express or rocket. If you get off the wrong trains quickly, you will never find yourself on an express or rocket headed in the wrong direction.

Decide if you want to go north or south and only ride trains heading in the direction you have chosen. Do not change your mind. Once you get on a train and it heads in the opposite direction, get off and wait for a train headed in your direction.

That's it, Mate. The time period you choose does not matter. Don't let the rat beat you.

"Look, for example, at this elegant little experiment. A rat was put in a T-shaped maze with a few morsels of food placed on either the far right or left side of the enclosure. The placement of the food is randomly determined, but the dice is rigged: over the long run, the food was placed on the left side sixty per cent of the time. How did the rat respond? It quickly realized that the left side was more rewarding. As a result, it always went to the left, which resulted in a sixty percent success rate. The rat didn't strive for perfection. It didn't search for a Unified Theory of the T-shaped maze, or try to decipher the disorder. Instead, it accepted the inherent uncertainty of the reward and learned to settle for the best possible alternative.

The experiment was then repeated with Yale undergraduates. Unlike the rat, their swollen brains stubbornly searched for the elusive pattern that determined the placement of the reward. They made predictions and then tried to learn from their prediction errors. The problem was that there was nothing to predict: the randomness was real. Because the students refused to settle for a 60 percent success rate, they ended up with a 52 percent success rate. Although most of the students were convinced they were making progress towards identifying the underlying algorithm, they were actually being outsmarted by a rat." - P64 HOW WE DECIDE
  • #12
  • Aug 23, 2009 12:39pm Aug 23, 2009 12:39pm
Quoting gbppip
Trading is simple, Mate....
Not heard that one before. I love it.
  • #13
  • Aug 23, 2009 12:50pm Aug 23, 2009 12:50pm
Quoting ThePipDoctor
Not heard that one before. I love it.
Glad you enjoyed it, Mate. Now make it work for you.
  • #14
  • Aug 23, 2009 4:19pm Aug 23, 2009 4:19pm
Quoting jzw
You're under-capitalised to be a professional trader if you are worrying about next months bills. Get a job.

Lol I am definitely not under capitalized. And I will never get a JOB (just over broke) ever again.

I just get worried once in a while about how much I will be getting paid.


Thank god I found a momentum based strategy. I am testing it now, but so far the results are astounding!
-2 SCOOPS OF PROFITABLE RAISINS
  • #15
  • Aug 23, 2009 4:22pm Aug 23, 2009 4:22pm
Quoting gbppip
Trading is simple, Mate....

I appreciate the post, I really do. But to be honest mate, I have read enough books, ebooks, and took enough courses. All filled with their beginner metaphorical advice. Yes, trading IS simple, but certainly NOT easy. No offense, but I'm sick and tired of all the little metaphors and stories about trading. We get it, keep it simple.

Do you have any practical advice?
-2 SCOOPS OF PROFITABLE RAISINS
  • #16
  • Last Post: Aug 23, 2009 4:36pm Aug 23, 2009 4:36pm
http://new.wavlist.com/movies/027/fri-job.wav
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