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

  • #921
  • Nov 3, 2013 11:14am Nov 3, 2013 11:14am
Quoting Rag2RichesFX
..... The order of the wins and losses doesn't matter.
?..
as I see from my practice one should never risk half of left capital after first loss. This is very important. You should put money aside and start again with initial 50USD. So You should try to catch as much consecutive wins as possible to make progress with such trading style.
all is eternal - this is good news for people who loves bad news
  • #922
  • Nov 3, 2013 3:16pm Nov 3, 2013 3:16pm
Quoting OfWolfAndMan
{quote} Good day Cheif, I see you are using 50% or more risk per trade, which is quiet scary to me. Have you considered using 5 to 10% risk per trade? so as to give our 'rag' account the ability to take a few more punches in a row.
Risking 50% you can take many punches ina row you just have to scale down

Keep in mind we are starting with small amounts of money. Hence the "rags to riches"

Either we don't have a lot of money or we don't want to risk a lot
Be hopeful in a winning position, and fearful in a losing position.
  • #923
  • Edited 3:38pm Nov 3, 2013 3:22pm | Edited 3:38pm
Quoting meshka
{quote} ?.. as I see from my practice one should never risk half of left capital after first loss. This is very important. You should put money aside and start again with initial 50USD. So You should try to catch as much consecutive wins as possible to make progress with such trading style.

thats a good way to do it

the order of the wins and losses dont matter

with a risk of 66% and tp of 200%

start with $100 balance you only need 5 net winning trades to get to $24300

could be any arrangement of wins and losses, as long as you scale up and down properly.

5w 0l
10w 5l
25w 20l

all the same effect

$300
$900
$2700
$8100
$24300



past $25k its tough to use huge leverage (100+ lots) so just cash out and rinse and repeat.
especially if you really do have small funds, you can cash out on win #3 and restart, feeling good about your banked profit.
Be hopeful in a winning position, and fearful in a losing position.
  • #924
  • Nov 3, 2013 3:58pm Nov 3, 2013 3:58pm

Quoting FerruFx
{quote} You may have missed something. 50% risk is the purpose of this thread ... We aren't here in a conventional way of trading. It's additional to our \"normal\" trading.

Right! this is Russian Roulette upside down, start with 50 bucks, and if you hit the right series, your Broker will suicide...
  • #925
  • Nov 3, 2013 5:52pm Nov 3, 2013 5:52pm
Quoting cuchuflito
{quote} Right! this is Russian Roulette upside down, start with 50 bucks, and if you hit the right series, your Broker will suicide...
We are not playing russian roulette or any game here.

We are not even talking about trading system/method. This is all about money management. Your trading method is yours. You can't use this MM style without a solid win rate and RR.
MT4/MT5 EAs/Indicators/Alerts coder
  • #926
  • Nov 3, 2013 5:54pm Nov 3, 2013 5:54pm
Quoting cuchuflito
{quote} Right! this is Russian Roulette upside down, start with 50 bucks, and if you hit the right series, your Broker will suicide...
BTW, if you think that losing $50 will kill you (russian roulette), you shouldn't even think start trading.
MT4/MT5 EAs/Indicators/Alerts coder
  • #927
  • Nov 3, 2013 6:45pm Nov 3, 2013 6:45pm
Quoting FerruFx
{quote} BTW, if you think that losing $50 will kill you (russian roulette), you shouldn't even think start trading.
exactly right

how is that any different than risking 0.5% of $10,000?



percentages can scare people
Be hopeful in a winning position, and fearful in a losing position.
  • #928
  • Nov 3, 2013 7:46pm Nov 3, 2013 7:46pm
Great thread R2R. I will start demo trading this to get gist- the r/r is not the norm with my trading style but on my "sure" (highly likely) trades I think I can accommodate. Demo is good for psychology imo- if you are losing money (even small amounts) it can dishearten your strat but if you are successful (perhaps just once with this system) on demo then your confidence could help your live trading especially when the big dollars come into play.
Just my (highly leveraged) 2 cents worth
As the lights go by so too do the shadows move
  • #929
  • Nov 3, 2013 10:09pm Nov 3, 2013 10:09pm
Quoting FerruFx
{quote} You may have missed something. 50% risk is the purpose of this thread ... We aren't here in a conventional way of trading. It's additional to our \"normal\" trading.
Sorry, I missed that part.. Damn! What was i thinking when i read it.

Quoting Rag2RichesFX
{quote} Risking 50% you can take many punches ina row you just have to scale down Keep in mind we are starting with small amounts of money. Hence the \"rags to riches\" Either we don't have a lot of money or we don't want to risk a lot
Now I'm getting to understand the method.
Scaling down is a nice approach, but I prefer risking <10% per trade as I have a winrate around 40% & R:R roughly 1:3
  • #930
  • Nov 3, 2013 11:00pm Nov 3, 2013 11:00pm
Any good brokers to suggest. I live in the usa. My friend has an address in costa rica. Can anyone suggest good brokers and if anyone has tried to do the same?
A man is what he thinks about all day long. - Ralph Waldo Emerson
  • #931
  • Nov 4, 2013 2:48am Nov 4, 2013 2:48am
hehe 1st step up on demo $50-$105, prob as far as I will get ,
only another 9 steps to go.

Edit: If I get to around 4th I will post on explorer.
As the lights go by so too do the shadows move
  • #932
  • Nov 4, 2013 6:26am Nov 4, 2013 6:26am
i understand the concept but to succeed you need trades of high probability. this is not only the goal with this method, it is what trading is all about.
but in reality the chance of winning with a risk/reward ratio of 1:2 is 33%. he who is able to make 50%+ trades with 1:2 r/r would be rich in no time, thats what this threads show. but the real question is how to get those trades? i cant find an answer here..or is this thread just about money managament?
  • #933
  • Nov 4, 2013 6:29am Nov 4, 2013 6:29am
Quoting pwnpwn
... but the real question is how to get those trades? i cant find an answer here..or is this thread just about money managament?
The method/system is on your side. Yes the thread is only about this particular MM.
MT4/MT5 EAs/Indicators/Alerts coder
  • #934
  • Nov 4, 2013 6:31am Nov 4, 2013 6:31am
ok.. so much hype just about a different money management
  • #935
  • Nov 4, 2013 7:38am Nov 4, 2013 7:38am
Quoting pwnpwn
ok.. so much hype just about a different money management
The thread title was chosen well
MT4/MT5 EAs/Indicators/Alerts coder
  • #936
  • Nov 4, 2013 8:50am Nov 4, 2013 8:50am
Quoting pwnpwn
ok.. so much hype just about a different money management
in fact the Money Managment is what makes money for You not the " mystical holy graily superb 99:% hit rate" systems dont You think?
all is eternal - this is good news for people who loves bad news
  • #937
  • Nov 4, 2013 8:55am Nov 4, 2013 8:55am
Quoting fxrustyspoon
Any good brokers to suggest. I live in the usa. My friend has an address in costa rica. Can anyone suggest good brokers and if anyone has tried to do the same?
can anyone suggest a high leverage broker to pull off this trading endeavor. Usa brokers are limited to 50:1 leverage right? And these trades need at least 100:1 or else my tp will be +100 and less probable at that.
A man is what he thinks about all day long. - Ralph Waldo Emerson
  • #938
  • Nov 4, 2013 8:57am Nov 4, 2013 8:57am
Quoting meshka
{quote} in fact the Money Managment is what makes money for You not the \" mystical holy graily superb 99:% hit rate\" systems dont You think?
no in my opinion its the ability to get the best entries and exits. i think it doesn't matter if you have a 1% chance to win 100$ or a 99% chance to win 1$.
if we dont have an edge, we wont win anyways.
  • #939
  • Nov 4, 2013 8:58am Nov 4, 2013 8:58am
Quoting fxrustyspoon
{quote}can anyone suggest a high leverage broker to pull off this trading endeavor. Usa brokers are limited to 50:1 leverage right? And these trades need at least 100:1 or else my tp will be +100 and less probable at that.

I've had good success with Tradersway and ForexbrokerInc.
  • #940
  • Nov 4, 2013 9:42am Nov 4, 2013 9:42am
  •  Owl
  • | Joined Dec 2012 | Status: FX Siphoner Of Symphonies | 435 Posts
Quoting meshka
{quote} in fact the Money Managment is what makes money for You not the \" mystical holy graily superb 99:% hit rate\" systems dont You think?
Yes this is true as this MM goes to show.....And some might argue any MM that you use is more important than even the entries or exit.....

The thing about this particular method is that it calls for the expertise in all of us to get the MM and entry right to the tee which makes

this the perfect challenge for Seasoned only traders/investors...newbies shouldn't dare venture this way until they understand basic PA

and divergence methods.....
One Must Use A Noble Rapier To Pierce The Veil Of Mystery
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