3-6% ROI options trading system
- Thread starter xilb51x
- Start date
A 1% move happens almost daily in currencies.
You could lever up 500x provided your not in the US.
Monday = $100,000
Tuesday = $500,000
Wednesday = $2,500,000
Thursday= $12,500,000
Friday = $62,500,000
This scenario is just as insane as the one you proposed. You will most likely get stopped out before any mythical returns. Risking 25% of your account to make 3-6% on a trade is asking for trouble.
Yes, those moves happen regularly. No to the idea that extracting that as your profit can be done with ease. It's only very easy in hindsight. In the real world, when you are staring at the unfolding price movements at the hard right edge, it's very easy to get fooled. Just when you think you have a winner on your hands, it can suddenly turn into a loss. Then most people will try to catch up their losses with even more trading, perhaps even more aggressive, resulting in greater losses. That's why very few people can be professional keyboard button pushers and mouse clickers (traders).
Instead of coming here to find someone to tickle your nuts, trade the @#$%ing thing for a few years and see if you make money or not. No one knows better than you whether this will work and the only way to improve it is to trade and see what happens.
50% of total capital and 25% of that 50% per trade. so if your account is 10k your only going to trade $1250 and only at max 3 trades at one time. so really its risking 12.5% to make 3-6%
because 100k is good number for me at the current moment I can live off of that by trading 10 times per month and make plenty. the rest should go into less risk strategies. not to mention the mental side that comes along with trading big numbers and big number losses.. each person is different 100k might be small to you but large to others.
getting fooled happens. no system is ever 100% perfect. but running a system that produces more winners than losers is real and thats what im looking for or to see if anyone was already doing what I am. and yes that happens to most people but thats why you have rules and follow those rules.
fair enough. although instead of testing for years can software help to test?
Yes it would be great if someone would invent historical data or create price charts that go back 5 years to look at indicators and see if their set ups worked. I keep asking Thinkorswim, OptionsXpress and Tradestation if they could create charts that go back a couple of years where I could put on a MACD or DMI and be able to look for signals and see how the market moved after them. I cannot see how any one can make money with charts that only have today's data and indicators on them. Maybe one day someone will see the use of that...
If you believe by looking at certain price pattern, plus some indicators such as x cross y, z > 90 and etc will give you high probability ( >50%) of winning trade AFTER commission and slipage, just go for it.
All the experience traders went through this stage of development before, but we all eventuality develop our own profitable approach which is nothing to do with pattern +indicators. I never see anyone success to develop a profitable system (both in retail or institutions) using price patterns and indicators, although they are ton of fake traders claimed this can be done in youtube.
Good luck
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so if not patterns + indicators then what else is there? patterns are based on people and people make up the market.
You need to figure this out yourself, no one in internet will give you something for free especially something like this. This is no difference as if you asking KFC what is their recipe in internet.
Pattern are based on people? You may read too much trading books or follow too many fake trading guru. Tips : Run a random number simulator and you will see the same price chart.
are you referring to Random Walk Theory?