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Thinking 3D

  • #1
  • First Post: Nov 28, 2010 7:38am Nov 28, 2010 7:38am
I wanted to start a thread to receive people's opinions about the amount of pips one needs to make. I currently make about 4000 pips a month with a 100 pips stop using the daily charts. I am looking to take my same strategy on a intra-day level to get more money plus I get bored. I can pull this off with a 10 pip stop loss. The catch here is I may only make 400 pips a month but of course they(pips) would be worth more as I risk about 5-10% per trade.

I used to pride myself on how many pips I could make but the more I think about it, as long as I can make X amount over a shorter time frame, I could just load up on the lots.

I just read an article about being "3D". No need to make a lot of pips as long as you know you can make some, you can just make them worth more. As long as the money management is straight.

I guess I am just curious if a lot of people here go for a lot of pips or some and make them worth more.
  • #2
  • Nov 28, 2010 8:00am Nov 28, 2010 8:00am
Quoting brenzaj42
I currently make about 4000 pips a month with a 100 pips stop using the daily charts.
You know that the next question will now be something like: "What kind of strategy are you using?"
  • #3
  • Nov 28, 2010 8:28am Nov 28, 2010 8:28am
That, and "Do you have a link to the article?"

10 pips SL, 400/mo.'s scalping. Why not try shortterm (20-100 pips)?

And try the 1' TF, it'll challenge for a while.
  • #4
  • Nov 28, 2010 9:23am Nov 28, 2010 9:23am
Quoting brenzaj42
I can pull this off with a 10 pip stop loss.... but of course they (pips) would be worth more as I risk about 5-10% per trade...
This will destroy your account.

To answer your original question,
I go for 'some' pips and make them worth more.
My current position sizing is 6 pips = 1% of account balance.
My stops are volatility based with discretion.

People underestimate the volatility within even a 1 minute timeframe.
Liquid EUR/USD. 10 pips probably OK for most of the time, but not all.
GBP/USD and EUR/JPY ...10 pip stop... forget about it.
The sleepy, slower ones ... maybe.
  • #5
  • Nov 28, 2010 9:48am Nov 28, 2010 9:48am
Regularly pulling in 4000 pips/month is very good. With a 2% risk and 100pip stop, those 4000/mo should give you over 1000x return in a year (+80%/month). If you're not satisfied with that, something's wrong! Are your actual results different from that?

The easiest way to make your pips worth more is to have a bigger account... if trading is your sole income, then while you'd struggle to get by trading micro lots, you'd be laughing trading full lots (with your 4000pip results). The nice part about that is that it doesn't require messing with a winning strategy to get you more returns.
  • #6
  • Nov 28, 2010 11:42am Nov 28, 2010 11:42am
I have been doing the intra-day thing for a month now. My stops are maybe 10 or 20. It is working out. I was just curious to see if people would rather accumilate a bunch of pips or several and load up the lots. For me trading my daily strategy only requires me to look at the computer once a day for 5-10 minutes where my intra-day strategy requires me to sit in front of my computer from 9am est to about 12am. I am aggressive with my money management. I usually risk between 10-15% per trade. I feel comfortable with that because I win a lot.

Quoting Intu
This will destroy your account.

To answer your original question,
I go for 'some' pips and make them worth more.
My current position sizing is 6 pips = 1% of account balance.
My stops are volatility based with discretion.

People underestimate the volatility within even a 1 minute timeframe.
Liquid EUR/USD. 10 pips probably OK for most of the time, but not all.
GBP/USD and EUR/JPY ...10 pip stop... forget about it.
The sleepy, slower ones ... maybe.
  • #7
  • Nov 28, 2010 11:45am Nov 28, 2010 11:45am
I know, I shouldn't have stated that. I just like using this forum for feedback and opinions and just wanted to know what people's preference is.


Quoting 7bit
You know that the next question will now be something like: "What kind of strategy are you using?"
  • #8
  • Nov 28, 2010 11:54am Nov 28, 2010 11:54am
Quoting brenzaj42
I have been doing the intra-day thing for a month now. My stops are maybe 10 or 20. I usually risk between 10-15% per trade. I feel comfortable with that because I win a lot.
Do you have any 'snapshots' of your results, perhaps performance records, so that people can see that this is possible and emulate your success? Your trades over the past month would be interesting to see.
  • #9
  • Nov 28, 2010 12:03pm Nov 28, 2010 12:03pm
well, i could, but the point to my post is that i have been trading off of daily charts for the past three years making around 4000 pips/month. after reading the "thinking 3D" article, i have applied the same strategy to intra-day trading to make 50 pips/day but using a much smaller stop loss allowing me to trade with larger lots. I kind of like the idea of getting into a trade for a couple hours and then closing it out instead of managing a trade long term. actually i'm doing both right now but just wanted some feedback. It might just be interesting to me because it is something new, not sure.


Quoting Intu
Do you have any 'snapshots' of your results, perhaps performance records, so that people can see that this is possible and emulate your success? Your trades over the past month would be interesting to see.
  • #10
  • Nov 28, 2010 12:11pm Nov 28, 2010 12:11pm
i use just 2% per trade and was happy with results
  • #11
  • Nov 28, 2010 12:24pm Nov 28, 2010 12:24pm
Quoting brenzaj42
i have applied the same strategy to intra-day trading
The smaller the stops the more the transaction costs come into play, But if your system is able to overcome this even on smaller timeframes then I see no reason why you should not do it.

I am still interested to learn how your trading strategy looks like.
  • #12
  • Nov 28, 2010 12:32pm Nov 28, 2010 12:32pm
My bread and butter is trading off of daily charts. It is so simple that I hate to tell people on this forum because they think it can't be that simple and is usually followed by some type of cynicism. I just use a 5ema and 12ema and wait for them to cross in the direction of the weekly trend. The key is that the cross has to look a certain way. It has to have good angle and separation. When you spot that pull the trigger and ride it till it bucks you and means a good cross back in the other direction. Also, parallel and inverse analysis will give me confidence as well. Like I said, simple but it works.



Quoting 7bit
The smaller the stops the more the transaction costs come into play, But if your system is able to overcome this even on smaller timeframes then I see no reason why you should not do it.

I am still interested to learn how your trading strategy looks like.
  • #13
  • Nov 28, 2010 1:04pm Nov 28, 2010 1:04pm
I am not saying I am not happy. I trade for a living and I am quite comfortable and satisfied. I just wanted to receive other people's opinion on "thinking 3D". basically more pips worth less or less pips worth more. thats all




Quoting Widget
Regularly pulling in 4000 pips/month is very good. With a 2% risk and 100pip stop, those 4000/mo should give you over 1000x return in a year (+80%/month). If you're not satisfied with that, something's wrong! Are your actual results different from that?

The easiest way to make your pips worth more is to have a bigger account... if trading is your sole income, then while you'd struggle to get by trading micro lots, you'd be laughing trading full lots (with your 4000pip results). The nice part about that is that it doesn't require messing with a...
  • #14
  • Nov 28, 2010 1:27pm Nov 28, 2010 1:27pm
Using high leverage, risking more than the mantra of 1% per trade and using tights stops is all fine as long as you know what you are doing and as long as it fits your personality. You said that you've been doing this for about a month so I would say that you're all fine on both counts. End of discussion, I guess.... If you were the only one witnessing the fall of the proverbial tree in the forest, is there really a question as to whether the tree fell or not? Would you really want other people confirming that the tree did indeed fall regardless of their presence in the forest at the moment the tree fell? I'm speaking metaphorically here, of course, but my point is that there are people who are doing the same thing you have described (daytrade with high leverage, tight stops, high risk per trade) but there aren't many out there (maybe FF isn't the best place to measure this by, but that is irrelevant ATM). More likely, though, there will be people telling you it is impossible, that the tree didn't fall, most likely because they have either blown up their account trying to do the same thing OR they are just not made for daytrading.

Maybe I'm a freak of nature of some sort, but I'm actually trying to do the opposite of what you're doing. I've been daytrading for a while now and I'm in the middle of developing a strategy for use on higher timeframes.

Anyway, my point here is that everything is possible and if you've already been there, done that (maybe you've even got the T-shirt), you don't really need us to confirm that you really can.

Good luck!
If you don't risk, you don't ever have to lose.
  • #15
  • Nov 28, 2010 1:33pm Nov 28, 2010 1:33pm
Quoting brenzaj42
basically more pips worth less or less pips worth more. thats all
A 5 lots x 20 pips =$100
B 0.5 lots x 200 pips =$100
5 lot x 20 pips = 0.5 lots x 200 pips

A=B

The math works. No further proof necessary.:nerd:

Good luck compounding!
If you don't risk, you don't ever have to lose.
  • #16
  • Nov 28, 2010 1:36pm Nov 28, 2010 1:36pm
I hear what you are saying but again I have been trading full time for 3 years. I usually trade off of daily charts and just started incorporating the strategy intra-day over the last month. I know it works and I am not looking for confirmation from anyone. I was simply wondering if people here like a lot of pips worth less or less pips worth more. "thinking 3D". I have found this forum to be an outlet for me because I love the forex market but I really do not have anyone to talk to about it. I do not know anybody in my entire city that trades the forex except for a couple buddies that I have recently taught how to trade. Just giving me something to do I guess.




Quoting bug
Using high leverage, risking more than the mantra of 1% per trade and using tights stops is all fine as long as you know what you are doing and as long as it fits your personality. You said that you've been doing this for about a month so I would say that you're all fine on both counts. End of discussion, I guess.......
  • #17
  • Nov 28, 2010 1:41pm Nov 28, 2010 1:41pm
Uh, OK. Forgive making such a mess. Personally I prefer less pips & more leverage although I've been seen taking more pips with less leverage from time to time.
If you don't risk, you don't ever have to lose.
  • #18
  • Nov 28, 2010 1:52pm Nov 28, 2010 1:52pm
Quoting brenzaj42
I have become a full time trader in a period of 6 months.
Quoting brenzaj42
I have been successful in this business for a long time...
Quoting brenzaj42
I trade forex for a living and...
Quoting brenzaj42
I became a full time trader after 2 months on a demo account and 1 month on a live account.
Quoting brenzaj42
I think the previous post was referring to me but I forgot to mention I have been doing this for 5 years. I have been successful throughout those five years as this is how I make my living.
Quoting brenzaj42
I hear what you are saying but again I have been trading full time for 3 years.
I googled your twitter (brenzaj42) which led me to your website...
in the About section you wrote this...

“I am a 33 years old full time Forex trader. It all started 7 years ago right after I finished my PhD in physics. I thought it would be easy since I already had a strong mathematics and research background and thought I could quickly adapt these skills to the market. However, it wasn’t that easy but I stuck to it. Since then I came a long way and now I trade Forex for living…..
Regards
John."

There are so many contradictions, I cannot find any reason to believe
the things you are saying are credible.
I'm sorry.
  • #19
  • Nov 28, 2010 2:00pm Nov 28, 2010 2:00pm
Wow, somebody has a lot of free time on their hands. I knew it was only a matter of time before someone cynical stopped in. All the quotes you posted are true but out of context so the time frames don't match but that's not my problem. Second, I do not have a twitter account or a PhD so you got the wrong guy there. I am definately not on here to tout any success I have had and not sure why you would take the time to post that. Anyway, I just wanted to talk to people about a certain topic today.



Quoting Intu
I googled your twitter (brenzaj42) which led me to your website...
in the About section you wrote this...

“I am a 33 years old full time Forex trader. It all started 7 years ago right after I finished my PhD in physics. I thought it would be easy since I already had a strong mathematics and research background and thought I could quickly adapt these skills to the market. However, it wasn’t that easy but I stuck to it. Since then I came a long way and now I trade Forex for living…..
Regards
John."

There are so many contradictions, I cannot...
  • #20
  • Edited 2:34pm Nov 28, 2010 2:22pm | Edited 2:34pm
Quoting brenzaj42
I hear what you are saying but again I have been trading full time for 3 years. I usually trade off of daily charts and just started incorporating the strategy intra-day over the last month. I know it works and I am not looking for confirmation from anyone. I was simply wondering if people here like a lot of pips worth less or less pips worth more. "thinking 3D". I have found this forum to be an outlet for me because I love the forex market but I really do not have anyone to talk to about it. I do not know anybody in my entire city that trades...
Hello Brenzaj42,

Just happened to see the title of your thread. The 3D caught my attention for other reasons. Anyhow, I have a question and a comment. Question: What got you started trading the Dailies? Comment: Once you go to shorter time-frames than you are used to, the volatility changes tremendously. Find the T/F you want to use (maybe you already have), then see how much of the roll around you can stand. How do you take your profit? Will you be using a pending order on a MA cross-over system? Will you be watching the screen for these crosses or walking away, coming back...?

Risking capital and determining $$$ and pips is an easier calculation. In the context of emotion, trading becomes very different. Would like to hear back before I give my 2 cents on how much capital etc.

Take care,

FX4Newbies
Trade what you see, not what you think or feel. Let the market come to you.
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