Here's your system. You can easily automate it. Fire of one trade each month as indicated in the parameters (maximum of two/month in the case the first one is a loss maker). Stop goes to breakeven after ahead by say 50 pips and then trailing stop takes over. You will get the returns your after on your investment, year in year out without any major drawdowns or risking too much per trade.
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Forex trading is difficult!!!
- Thread starter tonyzhou
- Start date
As for return, of course , as much as possible. But the prerequsit is the loss tolerance. Like me, I don't want the loss is greater than 20% any time. Under this condition, I can choose stock, forex, others. If I can get a trading system, say 60% annual return with 20% risk, I will be very happy. But I cannot find it in the forex right now.
Quote from illiquid:
Don't you think the returns on forex should be a bit higher to justify the added headache? I know this above is somewhat nonsensical sounding, but personally I don't know if currencies are worth doing for the typical returns that other markets offer, especially on smaller accounts.
could u explain more in detail or where can i get the information?
Quote from NZDSPeCIALISt:
Here's your system. You can easily automate it. Fire of one trade each month as indicated in the parameters (maximum of two/month in the case the first one is a loss maker). Stop goes to breakeven after ahead by say 50 pips and then trailing stop takes over. You will get the returns your after on your investment, year in year out without any major drawdowns or risking too much per trade.
Forex is difficult - its certainly harder than stocks or futures in my brief (10 yrs this February) experience. But simplicity is still the best guide as usual.
Recently during a period of despair, I tested the performance of a small number of blackbox systems who had the balls to publish a couple of years worth of their trades. I was most heartened to se that their performance was worse than most of my simple systems - typically, they had win % of 70%, an R (avg profit/ avg loss) of 1 and the Expectation (E = (1+R)*W - 1) was the big surprise, E of 0.2 !!
So keep at it.
Billf..
Recently during a period of despair, I tested the performance of a small number of blackbox systems who had the balls to publish a couple of years worth of their trades. I was most heartened to se that their performance was worse than most of my simple systems - typically, they had win % of 70%, an R (avg profit/ avg loss) of 1 and the Expectation (E = (1+R)*W - 1) was the big surprise, E of 0.2 !!
So keep at it.
Billf..
can the daily profits in fx equal that of stocks?
Also I post a link here about "forex scam" on the wiki.
http://en.wikipedia.org/wiki/Forex_scam
Have fun to read and post ur comments if any.
http://en.wikipedia.org/wiki/Forex_scam
Have fun to read and post ur comments if any.
I took some time to read the thread, but I cannot get the idea. Where can I get detailed information?
Quote from ElectricSavant:
tonyzhou,
Your expectations seem to be reasonable.
I imagine you could trade with no more that 10 mini's per 4k to accomplish your goal
Diversify with three forex instruments that represent six currencies.
Only take trades in the direction of the longer term trend on the daily, weekly or monthly. And use some sort of oscillator to signal you to enter and exit with.
Simple really, but Forex trading is hard when your actually doing it.
Do not be disappointed with the responses here, I think what the fellas' are trying to communicate is that you will need to learn how you want to trade...and the only way is to discover that for yourself. There are no free lunch's. But if you want to search the threads here and look for some different techniques that may work for you, you just might fall into something.
I would like to invite you to my thread http://www.elitetrader.com/vb/showthread.php?threadid=79533 for you to see if it might be something that catch's your interest. Remember that YOUR trades are YOUR trades and nobody else's.
Michael B.
P.S. I commend you for developing a plan and posting to this Forum. Good trading to you and welcome to ET.