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  • #21
  • Oct 11, 2014 9:01pm Oct 11, 2014 9:01pm
Quoting Nico1359
I started trading live around 6 weeks ago. I'm a swing trader that currently uses the 4-Hr MACD system developed by Phillip Nell. It worked great for me on a demo account so I figured, hey, let's give this a shot. September was an AMAZING month for me. I profited 30% of my account for the month, which given that my goal was 10% I was quite pleased with it as you would imagine. Given how well the USD performed in September, it wasn't hard to string together some winning trades. Then... the correction, along with some bad Aussie cross trades, and...
Many years ago a millionaire was interviewed. The question was how he made so much money starting from $10,000? The reply was that he took 10 trades of $1,000 each in 10 different markets, that is, commodities, stocks, forex, etc.


The interviewer: So these all trades made this money for you?

The millionaire: No, I lost each of these trades, but learned how markets work. Then I started making money.

Have your learned how market works? Unless you do, there will be 8 more trades, then 8 more and then last 8.
The Thief of Wall Street
  • #22
  • Oct 12, 2014 12:01am Oct 12, 2014 12:01am
Quoting grin
{quote} Ummm... High Impact Member!
No. That's not fair. One should not be judged based on Language Skills. I started to speak English only 12 years ago, that doesn't mean I was ignorant before that. Check my posts, I still edit them for language several times after posting. There are many who write "to" for "too". BoredToLoose contributes some great charts and Kiwitrada (Kiwitrader) writes everything the way he chose his username, but a very skillful and knowledgeable trader.
The Thief of Wall Street
  • #23
  • Oct 12, 2014 4:11am Oct 12, 2014 4:11am
I pressed on YOLO option due to US performing so well in this global environment, but my advice would be just keep trading (in demo of course) - couple of months is not enough to determine where's the fault: is it in your execution (clouded by emotions) or in your chosen methodology.
  • #24
  • Oct 12, 2014 4:37am Oct 12, 2014 4:37am
Quoting Chicky
{quote} Don't tell him http://www.forexfactory.com/boredtoloose
16 losses on the bounce, ouch.
  • #25
  • Edited 1:45pm Oct 12, 2014 6:09am | Edited 1:45pm
Quoting Nico1359
I started trading live around 6 weeks ago. I'm a swing trader that currently uses the 4-Hr MACD system developed by Phillip Nell. It worked great for me on a demo account so I figured, hey, let's give this a shot. September was an AMAZING month for me. I profited 30% of my account for the month, which given that my goal was 10% I was quite pleased with it as you would imagine. Given how well the USD performed in September, it wasn't hard to string together some winning trades. Then... the correction, along with some bad Aussie cross trades, and...
Generally the Higher the TF you trade the longer the possible period of DD..Know your trade model's expectancy.. Your trade model should be back tested in as many different trade cycles as possible. I would suggest a minimum of 6 months. preferably as many years as possible to see how robust it is...Note how the environment is for those years..Most trade models are environment specific, you need to do the maximum due diligence before you pull the trigger, its where your main work should be, its the key to minimizing draw downs. Ask yourself is this the right market landscape to be getting the best performance out of your trade model ,If your selling does your trade model perform when the previous monthly bar closes in the bottom 25% of its range, the same for the Weekly.. Daily etc are the TF's in-line in the direction you want to trade .. is the ADR for your pair above a certain number, meaning volatility is good enough for your model to work.. Is the macro backdrop in-line with the direction your trading etc etc etc. Do the homework and then execute the plan.

Really identify the best environment for your trade model and then plug in and trade it..this will reduce your draw-downs and maximize
your return..

imho..

Hope this helps..
Memories caught in time but never forgotten
  • #26
  • Oct 12, 2014 8:23am Oct 12, 2014 8:23am
minimize your losses by trading the higher time frames this means looking for setup on the higher time frames.that way your system can weather the change in trading conditions on lower time frames.

all your trading problems come from tradign lower time frames
  • #27
  • Oct 12, 2014 8:27am Oct 12, 2014 8:27am
Quoting j4d
{quote} Generally the Higher the TF you trade the longer the possible period of DD..Know your trade model's expectancy.. Your trade model should be back tested in as many different trade cycles as possible. I would suggest a minimum of 6 months. preferably as many years as possible to see how robust it is...Note how the environment is for those years..Most trade models are environment specific, you need to do the maximum due diligence before you pull the trigger, its where your main work should be, its the key to minimizing draw downs....

this is a very bad misconception about trading . when the price is retracing thus 'experiencing drawdown' you can trade that retracement.you donot have to sit there and watch your account profits dwindle
  • #28
  • Oct 12, 2014 9:18am Oct 12, 2014 9:18am
Quoting ericnyamu
{quote} this is a very bad misconception about trading . when the price is retracing thus 'experiencing drawdown' you can trade that retracement.you donot have to sit there and watch your account profits dwindle



I knew venturing out from the lounge was a bad idea.. GDR i blame you.. lol

Eric..... Look here..
Memories caught in time but never forgotten
  • #29
  • Oct 12, 2014 3:02pm Oct 12, 2014 3:02pm
Thanks for the replies guys. To address a couple...

Quoting neuron
how spaced apart were those 8 trades that made you give back your 30%? all happen in one day, or across a few days, or 8 days? i don't know what your MM strategy is but giving back 30% in 8 trades means you risked 3.75% each time. you mentioned you were a swing trader, so if you're taking ~1 trade a day then that could be a reasonable calculated risk but you could scale that down a little depending on how frequently you're executing trades. perhaps pre-determining how much % you will risk for a particular trading day and dividing that risk to allow...
The 8 trades were over the span of a week. I know I should scale back the volume of my trading and only take what I think are the most high probability trades.. In terms of percentage risked, I don't use a static SL, I base it on S/R, so it generally varies between 2-4%. I understand this is higher than most recommend, but I naturally have a higher risk tolerance than most people (imho) so I don't see that as a major issue.



Quoting taru
{quote} 30% in a month indicates you have been over leveraged. Of all the components comprising a successful forex trading strategy, the entry is the least important. This is because the markets can not be predicted with certainty by the participants. And those who have that knowledge cannot participate. Whether retail or professional, all traders are eventually caught by the market on the wrong side. What sets apart consistently profitable traders from the rest is that they know their way to climb out of these situations with sound money management...
I'm currently using 50:1 leverage and trading one mini lot per trade. Started with a $1,500 account and most of my SLs are in the 50-70 pip range. I'm beginning to think this may be a little too risky for swing trading. Going down to micro lots and increasing my SLs to 100-150 may be more prudent.
  • #30
  • Oct 12, 2014 3:30pm Oct 12, 2014 3:30pm
Quoting j4d
{quote} I knew venturing out from the lounge was a bad idea.. GDR i blame you.. lol Eric..... Look here..
there is always someone who disagrees with any opinion posted on here lol

  • #31
  • Oct 16, 2014 11:10am Oct 16, 2014 11:10am
Quoting Nico1359
Thanks for the replies guys. To address a couple... {quote} The 8 trades were over the span of a week. I know I should scale back the volume of my trading and only take what I think are the most high probability trades.. In terms of percentage risked, I don't use a static SL, I base it on S/R, so it generally varies between 2-4%. I understand this is higher than most recommend, but I naturally have a higher risk tolerance than most people (imho) so I don't see that as a major issue. {quote} I'm currently using 50:1 leverage and trading one mini...
Nico, I suggest that you try to modify your risk tolerance. When starting in fx/any trading, the idea is first to conserve your capital, and then to build on it. Risking 2-4% per trade is far too high as you have found out as you don't need many losers to start to make a serious dent.

When I first started trading I spoke to a friendly broker and asked him for one piece of advice and his reply was simple. He had seen loads of traders over the years blow up their accounts because they had lost control, became over confident and did not stick to trading a small % of their account per trade. The most I have ever traded is 2% of my account and I can't say I particularly enjoy it.

What has helped me is to realise this. if you trade 1% of your account, would you expect to make maybe 2-3% per week? Doesn't sound like much does it. That's 8-12% per month. Do that for 6 months (not forgetting to compound your position size with your new gains). Tell me if that's good enough, and whether you need to risk 2-4% each trade.
  • #32
  • Oct 16, 2014 8:01pm Oct 16, 2014 8:01pm
Quoting Nico1359
Thanks for the replies guys. To address a couple... {quote} The 8 trades were over the span of a week. I know I should scale back the volume of my trading and only take what I think are the most high probability trades.. In terms of percentage risked, I don't use a static SL, I base it on S/R, so it generally varies between 2-4%. I understand this is higher than most recommend, but I naturally have a higher risk tolerance than most people (imho) so I don't see that as a major issue. {quote} I'm currently using 50:1 leverage and trading one mini...
Your risk tolerance is irrelevant in the grand scheme of things because the market doesn't care about such things. What you need to know is your system's risk of ruin and then you'll have a much better idea of what kind of danger you're facing. Funnily enough i was going to start a thread about my current losing streak. I have a system that wins around 63% at 1:1RR. in the past ten days I had eight consecutive losers followed by one winner and another loser. That's trading for you.
  • #33
  • Oct 18, 2014 3:51pm Oct 18, 2014 3:51pm
there's ONLY one reason what you are having a loosing streak is YOU ARE REPEATING THE SAME MISTAKE OVER AND OVER AGAIN . so scaling back your lots size or stoping to trade or trading other pairs will all be in vain if you cannot rectify why you are making aloss.

There's nothing destructive in trading like repeating a mistake over and over again
  • #34
  • Last Post: Oct 19, 2014 11:15am Oct 19, 2014 11:15am
Quoting Nico1359
I started trading live around 6 weeks ago. I'm a swing trader that currently uses the 4-Hr MACD system developed by Phillip Nell. It worked great for me on a demo account so I figured, hey, let's give this a shot. September was an AMAZING month for me. I profited 30% of my account for the month, which given that my goal was 10% I was quite pleased with it as you would imagine. Given how well the USD performed in September, it wasn't hard to string together some winning trades. Then... the correction, along with some bad Aussie cross trades, and...
Hi Nico1359!
I like to manage the EURUSD market with different trading strategies (scalping, swinging, long term) with different entry-, exit- & risk levels.
LOM (Loss Order Management) is one of my main job when trading the forex market. You could find the LOM concept at different of my threads here at FF, (see reference points p.1, #1 every time).
The important thing is to develope your experience. After 10'000 hours life trading you've got a feeling about the market and its irregularities.
Hope it helps!
Kindest regards
FXcube
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