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Rags to Riches in 10 or 20 Trades - Simplicity at its finest

  • #2,021
  • Jan 10, 2016 2:53pm Jan 10, 2016 2:53pm
Quoting forexintradi
Ok, Ok, if thats only for fun...I got the point guys. but this week I am going to Vegas...so Ill spend my 50 bucks there....lol I dont gamble in Forex, and I do tests on demo. Good luck guys!
Lool, 50 bucks..on what.. Tips to parking valet
  • #2,022
  • Jan 10, 2016 3:10pm Jan 10, 2016 3:10pm
Please no more meaningless post in this thread about trading systems with a grwat win rate and great risk to reward if you cant back it up. And no more pointless post about why this thread exist if you dont get it, fine move on.

Best regards
  • #2,023
  • Jan 27, 2016 10:29am Jan 27, 2016 10:29am
il give this a go, wont be 9 NWT though, maybe 4/5​
  • #2,024
  • Edited Feb 7, 2016 7:10am Feb 6, 2016 10:34am | Edited Feb 7, 2016 7:10am
I'd really like to play like this but the big problem I see is with minimum margin requirements (MMR) making it impossible to use tight stop losses.
Please correct me if I'm wrong because I'm useless at even basic calculus.
If my broker has a 0.2% MMR, then that's about $27 of Used Margin for a mini lot on EURUSD.
So say that I want to start with a K of $100, I'll want to risk $50 on my SL.
I find a great entry on a small TF, and want to place a tight 10p SL with a 30p TP.
The problem is that risking $50 on that 10p SL means playing at $5 per pip, so 5 mini lots, right?
But then my MMR has to be 5 x $27 = $135 to buy those 5 minis and I only have $100. I can in fact only risk 35% with such a small SL.
So I need a bigger SL, if the MMR is 0.2% then on EURUSD 27 pips is the smallest SL on which you could risk $50 of capital.

Bottom line is that I would need a SL of about 30p in order to bet 50% of K on that SL, so I'm looking for a 60p or preferably a 100p move. Therefore you need to trade higher TFs where good entries are few and far between.

Am I getting this wrong?
  • #2,025
  • Feb 6, 2016 11:05am Feb 6, 2016 11:05am
I came to this thread today, can anyone tell me somebody implemented it, what was the results. Risking 50 dollars is not much to test this.
  • #2,026
  • Feb 6, 2016 12:47pm Feb 6, 2016 12:47pm
Quoting alt11
I'd really like to play like this but the big problem I see is with minimum margin requirements (MMR) making it impossible to use tight stop losses. Please correct me if I'm wrong because I'm useless at even basic calculus. If my broker has a 2% MMR, then that's about $27 of Used Margin for a mini lot on EURUSD. So say that I want to start with a K of $100, I'll want to risk $50 on my SL. I find a great entry on a small TF, and want to place a tight 10p SL with a 30p TP. The problem is that risking $50 on that 10p SL means playing at $5 per pip,...
higher leverage solves this problem..

but in most cases, 20 to 30 pips sl is best.. longer time frame not necessary if you can get a 50 pip move in the shorter time frame...
It's in fear when people show what they truly value.
  • #2,027
  • Feb 6, 2016 4:35pm Feb 6, 2016 4:35pm
Listen guys, heres why I think that whole concept fails as it relates to currency pairs and margins( and please, anyone here correct me if im wrong cause im a newbie of 3 months but have done a lot of trading and research)...
Lets say starting with $100. The problem is how do you double your money with the margin requirements they allow such as 50 to 1? Lets talk about using Eur/USD for example.
At 1000 lot you can only enter with $22 margin making .10 a pip. so the biggest lot you can buy is 4000(loss or gain of .40 per pip) which puts you 12 pips away from being in a margin call and getting stopped out there. Even that being said, and using the 4000 lot youre allowed to open the trade with, you would have to gain literally 250 pips in order to make $100.00 which is almost unheard of. So that gives you a SL of 12, versus a hopeful gain of 250 pips. That's crazy! I don't see you can EVER double your cash position using such small lots based on their margin requirement? Can anyone see this or shed any light on it? thanx
  • #2,028
  • Feb 7, 2016 5:40am Feb 7, 2016 5:40am
Quoting Sargent
I came to this thread today, can anyone tell me somebody implemented it, what was the results. Risking 50 dollars is not much to test this.
For $50 why not....Your an alien!This is dangerous money management but as a project....Taking one trade a day it could be very fruitful. For most trades with my 200:1 it would require around 200 point stoploss....Dependent on pair but if youve just made $200 last week...Why not throw $50 at it...You need big balls when you take a loss to continue however especially if your dealing with big sums...Either way best of luck Sargent.
  • #2,029
  • Feb 7, 2016 7:43am Feb 7, 2016 7:43am
The whole thing is if you only get 50 to 1 margin on your account this strategy can't work because they don't allow the margin requirement big enough for the amount of cash($100 lets say) you can make per pip. please read my last post. I would to get some comments on it from yu guys!
  • #2,030
  • Edited Feb 8, 2016 2:15am Feb 7, 2016 9:11am | Edited Feb 8, 2016 2:15am
für Montag, den 5 Konten 2 mal 100 und 3 mal mit 50 .
mal sehen, was passiert.
Losgröße 25% TP20 sl10
Handel Explorer kommt Montag
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  • #2,031
  • Feb 9, 2016 3:44am Feb 9, 2016 3:44am
Slightly modified the strategy of making it more conservative. I tested it on the daily data
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  • #2,032
  • Feb 9, 2016 4:56am Feb 9, 2016 4:56am
Quoting bingo60
Slightly modified the strategy of making it more conservative. I tested it on the daily data {image} {image}
Hello, Bingo!

Interesting, thanks.

What were the entry's and SL's criterias? Risk/Reward 1:2?

Cheers,
Artem
Let's go with the flow
  • #2,033
  • Feb 9, 2016 5:17am Feb 9, 2016 5:17am
Quoting artem_t
{quote} What were the entry's and SL's criterias? Risk/Reward 1:2?
entry based on RSI with SL = 10 and trailing stop = 10 pips
  • #2,034
  • Feb 9, 2016 5:20am Feb 9, 2016 5:20am
Quoting bingo60
{quote} entry based on RSI with SL = 10 and trailing stop = 10 pips

Can yopu tell us more and is it duable ?

Best regards
  • #2,035
  • Feb 9, 2016 5:36am Feb 9, 2016 5:36am
Quoting jgadefelth
{quote} Can yopu tell us more and is it duable ? Best regards
As you can see from Rag2RichesFX posts, he uses the 2-period rsi. Check performance of use rsi(2) like this one or this
Problem that I encountered is how to get the best entry with maximum profit (not 10-20 pips). All I need is a quality filter.
  • #2,036
  • Feb 9, 2016 8:29am Feb 9, 2016 8:29am
Quoting forexrex101
Listen guys, heres why I think that whole concept fails as it relates to currency pairs and margins( and please, anyone here correct me if im wrong cause im a newbie of 3 months but have done a lot of trading and research)... Lets say starting with $100. The problem is how do you double your money with the margin requirements they allow such as 50 to 1? Lets talk about using Eur/USD for example. At 1000 lot you can only enter with $22 margin making .10 a pip. so the biggest lot you can buy is 4000(loss or gain of .40 per pip) which puts you 12 pips...
If you're a newb of 3 months than this thread is not for you. First learn to trade and then come back here. No offense meant..
  • #2,037
  • Feb 9, 2016 12:36pm Feb 9, 2016 12:36pm
Funny,I had the same idea when I started out in forex trading.I thought if I could trade perfectly for 12 good weeks,I would be able to turn my $50 initial deposit into $60,000 within that time frame.Unfortunately,I had unrealistic expectations.For that to happen,I needed to have a 100% win ratio to achieve that and it did not take too long before I blew my trading account.
Always follow the trend
  • #2,038
  • Feb 10, 2016 2:41am Feb 10, 2016 2:41am
Quoting forexonpoint
Funny,I had the same idea when I started out in forex trading.I thought if I could trade perfectly for 12 good weeks,I would be able to turn my $50 initial deposit into $60,000 within that time frame.Unfortunately,I had unrealistic expectations.For that to happen,I needed to have a 100% win ratio to achieve that and it did not take too long before I blew my trading account.

I'm not sure if you are referring to the opening post.
If you are: the MM that has been offered does not speak of 100% win ratio... it's about 10 (or 7) Netto wins. So 10 more winning trades than you have losing trades.
Persistence will get it. Consistency will keep it.
  • #2,039
  • Feb 10, 2016 4:27am Feb 10, 2016 4:27am
Opening an account to experiment this very soon, will attatch trade explorer too. Only to have fun not to get rich quick.
  • #2,040
  • Mar 5, 2016 3:28am Mar 5, 2016 3:28am
Btw, just was posted today:

http://mechanicalforex.com/2016/03/r...1-million.html

In short summarized (but check the article to see how this chance is calculated mathematically):

"In this sense you are far better off waiting for a big enough jackpot in a lottery like this and betting all the money you wish to put into high risk trading rather than making these type of bets in the market. Of course the randomness in market returns fools many into believing that they have “skills” above randomness when performing this type of trading but in reality the New York lottery is a much better choice for this type of “trader”."
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