Rags to Riches : My Implementation | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Rags to Riches 21 replies

Rags To Riches 203 replies

rags to more rags.. and even more rags! 19 replies

Rags to rags and ice cream 36 replies

Rags To Riches Take 2 24 replies

Attachments: Rags to Riches : My Implementation
Exit Attachments

Rags to Riches : My Implementation

  • #1
  • First Post: Edited Jun 29, 2015 2:02pm Jun 28, 2015 7:04pm | Edited Jun 29, 2015 2:02pm

Attached Image



>> REFERENCE

--- This journal will be dedicated to my implementation of Rag2RichesFX idea explored in his Thread.

>> PLAN

--- Small live account with $500 starting balance.
--- Divide the account logically into 5 sub account, each of $100
--- 4 sub accounts will be traded and the 5th will be spare
--- Sub accounts will be traded separately as if they were separate accounts. an EA will track each sub account.
--- Start Date 6th July, 2015

>> SYSTEM

--- Technical + Fundamental
--- Low Frequency Trading
--- Daily and Weekly time frames
--- Define Sentiment for each traded instrument
--- Trade pull backs (Short term reversals toward the larger trend)
--- Charts will be posted before taking a trade (comments are welcome)
--- Stop Loss is not fixed (i.e. 25 pips as in the original thread), No it will be variable based on the opportunity traded
--- Minimum 1:2 Risk to Reward. However I can close the trade at less loss, or larger profit, if the market says so.
---

This post will be edited at least until trading starts.


Regards,

Khalil
No guts, no glory
  • #2
  • Jun 29, 2015 11:54am Jun 29, 2015 11:54am
Nice! Wish you good luck
  • #3
  • Jun 29, 2015 1:46pm Jun 29, 2015 1:46pm
Quoting kinzu
Nice! Wish you good luck
Thanks kinzu for dropping by.
Your input during the lifetime of this journey will be highly appreciated.
No guts, no glory
  • #4
  • Edited 3:34pm Jun 29, 2015 1:57pm | Edited 3:34pm
I am a robot guy.

However for this project and due to the high risk involved (50% a trade), the system can not survive consecutive losses, so I am going to trade it Manually and I will be picky on the trades.

It will take time, but I don't mind as this will be a small account on the side which can grow into something or just fade away, However I will make sure to enjoy the journey either way.

I will certainly need (and develop) an EA or Indy to assist me in managing the sub-accounts, position calculation ... etc.

Having multiple sub-accounts IMO, will decrease account blow up probabilities --- and -- will not freeze the whole margin on one trade and allow for taking other trades on other sub-accounts with the free margin.
No guts, no glory
  • #5
  • Jun 29, 2015 2:00pm Jun 29, 2015 2:00pm
An account is already opened for this project on FX.DD, and deposit made.
I believe it will be live on Wednesday.

However I will start the journey on next Monday 6th July, 2015.
No guts, no glory
  • #6
  • Jun 29, 2015 3:30pm Jun 29, 2015 3:30pm
ok, subscribe and follow the progress.
we don't predict, we only ride
  • #7
  • Jun 29, 2015 3:44pm Jun 29, 2015 3:44pm
Why not just deposit $100 so you don't need to track your sub account and position sizing and different ea to manage it. Help you not blowing subaccount while it gaps more because of euro crisis aswell.
just a thought.
subscribed
Be Greedy
Dices Return This Week: na
  • #8
  • Jun 29, 2015 4:11pm Jun 29, 2015 4:11pm
Quoting AKCodingEye
Why not just deposit $100 so you don't need to track your sub account and position sizing and different ea to manage it. Help you not blowing subaccount while it gaps more because of euro crisis aswell. just a thought. subscribed
Taken from previous post :

Having multiple sub-accounts IMO, will decrease account blow up probabilities --- and -- will not freeze the whole margin on one trade and allow for taking other trades on other sub-accounts with the free margin.

Hi AK,

Different pairs will be traded on different sub-accounts. I will also try (as much as possible) to avoid highly correlated (or inversely correlated) trades.

And as I said earlier, I will be picky on trades. Market is big and I think it can offer 2 to 4 trades a week.

Remember, I am going to trade daily or weekly, with stop not less than 100 pips depending on pair volatility/opportunity .
I don't mind if I didn't take a trade for a week or even a month.

Making consecutive 2:1 Reward-to-Risk trades is not easy specially if you're risking 50% of account balance.

Low frequency trading I think is the best for this system to work. Now if this is the only account you are trading it will be boring no doubt, but as I said this is a small account on the side.

Fireworks will start sooner or later, either I get burned or I celebrate .


Regards,

Khalil
No guts, no glory
  • #9
  • Jun 30, 2015 1:00pm Jun 30, 2015 1:00pm
With One Account of $400 starting balance, 2 wins and 2 losses, the ending balance will be $400
-- 400-->800, 800-->1600, 1600-->800, 800 -->400
-- 400-->200, 200-->100 , 100-->200 , 200-->400 .... etc.

While if we divided this account into 4 sub accounts each of $100, and traded each one separately,
then 2 wins (1 on each sub account) and 2 losses (1 on each sub account) , the ending balance will be 500 = (200+200+50+50).

If we have 3 losses and 1 win
One Account : 400-->200, 200-->100, 100-->50, 50-->100
4 Sub Accounts: (200+50+50+50) = 350

4 losses in a row:

One Account : 400-->200, 200-->100, 100-->50, 50-->25
4 Sub Accounts: (50+50+50+50) = 200

So increasing the number of sub accounts will give the master account a greater chance of surviving.

I hope it is clear.
No guts, no glory
  • #10
  • Jun 30, 2015 2:49pm Jun 30, 2015 2:49pm
To my surprise, one of my brokers gifted one of my in-active accounts with $200 no-deposit bonus.
As per their terms & conditions , this bonus can not be withdrawn, however any profit made trading this bonus can be withdrawn.

What do you know, may be its gonna be a free ride after all (except for my time of course).

I am thinking of using this no-deposit account as a pilot project, and see how things go.
I might divide it into 2 or 4 smaller sub-accounts.

The journey is about to begin ...
No guts, no glory
  • #11
  • Jun 30, 2015 3:02pm Jun 30, 2015 3:02pm
Quoting abokwaik
With One Account of $400 starting balance, 2 wins and 2 losses, the ending balance will be $400 -- 400-->800, 800-->1600, 1600-->800, 800 -->400 -- 400-->200, 200-->100 , 100-->200 , 200-->400 .... etc. While if we divided this account into 4 sub accounts each of $100, and traded each one separately, then 2 wins (1 on each sub account) and 2 losses (1 on each sub account) , the ending balance will be 500 = (200+200+50+50). If we have 3 losses and 1 win One Account : 400-->200, 200-->100, 100-->50, 50-->100 4 Sub Accounts: (200+50+50+50) = 350 4...
yes, agree Brother.....
account must sub....sub....sub...and sub......hihihihihi.....
Regard, Ding Dong
  • #12
  • Edited 5:25pm Jun 30, 2015 3:31pm | Edited 5:25pm
Lot Size Calculation :

Lot Size = Balance / (SL Pips * Pips Value + Required Margin)

Example : GBP/CAD, using 1:200 leverage
Balance = 100, Pip Value = $8.0058, Req. Margin = $785.55

Assuming SL = 50 Pips

Lot Size = $100 / (50 * $8.0058 + $785.55) = $100/($400.29+$785.55) = $100/$1185.84 = 0.084328 Lots = 0.08 Lots
Risk = 50 * 0.08 = $32 = 32%

Apparently we can not achieve %50 risk with 1:200 leverage, so the max risk will be around 33%, otherwise the free margin will become negative and the position will be stopped out.
No guts, no glory
  • #13
  • Jun 30, 2015 5:24pm Jun 30, 2015 5:24pm
I have to add the spread to the above calculation.

So the final formula will be :

Lot Size = Balance / [ (SL Pips + Spread Pips) * Pips Value+ Required Margin]
Lot Size = 100 / [(50 + 4) * 8+785] = 0.08217 = 0.08 normalized

Later on I am going to post an indicator that calculates the Max Lot Size for this system.
No guts, no glory
  • #14
  • Jun 30, 2015 7:18pm Jun 30, 2015 7:18pm
Here is a quick Lot Calculator indicator that calculates Lot Size based on Risk % of Account Equity, and SL Pips, along with Maximum Lot Size to avoid negative free margin.

Attached Image (click to enlarge)
Click to Enlarge Name: LC_01.png Size: 37 KB
Attached File(s)
File Type: ex4 Lot_Calculator_01.ex4   6 KB | 431 downloads
No guts, no glory
  • #15
  • Jul 1, 2015 2:24am Jul 1, 2015 2:24am
ideia seems interesting, but that system is to be used? it is important to obtain a very high winning%.
  • #16
  • Jul 2, 2015 10:20am Jul 2, 2015 10:20am
Very excited for this project.
Your brokers ?
  • #17
  • Jul 2, 2015 12:57pm Jul 2, 2015 12:57pm
Can't wait to see you blow my mind.
EVERY PIP COUNTS!
  • #18
  • Jul 2, 2015 2:46pm Jul 2, 2015 2:46pm
Quoting shilox
Can't wait to see you blow my mind.
Hi shilox,

Sorry, I am not going to blow any body's mind

Rags2RichesFX said "Rags to Riches in 10 or 20 Trades" he never said in 10 or 20 days.

He later explained, the 9 net wins as follows ( I have added the required win ration between parenthesis):
"
9 NWT examples

9 wins 0 losses.................(Win Ratio = 100%)
18 wins and 9 losses........(Win Ratio = 67%)
30 wins and 21 losses......(Win Ratio = 58%)
50 wins and 41 losses......(Win Ratio = 54%)
150 wins and 141 losses..(Win Ratio = 51%)
You get the point? As long as you get those 9 Net Winning Trades, you will make a 100,000% gain.
"

Actually as long as your win ratio > 50, you'll make it, it will take longer but who cares.

Take care ...

Khalil
No guts, no glory
  • #19
  • Jul 2, 2015 2:47pm Jul 2, 2015 2:47pm
Quoting madscalp
Very excited for this project. Your brokers ?
I am going to attache the trade explorer before taking the first trade.
Start date is still the same as in post # 1 --- Start Date 6th July, 2015
No guts, no glory
  • #20
  • Edited 4:14pm Jul 2, 2015 2:49pm | Edited 4:14pm
Quoting Clipi
ideia seems interesting, but that system is to be used? it is important to obtain a very high winning%.
The general system idea, is to trade pull backs on the major trend.
Details will follow....

As for the winning%, anything above 50% will do, check my earlier post.

EDIT : Provided of course that you don't have many consecutive losses, as you'll reach a stage where available margin is not enough to open a trade.
No guts, no glory
1 trader viewing now