Your consistently profitable trading style | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Anyone consistently profitable using Expert Advisors? 45 replies

How long did it take to become consistently profitable? 117 replies

Programmers needed for consistently profitable system 7 replies

Your definition of Consistently Profitable? 33 replies

Consistently Profitable Signal Journal: Simple, Low Maintenance Gains 0 replies

Attachments: Your consistently profitable trading style
Exit Attachments

Your consistently profitable trading style

  • #21
  • Jan 29, 2010 1:10pm Jan 29, 2010 1:10pm
Quoting kk007
Yes and No. Discussion of MM is out of the scope here.
Totally disagree. Money management is the reason most retail traders lose. They pick the right direction, they read the charts right, and they only risk 2% of their account, but they they risk it on a 20 pip SL.

So they bleed dry the death of a thousand cuts.

My 2% is 200 pips away. My trades pyramid to the point that at one time, I had maxed out the leverage available with my broker - but I was already in profit by 50% at the time.

Retail traders think they are going to hit a homerun every time they step up to the plate. They'd do better to bunt.
  • #22
  • Jan 29, 2010 4:33pm Jan 29, 2010 4:33pm
Quoting dr_zeus
Totally disagree. Money management is the reason most retail traders lose. They pick the right direction, they read the charts right, and they only risk 2% of their account, but they they risk it on a 20 pip SL.

So they bleed dry the death of a thousand cuts.

My 2% is 200 pips away. My trades pyramid to the point that at one time, I had maxed out the leverage available with my broker - but I was already in profit by 50% at the time.

Retail traders think they are going to hit a homerun every time they step up to the plate. They'd do better...
Everyone is trading his style. Risking only 2% is a good number. Even if those 2% are only 10 pips, you can be a very consistently profitable trader.
  • #23
  • Jan 29, 2010 8:55pm Jan 29, 2010 8:55pm
If you want to discuss MM, open your own thread elsewhere please.

Quoting dr_zeus
Totally disagree. Money management is the reason most retail traders lose. They pick the right direction, they read the charts right, and they only risk 2% of their account, but they they risk it on a 20 pip SL.

So they bleed dry the death of a thousand cuts.

My 2% is 200 pips away. My trades pyramid to the point that at one time, I had maxed out the leverage available with my broker - but I was already in profit by 50% at the time.

Retail traders think they are going to hit a homerun every time they step up to the plate. They'd do better...
  • #24
  • Jan 29, 2010 9:02pm Jan 29, 2010 9:02pm
Strictly speaking, you are not yet qualified to poll here.

As stated in the first post

"If you have been consistently profitable for at least one year, or if you are an intraday trader and have been consistently profitable for many months..."


Quoting dr_zeus
I've had success for the past six months with the following:

Draw trend lines

Place a grid of 1:1 leverage limit orders above and below the trend lines

Take profit when candles get smaller / ATR drops / trend dies down

I stick with daily and hourly timeframes

+80% live since Dec 8, 2009
+85% demo since Jan 8, 2010 (different pairs)
+25% demo since Jan 8, 2010 (another set of pairs, like the live acct)


You can also trade high interest pairs with very low leverage. I earned 50% in five months on EURHUF and USDTRY. Leverage was 5:1 on...
  • #25
  • Jan 29, 2010 10:12pm Jan 29, 2010 10:12pm
Quoting kk007
If you want to discuss MM, open your own thread elsewhere please.
Every single element of a strategy contributes to an edge (or lack of an edge), if you leave out money management, you dont have a method. You can take a perfectly great entry, exit and trade management strategy, and completely destroy it through inappropriate money management. You cant pick bits out of systems and expect them to work

The other issue of course is that experience is not transferrable. You are wasting your time reading about what other people do.

Even if I gave you a profitable system, you wouldnt be able to trade it anyway. My advice would be to stop wasting your time asking pointless questions, and start working.
  • #26
  • Jan 29, 2010 10:57pm Jan 29, 2010 10:57pm
I am not going to leave out MM altogether, just that this thread cannot discuss everything.

Psychology, for example, is also very critical for trading success. Still, it is not discuss here.

I encourage people interested in MM discuss it, but elsewhere.

I am not expecting to get a winning strategy with this thread. Just see it as an interesting study. You have the right to think it doesn't worth the time, but this view is for you, not me.

Quoting Razzle
Every single element of a strategy contributes to an edge (or lack of an edge), if you leave out money management, you dont have a method. You can take a perfectly great entry, exit and trade management strategy, and completely destroy it through inappropriate money management. You cant pick bits out of systems and expect them to work

The other issue of course is that experience is not transferrable. You are wasting your time reading about what other people do.

Even if I gave you a profitable system, you wouldnt be able to trade it anyway. My...
  • #27
  • Jan 29, 2010 11:39pm Jan 29, 2010 11:39pm
Hi kk007,

i think the thread is caught in lot of misunderstanding! like traders getting caught in the middle of a pullback hehee
Trading is a delicate balance of Strategy , Money management and Psychology
  • #28
  • Jan 29, 2010 11:44pm Jan 29, 2010 11:44pm
Thanks onuniverse,

I will handle it!

cheers..

Quoting oneuniverse
Hi kk007,

i think the thread is caught in lot of misunderstanding! like traders getting caught in the middle of a pullback hehee
  • #29
  • Jan 30, 2010 10:46am Jan 30, 2010 10:46am
Quoting kk007
I am not going to leave out MM altogether, just that this thread cannot discuss everything.

Psychology, for example, is also very critical for trading success. Still, it is not discuss here.

I encourage people interested in MM discuss it, but elsewhere.

I am not expecting to get a winning strategy with this thread. Just see it as an interesting study. You have the right to think it doesn't worth the time, but this view is for you, not me.

In this case kk007, you are not going to read a consistently profitable trading strategy in this thread. MM is absolutely critical. In fact, you can almost have a random set of entries and exits and as long as your MM is sane, you will be profitable.

Exampe: I have two subaccounts on Oanda. I shorted every pair in one, and longed every pair in the other. A week later, I added another trade in each account to every pair that was in profit. I ended the week in profit. No squiggly lines, no support/resistance, no ATR, no thinking at all. This was pure MM.

And as far as psychology, it's really simple. Trade low enough leverage so that fear doesn't control you, and tell your greed that it can trade demo. But if you don't do this, then you'll close winning trades too soon and let your losers run.
  • #30
  • Edited 9:57pm Jan 30, 2010 5:34pm | Edited 9:57pm
Again, this is not a MM focused thread. Again, it is not a thread asking for a specify trading strategy.

I've repeated this many times, but certain persons keep thinking what they think about this thread.

Quoting dr_zeus
Exampe: I have two subaccounts on Oanda. I shorted every pair in one, and longed every pair in the other. A week later, I added another trade in each account to every pair that was in profit. I ended the week in profit. No squiggly lines, no support/resistance, no ATR, no thinking at all. This was pure MM
This entry method can also be called trend following, instead of MM, if you can understand what I mean.



.
  • #31
  • Feb 2, 2010 8:20pm Feb 2, 2010 8:20pm
"In trading, the easiest way to start making profit is to follow the trend, and the hardest way is to use fundamental." seems to be the conclusion I can make from the result up to now.
  • #32
  • Feb 3, 2010 11:38pm Feb 3, 2010 11:38pm
There was a time an aspired trading learner joined a chatroom of a website promotion a technical method. There were some serious traders (for a living) over there. One day a chatter using fundamental style told the learner, "It is not possible to use pure technical method to make money in the forex market, and you should learn fundamental, which is the only way to make money, non-fundamental movement is just noise, no way to make use of. I can tell you I earn a lot by analysing fundamental" The learner replied, "It may be possible to make money with fundamental, but I believe that pure technical can also make money."

As the conversation went on, other chatters join the position of the fundmental winner, saying that the learner might be too stubborn. At the moment, it seemed that everyone in the chatroom except the learner believed that learning fundamental was completely neccessary. Chatters kept suggesting how to learn fundamental and claiming it was for the benefit of the learner. Feeling that such conversation was just ironical to happen in a chatroom of a technical website, the learner has never joined the chatroom again after the incident!

I know this story is true, because the learner is me!
  • #33
  • Feb 10, 2010 6:55am Feb 10, 2010 6:55am
Quoting kk007
There was a time an aspired trading learner joined a chatroom of a website promotion a technical method. There were some serious traders (for a living) over there. One day a chatter using fundamental style told the learner, "It is not possible to use pure technical method to make money in the forex market, and you should learn fundamental, which is the only way to make money, non-fundamental movement is just noise, no way to make use of. I can tell you I earn a lot by analysing fundamental" The learner replied, "It may be possible to make money...
Hey at least you had a chat room, I don't even have one. While my method does include some technical tools, very simple support and resistance levels congruent with news releases which further identify the time of day which further identify which session is open which further identify whether the previous session was a strong trend or pure consolidation which further identify how to identify the direction you should be trading in the present session. Once all this is achieved I start to analyze the psychology behind price action, not where candlesticks move but how they move so that for example if there is 3 white soldiers on the hourly but it was pure consolidation mode upwards then that is a definite time to sell if around the area of one of the major support resistance lines as the move to the downside is substantial but before placing order I move down to the 5min and 15min timeframes to pick the optimum entry point with least probable room for error and enter there. I can visually see the "sentiment" of the traders in the market based on how each individual pip is approached. Psychologic Vision. Haha maybe I should coin that...Psychologic Vision"...lmao........Psychologic Vision

If you read all that, you just saw my winning profitable approach to the markets. Yet I know of none other on this forum that do this. In essence, any posts I make here relate to the little technicals I use but there is no one to converse with about the psychological. So why do I keep coming back? Oddity.

Btw...I didn't know which group of profitable trades to fit into
Different opinions highly valued, ignorant to slander.
  • #34
  • Edited 7:54am Feb 10, 2010 7:42am | Edited 7:54am
Thanks for replying my little story. Things in trading learning can be poisoning if it does not suit the person. The chat room mainly talks about superficial issues, with some people full of prejudge... having the idea like "if it is not in my experience, it is not going to work out".

I think in trading one key to success is to spend a lot of time to work out your own method, and I believe you have done this. Your method is using S/R with price action. I think many people here claim using this approach, but they don't call anything in terms of psychology. If so, you are "interactive" (discretionary) trader.


Quoting psiholog
Hey at least you had a chat room, I don't even have one. While my method does include some technical tools, very simple support and resistance levels congruent with news releases which further identify the time of day which further identify which session is open which further identify whether the previous session was a strong trend or pure consolidation which further identify how to identify the direction you should be trading in the present session. Once all this is achieved I start to analyze the psychology behind price action, not where candlesticks...
  • #35
  • Feb 10, 2010 8:33am Feb 10, 2010 8:33am
Quoting kk007
Thanks for replying my little story. Things in trading learning can be poisoning if it does not suit the person. The chat room mainly talks about superficial issues, with some people full of prejudge... having the idea like "if it is not in my experience, it is not going to work out".

I think in trading one key to success is to spend a lot of time to work out your own method, and I believe you have done this. Your method is using S/R with price action. I think many people here claim using this approach, but they don't call anything in terms...
It didn't take me long to realize that all of us traders are presented with the same tools due to the one true symbol of the world..the internet. So if everyone has the same tools (including news), why is it some profit and the majority fail. It is because with the ready ability of any tool for training, many forget the most important tool in their arsenal, their intellect that is attributed to their personality. This and this alone makes a trader profitable because everything is about comfort levels, you are not comfortable with your weapon arsenal aka tools, you are bound to fail. When a trader realizes this, they are however presented with a dilemma. This forum may not offer what he requires anymore as I did. So when asking myself why to stay, I simply remembered why I started posting in the first place, to help just as I would want to be helped. The true master of this is Doblece whom I respect very much.

I wonder how many others stopped visiting this site as they may have thought its outlived its purpose
Different opinions highly valued, ignorant to slander.
  • #36
  • Feb 10, 2010 7:38pm Feb 10, 2010 7:38pm
Yes. That is why many people said the method itself is not the biggest issue. It is their psychology or discipline.

Right, it is difficult to find something specifically tailor-made for each person on this forum, but there are a lot thing for reference for building up your method.

Finally, if you enjoy coming back to visit/chat on this forum, why bother about having to spend time?

Quoting psiholog
It didn't take me long to realize that all of us traders are presented with the same tools due to the one true symbol of the world..the internet. So if everyone has the same tools (including news), why is it some profit and the majority fail. It is because with the ready ability of any tool for training, many forget the most important tool in their arsenal, their intellect that is attributed to their personality. This and this alone makes a trader profitable because everything is about comfort levels, you are not comfortable with your weapon arsenal...
  • #37
  • Feb 11, 2010 7:37am Feb 11, 2010 7:37am
Need 1 more voter to meet my headcount target (50), any volunteer? Cheers!
  • #38
  • Last Post: Feb 11, 2010 9:29am Feb 11, 2010 9:29am
Thanks for all taken part. In conclusion, seem like not many voters rely on using fundamental (only 8% partly using it). Apart from another 8% selected others. Most voters fall under 2 main categories: Simple trend following and complex (relatively) technical methods. Among those who use pure technical methods, which are the majority (58%), they can be spilt into discretionary/interactive and mechanical/systematic and somewhere in between. Not surprisingly, this is the overall distribution of the profitable trading style.
Attached Image (click to enlarge)
Click to Enlarge Name: Clipboard02.gif Size: 13 KB
0 traders viewing now