Risk, the %-Pip value | Forex Factory

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Risk, the %-Pip value

  • #1
  • First Post: Nov 6, 2014 10:42am Nov 6, 2014 10:42am
Hi there,

So till now I had a good week, nothing special.
http://i.imgur.com/BzgVHDn.png

I was bored so I went to myFxbook and checked arround. I noticed that almost all those accounts with a really big %-gain have a really big %-risk/trade. I understand that risk makes money but for me its kind of strange. Also I understand that you can risk more on trades you a sure go well. But still.... I mean proper MM shouldn't be like 5% a trade.

BTW I know how to use exponential growth, we are talking about absolute growth.

Examples:

Guy from FF, RoverGarden 744% gain in only 3007 pips.
http://www.forexfactory.com/rovergarden#05

Revtrader, 611% gain in only 3812 pips.
http://www.myfxbook.com/members/revt...o-real/1043229

-Jysticim
  • #2
  • Nov 7, 2014 6:02am Nov 7, 2014 6:02am
Nobody?


......all those high %-gain look like they were just lucky, because in the long-term such high MM wouldn't stand......right?
  • #3
  • Nov 7, 2014 6:05am Nov 7, 2014 6:05am
Yeah you're right Justicim. They'll blow their accounts as soon as they have some draw-down which is inevitable no matter the system.
  • #4
  • Nov 7, 2014 7:03am Nov 7, 2014 7:03am
But, what is the point of this thread?

RoverGarden has his account for over 3 years now, Revtrader for almost a year. They both had drawdowns when you look at the graph. RoverGarden's FF stat's look weird - average gain of -8.6% and average loss of -2%. He might be one of those traders who take many small losses, but think in years - then ride the hell out of a good hand.

I'm impressed by their results rather than envious (which I am, too, but in a good way ), especially Revtrader's - feels more like my trading style - even though his average gain and average loss are fairly similar he has 74% success rate - that looks like a sound statistically based strategy, even if RR is ~1:1
  • #5
  • Nov 7, 2014 7:28am Nov 7, 2014 7:28am
Quoting timginter
But, what is the point of this thread? RoverGarden has his account for over 3 years now, Revtrader for almost a year. They both had drawdowns when you look at the graph. RoverGarden's FF stat's look weird - average gain of -8.6% and average loss of -2%. He might be one of those traders who take many small losses, but think in years - then ride the hell out of a good hand. I'm impressed by their results rather than envious (which I am, too, but in a good way ), especially Revtrader's - feels more like my trading style - even though his average...
I will explain the point of this thread, through examining the good traders we should learn something right?

I understand your point about what I marked bold. That still doesn't explain the fact that he has a high MM. In total he made 13k pips and lost 11k, to get 744% you still have a MM that is rather risky. So the question is, should we also trade less and use higher % risk.

Don't get me wrong, I am totally not envious. As you see I make a descent (compared to high %-gainers) %-gain each week, if I continue trading like this then the sky is the limit.
  • #6
  • Last Post: Nov 7, 2014 8:10am Nov 7, 2014 8:10am
Quoting Jysticim
{quote} I will explain the point of this thread, through examining the good traders we should learn something right? I understand your point about what I marked bold. That still doesn't explain the fact that he has a high MM. In total he made 13k pips and lost 11k, to get 744% you still have a MM that is rather risky. So the question is, should we also trade less and use higher % risk. Don't get me wrong, I am totally not envious. As you see I make a descent (compared to high %-gainers) %-gain each week, if I continue trading like this then the...
Without them to comment on their trading strategy we are just speculating. I understand a will to learn from good traders, but you seem to throw everyone into the same basket. Not only that, but you also put yourself as a metre to measure the rest.

I believe you will learn in depth not only from good traders, but mainly from those who have a similar mindset (and strategy) to yours - something you feel fits you. Any other style will look impossible and ridiculous, and so many pages on FF are spent arguing that "your strategy could never work" (and in some cases we are proven wrong simply by results).
If this thread is for learning rather than comparing and/or criticizing then define your way of trading and look for other big names similar in MM and strategies to yours instead of those different. I'll gladly join and chip in if I'm able
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