Trading like a Pro

I`ve messed up 2x this thread and wasted many time on failing systems, so this time i focus more on fundamentals and this thread will be dedicated to my personal trading journey as an aspiring professional trader, so we start again,but this time it will be different, here is the reason why.I modified the rules in case you read them before, these are only my Money Management rules, as my system is private.If you have any questions about my method or and other question, please ask.

The model (revised 13/August/2014)

1. If a pair has big swaps then try to not trade against the swap unless the trade has an unusually high probability
2. Risk-Reward-Ratio should be positive Reward>Risk, if the price is far from a swing, then use pending orders
3. Always use STOPLOSS (TAKEPROFIT is optional), which may be set to the nearest LOW/HIGH or the second nearest LOW/HIGH (if its not too far away) or 2x the ATR indicator
4. Margin level must be always above 300% for whatever leverage you use, if not then consider closing some trades
5. Total risk /individual trade must never ever exceed 8% of account balance
6. Prioritize losing trades: if the SL didn't got hit on a losing trade but you know it will lose, close that instead of closing a winner which may still have potential in it
7. Use scale out or trailstop tehniques: if we use a 2:1 RR or bigger, you can scale out a portion of lot size or trail the stop to the previous Risk unit, or if its 1:1 then move the SL to breakeven after it moved a little bit

Example: Imagine a 3:1 RR, the SL is 50 pips and the TP is 150, and the trade is at +50 pip in our favor, then its wise to trail the stop to breakeven, if it moves to +100 pip, then to 50 pip and so on... Or if the lot size is divisible by 3 then close 1/3 of the position at every checkpoint

The returns i`m looking for with this system are: +300% gain/month

Wish me good luck ...

DISCLAIMER: Everything in this thread posted by me are only my personal thoughts, and are not trading/investment advices.I am not responsible for the financial losses you get have by following/copying my trades,ideas, or using any other information available in this thread.

OK Money never sleeps pal!

Won a USD/CAD spike-continuation, which was a medium probability trade however the funadmentals were in favor.TP hit, no more CAD for now.

USD/CHF lost, no problem the SL was too tight, so i enter again and lets see what will happen, fundamentals are ok.

GBP/USD in profit, huge spike down as it was expected, trailed the stops, and will lock some profits soon.

+2% for now

Ok closed 1/3 of the GBP/USD to have some free margin for another secret trade (wont tell you which one, if you are clever you figure it out, just a hint is that its a pending order so the move will come but not today)

Seems like the rest 2/3 of the position will be stopped out at profit because it was trailed, if it does then i wait for the price to become higher and sell it off again

If it doesnt get stopped out then i`ll ride the bears to the bottom, just simple as that

Ok the risk management model is revised to suit our new tehnique, max risk now is 10%, however we will rarely risk that much now, but we need flexibility so to adapt better to the market.

I will try to be as risk responsible as i can, but i will also look for high reward scenarios so that our risk to be justified.

Ok we added 2% more risk to the GBP/USD, it is almost a sure bet that it will go down, total risk now increased to 6.9% and it will stay there no more risk added.

I dont like the fact that only 130% margin level left, but the SL is very tigh so no risk of margin call, whereas the other trade which is a pending one is far from execution so there will be no risk of that.

This will be the last time where i risk this much but i need to figure out the best risk model,after i find it everything will be ok and risk will be reduced.

I don't think Pros trade like this.

Depends how you define a pro.For me a guy who makes 40%/ year is not a pro, be that a fund manager or not, however he has the luxury of extra money, if you have a HF of 1 billion dollar a 1% increase/year is perfect if you charge a 15% performance fee.

Imagine if a pro would make 1000% /year with a hedgefund, however you would have higher DD aswell where the investors would be angry at your at some point, so that's why fund managers keep it safe.But we are not fund managers, we are prop retail traders

But if you trade your own money, and make only 40% /year then i classify that as an amateour who doesnt know how the markets work, or just a newbie who didnt found a reliable edge yet, no disrespect meant to anyone, its just the truth.Because you are not responsible to anyone, but yourself so there is no reasone why should you keep your chains on you if you know how to trade

You cannot go easy on the markets since the markets too wont go easy on you aswell

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USDCHF stops trailed, total risk of account is now 3.96% while possible return is 20%... pro

Individuals with large amounts of capital do not need to take unnecessary risks as you are doing here so far. An investor/trader with 1 million invested/traded with ROI of only 10% makes 100K. Do the numbers. Wealthy individuals do not take crazy risks. That is why they are rich. Those that are under capitalized need to take more risk in order to "get rich". I mean no disrespect either but trading as you are will lead to a blown account in a hurry. However I'm watching out nothing more than curiosity. I do wish you luck!

Of course, but that wont be the case here, we will take moderate risks here but we will look for huge rewards.Blow out is not an option here

Ok i admit the stuff about cowboy was wrong, never risk too much, it wont make you rich quicker trust me .Now i`m back with a brand new tehnique i want to test, everything in post 1 is correct and will remain as it is, i will trade within those rules.

Now lets make some pips.

First trade: LONG USD/JPY , 3:1 RR , 2.21% BALANCE RISK

Next trade soon...

Ok all trades are placed:

EUR/JPY LONG
GBP/JPY LONG

Both 3:1 RR & aprox 1% risk while another pending order is on on the EUR also LONG but at a lower price

Total risk: 6.66% without the pending, with the pending about 8%

Crossing fingers and waiting for that USD CPI report @ 13:30 GMT, which will be in a couple of hours to see if there will be further bullish sentiment

Hmm looks like first basket was wrong, time to try another basket.

Total risk 10%, margin level 150%, lets see if this one will hold

2 Trades left winners, and put on new trades, lets see how it goes.Remember we have 3:1 RR so 26% winrate theoretically will be profitable, dont be scared of such low winrate

Ok looks like we have a problem with the 2:1 RR rule, i think it doesnt hold on timeframe so little like intraday.And since i trade intraweek and intraday, we must have a more flexible approach.

We will use big SL with big or medium TP, however the lot size will be small to not overrisk, but since our initial capital will be small, we will have big risks by default at the beginning so we will only take very high probability trades.

I dont think that any account under 2000€ should be traded like this, but until we reach 2000€ we must survive.

Initial capital is 100€ as always in case you wondered, it will be a new demo account where i test my masterpiece to see if i am a good trader or not

The previous account was a failure due to the stupid 2:1 RR which is very inflexible on intraday.

So i will revise the rules, and explain it later.

Ok rules are revised, we will be professionals now and try to not lose any trade (only if its possible)

That doesnt mean that i will hold on to losers, dont get me wrong, i`m not that NO STOPLOSS guy who holds on to losers in expectation of reversing, what i am saying is that only have winner trades

I do put stoplosses, but i carefully select trades and only trade very high probability ones.

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STRATEGY FOR THIS WEEK:

As you see i already have trades placed, basically i will just buy on dips and sell in rallys mixed with some news trading and correlation analysis.Next week it might be different.

We are up already 5%, i tried to not overleverage so we will keep it professional, we wont make 60000% / month but we will be consistent

If you have any questions feel free to ask

Seems like those returns build up, now we will close the NZD short before midnight or before US unemployment report, just to make sure.

We will book 3-4% solely on that trade, and let the others roll till tomorrow.Then tomorrow midday we will close most of them as we dont keep stuff in weekend.

Also i might add a few trades today, nothing new, only to the existing positions if any watched pair moves into a dip we will fade that.

Damn, got stopped out on NZD looks like i trailed the stop too tighly.Entered another position, i believe the lower support is meant to be touched, but i give it time until midnight or i close it if it starts to rally up for some reason (very unlikely).

We dont like negative swaps on the kiwi.On the other hand soon US employment kicks in, time to move that nasty USD/JPY a little bit.I believe it will be good as the CPI was ok, and last months results were also ok.It should be nice if there would be some positive pressure on the USD to strengthen it, cause then we could sell all baskets against it.

Yup better than expected Unemployment as predicted, now NZD/USD stays as it is, while USD/JPY will get doubled, this position is golden as from now

USD rate hike might be just around the corner once the CPI gets better.

If the house sales will be better then expected we will buy the aussie -dollar, if not then we stick with these positions until tomorrow and probably quit the kiwi as it will no longer have that bullish USD pressure on it.

Ok NZD closed prematurely, we will trade that next week.Only the aussie and the dollar remains, these i guess i will have to hold it in weekend, it looks like a longer term trade to me.

However so far we have 100% winrate with 0.5% DD (not holding on to losers, instead not even having losers ), so i like it.

Looks like those returns are building up, nice week so far. Time to trail the stops.