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Forex Avanture

  • #1
  • First Post: Edited 2:54am Jul 4, 2011 2:41am | Edited 2:54am
After last week results and reading some threads about trading with high leverage. I have some idea for fun, and maybe for making some extra money.

It is possible to identify entry points based on support and resistance levels, at least at 50% of cases price will bounce to another direction. Take $100 dollars and leverage 1:500. It still needs to be tested, but the movement for 100 pips is possible. It means they you will make 5 times more than you lose. For sure, price won't bounce always, but ratio 1 to 5works for me.

Let's take a look to GU 30 minute chart:

http://xmages.net/storage/10/1/0/e/3...d/2654d262.png

Suggestions, recommendations any other ideas?

P.s Look to the title of the thread, this is risky idea. I don't recommend it.

Josef
  • #2
  • Jul 4, 2011 3:14am Jul 4, 2011 3:14am
my personal recommendation to you is the following...

STOP TRADING. YOU DON'T EVEN KNOW WHAT YOU DON'T KNOW! you spend so much time trying to game forex that you can't see that you are simply making a mockery of the realities of trading. you go from trying to game the failing positive equity curve of random EA's thinking this is some smart way to earn a buck in trading instead of finding an edge for yourself, then you go to silly little games like this where you 'play' with leverage.

i can see it now. you are going to go on this little quest of your and hit a string of losers that are leveraged incorrectly and lose the account. then you will have proven how leverage is bad, right? wrong. you will have proven you don't know how to use leverage and how probabilities in trading really play out over time.

why don't you just flip a coin and be done with this nonsense!

my personal recommendation to others.... don't listen to this guy, ever.

P.S. the title makes no sense, so i assume you mean "adventure". you can't even open a thread correctly, how do you expect to trade?
Congratulations ScalaFX for coming out of the closet!
  • #3
  • Jul 4, 2011 3:18am Jul 4, 2011 3:18am
Quoting josef
After last week results and reading some threads about trading with high leverage. I have some idea for fun, and maybe for making some extra money.

It is possible to identify entry points based on support and resistance levels, at least at 50% of cases price will bounce to another direction. Take $100 dollars and leverage 1:500. It still needs to be tested, but the movement for 100 pips is possible. It means they you will make 5 times more than you lose. For sure, price won't bounce always, but ratio 1 to 5works for me.

Let's take a look to GU...
A positive expectancy system is comprised of win-rate and Risk:Reward. The risk:reward ratio alone is definitely not enough. You still need enough of a win-rate to be able to gain profits in the long-term.

100 pips are possible, but question is if it is possible with a high enough win-rate, to swallow up the losses.

Using high leverage without a properly tested system doesn't make much sense. That is called gambling and has nothing to do with trading.
  • #4
  • Jul 4, 2011 3:19am Jul 4, 2011 3:19am
Quoting nubcake
my personal recommendation to you is the following...

STOP TRADING. YOU DON'T EVEN KNOW WHAT YOU DON'T KNOW! you spend so much time trying to game forex that you can't see that you are simply making a mockery of the realities of trading. you go from trying to game the failing positive equity curve of random EA's thinking this is some smart way to earn a buck in trading instead of finding an edge for yourself, then you go to silly little games like this where you 'play' with leverage.

i can see it now. you are going to go on this little quest...
aventure - Accident; chance; adventure;
source: dictionary.
  • #5
  • Jul 4, 2011 3:27am Jul 4, 2011 3:27am
Quoting T.E.Lawrence
aventure - Accident; chance; adventure;
source: dictionary.
well in that case which is it?

personally, i think it's a total accident (in the sense of shooting myself in the foot while drunk and stoned is an accident (i.e. not an accident, but pure stupidity)).

chance has no place in forex, so that can't be it.

adventure?... well, already covered that one!
Congratulations ScalaFX for coming out of the closet!
  • #6
  • Jul 4, 2011 3:57am Jul 4, 2011 3:57am
Quoting Custos
A positive expectancy system is comprised of win-rate and Risk:Reward. The risk:reward ratio alone is definitely not enough. You still need enough of a win-rate to be able to gain profits in the long-term.

100 pips are possible, but question is if it is possible with a high enough win-rate, to swallow up the losses.

Using high leverage without a properly tested system doesn't make much sense. That is called gambling and has nothing to do with trading.
Thank you for your opinions and thoughts. Guys, that is only idea... nothing more. I'm the a little bit lazy person as we all are and trying to think out of box.
Everybody says that trading is difficult and complex. Everything genius is simple, so I'm trying to think in simple way about Forex trading and making money.
  • #7
  • Last Post: Jul 4, 2011 5:18am Jul 4, 2011 5:18am
It is definitely something that can be done, I'm not just saying it.... I'm speaking from my own experience...I grow up accounts from as low as 75$ to a nice 5 figure account.The key to succeeding with such low amount of money stands in your money management strategie, of course here I'm speaking from my own experience, and again firstly you need to have some edge over the markets.

I'll try to give you some briefly summary of what my MM strategy employed:

Firstly just to make it clear, nothing from what I'll say is from conventional text book saying, quite contrary

I don't give much wieght to % I'm looking just at pure numbers......2%,5% or 30% for me doens't mean anything, not that it's something wrong with it just that for me speak more for eg: I'm up in this trade 3500$ (Account balance: 20K) ....than I'm up in this trade 17.5% (Account balance: 20K)

The problem with the majority of traders is all in their own minds. I so often could flip 200$ into 1000$ - 2000$ in a week. Then once I reached 5000$ would hand it all back to the the market. Because some where in my brain I was telling myself that gaining more than 1500 a day or two is not right or possible for me,this reminds me one of J. Livermore story..this guy was a genius even though he committed suicided.

What gave me the break through was to look at :

-75 - 200 as one unit.
-200 - 500 as one unit
-500 - 1500 as one unit
-1500 - 3000 as one unit

Not sure if I am making sense here but it works for me but I'm managing my risk differently than the majority of the traders, I have a matrix created my myself wich guides me and helps me to properly manage my risk.

PHP Code
 
A.Balance          MaxLots  MAX Pairs   Limit DrawDown MinLots MaxLots 
75$-200$            0.1           1                 20$           0.1        0.1
200-500 $           0.2         1--2             200$           0.1        0.2
500-1500 $         0.5         1--3             400$           0.1        0.5
1500-3000 $          1         1--3             1000$         0.2          1
3000-5000 $          2         1--4             2000$         0.5          2
5000-10 000 $       5         1--4             4000$           2           5
10 000-25 000 $    10        1--5             8000$           5          10
25 000-50 000 $    50        1--5          15.000$          10          50
50 000-100 000 $   50       1--5          15.000$          10           50
>100 000$    need to be more selective and to rebuild my MM strategy
the above matrix is an old one, now I'm using one as per my appropriate account balance and with some improvements and adjustments, but basically anyone can play with the numbers as per his risk tolerance

As my account grows up I've been added a "Catastrophic level"(based on my risk appetite) and when my account balance drops below that level I bailout no matter what price does and close all my floating position. That "catastrophic level" grows up directly proportional with my account grow.

Doing this way I always control my drawdown while increasing my profits, just simple sutff nothing complicate...and it did work out pretty well for my account.

You basically push up your limits but at the same time controlling and managing the risk

hope it gives you an ideea what I was doing.

all the best!
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