Hi Ruskie (Are you Russian American?)
How is it going so far trading full time on 40k account.
It seems you must hit at least 10% a month to survive unless that is not an issue.
I wish you best success since I am heading your way.
In trading, you have to be defensive and aggressive at the same time
With the system I have, I dont think I can make a living on a 40k account. Currently I am risking < 1% on each trade. I can go up to 1.5-1.75% max on each trade. Any more risk and I think a losing series of trades can cripple my account and be end of my trading dream.
Fortunately with my living arrangement, I dont have to worry about living expenses for the next 12 months.
I am just trying out trading till the end of the year and see how it goes. My main goal is to limit my drawdown to 15% and not to
deviate from my system. I think if I do that, then should at least be positive by the end of the year.
Trade68 - Stopped out of remaining 20k USDJPY at 9791 P&L(Trade68) = JPY 38,800 Trade71 - Stopped out of remaining 20k USDJPY at 9791 P&L(Trade71) = JPY 30,000
Ignored
Hi Ruskie
Here is something worth thinking.I am not suggesting you trade differently now but having different perspective of Price helps.
80% of forex is not trending.Instead price is stuck in a channel.We should buy or sell bottom/top 20% of the channel.If the move is in the middle skip it not a high probability trade instead look for another pair.
You can find 80% of the pairs in a channel.
Attached Image (click to enlarge)
In trading, you have to be defensive and aggressive at the same time
I think its just about the style one is comfortable with. I have never been able to sell at the top of the range or buy at the bottom. I always assume if prices are going up/down, they will continue in the same direction.
The way my system works is it will always try to buy a breakout from consolidation and sell on a breakdown from consolidation. As you said 80% of forex is not trending, so my system will have a lot of losing trades. Hopefully the breakouts that my system catches and that do work will make up for the ones that dont.
I am increasing the base position size from 40k to 50k with the stops the same. With most of the stops set at less than 100 pips, this will still be less than 1% risk on each trade.
I have also added couple of new price patterns to the system. The historical performance of these have been very volatile but overall solid positive.
These 2 changes will increase the worst draw down a bit. Hoping to keep the worst draw down to less than 25%.
