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

We should all stick this on our screen.

One of my favorite Traders Donchian (same roots as I)
"father" of trend following who inspired the Turtle System was more often wrong then right.He was actually 80% wrong and still made millions.
Goes to show % of losses has Little to do with profitability.
http://en.wikipedia.org/wiki/Richard_Donchian

Yes right.

The % win rate alone means nothing. You can even make million with a 1% win rate.

The important thing is the combination WR and RR.

I'm giving the R2R method a try. Right now I'm using a form of aggressive scalping of short term moves. I don't think I could take this strategy in live accounts, but I'm experimenting.

Stop loss is 5 to 12 pips which will be 5-12 % as well
Take profit is 10 or 10+ expecting to take around 40 pips on average.
I'm only expecting around 200% or bust in less than 20 trades.

As soon as I blow this account I'll make changes in my strategy. For entries & exits I rely on a method used by Gator called chickenbones or 1+1=2 etc..

I opened a demo account with Fxpro & 500$ is minimum deposit so I'm sticking with it.
so far 7 trades & -43%.

5-12pips stop loss is pretty much guaranteed to be hit.In market noise even if you got the direction right and PA going your way.
demo it and see for yourself

Absolutely
better open the trade "mentally", wait till your "mental stop get´s hit", and put your real trade right there, together with the Big Boys...doesn´t work all the time, but when it does, youré almost instantly in Profit.

.....

you must be a pretty smart chap,ain't ya?

wow!!! what a A nice original thought....way to go...sounds worth or worthy of further inspection...

It's clearly plain to see you don't quite understand what is going on in here...it's quite sad also

for I respect your trading method 4hr power over there at the other forum it goes off a sound

and logical approach...It would've been nice to have you as a backer here instead of a basher

considering applying this MM to your 4hr engulfing method would seem to fit nicely....but oh

well 60minuteman since you fail to see yourself as not having any benefit using this method there

do happen to be meagerly accommodated rocks with your name on it somewhere around here

lying around that awaits the swift thrust of your feet please exit now and go find and see them,

the rocks that is, they will like to meet you... peace out.... bro....................

Hey owl or anyone been trading for a while can shed some light on the emotional aspect of trading and how to combat the learning curve.

I have been trading for 3 years now and ive got my trading strategy down, able to predict the market direction, be patient to wait for the perfect set up and everything. $50 account was doing quite well as well. However, when emotions kick in mostly greed it seems one mistake leads to 10 others.

For example, yesterday got one my mid terms back which i didnt do as well as i expected and at the same time i had fx going and saw nfp report come out and market go crazy. Me being mad as it is and then seeing aud/usd go against me i closed out 20 pips before my SL only to have it go back in my direction. Right after that it was a land slide i shorted gbp/aud and gpb/usd to have it hit my margin both trades closed before going in my direction again.

I cant seem to get these little details down after a loss or something that triggers emotional instability in fx. Is there anything you guys do. I dont wanna just close my screen and walk away for a couple days either. The ability to trade the next trade regardless of outcome at your optimal level is critical to success i noticed. For me after so many trades il always stumble upon a stupid mistake of mine i am not sure whether it comes with time or i can do something about it

As the fellow trader Ferru has to keep rehashing this is only a MM method/system/technique and you

must have your own system/method/technique in place in order to make this work... I must myself

rehash that this idea is only for highly skilled experienced aggressive to medium taking traders only

The ones with the expertise to wait and spot patiently and then react quick enough to execute high quality trades .....


Conservative traders are good over there where they are at....let the ones with the heart to do this do so

without futile attempts or cheap shots to convince that this can't be done.....Stop trying to make it look

like this a rookie discussion(when we constantly say this isn't for newbies with no system or understanding

of PA on their own) with lottery minded people when we are all the same in the sense that our aggressive

style requires the same or it can be said even more precision and skill to trade successfully this way because

we are using more risk...


The only difference with us is that besides trading the slow neanderthal 1 percent risk on a less than one million

dollar account(we have those on the side too just like you screaming and ranting tight and frugal conservatives remember?)

we are simply scaling up using the leverage granted to us which also proves and shows that it can be done because

we are given the necessary tools to do so(it's not just so brokers can steal our money quicker raging bloke plonkers,there

are some that know how to cash in on this bonus feature of forex which is the leverage.... with 1,000 dollars one can control

100,000 dollars ....we are just the ones who know how to exploit this phenomena and this thread's idea is an example of the proof....


It's just not many attempt or are that advanced to think along these lines about this type of "stuff/material" as being a probable

and possible part of reality and then to actually formulate a plan from a vision and take action by attempting it in the real world

to see if it hold up just like they saw the numbers in their head and on paper...This type of style is similar to pyramiding and I

would ask those that disapprove this method will also disapprove all pyramiding or grid type trading because it's too "aggressive"?....


Give me a break I like to say that there are meagerly accommodated rocks with anyone's name on it who thinks that way...

It's a sham and a shame too because they will never feel the unemotional charged thrill and rush of watching price itself go

50 or 100 pips right by 50 or 100 pending orders that they set up in advance........... Boy does that feeling feel good

especially when you are watching all those orders turning into profit right before your eyes.....


To calculate a systematic and mechanical approach to increase one's own odds and probability percentage

to gain tremendously(conservatively or aggressively see how this is the same case for us all)....out of 500

trades how many will you lose before you get 10 trades in a row real quick? although it doesn't have to all be

in a row to make this work... how good of a trader are you? that's all you have to ask yourself and then go

for it...reward yourself if you have enough skill and heart to that is ...you deserve it... loosen up and don't

be a tight frugal ass all the time you won't enjoy your self and all that life has to offer all around you acting that

way...take smart chances it's better than a blind chance....

Jib, one thing that can be tremendously helpful is to take whatever lot size you are comfortable with and then reduce it by HALF. And then either let your stops actually play out or widen them by a considerable margin. It is not terribly difficult to be right in terms of market direction, but you the have to let time and price work themselves out by allowing a wider than usual margin of swing. Just my thoughts.

8 lot sell trade 150 pips=13k

watched and waited patiently for the weekly to pierce the support and of course

had to wait some more to spot the PA on the H1 and then I pounced confidently

with 8 lots that this was a high probability/quality trade....

P.S Inside pic number one where the trade was first initialized shows that at the break

of that swing where the blue dot is at is where the grid or the pyramid could've began at....

For me I only use stop loss when I go to sleep!! ...I for one have the luxury unlike others to watch the trade

develop and I'll close it myself manually if PA starts to look crazy....I found out the hard way because of the

whip saws that you speak of that it is only best to trade if you can monitor it your self as it progresses...I don't trade

under the H1 so every hour I check the trade.. on the H4 every 4 hours I'll check the trade etc.... It works for me

perhaps if you are able to give it a try maybe it will help you also...just try to only trade hours when you can check

in on it.... I wish you the best of skill in trading cheers and happy trading....

For those who are talking about "SL hunts"

Just know that if you aren't in a position greater than 1000 lots, no entity is going to hunt your stop for the sole purpose of soaking your liquidity. No way.

Even still with 1000+ lots, you would have to be using a 5 pip stop loss for them to even want to try. And when they hunted the position, they would have limit orders of their own waiting right under where you got stopped out. Because ultimately, they want the same direction you wanted.

Just ask yourself:


Did George Soros get his 50,000 lots "hunted" when he shorted AUDUSD? NO. It didn't even move against him 1 pip.

Everyone just piled on the trade with him. Maybe it was a very strong technical entry (it was)

So if you are RIGHT with your entries, you WILL NOT get hunted. Even if trading 1000s of lots.


Broker stop hunting is a myth. If you are getting "hunted", it is actually the market as a whole that was wrong to place their stop loss in that area, not just YOU alone. If there is enough stops WORTH hunting, they WILL hunt them. But TRUST ME, its not your order they are hunting, its THE MARKETS COLLECTION OF STOP LOSSES as a whole that they are hunting.

Don't believe me? Try demo trading. If you are still getting stopped out, how could it possibly be YOU they are hunting, and not the MARKET?

Seriously think about it!

Exactly.



You don't have to stay stagnant. You can spread the risk capital across each stop loss/tp, as you see the appropriate trade for it.

Or you can simply wait for the appropriate trade and match it the stop loss and tp.

I'm running this as "s/l and t/p"

scalp -- smaller time frame usually 5minute entry ---> 8 pip stop 8 pip tp
minor swing -- this means i think the take profit is limited, usually 30min entry --> 16 pip stop 32 pip tp
swing -- this means i think the take profit can be decent, usually 30min entry, with confirmation of big move from 4hr --> 16 pip stop 64 pip tp
major swing --4hr entry with daily confirmation --> 50 pip stop 100 pip tp
daily swing-- daily entry with weekly confirmation > 100 pip stop 200 pip tp
weekly swing-- weekly entry with monthly confirmation --> 200 pip stop 400 pip tp

You're right, I can see that from my results so far. But I'm scalping in lower TFs so there is no point in making my SLs wider, I think I have to focus on taking less trades & more precise ones.

The problem with this whole thread is psychology. When a person goes from having $50 to $5000, their whole mindset changes. 5K means a WHOLE lot more than $50.

Having and being OK with losing $5000 is a lot different than having $50 and being OK with losing $25.

That's trading!

If you can't afford risking $5,000 ... just keep trading a $50 account.

Note: I am not talking to you personnally ... It's more generally.

True, Ferru.