Management plan for 5k FX account?

Quote from Kastro_316:

Hi there, can someone please take a quick glance at this, and tell me if this is a solid risk management plan to start with? I will modify it as time goes on, and my trading habbits change, but for now this is the basic guidelines I have set up.


Starting Balance: $5000.00

Risk Tollerance %: 5%

MAX stop loss: 50 pips

PiPs per week goal: 80 Pips

MAX std lots per trade: 100


Anything I should change, or Add?

Thanks, really appreciate it!
More...
100 standard lots on just $5,000????????
Each standard lot is $100,000; so 100 lots is $10 million.

This means 2000:1 leverage.
Even if some bucket shops offered 2000:1, you'll blow up all your $5000 with a 0.05% (5 pips) move against you.

By the way you may pay the 5 pips in commissions (spread) alone.

No wonder bucket shops (Forex brokers) never really buy the currencies. With people like this they have almost risk-free profits.
 
Take ssss's advice. I can see fromyou questions that you are not ready for this. You will just be a liquidity provider.

Regarding usd/cad, you better back test further than 5yrs, since the last 5yrs have been uncharacteristically good. Also look at a lot of academic research and you will realise that cad has always come up with the worst results due to the characteristics of it time series. Since it has been gaining against the dollar over the last number of years it has been easy to trade so dont be fooled.

Your 50pip stop on eur/usd will vary with your time frame, among other things.
 
100 standard lots on just $5,000????????
Each standard lot is $100,000; so 100 lots is $10 million.

This means 2000:1 leverage.
Even if some bucket shops offered 2000:1, you'll blow up all your $5000 with a 0.05% (5 pips) move against you.
################################

author tested with real quote ,paper money 1000 +attempts ..
Best result was folloving -

700% with margin 1:800 in 6 hours ,3 operations .Risk on each operation 75%

3100 % with margin 1:200 in 15 days ,approx 60-70 operations
risk on each 20% .drawdown 80% .From 25k until 170 k ,back to 25 k and to maximum peak more as 600 k,after that loss all
until 1 k .

10 time in row 20-22% profit by risk 75% .togehter 500%

But significance of result's is limited ,as attempt's are multiple ,but not infinity .

In good casino as Montacarlo ,atleast one time pro week
can be 10 time in row in black(on in red &)

If operator wil use this tactic -profit va bank ,he would need
great margin to go with risk near 100 %

what is better to go with high risk 3 very selected operations
and make 700% profit or 100% loss

or try to go with risk 2 % ,perform with 100 operations
100% profit or loss 20% -40% with loss of conzetration
depend from operator risk profil ...

(not possible to make 100 oeprations so good as 3 in equal amount of the time )
 
PiPs per week goal: 80 Pips
#####################


1.To make 1200% (13-time) in year is very good result but possible

2.To make regulary 1% per day (13-time per year) without any loss in any day is ocassion ,which is more as mln time rare as in case one .

Clear by normal conditions ,if retail operator have not any extra advantage

Pip per week goal 80 pips is not ob'jective ,which can be meet 52 time's in year .

False planning .
 
Quote from ssss:

100 standard lots on just $5,000????????
Each standard lot is $100,000; so 100 lots is $10 million.

This means 2000:1 leverage.
Even if some bucket shops offered 2000:1, you'll blow up all your $5000 with a 0.05% (5 pips) move against you.
################################

author tested with real quote ,paper money 1000 +attempts ..
Best result was folloving -

700% with margin 1:800 in 6 hours ,3 operations .Risk on each operation 75%

3100 % with margin 1:200 in 15 days ,approx 60-70 operations
risk on each 20% .drawdown 80% .From 25k until 170 k ,back to 25 k and to maximum peak more as 600 k,after that loss all
until 1 k .

10 time in row 20-22% profit by risk 75% .togehter 500%

But significance of result's is limited ,as attempt's are multiple ,but not infinity .

In good casino as Montacarlo ,atleast one time pro week
can be 10 time in row in black(on in red &)

If operator wil use this tactic -profit va bank ,he would need
great margin to go with risk near 100 %

what is better to go with high risk 3 very selected operations
and make 700% profit or 100% loss

or try to go with risk 2 % ,perform with 100 operations
100% profit or loss 20% -40% with loss of conzetration
depend from operator risk profil ...

(not possible to make 100 oeprations so good as 3 in equal amount of the time )
More...
First, you said it all, paper trading; bucket shops (Forex brokers) display real quotes for paper trading so they get novices to deposit real money.

Then, they manipulate quotes so you just lose money (some 10 pips up or down is usually enough with large leverage).

Bucket shops seldom actually buy/sell the currencies in the actual market, they just simulate your trades. Since 98%+ of daytraders with high leverage lose money, they have low-risk, high yield profits.

If you still want to daytrade, use low leverage, start buying just one or two $10,000 lots with your $5,000 (2:1 or 4:1 leverage).
When brokers see accounts that use such a low leverage, they hedge by actually buying/selling your currencies in the interbank market -as they were supposed to do-, since you could hold your positions for many days, and nobody knows where price would get.

Better yet buy one future contract with your $5000
If you are an american citizen you can trade futures with optionsxpress:
http://www.optionsxpress.com/welcome/tour/trade/futures_products.aspx?SessionID=
http://www.optionsxpress.com/oxneta...1/futures/margin_requirements.aspx?sessionid=

When you make some money you can move to 2 future contracts, and so on.
 
As I thought, more hot air. I have read many posts in the past 6 months with people saying how they are getting scewed by their forex brokers, or had been wronged in the past. But I have seen only anecdotal evidence. There are a few posters here that seem to have a somewhat balanced opinion of brokers, but not many.
 
crgarcia wrote -

First, you said it all, paper trading; bucket shops (Forex brokers) display real quotes for paper trading so they get novices to deposit real money.
##########################

? Tested by fxcm,mgforex ,realtimeforex.de ...
Quote is compared between multiple brokers
oanda,mbtrading ,fxsol,gft

And suspect test result is highly relevant for small real money account .

As stated before this kind of result was possible only with multiple attempt's .Most of attmept#s was 80-90% loss


Author is alsov multiple trading contest winner in Germany and USA .... win accepted from SEC and Germany SEC (BAFIN)

And doctrinal not deposited any cent to any broker with exception this money ,which was won as prize money by trading contest .
2. You advice is to late sir ,atleast for 6 years ,alsov for non american citizen as author is
####################
....Better yet buy one future contract with your $5000
##########################

and suspect is advice not only to late ,but false alsov ...
atleast from author perspective ...

No demand for this kind of banality
------------------------------------


If you are an american citizen you can trade futures with optionsxpress:
http://www.optionsxpress.com/welcom...aspx?SessionID=
http://www.optionsxpress.com/oxneta...aspx?sessionid=

When you make some money you can move to 2 future contracts, and so on.
##################################

Author is price money winner by marketzar with zg,ert and tested more as 15 different future's platforms long time before ...


Your respectfully
 
davidmaria1 wrote

...There are a few posters here that seem to have a somewhat balanced opinion of brokers, but not many.
############################

1.Have had all kind of possible legal problems multiple time by each contest ...


2. Owner of MBT MBT Steve stated lies on ET ,that he#s
company is pure agency

Owner of Thinkorswim 1.5 month can not perform
wire transfer by account opening process

MBT and Thinkorswim belong to the best companies
on ET

3. Etrade not payed contest win 36000 euro for author
in Worldcup 2006 .after that losed some 10 bil $ in market value .Only in 2007 -84%

Etrade is one of the leading public noted broker

4 .LEADING public noted FUTURE BROKER REFCO
dissapeared in 5 days .

DIVIDE ACCOUNTS FROM SMALL CAPITAL .

NO ANOTHER WAY

BETTER 4 ACCOUNTS with 1000-2000 $ each ,
as one with 4000-8000$

Your respectfully
 
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