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1% Trading System

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  • #1
  • First Post: Edited 9:39pm Jan 6, 2013 2:05am | Edited 9:39pm
This is my most favorite system.

No other system can beat simplicity and logic of this system. Any trader who could generate 6 winners out of every 10 trades or even 11 winners in every 20 trades can consistently profit from this system. Since I cannot produce 11 winners in a block of 20 trades, will try to produce 21 winners in 40 trades.

To keep myself focused on the basic logic of this system, have pre-defined my future trades. Will buy or sell as per the list below. Have even pre-defined my sl and tps for each of the next 40 trades. For example my trade #6 will be a short with a tp of 39 pips and my trade # 29 will also be a short for a profit target of 33 pips. If I generate 21 winning trades, will gain 2%.

My sl will be 2 pips less than the tp target (in Pips) mentioned in the list below. This is to make sl and tp equal in pips after adjusting the spread which is normally 1.2 pips.

I normally wait for a setup to develop and decide where should be the sl. After deciding sl price level, I calclulate how many units (or lots) to buy/sell so that if my sl gets hit I lose exactly 1% of my account. After this calculation, I buy/sell the caluculated lot size and set my sl. After that, I set a tp two pips more than my sl. For example if my sl is 87 pips, my tp will be 89 pips. Once I have entered the trade, will walk away from my platform.

After walking away from my platform, I either spend some quality time in Harem with any of my wives or go to EURUSD thread.
Attached Image
The Thief of Wall Street
  • #2
  • Jan 6, 2013 3:18am Jan 6, 2013 3:18am
hello chicky; what is the system exactly? do you u just simply enter in a way of ganmbling like? what guarantees that you will get 21 trades not 17 right, for example? i seem to be intrested in your simplicity but am not getting the logic. pls lclarify if you can. thx
  • #3
  • Jan 6, 2013 4:10am Jan 6, 2013 4:10am
Hi Chicky,

Thank you.

But why 17 buys and 23 sells ??
The tp varies from 12 to 51 ??
The pips for the buyside sum up to 473 and for short 672 ??.

Where do you got these figures from ?
What kind of system/logic is this?
  • #4
  • Jan 6, 2013 4:09pm Jan 6, 2013 4:09pm
Quoting Chicky
Since I cannot produce 11 winners in a block of 20 trades, will try to produce 21 winners in 40 trades.
The first part of the sentence says the maximum number of winners would be 10 out of 20. But 40 trades equal 2 blocks of 20 trades. Which means, the maximum you'll achieve is 20 winners. This sounds like some sort of Impossible Mission to me.

Though, it seems that the system has a discretionary element too. What I mean is, some trades are completely interchangeable (take #12 and #20 for instance), so I guess the whole thing is more flexible than my rigid math calculations at the beginning. So I'll sit tight and do as a photographer (=I'll see what develops).

Best Of Lucks! (B.O.Lucks for short)

Even if you fall on your face, you're still moving forward.
  • #5
  • Jan 6, 2013 7:36pm Jan 6, 2013 7:36pm
Quoting Ralome
The first part of the sentence says the maximum number of winners would be 10 out of 20. But 40 trades equal 2 blocks of 20 trades. Which means, the maximum you'll achieve is 20 winners. This sounds like some sort of Impossible Mission to me.

Though, it seems that the system has a discretionary element too. What I mean is, some trades are completely interchangeable (take #12 and #20 for instance), so I guess the whole thing is more flexible than my rigid math calculations at the beginning. So I'll sit tight and do as a photographer (=I'll see...
Ralome, the first part says 6 winners out of 10 trades and 11 winners out of 20. That is, winners more than losers.

40 trades are not two blocks of 20 trades. This may look strange at first, but it has a logic. Let me explain.

If a trader can generate 60% winners (60:40 win:loss ratio), this also needs defining the total population, without such definition, this statement is incomplete. For example few traders may be expert enough to consistently generate 6 winners out of every 10 trades. That will be win:loss ratio of 60:40. In this case, they cannot suffer more than 4 losers in a row. However, if a trader is only able to generate 60 winners in a trade block of 100 trades, the win:loss will still be 60:40 but that second trader can face maximum consecutive losses of 40. That means the first trader can increase his/her risk to 10% per trade, because with maximum 4 losses in a row, his/her total drawdown won't be more than 40%. However, if the second trader risks 10% per trade, his/her total capital will vanish with only 10 consecutive losses. Therefore the second trader has to limit his/her risk to sustain possible maximum number of consecutive losses of 40 trades. With 1% risk per trade he/she will be at par with the first trader.

I don't have skills enough to claim that I can generate 11 winners in every block of 20 trades, but I think 21 out of every block of 40 is a possibility for me.

My risk will be 1% regardless of number of pips. I will gain or lose (approximately) 1% on every trade whether it be for 12 pips or 40 pips. The trade size (number of lots) will be adjusted to produce consistent 1% profit or Loss per trade.

Why 1%? Because, if I am not able to generate 21 winners out of every 40 trades, hope to generate 51 winners out of every block of 100 trades. That will limit my drawdown within my capacity.
The Thief of Wall Street
  • #6
  • Jan 6, 2013 7:48pm Jan 6, 2013 7:48pm
I normally draw lines on my charts that remain valid for weeks or months. These lines are major fibs. I don't know why, but pa most times respects these lines.

This blue dotted line is one such line and I am watching what happens here.
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The Thief of Wall Street
  • #7
  • Jan 6, 2013 8:04pm Jan 6, 2013 8:04pm
I cannot link my trade exporer to this thread.

The current balance is $8,043. I think its visible on my profile page.
The Thief of Wall Street
  • #8
  • Jan 6, 2013 9:43pm Jan 6, 2013 9:43pm
Quoting pedson
hello chicky; what is the system exactly? do you u just simply enter in a way of ganmbling like? what guarantees that you will get 21 trades not 17 right, for example? i seem to be intrested in your simplicity but am not getting the logic. pls lclarify if you can. thx
I will enter if my sl with pre-defined pips falls away from a support / resistance. If my support/resistance survives more than 50% of the time over 40 trades, I gain. If not, I lose. Chances are that it will survive more than 50% of the time.
The Thief of Wall Street
  • #9
  • Edited 9:59pm Jan 6, 2013 9:47pm | Edited 9:59pm
Quoting hbud
Hi Chicky,

Thank you.

But why 17 buys and 23 sells ??
The tp varies from 12 to 51 ??
The pips for the buyside sum up to 473 and for short 672 ??.

Where do you got these figures from ?
What kind of system/logic is this?
Buys and sells are just random. I did not count how many were buys and how many were sells while compiling the list.

Yes, tp and sls are within a short term range from 12 to 50 or so pips. I don't want to hang around with a trade for days.

There is no logic to the pre-defined list. I will enter if a setup appears according to my pre-defined list, if not, will stay away.

This method is just to prove how probablity works or in other words "Winning on Balance".
The Thief of Wall Street
  • #10
  • Jan 6, 2013 9:53pm Jan 6, 2013 9:53pm
Quoting Chicky
I will enter if my sl with pre-defined pips falls away from a support / resistance. If my support/resistance survives more than 50% of the time over 40 trades, I gain. If not, I lose. Chances are that it will survive more than 50% of the time.
First trade. 25,000 units (1/4 lot). sl 31 pips tp 33 pips, risk/reward 1% ($80) based on red marked support. tp right at a resistance.
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The Thief of Wall Street
  • #11
  • Edited 9:47am Jan 7, 2013 9:09am | Edited 9:47am
Shit happens. I miscalculated the second trade and entered a position 10 times bigger that what it should be. Shredded off the excess. However, that gave me some unintentional profit. Basically, I have set my platform to automatically set tp at 1% of NAV and sl at 0.95% of NAV whenever I enter a new trade. I took that trade from my cell phone which does not follow the same setting. Will adjust the cell phone setting as well.

Earlier, trade#1 hit its sl. We are now in trade number #2.
The Thief of Wall Street
  • #12
  • Jan 7, 2013 9:16am Jan 7, 2013 9:16am
Trade #2 hit tp.

According to the trade list, the next trade will be a buy for 24 pips.
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The Thief of Wall Street
  • #13
  • Jan 7, 2013 5:29pm Jan 7, 2013 5:29pm
Quoting Chicky
Trade #2 hit tp.

According to the trade list, the next trade will be a buy for 24 pips.
If it goes up, trade #4, the short for 30 pips would be around 1.3148 which is the mid for 1.2997 and 1.3299
The Thief of Wall Street
  • #14
  • Jan 7, 2013 8:34pm Jan 7, 2013 8:34pm
Trade #3 complete.

The next trade on ths list is short for 30 pips
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The Thief of Wall Street
  • #15
  • Jan 8, 2013 7:40am Jan 8, 2013 7:40am
Quoting Chicky
Trade #3 complete.

The next trade on ths list is short for 30 pips
Trade #4 completed.

Next trade is buy for 27 pips
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The Thief of Wall Street
  • #16
  • Jan 8, 2013 8:38am Jan 8, 2013 8:38am
Quoting Chicky
Trade #4 completed.

Next trade is buy for 27 pips
Trade #5 entered.
The Thief of Wall Street
  • #17
  • Jan 8, 2013 9:21am Jan 8, 2013 9:21am
Quoting Chicky
Trade #5 entered.
Lost #5

Next trade is sell for 39 pips
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The Thief of Wall Street
  • #18
  • Jan 8, 2013 9:32am Jan 8, 2013 9:32am
Quoting Chicky
Lost #5

Next trade is sell for 39 pips
Trade #6 entered
The Thief of Wall Street
  • #19
  • Jan 8, 2013 11:16am Jan 8, 2013 11:16am
Quoting Favorite
Chicky already explained everything in posts #1, 8 and 18. Pay attention, will you?
I'm so sorry, but I have read those posts, but I 'm still at lost. I don't even understand this the first phrase at the first post:

"No other system can beat simplicity and logic of this system. Any trader who could generate 6 winners out of every 10 trades or even 11 winners in every 20 trades can consistently profit from this system. Since I cannot produce 11 winners in a block of 20 trades, will try to produce 21 winners in 40 trades. "

I'm sure you can always win 6 out of 10 or 21 out of 40. But I can't. My winning rate is about 25-30%, which however brings me enough profit to live on Forex.

Probably your sarcasm is the key to win...
Thanks anyways...
  • #20
  • Jan 8, 2013 11:26am Jan 8, 2013 11:26am
Quoting Forexgogo
I'm so sorry, but I have read those posts, but I 'm still at lost. I don't even understand this the first phrase at the first post:

"No other system can beat simplicity and logic of this system. Any trader who could generate 6 winners out of every 10 trades or even 11 winners in every 20 trades can consistently profit from this system. Since I cannot produce 11 winners in a block of 20 trades, will try to produce 21 winners in 40 trades. "

I'm sure you can always win 6 out of 10 or 21 out of 40. But I can't. My winning...
I sent you PM.
Gentlemen always play by the rules. If they can't, they change the rules.
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