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Is trading FX for living a myth?

  • #61
  • Oct 4, 2009 3:29pm Oct 4, 2009 3:29pm
scooby-doo,
what is your money/risk management while you are trading like this? When you say oversold/overbought do you trust Stochastic or you determ that your way?

Quoting scooby-doo
Yes you can do it. I do it on a daily basis for my employer.

1. Pick a currency. (go with EURUSD because of the low spread)
2. Open 4 charts using 15M, 1H, 4H and 1D timeframes.

Buy signal

1. The trend on 4H and 1D is UP
2. The 15M and 1H are OS.

Sell Signal

1. The trend on 4H and 1D is DOWN
2. The 15M and 1H are OB

Use a SMA of 200 for the trend.

Run it on Demo account first to get a handle on TP and SL. Dont risk more than 3% per trade.

You wont win every trade due to the odd trend reversal but you will catch > 80%.

It really...
  • #62
  • Edited 3:53pm Oct 4, 2009 3:42pm | Edited 3:53pm
Quoting Orest
scooby-doo,
what is your money/risk management while you are trading like this? When you say oversold/overbought do you trust Stochastic or you determ that your way?
I am using lots of 5.0 on a large account. it doesnt really matter which oscillator you use for determining OS or OB as long as it is confirmed on 2 or more different timeframes. Also, there is no point using M15 and M30 as they basically show you the same information. So, i use M15 and 1H for the OS or OB status. You must makesure you know what the overall trend is in the higher timeframes, these also should be confirmed on 2 or more. You will ofcourse get trend reversals but these are not worth worring about.

Anyway, dont take my word for it. Give it a try on a demo account and see what your win/loss ratio is over a 5 day period. Just stick with one pair to begin with as your TP and SL will need to be adjusted for different pairs.

Below are 2 indicators that I use. Nothing else.

1. Tells you the RSI, OS, OB for different timeframes.
2. Tells you the overall trend.
Attached File(s)
File Type: ex4 UltimateRSIIndicator.ex4   11 KB | 433 downloads
File Type: mq4 SHI_Channel_true.mq4   7 KB | 417 downloads
  • #63
  • Oct 4, 2009 4:00pm Oct 4, 2009 4:00pm
Is trading fx for a living a myth?

No. I am doing it.
  • #64
  • Oct 4, 2009 5:36pm Oct 4, 2009 5:36pm
If you read to much shit on this forum, it will become a myth.. there is a good bunch of people here, and a bad bunch.. watch out! Don't let your ambitions and dreams be derailed.

Why don't you focus on trading, and get really good.. infact, why don't you focus all your energy on being the best?

get to work bud.. its possible.

I broke a 6 figure income quicker then you can .. uh .. yeah
lowest draw down possible please.
  • #65
  • Oct 4, 2009 6:52pm Oct 4, 2009 6:52pm
Quoting scooby-doo
Utter Rubbish.
Dude, sorry if I was harsh. No, it's not. Kudos to you if you've got the psychology right. Most people don't, even after using a trading method such as yours.

Try laying down the psychology on paper. It's a thousand times more difficult than the technicals and a few risk management rules.

Best of luck to you, and I do hope people follow your system's rules to the letter. It sounds like a good one.
  • #66
  • Oct 4, 2009 7:37pm Oct 4, 2009 7:37pm
Quoting ha-pattern
Dude, sorry if I was harsh. No, it's not. Kudos to you if you've got the psychology right. Most people don't, even after using a trading method such as yours.

Try laying down the psychology on paper. It's a thousand times more difficult than the technicals and a few risk management rules.

Best of luck to you, and I do hope people follow your system's rules to the letter. It sounds like a good one.
Sorry if i sounded harsh too.

But, i get fed up with people trying to make out it is difficult. Its not. Yes, you will lose some trades, this is where allot of people try changing their strategy, they shouldnt.

IF, others follow what i said (to the letter) then they will make a profit. As i am sure you know, people will try to change the rules to make more money and/or increase the number of trades. There seems to be a philoshopy on this site that you should always be in a trade. Personally, i only aim for around 2-3 trades per day using my lotsize.

Anyhow, my main point was that you can make money without it being rocket science.

Best of luck to everyone whatever system they use.
  • #67
  • Oct 4, 2009 8:19pm Oct 4, 2009 8:19pm
Quoting scooby-doo
You wont win every trade due to the odd trend reversal but you will catch > 80%..
Ridiculous, backtesting this strategy would show nothing close to an 80% win rate, not even close.

Trend following strategies like this hold up very poorly in choppy/mean-reverting markets. Why do you think the CTAs are having such a rough ride this year?

http://www.barclayhedge.com/research.../sub/curr.html
  • #68
  • Oct 5, 2009 1:46am Oct 5, 2009 1:46am
it will be if you do not use good money management to start with..

demo can only prepare you so much.. but it will not go the full way as the lack of emotions dealing with REAL money will not give you 100%

therefore when you start trading real, it is important u do not over risk..

1) you can learn as you go, with the emotions of real money getting burned!

2) you can survive long and learn more and more without margin call within a week..

i had 3 margin calls before last time..

check my article on proper money management .. it may help get you started on your road to your dream. ..

http://www.thegeekknows.com/2009/07/...grail-for.html
  • #69
  • Oct 5, 2009 10:05am Oct 5, 2009 10:05am
Unfortunately, I tend to agree. I wrote a quick indicator which shows me when RSI is OS or OB on both M15 and H1 on EUR/USD. Besides it doesn't give consolidate signal more than once in a week the entries are far from perfect. I'm not saying the system is bad, I've learned that system is usually as good as the trader is, it's just not 100% mechanical. Thanks for sharing, scooby-doo.


Quoting Trader KGB
Ridiculous, backtesting this strategy would show nothing close to an 80% win rate, not even close.

Trend following strategies like this hold up very poorly in choppy/mean-reverting markets. Why do you think the CTAs are having such a rough ride this year?

http://www.barclayhedge.com/research.../sub/curr.html
  • #70
  • Oct 5, 2009 10:16am Oct 5, 2009 10:16am
Quoting Orest
Unfortunately, I tend to agree. I wrote a quick indicator which shows me when RSI is OS or OB on both M15 and H1 on EUR/USD. Besides it doesn't give consolidate signal more than once in a week the entries are far from perfect. I'm not saying the system is bad, I've learned that system is usually as good as the trader is, it's just not 100% mechanical. Thanks for sharing, scooby-doo.
Set the RSI period to 5.
  • #71
  • Oct 5, 2009 12:17pm Oct 5, 2009 12:17pm
Yep, that's better. There are still false signals, but we are all adults here, there is no perfect system. Here is the indicator. I tuned the schema a little, so signal appears when RSI turnes from the pinnacle (or lowest) towards opposite direction. Put it on 15 min chart and trade only in main trend direction as scooby-doo described. I reailise this is absolute offtopic, so I'll stop posting system specific messages.


Quoting scooby-doo
Set the RSI period to 5.
Attached File(s)
File Type: mq4 MTF_RSI_Orest_v1.0_Alert.mq4   11 KB | 441 downloads
  • #72
  • Oct 5, 2009 3:33pm Oct 5, 2009 3:33pm
i think its possible to trade forex for a living but just like being a stock trader it is very hard and unpredictable. You have to have some money for a rainy day. Because profits are not guarnteed u could lost everything u had invested in a matter minutes especially in times like these where no one knows what is going to happen next.
  • #73
  • Oct 5, 2009 3:45pm Oct 5, 2009 3:45pm
Those folks with 10+ vouchers would tell you that your fx trading perception is completely incorrect. You shouldn't risk more than 1%-2% of your equity (not balance!) on a single trade. This way you wouldn't "could lost everything u had invested in a matter minutes". What's why this not a get rich quick business. Ideally you should have a trading system with positive expectancy plus your average profit on a single trade should be more than average loss.

Quoting youngin'
i think its possible to trade forex for a living but just like being a stock trader it is very hard and unpredictable. You have to have some money for a rainy day. Because profits are not guarnteed u could lost everything u had invested in a matter minutes especially in times like these where no one knows what is going to happen next.
  • #74
  • Oct 11, 2009 4:12pm Oct 11, 2009 4:12pm
Quoting Orest
Those folks with 10+ vouchers would tell you that your fx trading perception is completely incorrect. You shouldn't risk more than 1%-2% of your equity (not balance!) on a single trade. This way you wouldn't "could lost everything u had invested in a matter minutes". What's why this not a get rich quick business. Ideally you should have a trading system with positive expectancy plus your average profit on a single trade should be more than average loss.
So true. A trading system with positive expectancy plus your average profit on a single trade more than average loss is a guaranteed winner in the long term
  • #75
  • Oct 15, 2009 1:39am Oct 15, 2009 1:39am
Quoting ha-pattern
Dude, sorry if I was harsh. No, it's not. Kudos to you if you've got the psychology right. Most people don't, even after using a trading method such as yours.

Try laying down the psychology on paper. It's a thousand times more difficult than the technicals and a few risk management rules.

Best of luck to you, and I do hope people follow your system's rules to the letter. It sounds like a good one.
+1
I as a newbie had this kind of problem. Actually I started around two years ago and till now is able to devise a trading system which is still INCOMPLETE (Detect reversal ONLY still in testing phase though)..........

I am like the majority (greed) and is now trying one simple method to prevent me from reacting foolishly.
1) Determine if it is the right time to go in
2) If yes, predetermine your entry position, take profit position and stop loss position
3) The process will repeat untill all the pairs are analysed.
Then I close my computer and forget about it. Of cos PROPER money management is a MUST! 1% risk ratio, no more than 4 trade position per pair.

I think it is pretty good consider I am pretty emotional to price. Actually to me trading daily and above is more comfortable and less stress......
  • #76
  • Edited 2:52pm Oct 16, 2009 2:50pm | Edited 2:52pm
Hi Faith. You are asking a generic question, which is not going to help you in real trading. Your question should be "Is trading FX for a living, suitable for YOU", or "Can YOU running a FX trading business for a living?". I am assuming if brokers advertise day trading as running your own business then less people will sign up to trade because most people can not run their own business. You mention you have trade stock for few years, you should be able to tell if trading FX is right for you or not. If you can not determine if the FX trading is right for you after years of trading stock then you are not ready to trading FX for a living. You will have to wait at least 3 years before you can trading for a living. I do not trade for a living because I do not have the psychological makeup.
Have a nice day! I hope everything is going well for you!
  • #77
  • Oct 16, 2009 4:28pm Oct 16, 2009 4:28pm
Trading for a living is indeed possible, as long as you are dedicated and willing to look at it as a business. This takes a lot of discipline. It takes a lot of money to consistently make enough to live on, and make sure you have enough in savings to cover the not-so-good months. How much do you need to start? Many traders on here average between 3-5%, some more. Once you are successfully demo trading for 6 months or so, you'll know exactly how much you are capable of bringing in every month. Good luck!
skype: ststroud. let's talk trading.
  • #78
  • Oct 16, 2009 5:44pm Oct 16, 2009 5:44pm
Is trading FX for a living a myth? If it is, I don't know why I roll up to work everyday, work like a slave and give all the profits to my bosses as an end of year bonus. Then they throw me some scraps.
  • #79
  • Oct 17, 2009 11:57am Oct 17, 2009 11:57am
Quoting zarraman
Is trading FX for a living a myth? If it is, I don't know why I roll up to work everyday, work like a slave and give all the profits to my bosses as an end of year bonus. Then they throw me some scraps.
You should probably change the trading floor you work for.
  • #80
  • Oct 17, 2009 4:37pm Oct 17, 2009 4:37pm
Quoting scooby-doo
You should probably change the trading floor you work for.
I work in import/exports for a large muti-national company, hedging for protection from loss. I am going to use the training and experience that I have got from this job and go and trade for myself. I have made a lot of money for the company that I work for so I know I have skills to go out on my own. I am waiting for my bonus and then I am out. I might join Jacko and James16 groups so that I can see what they are teaching and how it differs from what I have been taught and if I can add to my skills.
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