Sharing my notes from a millionaire fx group.

[Sekiyo]

Trust your KI

Not common but still amazes me somehow ...

Most important thing is money management.

Not sure you can go from 500 to +1M in 3 months with a robust money management.
Unless you trust your KI and avoid the highest card like a sensei.

Who's making money ?
Ask the master.

Tough to make IRL insane profits ...

 

[Clubber Lang]

$500 to a million in 3 months?
That’s all? Pikers

I’ll wait for the $100 to 10 million thread.

 

[longandshort]

Absolute garbage lol. Don’t bother reading unless you are easily impressed with statements like “I know someone who went from $500 to $5mm” or “trailing stop and mindset is the key to success”.

“Pyramiding” is adding to winners lol.

 

[themickey]

Pyramiding or scaling in is more bs.
It doesn't alter the facts of trading, "are you right or wrong".
Believing your current trade is right doesn't make it right.

 

[themickey]

You only know if your trade is right or wrong after the fact, via the hard cash profit or loss.
Knowing your trading is right comes from your track record.
If your track record is good (your trading is right) then no need to scale in, hit it with your full size from the get go which should still be a small part of your bank.

 

[TrAndy2022]

Some here do not understand the math behind AND the logic. Ask yourself what is easier, having good 10 trades in a row, or just 1 good trade ? Say you have 4:1 RRR trade and you have 10 win trades in a row with 4:1 RRR, that is 40:1 RRR after 10 trades. Now you do compound on your profits by scaling in within 1 trade that has a 4:1 RRR based on a trailing stop (that 1 R here). So you can compound aka EULER figure which is ~2.71^(4)=54 [R]. So with 1 GOOD trade you can make more money than just trading same size on 10 similar trades with 4:1 RRR (in this example for illustration purposes only). What is easier to make money ? You do not care ? you think it must be the same ? No, it is 1 GOOD trade with scaling in, that is the law and magic of compounding. Having 1 (!) good trade is easier than having 10 good trades. FACT. ( I won't go in deeper here. I already made several posts regarding this topic and I am getting tired to repeat.)

 

[TrAndy2022]

I make another example with compounding on those 10 trades on a 4:1 RRR trade. Your risk is 12.5% per trade (just as an example and not as a suggestion). Then you can make 4*12.5%=50% profit on each of those 10 trades. 1.5^(10)=ca. 57 times your initial risk as profit after 10 trades. Now you scaling in on a 4:1 RRR trade with a trailing stop based on Euler figure. Your risk is the same like 12.5% per trade on that example. You get 6.74 R based on initial risk per trade. Now you do a second trade with scaling in and you already have 45 R, a third good trade with scaling in would result in 306 R of initial risk. You see with 3 good trades on scaling in and same percentage risk and with compounding on profits after one trade for each of those 10 trades you are far behind than scaling in within on each trade, where you get far more out of it already after 3 trades. So ask yourself what is easier ? Having good 10 trades in a row (and you do compound after each win trade) or having just 3 good trades (and you do scaling in on each Dollar profit by incremental steps having the same initial risk like on those 10 trades for each). If you need only 3 good trades in a row and you are better off than the need of 10 good trades in a row, what would you choose ?!

 

[Sekiyo]

I make another example with compounding on those 10 trades on a 4:1 RRR trade. Your risk is 12.5% per trade (just as an example and not as a suggestion). Then you can make 4*12.5%=50% profit on each of those 10 trades. 1.5^(10)=ca. 57 times your initial risk as profit after 10 trades. Now you scaling in on a 4:1 RRR trade with a trailing stop based on Euler figure. Your risk is the same like 12.5% per trade on that example. You get 6.74 R based on initial risk per trade. Now you do a second trade with scaling in and you already have 45 R, a third good trade with scaling in would result in 306 R of initial risk. You see with 3 good trades on scaling in and same percentage risk and with compounding on profits after one trade for each of those 10 trades you are far behind than scaling in within on each trade, where you get far more out of it already after 3 trades. So ask yourself what is easier ? Having good 10 trades in a row (and you do compound after each win trade) or having just 3 good trades (and you do scaling in on each Dollar profit by incremental steps having the same initial risk like on those 10 trades for each). If you need only 3 good trades in a row and you are better off than the need of 10 good trades in a row, what would you choose ?!

Can you explain WTF is that Euler figure ?

Sure we can keep risk equal through pyramiding but … if your initial risk was 10 points then by doubling down, you reduce the risk to 5 points then 2.5 and 1.25.

Do you think it’s practically doable ?

If you pyramid a 4to1 at each 1R then you get
4to1,
4+3to1,
7+2to1,
9+1to1 or 10to1

You risk 12.5% to make 125% as per your 1/8th risk but there is little to no room for the price to go against you. The probabilities are highly stacked against you as per the payoff implies.

9% success at 10to1 is a fair play.

Either the market doesn’t backtick or your initial stop was very very very very loose.

Sure if you can win 3/10 of them you’re fine,
But it requires some kind of edge …
Otherwise you’ll win 1/10
As implied by the payoff

 

[TrAndy2022]

Can you explain WTF is that Euler figure ?

Sure we can keep risk equal through pyramiding but … if your initial risk was 10 points then by doubling down, you reduce the risk to 5 points then 2.5 and 1.25.

Do you think it’s practically doable ?

If you pyramid a 4to1 at each 1R then you get
4to1,
4+3to1,
7+2to1,
9+1to1 or 10to1

You risk 12.5% to make 125% as per your 1/8th risk but there is little to no room for the price to go against you. The probabilities are highly stacked against you as per the payoff implies.

9% success at 10to1 is a fair play.

Either the market doesn’t backtick or your initial stop was very very very very loose.

Sure if you can win 3/10 of them you’re fine,
But it requires some kind of edge …
Otherwise you’ll win 1/10
As implied by the payoff

You can read a few of my previous posts, do not know exactly which ones as I have no spreadsheet of all my posts. Second, you can WIKI Euler Figure aswell to might get an idea. Basically it means that you need to do just 70% on compounding to obtain 100%, so 0.7 for 1.0 [R]. That is implied on the Euler figure which is ~2.71 as a number based on compounding. Just google more then if you want to know more. And you need to do an Excel sheet with all the numbers or you can get lost easily. Already done all. Also I had posted an Excel sheet in the past. Do not want to repeat it all over and over again. Also hesitate to look on my archives. But once you get it right in mind (and Excel), you have done it because you have understood it fully. It is not that difficult in the end, really.

 

[comagnum]

288,000% gain on their acct in 3 months? If she kept going at that rate she could control the worlds money supply inside of a few years. Pure fantasy!