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Rags to Riches : My Implementation

  • #21
  • Jul 2, 2015 7:33pm Jul 2, 2015 7:33pm
Trade Explorer Added.

I was playing with the account during the last 2 days, just to make sure it is tradeable, and managed to close all trades at 0 P/L, back to $200 which represents the starting balance of this journey.

I already mentioned starting balance was a no-deposit bonus (completely free) .
This does not show in the trade explorer, so I am posting a snap-shot of mt4 account history.

Attached Image (click to enlarge)
Click to Enlarge Name: r2r_statement_00.png Size: 110 KB
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  • #22
  • Edited 4:09pm Jul 3, 2015 4:56am | Edited 4:09pm
Thx for explanation.
  • #23
  • Jul 3, 2015 4:39pm Jul 3, 2015 4:39pm
Pair Analysis : EUR/USD

Attached Image (click to enlarge)
Click to Enlarge Name: eu_d1_7_4_2015.png Size: 56 KB


The pair experienced a deep down trend for almost a year, and is in consolidation since March 2015.
Lately the pair printed the first HL/HH sequence since it topped, but not a pretty convincing one however.

Fundamental view prefers USD over EUR.

Greece risk cloud would clear up next week.

A break of last Monday big daily candle which incorporated the highest volume since beginning of the year, would set the near term direction of the pair.

A break of 1.08 would indicate a down trend continuation, targeting 1.045 (2015 low). If succeeded then 1.0 (parity).
A break of 1.146 would target first 1.185+ (38% fibo retrace). If succeeded then 1.22 (2014 low).

Possible Trade :
-- Break of last Monday candle,
--- If up, then wait for the best price to go long.
--- If down, wait for the best price to go short.
--- SL other end of last Monday candle.
--- TP 2 x SL.
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  • #24
  • Jul 3, 2015 4:45pm Jul 3, 2015 4:45pm
On a long signal on EUR/USD, I prefer to take a long EUR entry on other pairs other than USD (i.e. EUR/CAD, EUR/GBP ... etc).
However not EUR trades on next Monday, waiting for the dust to clear.
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  • #25
  • Jul 4, 2015 2:00am Jul 4, 2015 2:00am
Quoting abokwaik
On a long signal on EUR/USD, I prefer to take a long EUR entry on other pairs other than USD (i.e. EUR/CAD, EUR/GBP ... etc). However not EUR trades on next Monday, waiting for the dust to clear.
I agree... next week can be eventful
so basically you open trades daily or weekly
then you apply your system with sub accounts
OK but what's your method to open trades ?
IMO i like the divergences reliable with the high TF ( > H4 )
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Div.jpg Size: 277 KB
Click to Enlarge Name: Div_2.jpg Size: 289 KB
  • #26
  • Jul 4, 2015 6:36am Jul 4, 2015 6:36am
Quoting madscalp
{quote} I agree... next week can be eventful so basically you open trades daily or weekly then you apply your system with sub accounts OK but what's your method to open trades ? IMO i like the divergences reliable with the high TF ( > H4 ) {image} {image}
Hi madscalp,

Can you share the divergence indicator you're using in the attached charts.

Thanks
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  • #27
  • Jul 4, 2015 8:58am Jul 4, 2015 8:58am
Enjoy
Attached File(s)
File Type: mq4 MACD_Divergence_V1.1.mq4   12 KB | 378 downloads
  • #28
  • Jul 4, 2015 1:09pm Jul 4, 2015 1:09pm
Quoting madscalp
Enjoy {file}
Thanks
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  • #29
  • Jul 4, 2015 1:21pm Jul 4, 2015 1:21pm
an IMPORTANT note regarding this Money Management method:

It is clear that the this MM method is very sensitive to margin requirements.

In the last 2 days, I have received few e-mails from different brokers regarding lowering leverage by at least half and increasing margin requirement at least by double, because of Greece situation.

I don't have any positions open on this account for the time being. However looking into future, the situation might happen again and again.

If margin requirements doubled while having a position open on this account with the proposed MM, then the position might get stopped out because of insufficient margin.

Just wanted to highlight the issue.
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  • #30
  • Jul 4, 2015 3:22pm Jul 4, 2015 3:22pm
Pair Analysis: USD/JPY

Attached Image (click to enlarge)
Click to Enlarge Name: USDJPY_D1_4_7_2015.png Size: 74 KB


Sentiment : Bullish
Status : Correction

Long Trade Opportunities:
-- option 1: Impressive Bounce off Near Raising Trend Line (Thick Black) which also represents the lower edge of the Raising Channel (Red & Black thick lines).
-- option 2: Impressive Bounce off Next Raising Trend Line (Thick Blue).
-- option 3: Impressive Bounce off descending trend line (Thick Light Blue) .... unlikely

Short Trade Opportunities:
-- option 1: Impressive Bounce off Raising Channel upper edge (Thick Red)
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  • #31
  • Jul 4, 2015 3:46pm Jul 4, 2015 3:46pm
Pair Analysis : GBP/JPY

Sentiment : Bullish
Status : Correction

Attached Image (click to enlarge)
Click to Enlarge Name: GBPJPY_D1_4-7-2015.png Size: 76 KB
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  • #32
  • Edited 5:06pm Jul 4, 2015 4:54pm | Edited 5:06pm
USD/CAD :

Sentiment : Bullish
Status : Break Out

Attached Image (click to enlarge)
Click to Enlarge Name: USDCAD_D1_4_7_2015.png Size: 65 KB


I might take long trades on lower time frame (H4,H1) on this pair, and join the 2nd leg, instead of waiting for the 3rd leg.
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  • #33
  • Jul 4, 2015 5:19pm Jul 4, 2015 5:19pm
Next week agenda is full of RED news that might bring pull back opportunities to join current trends. (Time is GMT+3).

Attached Image (click to enlarge)
Click to Enlarge Name: Week_Agenda_5_7_2015.PNG Size: 45 KB
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  • #34
  • Jul 4, 2015 5:38pm Jul 4, 2015 5:38pm
Modified Lot_Calculator (v2), that accepts Free Margin for sub account as an input, if set to zero it will use whole account free margin in calculation.

As the rags2RICHES account started with $200 balance instead of the planned $400, I am going to split it into 4 sub accounts each of $50, and due to recent changes in required margin, I am going to start with 25% risk instead of 50% (which is not possible anyway as explained in earlier posts).

Attached Image (click to enlarge)
Click to Enlarge Name: LC_02.PNG Size: 57 KB
Attached File(s)
File Type: ex4 Lot_Calculator_02.ex4   5 KB | 266 downloads
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  • #35
  • Jul 5, 2015 2:35am Jul 5, 2015 2:35am
Thx for Lotcalculator.
For fans of divergences on high TF:
Attached Image (click to enlarge)
Click to Enlarge Name: 0001.jpg Size: 337 KB
Attached File(s)
File Type: ex4 Divergence Stochastic Alert Software_Cleaned.ex4   14 KB | 321 downloads
File Type: ex4 RSI_Divergence_v2.ex4   35 KB | 331 downloads
  • #36
  • Jul 5, 2015 3:50am Jul 5, 2015 3:50am
Wich broker do u use? I think doubling the account with each winning trade is a great strategy when your win percentage is >50%.
But there are very few brokers who have such a high leverage that you can risk 50% of your account per trade. And most of the time the brokers that do have this leverage have other issues like big slippage. And if your account gets a big slippage it can be blown in a second.
Most of the brokers will lower the leverage when you reach a account balance of >25000 as well.

I have been thinking about a strategy where you grow your account with 1.5x per trade. This gives no margin issues untill a account balance of 50.000 with most brokers.

Example: Risk 35%, SL 14 TP 22
  • #37
  • Jul 5, 2015 9:27am Jul 5, 2015 9:27am
Hi Pipsalon,

Quoting Pipsalon
Wich broker do u use?
Check the trade explorer.


Quoting Pipsalon
I think doubling the account with each winning trade is a great strategy when your win percentage is >50%. But there are very few brokers who have such a high leverage that you can risk 50% of your account per trade. And most of the time the brokers that do have this leverage have other issues like big slippage. And if your account gets a big slippage it can be blown in a second. Most of the brokers will lower the leverage when you reach a account balance of >25000 as well. I have been thinking about a strategy where you grow your account with 1.5x...
This is a VERY RISKY strategy, and should not be tried on primary accounts.

I tried to reduce the risk by dividing into 4 sub-accounts and reducing the risk% to 25% instead of 50%.
If I reduce the risk any more it will loose its flavor.

However as the account(s) get bigger (if they ever do), I will reduce the risk even more.
No guts, no glory
  • #38
  • Jul 6, 2015 3:29pm Jul 6, 2015 3:29pm
A look at the market after today's news:

EUR/USD :

-- No r2R trade triggered as we are still playing the range within last Monday candle.
-- Plan is to wait for a break of either 1.1275 or 1.0954. If the break is convening (producing HH or LL) we enter on a retrace.
-- Please note that I took EUR/USD trades on other accounts (but not with rags2riches MM method), example below.

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDrM15.png Size: 31 KB
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  • #39
  • Jul 6, 2015 3:40pm Jul 6, 2015 3:40pm
USD/CAD:

Continued the up swing immediately after closing the gap.
So no decent pull back to join.
We'll have to wait ...

Attached Image (click to enlarge)
Click to Enlarge Name: USDCADrDaily.png Size: 43 KB
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  • #40
  • Jul 6, 2015 3:53pm Jul 6, 2015 3:53pm
GBP

GBP was strong across the board, however I don't like the Hanging Man (or a doji) printing on GBP/AUD, I might consider a counter trend trade on this one, and probably also on GBP/JPY which got further away from our previous planned entry point after closing the gap (the previous week gap is not closed yet, which could ...).

GBP/AUD

Attached Image (click to enlarge)
Click to Enlarge Name: GBPAUDrDaily.png Size: 37 KB


GBP/JPY

Attached Image (click to enlarge)
Click to Enlarge Name: GBPJPYrDaily.png Size: 29 KB
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