Hello Fx-men. Before i show my percentage equity model chart, i want to share that i have been successfully quadrupled my real mini account more then three times. My $ 100 mini account has grown to $ 550 in less then a month. I am not doing this for huge profits but it gives me immense experience while working on real account with real numbers rather then on demo account.
While keeping Lot size 2 on a mini account i.e. 1 pip = $ 1, my winning ratio is > 85 % as almost 25% of risk on a single trade if i keep the average stop loss of 50 points. (Even-though i haven’t reached a losing trade down to 50 point loss but i practice in this fashion just to make myself use to of working in high intense environment. My way of practice )
While i am focusing on technicals and fundamentals, my knowledge about market sentiments is enhancing bit by bit.
Following is the model where i am calculating risk % according to 50 point stop loss on every losing trade, targeting 200 points per month with an average of 10 points daily.
(Even-though i am gaining about 300 average on every month but i want to keep my goal easy and attainable so that i must not breach my comfort zone.)
After month 6, i have tried to keep risk % around 5 %.
I haven’t started working on it yet since i am still working on it . I just need some good suggestions, verdicts, opinions … Is this target really attainable ? Thank you very much …
EDIT- deleting post.
may i ask why ?
Hello to the OP…
How did you get this graph? Which software did you use?
I would not trust that red line… it is too smooth… What is the magic that is going to turn you into a millionaire?
Cheers.
Hello PIPmeHappy, Its just a simple spreadsheet on excel my friend. And about the red line. Its lot size which grows exponentially all the way up to touch 200 from 3 at the end of month 24.
What does your risk of ruin table look like?
What type of drawdown do you maintain?
What is your effective leverage?
Jake
I had to do a bit of looking around, but I found it in the end…
This is an older thread, which came to my mind while reading the current thread…
http://forums.babypips.com/forextown/44585-1-000-1-000-000-year-theory-crafting.html
I know that they are not saying the same thing, but the general assumption is that Forex trading is, somehow,
an exponential-gains activity…
Yeah that equity line is far too smooth and doesn’t take drawdown into account, which will slow down your equity growth. I remember doing this exercise during my first few months of studying trading, and thought I could be a millionaire with only a few hundred trades.
To get a reasonable idea of your projected equity growth, you might need to do a thousand Monte Carlo simulations to get an idea of what to expect. It won’t be as pretty as the graph you plotted.