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4% A Day Forever

  • #701
  • Dec 11, 2009 9:03pm Dec 11, 2009 9:03pm
That way will work Fool..its a good plan....I started hedging solely, but I've always had an itchy finger to trade, swing or scalp, but to ease the urge of the hedges and having to wait, I started the swing method.....that's my short term drug.....the hedges are my longer term....now that I'm comfortable with both, I sometimes, take swings on my hedge account, but don't do it often....
So yeah, it'll work if you keep them seperate...the scalps can take your mind off your long term...

Quoting The Fool
Well, that's it in a nutshell, ain't it? The mindsets between the two styles are really different & can't be mixed. And that's why I have set up separate swing accounts - so I can set them trades and put them aside while they run to ginormous profits. While I'm waiting, I can scalp for a few hours a day out of the scalper account. Short game / long game. I gotta believe I can roll that way.

Still working on the long game, though - not ready for prime time.
In Charts We Trust!
  • #702
  • Dec 11, 2009 9:08pm Dec 11, 2009 9:08pm
I used to do that..honestly, I came from a scalping background. The reason I keep saying I can't scalp isn't really because I can't..its because after tasting larger gains, you tend to become greedy as a scalper and then later not know when to close the trade because you get so greedy you end up giving profits away.....

I used to be a very strong scalper....making 80 - 100 percent every week or two....then after doing so for a few months, I decided a few times to go for the home run, and so I started stacking up trade after trade, making lots of open pips....and kept telling myself, just one more before my fib extensions get hit....well this worked many many times, until that day that I decided to go all in, large lots, home run, multiple scale ins....guess what? It was on the GBPJPY, the positions went against me, i saw months of profits get eaten up and then went into negative territory...I just sat there, frozen and before you know it...I had lost a nice chunk of the account that took months to build, hours on end...each day after day..........

That's when I quit scalping.....but my scalps were anything from 5 to 40 pips, anyway, that's when I decided a larger profit base afterward......



Quoting magnumfreak
You can actually combine the two styles. I trade that way. I look for trades on the 1 min but I look for opportunities to move a stop to break even and then just let it run. It's not uncommon for me to be up 100+ pips on a 1 min chart trade. I have trades that run for days and will even leave trades on over the weekend if I am up at least 75 pips.

It all comes down to your attitude towards the trade. Once I move to B.E. I really don't care what happens to the trade. I am off looking for another trade.

Looking forward to next week. I plan on...
In Charts We Trust!
  • #703
  • Dec 11, 2009 9:09pm Dec 11, 2009 9:09pm
Fool,

One way I exit long runners is I look for a bar that breaks against the previous bars' low or hi depending on trend direction, and then after it closes, wait for another bar to confirm a new low or high against the trend...two bars in a row and I'm out....otherwise, I stick to the trend....learned it from John Person's......he's excellent.


Quoting The Fool
I bet in time i could work into that but for now it helps me to be in "scalper mind" in a segregated account. Even when I catch a runner on a scalp set at BE I will usually bail out w/ 50p or less. So do you set a high range target? How do you manage exits on a long-running trade?
In Charts We Trust!
  • #704
  • Dec 11, 2009 9:14pm Dec 11, 2009 9:14pm
Quoting The Fool
I bet in time i could work into that but for now it helps me to be in "scalper mind" in a segregated account. Even when I catch a runner on a scalp set at BE I will usually bail out w/ 50p or less. So do you set a high range target? How do you manage exits on a long-running trade?
It depends on how the markets are moving. If I get several break even trades that were up 30-40 pips before coming back I will switch over and use a limit and grab 30 pips a trade (for those that make it that far). Works well during choppy days. If pairs are moving nicely like EJ and GJ and other yen pairs this week I will just let it run. I will watch how it reacts to support and resistance levels. If price moves down to support (like between late monday and into late tuesday) then drops below and holds below I will let it go, if it stops or drops below then closes back over (early Wednesday on GU) then I will close it and look for another entry. Look at how GU reacted to 1.6300 vs. when it dropped down to 1.6200.

Now, would it bother me if I would have jumped out too early? No, because I trade from the 1 min, there would be another opportunity coming along fairly quickly to get back in.

One thing I do that really seems to help is after I enter a trade I will zoom all the way out. It helps me to visualize what is going on. Let's me see the big picture.
  • #705
  • Dec 11, 2009 9:20pm Dec 11, 2009 9:20pm
Quoting X.Oden
That way will work Fool..its a good plan.....
Cool.

Well, all I need to do now I guess is get all my offshore corporations set up.

It is totally gonna rock to be a forex mogul.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #706
  • Dec 11, 2009 9:32pm Dec 11, 2009 9:32pm
Quoting magnumfreak
One thing I do that really seems to help is after I enter a trade I will zoom all the way out. It helps me to visualize what is going on. Let's me see the big picture.
What I have not been able to reconcile yet for DIBS or any hi-yield strategy is how it feels to see a BE trade move out 80 pips & then come all the way back & hit the sl.

Demoing DIBS now and going both north/south on same pairs starting each from BE scalps - in the separate swing accounts. Will go live with that soon...still experimenting with different pairs.

Thanks for sharing your trading method magnumfreak!
"If The Fool persists in his Folly he will become wise." - William Blake
  • #707
  • Edited 1:00am Dec 13, 2009 12:21am | Edited 1:00am
Oh boy, I am back with another spreadsheet!

This one shows equity progression in the scalper account, based on a Simple Plan:

Scalp for 20 pips a day (minimum) where the trade size is based on 0.2% of account equity per pip. Translates to about 1 full lot traded per $5k of account equity.

Now, 20(0.2%) = 4% per day - so there's nothing really new here.

Except for the expression of a methodical way to go about achieving that goal.

And, well, that's not new, either. I have already talked about trading this way. And I have traded this way at times. But, more often than not, I have backed off the 0.2% per pip to something more like 1/2 of that and less. And that's OK, nothing wrong with being conservative. Maybe I should just forget about daytrading & buy US Savings Bonds - they're pretty much a sure thing!

Not!

So, what gives? Why not stick to this simple plan?

Fear, I suppose, plain and simple.

There is really no reason not to proceed with this simple plan, though. 0.2% per pip with a 5-pip sl is a 1% risk - not meek but not exactly reckless. And, of course, I am usually killing losers at 2-3 pips, not 5 pips, anyway... And 20 pips a day? C'mon, really - how hard is that?

I ran into this before when my account grew into 5-figures. I was afraid to trade larger. And, as it turned out, rightly so: when I screwed up & tried to average out of a 2-lot scalp (duh) I ran it up into a 4-lot position that had to be closed in huge loss - about 60% of the account.

But that was then. And this is now. I don't average losers anymore. I don't let losers run past the sl limit. And I do try to extend winners. It seems like at least a few times a week I am riding a little scalp for a 15+ pip winner. In short, I am a wiser trader now.

OK. So the spreadsheet shows this simple plan extended to 3/14/10 (My Birthday!) - beginning from 12/14/09. Now, in truth, I might not roll into this full steam until after the New Year. Holidays are hectic here and I am still under the gun on an engineering project and that will be taking another 4 weeks, at least.

And another thing, If 4% per day works out, as shown, that gives me a 10-fold equity increase in 3-months - with about a $79,000 ending balance. Note that, by this time, trade size has gotten up to 15-lots per trade. I don't think it would be prudent to trade that large, not from a bucket-shop account. Futures, yes, but not spot forex. And also, if I start to see $25k balance in the account I am going to want to start extracting chunks of that.

Better would be to work up to the 4-5 lot trade size shown beginning in week 6 - and keep it static from there, taking weekly profits above a static level of $20k or so. I can live with $3k a week from the scalper account. The high yield accounts (for longer term trading) will be getting pretty fat & yielding some skim by then, as well.

So. All that remains is to find out if I have the cojones & the discipline to stick to a simple plan. Like anything ambitious, always easier said than done. But I gotta believe this is doable. I'll start finding out come Monday. - trading 1.24 lot scalps.
Attached File(s)
File Type: xls simple-plan-12-12-09xl.xls   29 KB | 634 downloads
"If The Fool persists in his Folly he will become wise." - William Blake
  • #708
  • Dec 13, 2009 12:40am Dec 13, 2009 12:40am
spreadsheets are a dangerous tool. LOL! I am looking at mine right now.

You would be surprised at how large of an order you can push through a bucket shop. The best way is to chop it up into smaller orders so it doesn't get flagged by the dealing desk. So instead of 40 lots you fire off 4 10 lot orders. These typically get filled instantly.

oh and my birthday is just 3 days before yours. LOL!
  • #709
  • Dec 13, 2009 12:51am Dec 13, 2009 12:51am
Quoting magnumfreak
spreadsheets are a dangerous tool. LOL! I am looking at mine right now.

You would be surprised at how large of an order you can push through a bucket shop. The best way is to chop it up into smaller orders so it doesn't get flagged by the dealing desk. So instead of 40 lots you fire off 4 10 lot orders. These typically get filled instantly.

oh and my birthday is just 3 days before yours. LOL!
Yes, but seriously: 20 pips a day? 5 x 4 pip scalps? I usually do that in the 1-2 hours past the Frankfurt open.

What's dangerous is the Fool who learns how to not lose money.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #710
  • Dec 13, 2009 11:45pm Dec 13, 2009 11:45pm
lol fool, my method is pretty much the same as yours it seems. however i cant handle such high risk of 0.2% a pip, i prefer 0.1% and a target of 40 pips. i watch with interest how u go in the future.
  • #711
  • Edited 2:11am Dec 14, 2009 1:47am | Edited 2:11am
Hi Ace,

I just got started about 30 min. ago. I am scalping long E/U. I started out with a couple 1/2-lot scalps, then a couple 1-lot scalps, then one of my target size for the day of 1.24-lot. Hit all of those for 2-5 pip winners and I am up $120 in 30 minutes, or about 1.9%.

I try moving sl to BE in this choppy PA but I am starting to believe it is more trouble than its worth. I usually give up a few pips when I do that as price comes back to nick my sl. That is more of a swing trade move, maybe, or at least one to avoid in obviously ranging PA.

Have a good week & trade safe!
"If The Fool persists in his Folly he will become wise." - William Blake
  • #712
  • Dec 14, 2009 3:31am Dec 14, 2009 3:31am
Two hours in and I'm sitting at +$220 or up about 3.3%. Have one 1/2-lot trade locked in at BE +5 & its running, so I will come close to hitting 4% in this FO/LO session.

However, I didn't work up the mojo to stick to my plan. I shot one trade at 1.24-pip, which was the target scalp size for the day. Almost everything else was 1/2-lots + couple of full-lot trades. Comfort & fear won this time.

If I had stuck to my plan I would be looking at a +6-7% session, or would have hit 4% an hour ago. There were no losers. But its OK. I don't get wired up very much for Mondays.

Runner just came back & hit the +5 sl, so I'm done til NY open, if I can wake up.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #713
  • Dec 16, 2009 4:47am Dec 16, 2009 4:47am
Getting closer, shot full-size on about 1/2 of trades tonight. Hit one on a scalp that ran for 25 pips - 5% on one trade! - nice. But gave half that back on a couple misses. Squirrely PA - but workable. 0.2%/pip adds up very quick, but the flip side is true, too - ergo the fear factor. So, working on caution. Can only be good.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #714
  • Dec 16, 2009 1:41pm Dec 16, 2009 1:41pm
Quoting Jwentro
This thread is a waste of time.

No one can manage 4% per day per year. No way.

Is it possible in theory? yes.

Is it possible in real life? No.
In average, it's possible.

maybe he can't do 4% every single day but, if he make around 6% today and 2% tomorrow, he still get his 4%/day.

anyways, we'll see, in about one year we'll all know if he did succeed.

I seriously hope he'll make it.
  • #715
  • Dec 16, 2009 1:49pm Dec 16, 2009 1:49pm
Quoting The Fool
Getting closer, shot full-size on about 1/2 of trades tonight. Hit one on a scalp that ran for 25 pips - 5% on one trade! - nice. But gave half that back on a couple misses. Squirrely PA - but workable. 0.2%/pip adds up very quick, but the flip side is true, too - ergo the fear factor. So, working on caution. Can only be good.
What do you do exactly the fool?

What "method" are you currently using, following the news and just go with it?
  • #716
  • Dec 16, 2009 1:52pm Dec 16, 2009 1:52pm
Quoting Melisky
What do you do exactly the fool?

What "method" are you currently using, following the news and just go with it?
Read back thru the thread if you are really interested.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #717
  • Dec 16, 2009 3:02pm Dec 16, 2009 3:02pm
FOMC was very nice today. Lots of 2-way volatility. 30 pips up then 40+ pips down and lots of up-down in between. I caught a 15-pip scalp long at the beginning - OandA spread was 1.8 up until the minute of the announcement. Then spread went to 10 and I stayed out. Went long near the bottom of the move down (45 minutes later) and locked that in BE + 2 & it is ~25 pips up.

This is why people trade the news. An open trade with a 25-pip tp would have got hit either way.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #718
  • Dec 16, 2009 4:15pm Dec 16, 2009 4:15pm
Sounds like your doing okay dude!!!

Had 1 loser today, 40odd pips but hey thats life sometimes so even on the week here.


Modifying my system though so expecting better results soon.


Tricky Choppy market to read aswell.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #719
  • Dec 16, 2009 4:27pm Dec 16, 2009 4:27pm
Quoting Turveyd
Sounds like your doing okay dude!!!

Had 1 loser today, 40odd pips but hey thats life sometimes so even on the week here.


Modifying my system though so expecting better results soon.


Tricky Choppy market to read aswell.

u dont need to modify anything..it works 90% hit trade..its u that u need to modify with respect
whats happening D?
  • #720
  • Dec 16, 2009 4:49pm Dec 16, 2009 4:49pm
Quoting nAVIN2007
u dont need to modify anything..it works 90% hit trade..its u that u need to modify with respect
whats happening D?

Always looking for a improvement first Mod to my system since July / August area I think.

My ownly failing point is not bailing when a trade is very likely going to go against me, which I'm working on to further reduce losses.


Working too much, very little time for trading sadly, you ??
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
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