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Hyper-Aggressive Risk Strategies

  • #1
  • First Post: Jan 11, 2015 5:45pm Jan 11, 2015 5:45pm
I wanted to talk a little about unconventional risk management strategies, particularly those that are hyper-aggressive. We've all seen people post examples of what one could accomplish if they could risk double their money on every trade, and turn $200 into $6,000,000 if they win 15 trades in a row... The problem is we all now how difficult it is to win even 8 trades in a row, much less 15. So what I've been considering is a "step system". In this model, you go through a series of steps at 4 trades per step. If you make it past the first step, you can lose a trade without going bust as you would in a typical "doubling" strategy. The drawback is that you have to win the first four trades or you start over with another deposit. Here is the model I came up with. Thoughts?
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  • #2
  • Jan 12, 2015 5:30am Jan 12, 2015 5:30am
The model appears to be good. The only thing which you would need now is a system which will determine if you buy or sell. Money management is just a slice of the pie, when it comes to making it big in forex. My question to you would now be, the actual system.
  • #3
  • Jan 12, 2015 10:22am Jan 12, 2015 10:22am
Quoting TomFord
The model appears to be good. The only thing which you would need now is a system which will determine if you buy or sell. Money management is just a slice of the pie, when it comes to making it big in forex. My question to you would now be, the actual system.
I have a method I've been somewhat successful with. The problem is it's a scalping method that targets 10 pips per trade. To go from $200 to $400 in 10 pips would require insane leverage. Like 1,000:1 correct? Not sure I can find that with a reputable ECN broker.
  • #4
  • Jan 12, 2015 10:49am Jan 12, 2015 10:49am
Quoting Nico1359
{quote} I have a method I've been somewhat successful with. The problem is it's a scalping method that targets 10 pips per trade. To go from $200 to $400 in 10 pips would require insane leverage. Like 1,000:1 correct? Not sure I can find that with a reputable ECN broker.
Well, leverage only determines the amount of free margin you will need to open a positions. The higher the leverage, the less money (free margin) will be required to have the positions opened. So it would appear you are trading for accuracy as you mentioned that you are scalping. So the question should be "How much of your account are you going to risk per pip". Although their are no rules as to what each pip should be worth, I would say that if you could earn 10 pips before losing 10 pips (expected R:R) then maybe you can go with .1 % of your account per pip. So each time you hit 10 pips profit you have gained 1% of your account. If you sl then of course you lose 1% of your account.
  • #5
  • Jan 12, 2015 11:41am Jan 12, 2015 11:41am
Quoting TomFord
{quote} Well, leverage only determines the amount of free margin you will need to open a positions. The higher the leverage, the less money (free margin) will be required to have the positions opened. So it would appear you are trading for accuracy as you mentioned that you are scalping. So the question should be "How much of your account are you going to risk per pip". Although their are no rules as to what each pip should be worth, I would say that if you could earn 10 pips before losing 10 pips (expected R:R) then maybe you can go with .1 % of...
I think you're missing the point of the thread. I already have an account where I employ a traditional approach (1% of account per trade). This is meant to be an experiment that involves hyper-aggressive risk. So starting with $200, you would trade 2 standard lots which would be 10% of your account per pip. It is obviously a "boom-or-bust" scenario within Step 1 (the first 4 trades). After that, the model is meant to scale back the amount of risk so that it is not all-or-nothing in the proceeding steps.
  • #6
  • Jan 30, 2015 8:50am Jan 30, 2015 8:50am
Sound fun BUT is hard to get a good broker with leverage at 1000

maybe 500:1
  • #7
  • Last Post: Jan 30, 2015 4:28pm Jan 30, 2015 4:28pm
Yeah it sounds fun and the plan certainly looks fine. But it's simply gambling. It's like a coin toss game, not real trading. That doesn't mean it can't be fun if you get enjoyment from gambling that way and have money to blow. The best thing to do would be to try it on a demo account and see how far you can get. It's just a game of chance. But if you got lucky and got 8 or 16 wins in a row that's a nice return on your bet. But good luck getting 8 wins in a row. That is not something that happens often with a 1:1 RR. Just getting to the end of Step 2 will be difficult.
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