Proof That Ultra Profitable Trading Is Indeed Possible

Sorry supertrader. If your using 1m and 5m charts to trade. Then sadly enough you aren't doing well. Traders who are using those tf use much higher equity, and leverage because they are certain of their entries. You should be avg AT least 30% a day using those TF. If your using such tight sl it makes no sense to trade with such low equity.

First of all, in the market prices moves mainly from boxes[ area of hi, low and consolidation ] to boxes of another after R turn S or S turn R creating fibo 38.2 of trend breakout basis with UTL and LTL, If u are trading eur/usd its a wild pair that trade on momentum mainly, meaning if u see its green on hourly and 4hourly or daily, u may want to keep placing buy stop above former resistance to trade the breakout which normally send it up about 15-50 pips to catch the pips. Whether u are using 1min , 5min they all reacts the same to each other, prices of 5min fibo 100.0 retracement is also 23.6 of 1hour etc etc before another 4 hour of another fibo. Timeframe on candle are only visual aids that helps to tell u the different timing strength, its always easier to look at bigger timeframe for clearer entries as ur trendlines and fibo is much lesser and clearer, which make it distinctive and objective. If ur trading in a 5min/15min without consulting the bigger tf of support/resistance , Supply or demand and etc. If ur likely to keep changing side.

It's easier if ur trading only 1 direction without changing ur bias, compared to keep changing every 10-20 mins up and down trying to follow all possible waves, that's actually tossing the dice too many times and cutting ur probability.

What do i mean by boxes? Prices moves due to 2 reasons mainly -> fundamental news/trigger which can cause sudden volatility and liquidity injection and withdrawal in a short time, there u get spikes with many sudden market participants or buy sell stops orders triggered.

mainly is session, for instance asia -> the japan opening hours, prices may start to range up or range down with a mini breakout. then it will go dead for awhile after falling back to r turn s, s turn r.

then frankfurt/london sessions.

then us sessions. The sessions inflows with market participants and many trading instruments will create market volatility. So its important u know what market ur trading and its behavior and volatility. For example, if i am trading good in asia and europe i may skip the us session or uses a lesser leverage/ profits accrued to trade. For instance, if i made 50 pips in europe and asia. I may want to risk only 20 pips for US session, if i am wrong i am still up 30 pips for the day, this way i am doing proper profits accumulation. If i am lucky my 20 pips can become another 20 , 40 , 60 etc etc.

The market is always there, doesn't mean one must trade all times, it's important to know yourself and know when is enough. Trader often makes mistake by having too many trades, note you are not an EA, if ur stops are tight, ur likely to get hit because u may not when exactly where thes ignite, power or rejection. If ur trading buy sell stop on the minor R and Minor S, u might want to set trailing very fast and get out by 15-20pips++ and start to add on r turn s, or s turn r, so u can catch up to a few waves, compared to u let ur profit run for 15 pips but u failed to take profit then it fades back, then it hits a breakeven 0 pips, ur wasting time.

I am a money manager myself, and i do have access to corporation/firms, but i am more of my own and my group. As i prefer freedom and ability to choose my own clients. If u want to trade for firms and corporation, it's very dependable on their styles and goals, and the trader themselves. Some traders are home based/ part time, some are office based.

If a trader is long term trader, he may have a position run for days/week, and take profit days/weeks later upon hit like ranging 100-300 pips, compared to an intra-day scalper who tries to get 30-100 pips ++ per day. Or breakout trader who trades 20:40 or 20:60 pips every time. If ur a firm trader, u may be lead by a chief-trader. If ur a part time trader, u may be given an account to trade and on ur own.

Some firms that have intra-day traders are mainly using scalping pending orders of take profit 3-20 pips every round, with tight trailing stops. They normally have 70% hits with at least 1:1 RR. A trendline entries on breakout of 61.8 fibo reversal, or 38.2 continuation have tight stop of 3-5 pips merely, as they are quite sharp, Pairs like aus/usd are trendline pairs compared to eur/usd which is more fibo based or price action based.

If ur a firm trader, u be expected to get 30 pips++ daily if ur trading at 1.0 lot, as its about 300$, x 20 days, is about $6000, the firm may get 20-50% of ur profits, depending on ur tier-grade/ account size.

If ur a corporation/funds trader, u may be given an account and trade on ur own, and expect to return 100% annually lol. That's what some private corporation are doing now. If ur a fund trader, and ur trading at example 500k account, risk 1-2% per trade is unwise unless ur really that sharp in price entry with proper risk reward and trade plan, for example if u can secure at least a 20:40 pips 1:2 RR, or at at least a 20:20 most of the times as u lock trailing to 20 pips before stopping out, and have a 50% win ratio++, then maybe ur suitable for 1-2 % per trade.

If not everytime losing 1-2%, 5 trades, ur down 10% at 50k , that's costly to a 500k account. Imagine a year we trade about 265 days ++, if everyday, a trader can secured a 0.5%, ur easily 100% annually, of 500k, imagine ur commission is 30% for example, ur making 150K per annum as a trader of 500k account, if u can make 100% safely every year with a very low dd less than 10%, most often or not, ur coporation /fund will give u bigger account into m size.

Some clients expects bigger returns, fast returns, so its dependable on the trader and the client/corporation.

I personally would advised u that to forgo all losses u made in the Forex market, u have paid enough school fees. Go back to Demo account/paper trading, execute up to 3 trades max per day, and each trade try to snipe a 15-30pips take profit with a good trailing stops and entries. Do it consistently, max trade 3 per day, u would see clearer picture of ur own system, and trade only 1 pair, don't confuse urself with many pairs and charts, ur likely to get confused, aus/usd down, eur/usd may be up, it can be confusing if u want to long both, thinking they are against USD.

Most often or not, a firm/corporation is not really enticing to look at your track record, because what u done on ur account may not be done on their account as money dont belong to u and size is different. Often they would give u a small live account like 1-10k as a test account for u to run ur system for a 1 month at least and they will analysis ur behavior and characteristic, and while ur trading ur test account its linked to a demo account of the actual size. For example, ur trading 0.1 lot on ur 10k account, is linked to ur demo account for mirror trading at 1.0 lot on 100k account, so they can judge u better on ur system and consistency.

They would want to know u in person instead, probably alot of interviews, and know how u would to handle draw down, and down times and in under-water scenarios and bad trades, and how u come out from it. For example, i am more interested to know how a trader can make himself out from under-equity safely rather than seeing him with enormous returns. Which is why most firm categorized their traders, so overall they are diversified in their risk management, trader A B C can be aggressive, A B die, but C survived with returns higher than A B combined. D E F low risk with safe returns, A - F overall balance of 20-40% returns annually after minus all, is still favorable depending on the fund size.

There are examples of trading higher risk to low risk account, for example if i am executing ur current trading plan and thinks that gains can be high, what i may want to do is to lock a hard stop of that system of 80%. Meaning if i trade 1k, if i do make money, i continue with that system if i do not make money as soon as equity get down to $800, i am out on that account and system, as it's not viable. On the other hand, i may have many 1K on different accounts for different risk, so in a way ur managing ur risk in many accounts, one account -20%, one + 30%, one + 15%, one - 5% etc etc, ur still making money, that's what most hedge fund do as well. Which is why option trading is very much favored, as they risk is low, and profits is high if u know how to trade/snipe. Most option trader i know risk 200$ for 800-1000$ profits. their rr is high, and they invest in many different shares and end up profitable as they are not biased and do not married to their trade, as its a one time thingy, correct u make money, wrong u cut losers short, get into a new trade plan.


If a trader can make a safe journey of 0.5% daily into 100-200% account in a year, with dd less than 2-5%, with patience and proper thinking management, he is a much better trade compared to a trader who can make 3-5% daily, and get burn 10-20% every other day, and account get drained out.

All sounds good. Yet, how are you applying it to your account? I tend to disagree on your thesis of using high time frames for entries. Only because higher time frames have much longer TAILS, then the lower time frames. That means your chances of getting caught at the Extreme of a break is much more probable then on lower time frames.

Amberlynn: Thanks amberlynn for your post. Yes, the results was not as good as i wanted it to be. But i won't give up But average at least 30% per day? That means you are saying that if you start with 2k today after 40 trading days/two months, you would have 72million???? Please clarify. I am quite smart but i don't really follow you.

5percent: That is something to ponder upon

Great that you keep going to learn and trade. I am still learning too. Anywhere i am still watching this thread although i am not joining the discussion here frequently.
If you are trying to achieve high accuracy, and at the same time discipline yourself, my suggestion is to trade follow main trend from higher TF with applying S/R (Highest/lowest) range. 3 scenarios are unable to change, it's fixed. So trade according to these scenarios as below.
1. Major trend behavior - Trending >> Ranging >> Trending again.
2. Daily price behavior - Highest and lowest is formed during market opening.
3. Day to day behavior - Price either moves ranging within prev. day S/R range or breakout and continue trending/heading one direction

Entry
1. Always long at lowest of the day for uptrend. Never take short position.
2. Always short at highest of the day for downtrend. Never take long position.
3. Prev. day highest and lowest is S/R range. Do step 1 at support area and do step 2 at resistance area.
4, If does not have the step 3 opportunity, entry at breakout of prev. day S/R price.


As an example downtrend, price break downward trend indicator, price continue move downward direction with some correction/ranging, and finally slow down and move near to trend indicator. Now price is going to form major ranging or reversal trending scenario. After price break trend indicator and move further upward, so now is uptrend.

Why this could able to achieve high accuracy, because while price stays downtrend, you always take short position with high price. Even if major trend is going to reverse, it either would form ranging 1st or unusual reversal trending (Suddenly break over resistance price and change to uptrend now without ranging). You still take short position at high pricing until price truly break away trend indicator and resistance become support ,and move further upward direction, Then change to take long position only for uptrend. Keep doing this same.

Observation:
I noticed no matter what kind of strategy, it is origin from trend and S/R. Every strategy have it own pattern of trend indicator (To distinguish trend) and S/R indicator too (To distinguish price strength ,and shifting ability - from one location to another new location if price is not equilibrium). Every system could perform its best, however the significant thing is the relationship between these fixed behaviors. These behaviors if does not be compromised, it won't work although have trend following system. Why?
If trend indicator or time frame is applied inaccurately, the trend result would be filtered out as a improper uptrend and downtrend scenario. So it may have both scenarios during either downtrend or uptrend. And hence this is unable to compromise with daily behavior for above trading case. So in the end the whole system is disordered. So that why optimization come into play. But optimization has it limitation indeed.

Just to share.. Not offense.
Thanks.

This is the classic case of reality setting in. We all started with wild expectations, and the market beats the reality into our brain. By the end of the year, the goal will probably be just making any profit and staying afloat.

Assuming your daily profit of 30% is compounded then that would be about correct. Yet you would have to maintain the same leverage (atleast 400:1) in order to turn over your account that quickly. Yet that is very reckless. It would be smart money management to withdraw DAILY, if your able to earn those type of returns. I've seen it down here on ff so I know it is more then possible.

Super trader if u realized one thing, in scalping RR is a little hard. The probability of hitting 20 pip or - 20 pip first is actually about the same as we think logically, an entry can head north or south 50:50, but - spread to hit ur stop is about 18 pip. But in the technical and practical movements of Forex, to hit 20:20 is actually dependable on price action/trend/fundamental and alot of things involved. To hit a 5 - 10 pip take profits is 50%-100% more than hitting a 20 pip target as we think. The thing is always about probability. For eur/usd i tend to use good RR at least 1:2, but always book a be by 1:1 or nail Be + pips, may even take partial on 50% at 1:1, and trail remaining to 1:2 or 1:3 depending on the market conditions. EUR/USD is a pair that takes first break , u can't jump in again over and over again thinking that area/price level will work.

There are traders that takes every 8-12 pips from the market with a 20-30 pips stop, though u may think RR is not balance, but end up they can close their position better, as probability is higher. And their equity curve is much smoother with random 20-30 loss at some times due to breakout, but at least they are stopped out at correct level of pricing before further running losses. Most trader likes to plot on pull back or pending orders, but seldom they do buy sell limits, if they build on demand area, for example low is 1.2880, i placed a buy at 1.2884, but price break the current box of low into 1.2875, what i may want to do is to cut my loss at 1.2880 when price retraced back to support turns resistance before the break out happens, then i may go with a sell stop below again if trend is meant to go down, that's smart stop loss and understanding the price levels. Ur don't get stopped out at -9 or - 10 pips, but pull back and cut at -5 when price goes to r turn s, or s turn r. Go through ur charts, u will see a pattern.


1st time price reach a level, offers/bids may stands, 2nd time limits entries still likely to stand, as there are demand of strength to push, 3rd time price return to the same area, likely not to stand and possible crack as 1st strength ur witnessing already pull out likely, 2nd remaining are weakers, 3rd ur turning against the trend.

If ur targeting 20 pip or more, in a 5 or 15min candle ur likely to be mislead, unless ur trading the breakout, if price is ranging, consolidation or trending, its not easy to hit ur 20 pips take profit if ur stop loss is 20 pip, 1: 1 RR. I have seen ur trades entries, and i realized one common pattern is that u never book your profits. In the market, most intra-day bank trader trade at 3-5 pip stop loss their entries are very sniping as they only trade the breakout at particular sessions/news event, they commonly or not upon a full candle in their favor always will move stop loss to breakeven to get in a free trade in case of a false break, and they will likely to book partial on their first candle full body/big body close on 10-15 pips, they can enter up to 2 trade, one would book profit quite fast, one set to break even and trail, on lucky times their risk of 3-5 pips can lock up to 100 pips++ and trail higher on a trend breakout into 200-300 pips just like how eur/usd fall from consolidation range from 1.31-1.2880, broke 1.2880 it went to 1.2655 area.

If ur scalping, its either u should lock to break even very quickly like an ea upon 3-5 pips ahead, u can choose to take profit fast and get out and get into a new set up, i noticed ur in the right trend most of the time, but ur failures lies in greed and failing to book profit/breakeven trade. Remember this thing, if u can book 30 pips per day safely without losing to the market ur making 600 pips per month and 7200 pips per year.

If u book 7200 pips at 10$ per trade, u made 72000 per year, if lets say 50% commission ur making 36000 per year safely and more than $2000 per month as salary. Consistency is what u are lacking currently.

Expectation can be one thing, risk control is much respected over gains.

what AmberLynn said are for scalpers/range trader mainly, that's what some good traders do they don't marry a trade, for example, their wallet have $10000 , but for example any one time they are only trading $500 on their main account, and doing at about 0.5 lots per trade with 100 pips buffering. If they can nailed $300/500, they made 3% of of $10000 wallet size, if they lose they lose only 5% max per time, this control their risks and protect their main capital. But u have to ask urself again, like i said, u want to be a trader for what reasons? for trading urself? or u want to trade for someone else, if u want to trade for someone else ur mentality have to change. Most traders that are scouted/employed are because of their risk and money management, not how good they are in trading.

Not 1 system works all the time, market conditions always changes, but what matters is longevity and sustainability in this market. Just my opinion, If i am a chief trader/firm employer, i don't want to get my trader into the office to question them about 30-50% loss/draw down that's net loss, though good times they can make like 20-40% or even 100%, but often or not, what happened in the market for retailers if that they will gain after a long time and loses everything in a week/event/day as things goes out of control. I would prefer a trader that trades in a comfortable and emotional states with very little draw down, imagine the dd is like 1-2%? daily gain can be like 0.3-0.5%, but the entire year the dd is only 2%, meaning if i invested 100k with that trader, at any one time i still have 98K with him to trade with. I feel much safer compared to a trader that loses 10-40k of my 100k investment, in the Forex Market, compounding is a very strong factor, don't underestimate that 1-2% gains.

I know of my friend's corporation, some traders can make amazing 100-200% per year on big accounts, but sometimes, the entire dd on bad months can cost up to 20-40% net loss on main capital, even if u accumulated 30-50% in the 1st few months, ur -40% for next few months will be highly challenged/questioned, the trader then gets berserk and emotional, then the firm had to send them for counselling and workshops to improve their trading ethics. The investors would question why net loss of 20-40%? they don't care what u make 100-200% the last time, but they care is now and now, that's what the demand and expectation of private investors in private corporation that i know of. Therefore, i would prefer, a safe return annually on a big account, as the commission/pay is already good enough compared to those jobs outside there, as we are talking about for a living, not yet to millionaire / financial freedom mindset. If u have a million, u may actually do not want to trade anymore, but invest in the market to look for traders to trade by diversifying ur million into 10 100K account and see what they can do, with a hard stop at 80K, so end of the day, if the investment failed, u still have 800k. That's money management and risk management. So u really need to think what u want and what u seek for, everyone can introduce or advise u here and there, but note that ur an individual, u think for ur own of what suits u best.

5% equity loss isn't that bad at all, quite normal in fact. Why did you take down the myfxbook link?

5percent: Thats a lot.

mmaker: Yes, i changed broker. Also i found a more efficient way to trade the market.

I think it is very possible to make millions in the market by scalping few pips at a time. But for billions you would need to change your strategy. I have both the strategy now. It is all about pattern recognition. Our brain is the best computer in the world. Your mind is very powerful and when it comes to reasoning nothing can beat your mind. So we all should stop from searching the holy grail green and red indicator and start observing the price.

Do we have to enter a trade or just keep on observing the price?

Just observe the price no need to enter a trade. Enter a trade in your mind if you want to. Make a system with 1:1 ratio or 1:2 is better. If you can be right 70% of the time with consistency over a period of 1 year you have completed your task. Our mind can be trained to do anything. We are very good especially in reasoning.

Just an analogy. When roger federer serves he aims for the line...and sometimes/most of the times he can hit the line. If you think critically to hit the line you would need milliseconds of perfection...everything must be perfectly alligned....so our brain actually already made all the calculations without we knowing it. Subsconscious mind.

We are very adaptive so if you want it bad enough and do the repetitive training again and again one day you would reach there.

There are just two ways either you become a good trader or you can find a good trader to trade for you...but usually successful traders is hard to find. I am not yet a successful trader.

supertrader9, Hi bud hope your good. To reconise patterns is still luck if you succeed as you do not know what the third party will do. It does have its merits though. The only thing that is guaranteed is that an old resistance,support line will be broken at sometime or price will bounce of it and that is where you will make money. If you scalp the odds of winning are then lower. You are getting close to the idea of trading just keep learning/studying and wham then you'll know. take care bud

I think i might be confusing you here...i am not trading the textbook candlestick patterns of course. What i was saying is you can train your self to only take winning trades...by exposing yourself to so many trading occurrences and learn from it. What happens when a+b+c+d or a+b+x-c etc...Winning patterns is not fixed..it can be support and resistance..it can be a breakout pattern in london session, or a pattern before news release or ma suppor/resistance etc. That was what i meant by trading patterns. It can be a anything but it must a winning one. If you can create a system with 70% accuracy then yes you got your 'own pattern' to trade everyday.

[quote=Supertrader9;6230833]I think i might be confusing you here...

ok i forgive you lol. No doubt you will get people trying to be funny with what you say. I do know what you say about patterns though. My girl trades every so often and has made in her opinion lots and lots (she is 9) and she sees patterns but she wont tell me. be good

I am a good trader. I made 50% on my first ever trade while still in high school........................ bought a pair of jeans for $10 sold for $15, I am now trying sell victoria's secret.

Have you updated the myfxbook link? How is the new live account doing?

http://shrani.si/f/3t/hZ/46tqh2R5/untitled.png

Trying to trade like 'normal' is not easy...what i have been trying to do was to find a way to trade without failure. To win without losing and guess what i found it but still i failed. Why? Discipline..without the discipline to follow rules nobody would succeed in trading. So now i am trading an account worth of 26 GBP and if it worked out after 40 trading days i would achieve financial freedom. Until 1k my target would be 40% per day, then from 1k to 10k 20% per day then just 4% per day. May god guide us. Life is not only about success or fame but life is just an illusion/shield waiting to be uncovered after we faced death. Live happily, be a good person, find friends who have a good heart, be nice to everyone and always know that the One who created you knows everything about you whether its in your heart or in your speeches. Whatever you believe know that god does not beget nor begotten. He doesn't sleep and he knows everything. He sustains everything and he depends on nothing. I am of those who believe in the one and only. The most merciful, the king of kings. Whatever you see with your naked eye in this world, there would always be more to it, there are always more than meets the eye.

U need to trade in a way that u " MUST " lose and win, you can't depend on " win ". And this lose and win combines with u an overall win, which gives u an edge to survive first, before u thrive. Your mindset is still ...., sorry to say that, because you are basically chasing dream.

now i am trading an account worth of 26 GBP and if it worked out after 40 trading days i would achieve financial freedom

I can sense that you must already have had lose too much in the event of live experiment, chase more gains , eventually u will meet the broker's objective. eventually giving back everything back to them. I may be wrong, but that's how i interpret your emotion of how you deliver yourself and your goals.

It's good to have goals, but one must learn to be practical, realistic, and hardworking and smart, doing the plans step by step, not drawing the pictures and hope one day it will happen. It may happen eventually, if u get the enlightenment of doing your own " holy grail " but, that might be way later or how many times more u may fail.