10 Pips Per Day - Everyday

[Acs]

Quote from CFerret:

Who said you that you have to expose yourself to much risk???

As kiwi_trader (a very good trader BTW,he helped me a lot to learn to trade better) once said: "thats the beauty of daytrading - risking under 1% on a trade, but making many trades during a day"... Not exactly such words, but sense is just that.

I NEVER risk more than 2% on a single trade... Usually around 1%. But multiply it on just 100 trades a month and imagine you have, let's say 50% win rate with 1:3 risk/reward.... Bingo!

You didn't know such a simple tactics Acs?

P. S. It's up to you to believe or not in something, but beware of closing yourself in a cage built around you from your own beliefs in what is and what isn't possible...

I have no problem with this, this is how i believe is the way to trade. If you manage to make 50% a month with 1:3 risk reward on every trade then i can accept that.

 

[giles117]

Quote from Acs:


It seems you have yet to come across this harsh lesson of reality.

Yeah, your right. Even though I publicly stated I lost 100K in 3 months back in 2000. I have never come across that harsh lesson of reality...

Yawn...

 

[CFerret]

Quote from Acs:

I have no problem with this, this is how i believe is the way to trade. If you manage to make 50% a month with 1:3 risk reward on every trade then i can accept that.

Great that we have come to concord.

I always vote for positive discussions.

 

[Acs]

Quote from giles117:

Yeah, your right. Even though I publicly stated I lost 100K in 3 months back in 2000. I have never come across that harsh reality...

Yawn...

OK giles,

So do you believe 1200% in a week is worth anything at all?

A trip to vegas would be about just as productive.

Would you ever make this in a week? or a month on the Fx market?

 

[Acs]

Quote from CFerret:

Great that we have come to concord.

I always vote for positive discussions.

I agree with positive disussions.

I will only ever risk 30 pips on any trade. This means if i manage to catch a ride off 200 pips on a trade i now know that if im wrong on the next 6 trades i will break even.

So i need to be correct 1 in 6 times to break even. Which means i can be wrong almost 80% of the time and right 20% of the time and still make money.

Just from guessing alone i have a chance from probability to get another correct trade before having 6 losers in a row.

It is in this that i believe there is something sustainable and worthwhile.

1200% a week i have no time for.

 

[CFerret]

Quote from Acs:

I will only ever risk 30 pips on any trade. This means if i manage to catch a ride off 200 pips on a trade i now know that if im wrong on the next 6 trades i will break even.

Good tactics for sure! I usually try to keep r/r as skewed to winning side as possible too (it also often exceeds 1:4, 1:5), but over time developed a short-term trading style (in SIF's, but it turned out to work just as well in FX futures) which allows me to use a very short stop (equal to just 5-7 pips in Euro) and after enough screen time (I have spent nearly 3 years sitting in front of screen for several hours every day watching markets in real time until began to become consistently profitable) you get a feel of the market which makes 50% winners and even slightly above pretty sustainable.

And good thing it does not depend on particular market, timeframe etc. Only little fine tune is needed. For example if I traded Euro from 4 hour timeframe, I'd use a 20-25 pip stop-loss. Just I prefer short term for the reason I stated in previous posts: more trades = better looking p&l.

1200% a week i have no time for.

1200% a week? I don't need that much.

 

[giles117]

Quote from Acs:

OK giles,

So do you believe 1200% in a week is worth anything at all?

A trip to vegas would be about just as productive.

Would you ever make this in a week? or a month on the Fx market?

If you scour MY posts, you'd see what I believe.... And to ask such redundant questions with obvious answers is just you sitting on a bully pulpit and screaming the world is flat.



I doubt I would make that in a week in FOREX.

1 - Because I wont trade with such frequency.. as is needed to gain that kind of increase. Even with an automated system, reading a 5 minute chart.

2 - Because the leverage needed to trade that way at 50:1 (IB's margin rates) is too great.... You wouldn't be able to enter the position. I am not a fan of 400:1 margin...

Example..... 25000 position value of USDCAD margin with IB is $500. The pip value is $2.50

with a 50K account, to achieve 1200% your goal would be to gain $550,000

Or $110,000 per day for 5 days.
= 44000 Pips @ 2.50 per pip..... Well the market isn't giving that up So if a person were to grab 400 pips like I did 2 weeks ago, your pip value would have to be $275/pip or a needed leverage of about $55000. A position value of approx 2.75MM Unfortunately with a 50K account you would never be able to enter the trade and on the 1st down tick you'd get a margin call.

SO is this realistic??? Not to me, but then I don't trade Forex that way.

Neither do I promote others to trade that way. I tell them to stay conservative... ALWAYS....


My MAX risk on any position is never more than 3%. And I skew my number downward to increase the risk pressure on me, hence never losing more than 40 pips on any one trade and letting the winning trades run their course. Of course if you paged back a few, you;d see I already said this and would bother me asking the same question over and over again. I told you we agreed with one another. LOL.

If I alot 10K to my FOREX trading I treat it as if I only have 3K so my risk is adjusted to that capital amount or $90/ trade instead of $300/trade

 

[cabletrader]

Quote from Acs:



I will only ever risk 30 pips on any trade.

Acs, that's roughly what I risk per trade, or 2% of equity. I trade intraday.

You target 200 pips, I target 1:1.5. The statistical probability of taking 45 pips intraday is greater than taking 200. Generally I win 7 out of 10 trades and average 60 trades per month.

Let's reduce the success rate to 6 out of 10 and exclude profit from trades which return a better risk reward than 1:1.5

That equates to an average monthly return of 60%, not compounded.
You state with some (misguided) authority "I dont believe that anyone can make 50% a month on a consistant basis. By trying to make 50% month you expose yourself to much risk and at some point it will bite you", which is clearly not the case, 2% could never be classified as exposing oneself to 'much risk'.

60% return and the risk never exceeds 2% per trade.

The returns are consistent and sustainable, they have been for years.


You seem a little upset over the 1200% for that week and call it gambling. Risk during that week never exceeded 5% per trade so it was slightly excessive but still within acceptable money management parameters because win:lose was so good. It was adept and skillful trading and I'm sorry if that fact upsets you.

As already pointed out, your comment "Trading with a $k account and a billion $ account is no difference at all" perhaps highlights where you are on the learning curve because it simply doesn't make any sense and might go some way to explaining some of the confused content of your other posts.

 

[cabletrader]

Great posts by the way guys, very interesting.

 

[giles117]

Quote from cabletrader:



You seem a little upset over the 1200% for that week and call it gambling. Risk during that week never exceeded 5% per trade so it was slightly excessive but still within acceptable money management parameters because win:lose was so good. It was adept and skillful trading and I'm sorry if that fact upsets you.

As already pointed out, your comment "Trading with a $k account and a billion $ account is no difference at all" perhaps highlights where you are on the learning curve because it simply doesn't make any sense and might go some way to explaining some of the confused content of your other posts.

As I have stated. IF THE MARKET GIVES IT TO YOU. And obviously the market gave it up...

Good Job CT...