AHG - Profitable Strategy for Struggling Traders

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I noticed that for over a year, I have around 60% win ratio in forex, however, the benefit of this thread for me is to try to get my winners to make more money than my losers where before it was equal.


So my 1st attempt was to scale out of 1/2 my contracts and bring my stop up to break even, but this caused me to turn a winning trade into a slight loser.

Next step was to increase my limit ie the amount of pips I wanted to take out of the market and then not watch the trade but still have a stop. This worked out alot better for me. For me its painful to watch the trade once my limit or market order gets me into the trade especially in forex since you are automatically at a slight loss due to commissions. If I can set everything up and then look back in a few hours later, I don't stress as much as I used to. My rule right now is to only average down one time on a pull back if the trend has not been broken and if my stop has not been hit. Other issues I still need to work on is how to not get whipsawed out at a loss.


Quote from kidPWRtrader:

I would just like to take a moment to reflect on win ratio.

For the longest time I spent looking for a setup that yielded a high % win ratio and I was getting nowhere as far as winning days were concerned.

Within the past 2 months I started noticing that when I just followed the trend and bought every pullback mercilessly I would mysteriously make money. So, I vacillated between the two methods for a while with most of my winning days due to my "dumb" strategy.

Then, 2 weeks ago it hit me that I had no need to complicate anything. In my entire time trading futures since the start of this journal, I have come up with 1 non-related AHG setup that has a high % win ratio and I *dont* use it often because it doesn't make the most cash. Grinding it out following the trend, is the main bread and butter.

I started trading with the trend and buying every single pullback as an experiment. 8 days later I had no losses and most of my days were big updays. Today I had a downday of -220 dollars. I had one trade left on before i went to school. I had my limit to sell @ 1770 with a loose stop.

Though I don't trade afterhours, my target got hit for a gain of 21 pts. I am not even counting this as a winning day, but this is the thing about this style of trading.

If you can accept a low win ratio, the next step is to let your winners run. My win ratio for the last two weeks is <40 %. I routinely get 3-4 losing trades in a row. And that doesn't phase me. I think I am the most consistently wrong trader in the room, but I have been doing just fine.

I hope this might spark a lightbulb for someone whose having trouble. Don't be afraid to get stopped out. Every stop brings you one step closer to a home run trade.
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Quote from oraclewizard77:

I noticed that for over a year, I have around 60% win ratio in forex, however, the benefit of this thread for me is to try to get my winners to make more money than my losers where before it was equal.


So my 1st attempt was to scale out of 1/2 my contracts and bring my stop up to break even, but this caused me to turn a winning trade into a slight loser.

Next step was to increase my limit ie the amount of pips I wanted to take out of the market and then not watch the trade but still have a stop. This worked out alot better for me. For me its painful to watch the trade once my limit or market order gets me into the trade especially in forex since you are automatically at a slight loss due to commissions. If I can set everything up and then look back in a few hours later, I don't stress as much as I used to. My rule right now is to only average down one time on a pull back if the trend has not been broken and if my stop has not been hit. Other issues I still need to work on is how to not get whipsawed out at a loss.
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If you're scaling out at your first target and moving your stop to breakeven how are you taking a small loss? You are setting your breakeven stop to accommodate for commissions (or B/A in forex) right?
 
Quote from kidPWRtrader:

I hope this might spark a lightbulb for someone whose having trouble. Don't be afraid to get stopped out. Every stop brings you one step closer to a home run trade.
More...
Excellent post Kid.

It's funny how your mind attracts you to the things you need. I have been thinking along the same lines over the last few days, and seeing it in writing really hits it home for me.

Knowing your % win is very important IMO, because everytime you lose, you know it's just part of the essential x% of losers before you hit a home run. You cannot have one without the other. The other part of the equation is making your Risk:Reward appropriate for your win% so your a net winner in the end.

As the saying goes, it's not about winning or losing, it's about how much you lose when you lose, and how much you make when you win.
 
I don't mean to be negative but just want to point out something... just because you have X losers and in the past you had a W% win rate doesn't mean that the next trade or one thereafter will *more* likely be a winner.

Although it may seem that a trade *might* have a better chance of being profitable after you've had a string of losses, each trade is in fact totally independent of any other trade before it. A trade in and of itself will have the same W% win rate regardless of any other trades before and after it.

"Trading in the Zone" by Mark Douglas emphasizes this point of the independence of probability between trades.
 
Carb, the market is not based on totally independent events. There are articles out there on this subject and there are posters that agree with this statement that I highly respect. Just some thoughts...

Anek: I was wondering if you could look at the SOHU weekly and daily chart and let me know what you think of it in terms of AHG methodology. Thanks... just trying to get a better understanding of how you use pivots and trendlines.
 
AHG Channel is now Private

Only past contributing members and highly active past members are welcome back into the channel.

For those still in the learning process I suggest some serious screen time and lots back to back journal reading.

My "paying it forward" mission ends today.

Journal will remain open but channel although free and always free it is now reserved for private traders who have transcended and supported the concept.

To those who recently discovered the journal, lots of reading and screen time.
Channel was never part of the original plan just happened out of the blue.

Stay away from Snake Oil Salesman and best of luck with your goals.

Anek
 
Quote from Anekdoten:

AHG Channel is now Private

Only past contributing members and highly active past members are welcome back into the channel.

For those still in the learning process I suggest some serious screen time and lots back to back journal reading.

My "paying it forward" mission ends today.

Journal will remain open but channel although free and always free it is now reserved for private traders who have transcended and supported the concept.

To those who recently discovered the journal, lots of reading and screen time.
Channel was never part of the original plan just happened out of the blue.

Stay away from Snake Oil Salesman and best of luck with your goals.

Anek
More...

Anek, thank you for all the incredible information you have shared.

It has made me 10x the trader I was prior to finding AHG.

Continued success to you,

fish
 
Quote from fishoilfan:

Anek, thank you for all the incredible information you have shared.

It has made me 10x the trader I was prior to finding AHG.

Continued success to you,

fish
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I totally agree. Anek, your efforts in both the journal and chat room was the most spectacular contribution I've ever seen made by one trader trying to enlighten a community of traders. May your future be filled with an endless supply of stouts and never ending images of luscious naked women.
 
Quote from Anekdoten:

AHG Channel is now Private

Only past contributing members and highly active past members are welcome back into the channel.

For those still in the learning process I suggest some serious screen time and lots back to back journal reading.

My "paying it forward" mission ends today.

Journal will remain open but channel although free and always free it is now reserved for private traders who have transcended and supported the concept.

To those who recently discovered the journal, lots of reading and screen time.
Channel was never part of the original plan just happened out of the blue.

Stay away from Snake Oil Salesman and best of luck with your goals.

Anek
More...

Anek, I cannot express the amount of credit I feel you deserve for your project. I have thanked you many times, but it bares repeating. Thank you.

Good luck in your future whether it be in trading or running stripclubs, or probably both.
 
The last AHG Chat Log

Good Luck everyone

You are getting the best start possible the rest is up to you. Cya in the PnL thread :cool:



Thank you Anek, glad I could help in some small way towards such a great project.
 

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