10 Pips Per Day - Everyday

[CFerret]

Quote from Acs:

I do not know much about futures so can not comment there.

But given your example of losing maybe 20 pips in 1 day and making 50 pips in another day, trading like this i agree can lead to sucess. I see no problem with a ratio like that however that is not aiming to make 10 pips a day lol.

I dont care how you decide to "view" it, we can view those 50 pips made in 1 day as aiming for 25 pips? its just a load of rubbish.

If you read my posts in this thread with care, you'd see that I began to speak of an AVERAGE of 200 pips a month (equal to 10 pips a day) as a REACHABLE profit, never as a profit to aim to make.

Though I don't see anything wrong in setting a goal and trying to make it. Agree with you just in one point: if you aim for 10 pips a day, your average will almost surely will be less than that simply because not every day it is possible to take your goal.

My point is that if you close a trade on 10 pips profit and you do this on a regular basis your strategy is flawed and destined for failure it really is as simple as that.

Not at all. I am absolutely sure you can win long term with 10 pip targets as well if you keep your stop right enough (say 5 or 3 pips). You admitted you don't know about futures, but futures is exactly what top scalpers trade and FX future (6E) is arbed to death with cash EURUSD and moves EXACTLY in line with it (with just some negligible deviations). And 3-5 pip stop is for sure can be employed there (I do well with such short stop-losses myself).... Why same can't be done in cash FX, please tell me?

Any time you take a trade on the FX market you expose yourself to an element of risk. That risk being the potential to lose on your trade.

So what? No difference from any other market in the world...

If your profits at any trade are only 10 pips, then you need many more winners then wipe out only 1 loss. Once you understand this concept you will realise that it is impossible.

No. See above why. It's for you 10 pips can seem small profit, but for a scalper it can easily be a good 1:3 r/r target level.

A please dont keep saying if we make 100 pips blah blah,

my point is that if you take a profit of 10 pips this is the problem, and this is what the strategy suggests.

The problem will be when trader sets a goal of 10 pips per day and tries to take it no matter what, thus making up trades... Then it is a problem for sure... But making an average of 10 pips a day is not a problem at all.

 

[CFerret]

I don't trade FX intraday for six months yet, but use exactly the same method as do in SIFs and performed hundreds of trades already in FX alone, so pretty sure it does work.

Quote from Trader200K:
(1) Your entry method (Trendfollowing, mean reversion, etc)

Mostly reversals and trend retracements.

(2) Stop placement method

Statistical most of the time... Based on natural levels sometimes.

(3) Your exit method (Reversal, volatility exit, etc)

Targets, mostly based on natural levels.

(4) If you went through extensive backtesting and optimization, what software did you use?

No, I developed a style slowly with time while watching the price every day and making observations.

 

[CFerret]

Quote from Acs:

you also must have all the banks knocking at your door. Some of the worlds best investors manage to make returns of 20% in a year.

There is a HUGE difference between banks and "world's best investors" who have to make that 20% on billions of dollars and a retail trader with several $K account...

First are almost completely unable to trade like any retail day- or even swingtrader mostly does, which is - setting a hard stop and trading with an exactly defined risk.

Trading with 10 or even 100 cars in ES with a fixed stop of 3 handles is no big deal. Trading the same way with 50,000 cars is kiss of death!

Thats the reason most banks etc. switch to complex models and longer term investment strategies which of course make less percentage wise.

Once again, maybe you go and learn a little more about markets before arguing with people who actually have some real experience?

 

[Acs]

Quote from CFerret:

There is a HUGE difference between banks and "world's best investors" who have to make that 20% on billions of dollars and a retail trader with several $K account...

First are almost completely unable to trade like any retail day- or even swingtrader mostly does, which is - setting a hard stop and trading with an exactly defined risk.

Trading with 10 or even 100 cars in ES with a fixed stop of 3 handles is no big deal. Trading the same way with 50,000 cars is kiss of death!

Thats the reason most banks etc. switch to complex models and longer term investment strategies which of course make less percentage wise.

Once again, maybe you go and learn a little more about markets before arguing with people who actually have some real experience?

Trading with a $k account and a billion $ account is no difference at all.

The reason they would only make 20% is beacuse they are trying to follow a consistant strategy that will work over a long period of time without the least amount of exposure to risk.

Now if you decide to make 1200% in 1 week you are simply exposing yourself to huge risks. Which in turn you will eventually end with wiping out your account.

Do you want to trade for 1 year? or 20 years? beacuse it is the latter that i think you will find will be rewarding and which is the most difficult to achieve.

One you eliminate that risk and can achieve sustained returns consistantly, you can leverage your strategy to any amount you please, and that is how you will succeed.

 

[loik]

Quote from Acs:

Trading with a $k account and a billion $ account is no difference at all.

The reason they would only make 20% is beacuse they are trying to follow a consistant strategy that will work over a long period of time without the least amount of exposure to risk.

Now if you decide to make 1200% in 1 week you are simply exposing yourself to huge risks. Which in turn you will eventually end with wiping out your account.

Do you want to trade for 1 year? or 20 years? beacuse it is the latter that i think you will find will be rewarding and which is the most difficult to achieve.

One you eliminate that risk and can achieve sustained returns consistantly, you can leverage your strategy to any amount you please, and that is how you will succeed.

 

[JSSPMK]

Quote from loik:

yes, that is an odd statement at best.

 

[Acs]

Quote from JSSPMK:

yes, that is an odd statement at best.

Shows your understanding then?

I think many of you should look at the statistics. how many people and these are proffesionals who manage funds, actually make money over a period of a few years. Its about 70%, now when you take this to a period of 20 years almost every single one of them fails.

$k account to billions, its doesnt matter you would still follow he same strategy,

the amount in your account has nothing to do with your strategy just beacuse you have $k you can over trade and over leverage it??? you do that with any amount and you lose,

 

[CFerret]

Quote from Acs:

Trading with a $k account and a billion $ account is no difference at all.

ROFL! Please! It's in your best interests to stop writing things like that... It seriously harms your reputation, believe me.

I really don't want to insult you by saying this, but such posts look like you have no idea what trading really is...

Have you ever heard such a word as "liquidity"?

 

[Acs]

Quote from CFerret:

ROFL! Please! It's in your best interests to stop writing things like that... It seriously harms your reputation, believe me.

I really don't want to insult you by saying this, but such posts look like you have no idea what trading really is...

No i think its your understanding that seems to be lacking, you seem to misunderstand the concept of LONG TERM.

There is no difference, What you seem to misunderstand is that you need a strategy that can be sustained, and as i said then you can levearge this same strategy with your $k account to BILLIONS exactly the same.

However, as you seem to rather new to all this you still believe that in order to make money you must over leverage your $k beacuse of the numbers.

$500, $10,000 or billion doesnt matter. Its irelevant.

 

[CFerret]

Quote from Acs:

No i think its your understanding that seems to be lacking, you seem to misunderstand the concept of LONG TERM.

There is no difference, What you seem to misunderstand is that you need a strategy that can be sustained, and as i said then you can levearge this same strategy with your $k account to BILLIONS exactly the same.

However, as you seem to rather new to all this you still believe that in order to make money you must over leverage your $k beacuse of the numbers.

$500, $10,000 or billion doesnt matter. Its irelevant.

I excellently understand what means long term of course.

What you seem to misunderstand is that larger traders switch to long term strategies exactly because they can't trade shorter time frames, because of LIQUIDITY issue.

And as for banks and hedgies... They use much more complex strategies and often models very different from swing trading for the same reason: they're simply TOO BIG to act as fast and not affect the market as retail trader can do.

Now we come to key point: any big bank would of course be able to easily make say 50% on account per month as many successful retail traders do IF ONLY THEY COULD trade like them - in and out with a defined risk several times a day, with their SIZE.

THAT is the difference why 20% yearly for them is often harder than 50% monthly for a retail stocks scalper.

And many people who blame daytraders being liars, saying "why aren't you a billionaire with such a huge profits" simply don't understand this concept.