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Rags to Riches in 10 or 20 Trades - Simplicity at its finest

  • #441
  • Sep 18, 2013 3:51am Sep 18, 2013 3:51am
Quoting CindyXXXX
{quote} Well I've never heard of currencyman but I'm sure he's cool too! Anyone inspired by the Owls infinite wisdom and the OP's idea but unable to react I have a simple method you could try. 1) Round numbers will be where you set your limit orders with A 10-20 pip S/L 2) Trade something very liquid like Eur/usd gBP/usd (the ones with the smaller spreads) 3) simple requirements for entry: wait until a day where your pair blows through one round figure and out does its "normal" trading range in the process, and set your entry at the next round...
Have you tried this strategy before? if so, works successfully ?

Because i disagree on point 1...but it's only me
I don't trust round numbers, check how 1.32 and 1.33 got easily broken the last few days.

I agree on point 2 !

And i don't really understand point 3
COT: The precious data ignored
  • #442
  • Sep 18, 2013 5:41am Sep 18, 2013 5:41am
Guys, I see that you have a lot of scenarios already ( at least mathematically ) about how to do it. So, get to business . The rookies can't wait to see that happening
So sorry for always replying late! But I got 2 Jobs!!
  • #443
  • Sep 18, 2013 5:42am Sep 18, 2013 5:42am
Quoting kuroro001
{quote} Have you tried this strategy before? if so, works successfully ? Because i disagree on point 1...but it's only me I don't trust round numbers, check how 1.32 and 1.33 got easily broken the last few days. I agree on point 2 ! And i don't really understand point 3
The idea is to fade barrier hunts on an exhausted market, that's why from a technical perspective you wait for a day that blows through one, then the second has a higher chance of holding. try it yourself. Yes this is something I used to mess around with briefly on the tester. If you weren't risking 50% then a 1-5 pip S/L should have you profitable after x ammount of trades.

Point 3) eg market opens at 1.3330, on the same day 1.3400 is breached, sell at 1.3500 (all on the same day)

if you want to be more clever then follow the news and only trade on an "unjustified move". But that makes it 1) discretionary and 2) un-systematic.

Anyway, someone earlier was talking about patience and dicipline... Over 100 trades I can almost guarantee the reward of this method will out do the risk from a 5 pip to a half ATR S/L... But that is a guess, test it for yourself.
Time hides Nothing
  • #444
  • Sep 18, 2013 6:32am Sep 18, 2013 6:32am
Quoting CindyXXXX
{quote} Well I've never heard of currencyman but I'm sure he's cool too! Anyone inspired by the Owls infinite wisdom and the OP's idea but unable to react I have a simple method you could try. 1) Round numbers will be where you set your limit orders with A 10-20 pip S/L 2) Trade something very liquid like Eur/usd gBP/usd (the ones with the smaller spreads) 3) simple requirements for entry: wait until a day where your pair blows through one round figure and out does its "normal" trading range in the process, and set your entry at the next round...
Hey Cindy,

Your "system" has a sound logic behind it, imo! Makes it so much easier to trade something like this compared with some random mechanical mumbo-jumbo. Thanks for sharing, will try to use your ideas.
Trading = a mirror to your human flaws. Fix them or be fixed.
  • #445
  • Sep 18, 2013 7:07am Sep 18, 2013 7:07am
News may send the pairs higher from a PA perspective
COT: The precious data ignored
  • #446
  • Sep 18, 2013 7:36am Sep 18, 2013 7:36am
Quoting kuroro001
News may send the pairs higher from a PA perspective
Yes... It could!

No worries soso
Time hides Nothing
  • #447
  • Sep 18, 2013 7:39am Sep 18, 2013 7:39am
Quoting CindyXXXX
{quote} Yes... It could! No worries soso
Nothing happened

And thanks for the explanation!
COT: The precious data ignored
  • #448
  • Sep 18, 2013 9:33am Sep 18, 2013 9:33am
Quoting Muhammad Ezz
Guys, I see that you have a lot of scenarios already ( at least mathematically ) about how to do it. So, get to business . The rookies can't wait to see that happening

I'll remind you about this every time I step in here and couldn't see you started yet Yeah, that's how much a stubborn I'm
So sorry for always replying late! But I got 2 Jobs!!
  • #449
  • Sep 18, 2013 4:04pm Sep 18, 2013 4:04pm
That's the core of my MM as well. Except that I risk fixed 50% per trade when my account is small and later lower it to 33%, 25%.

Yes at the beginning 2 consecutive losses would blow the account but that's why it's small...like 50-100$

With real money I turned 300 to 1000 in 3 weeks but lost control over my emotions and blew the account.
  • #450
  • Sep 18, 2013 10:08pm Sep 18, 2013 10:08pm
  •  Owl
  • | Joined Dec 2012 | Status: FX Siphoner Of Symphonies | 435 Posts
Quoting Owl
http://www.forextrading-alerts.com/M...rseMarch10.pdf This is another way but along the same lines as far as what we are all thinking.... the ones who know and believe that is... the pdf above suggest a way to double the account in 2 trades and it was written by a very respectable group of professional traders...not marketers..... Food for thought: One great example you Will Feel Confident to pull the trigger on a more aggressive trade is if a doji completes the form of a double top pattern right at a weekly or monthly high and...

Although this is a bit of deviation from the threads way here is a example as pdf above suggests

Here I have a buy trade I entered for 30.00 lots yesterday on the GBP/USD and it sits at 228 pips

and going so far .... I also entered a sell trade on the USD/CHF for 10.00 lots and right now it stands

at 134 pips and counting ... albeit demo to test the strategy,the account was at $71,000.00 yesterday

The 30 lot buy trade is worth $66,840.00!! and the 10 lot trade is worth $14,400.00!!! if I close both trades

now the account will sit at $152,240!!.... ... the moral and point of this post is to keep trying you will

eventually get it....
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One Must Use A Noble Rapier To Pierce The Veil Of Mystery
  • #451
  • Sep 18, 2013 11:51pm Sep 18, 2013 11:51pm
Been reading a large number of responses to this thread, some helpful some well.... Here is a thought. Take your $50, when you have doubled take out the $50 you put in, after that point the trade doesn't owe you anything. If you lose the $50 analyze your mistake and apply corrective measures. I would suggest you wait a few days, put another $50 in and try it again. Keep trying until you get it right. We aren't talking huge amounts of capital. Charge it to your tuition account.

There are two points I found very helpful in R2R's presentation. First, the 1:2 ratio. It will keep your losses predetermined and limited. Second you have a good return on your investment. It is limited but that will help a bit in keeping your greed in check. I trade the weekly so 100 pips (50sl:100tp) isn't that hard if you have patience.

I for one appreciate R2R's willingness to present a different way to trade and am disappointed when people try and put it down. I have seen a lot of trading ideas, but if I don't think it will work I will just close the window and go on.
  • #452
  • Sep 19, 2013 1:21am Sep 19, 2013 1:21am
Quote
Been reading a large number of responses to this thread, some helpful some well.... Here is a thought. Take your $50, when you have doubled take out the $50 you put in, after that point the trade doesn't owe you anything. If you lose the $50 analyze your mistake and apply corrective measures. I would suggest you wait a few days, put another $50 in and try it again. Keep trying until you get it right. We aren't talking huge amounts of capital. Charge it to your tuition account.
Well said puritan, but some traders can't just help thinking that with $100, we can have a better risk 2 reward ratio, our accounts can withstand heavy hits, and gain better profits...but sorry for those who dnt understand the concept, their accounts will go kaboom in seconds and it will be from rags to rags
  • #453
  • Sep 19, 2013 2:49am Sep 19, 2013 2:49am
" If you lose the $50 analyze your mistake and apply corrective measures"

There is no mistakes to analyze in trading like this, u got your few starting trades as losers and your done nothing u can do about it, u just start again hope ur first trades now will be winners and u can cash out part of it to fund future attempts.
  • #454
  • Sep 19, 2013 3:46am Sep 19, 2013 3:46am
Quoting Slim Buffett
{quote} To me, it seemed more like an opinion than a strategy. {quote} Have you considered the opportunity cost of 1:10 ?? That "could" mean that you must let other trades pass by because you're aiming for 1:10 and you're trying to hit the big time.............. It's an interesting thread.... filled with promise of "rags to riches". It can be done but it really seems that it's just a "take-off" from this thread : http://www.forexfactory.com/showthread.php?t=321529 BTW.... I disagree with your signature.... 80% CONFIDENCE and 10%...
i just value confidence far more than everything else


not talking about egotistical false confidence here, but real confidence found from countless hours and 1000s of trades running the exact same entry parameters (discipline) every time


when i am truly confident in a trade it works out significantly more often then when i have doubts about the trade.
doubts come from conflicting pieces of technical information. bad traders can see the information but do not act on it because they are using false confidence and to these traders, NOT BEING WRONG, is more important than NOT LOSING MONEY.

thats why they fail, they cant cut losers quickly and accept that they were wrong.

95% of the time when i say "i should cut this" but i dont cut it, it keeps going against me.
it still can be a psychological battle to cut it but, i have that statistic to back me up now.


why would i have to let other trades pass by? i can trade 1:2, 1:4 , 1:10 strategies at the same time.


strategies where i cut trades before the s/l is reached (based on price action) is mostly just M5 and M30 scalping
where price is constantly flipping bearish/bullish

longer time frames i typically let the sl get taken out despite what price action is doing
Be hopeful in a winning position, and fearful in a losing position.
  • #455
  • Sep 19, 2013 4:27am Sep 19, 2013 4:27am
Quoting Rag2RichesFX
{quote} NOT BEING WRONG, is more important than NOT LOSING MONEY.
Word
  • #456
  • Edited Sep 20, 2013 1:10am Sep 19, 2013 5:34pm | Edited Sep 20, 2013 1:10am
Quoting Puritan
Been reading a large number of responses to this thread, some helpful some well.... Here is a thought. Take your $50, when you have doubled take out the $50 you put in, after that point the trade doesn't owe you anything. If you lose the $50 analyze your mistake and apply corrective measures. I would suggest you wait a few days, put another $50 in and try it again. Keep trying until you get it right. We aren't talking huge amounts of capital. Charge it to your tuition account. There are two points I found very helpful in R2R's presentation. First,...
thanks I appreciate the kind words

and yes 1:2 RR keeps you from get greedy, a problem that I still have on my pure price action account (no take profis, only manual close based on price action)

50 sl and 100 tp is easy on a weekly I agree there

For the big players sl 200 and tp 400
Be hopeful in a winning position, and fearful in a losing position.
  • #457
  • Sep 20, 2013 6:20am Sep 20, 2013 6:20am
Quoting Rag2RichesFX
{quote} yes 1:2 RR keeps you from get greedy, a problem that I still have on my pure price action account
True dat...
Exits are still my achilles heel. I just can't stop myself from wanting to stretch those winners. If my projected TP is 1:2 then when it gets to 1:1.9, why not tighten the stop and see if it will roll on. I need to do a back test of all trades to see which we net more pips. A hard TP or a trailing...
  • #458
  • Sep 20, 2013 12:50pm Sep 20, 2013 12:50pm
This is an interesting thread you have here. I will come back and read it all and may be consider putting your idea to practice.
  • #459
  • Sep 20, 2013 2:39pm Sep 20, 2013 2:39pm
Quoting spyderman
{quote} True dat... Exits are still my achilles heel. I just can't stop myself from wanting to stretch those winners. If my projected TP is 1:2 then when it gets to 1:1.9, why not tighten the stop and see if it will roll on. I need to do a back test of all trades to see which we net more pips. A hard TP or a trailing...
you must learn to take profits if the market appears to be going against you even for a 30 or 40 pip move, its still worth it to cash out and buy lower, if you think eventually it will go higher


i see you are having decent success with your Rags to Riches attempt.. keep going!


maybe cash out and look for the next trade, although that UJ long does look tempting to hold onto.

maybe hold onto some of it for next week


i prefer MANUAL stop loss trailing right near support/resistance levels instead of straight take profits

although that is more conventional trading, for this thread take profits is pretty crucial

still even for Rags to Riches type strategy, i will trail sometimes
if my TP is +50 and market goes +40 ill trail to +30 if the market structure warrants doing so (volume dries up or starts showing signs of reversal)
or might even take the +40, it really depends on price action,

for example back to back dojis with divergence, that pretty much guarantees my +50 wont be hit, so i may even just get out at +37, +38, +39 anywhere in there.. if i am very confident the market will fall at least another 10 pips from that point
Be hopeful in a winning position, and fearful in a losing position.
  • #460
  • Sep 20, 2013 3:47pm Sep 20, 2013 3:47pm
How much leverage is required (50$ account) so you don't get stopped out before trade hit SL for margin call ?
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