Any tested strategy with 80% + success rate?

Hi … I am a demo trader.

So. … far I learn dat Moneymanagement is the Holy Grail.

I want to develop good Money management method. It will be very nice if you can share with me any good tested strategy which got 80%+ success rate producing as min as 5 pips a day.

I belive if anyone master to catch 5 pips a day with 80%+ success rate can make living from 4X.

Thanx in adv.

Saz, I am also a demo trader and what you’re talking about is right up my alley. I am right there with you on a consistent system that may or may not produce a ton of PIPs… Afterall, if I could gain 10 PIPs a day, 2-3 days/wk across 20 pairs 80+% of the time, I could be as rich or poor as I choose, right?

I am playing with some ideas that I think may have potential. I don’t know if anyone else has though about it this way, but I call it swing ‘scalping’. It’s not scalping in the sense that I use the 1, 5, or even 15 min charts… I’m thinking more along the lines of the 4H. Finding a good strong trend on the 4H chart can produce 100’s of PIPs on some pairs, but it can be risky and turn around at any second, so you have to know when to get out and when to stay in; however, my though is find that same trend and grab 10-20 PIPs and get out. Sure, you may leave a 200 PIP trend behind, but at least you got out with waht you came for without the large risk of chasing ‘the big one’… and you should be able to do this very consitantly.

Another method of though I have, while I’m on a little rant, is what about taking most of your money off the table when your small goal is reached, then adjust your stop and let the rest run till you either chicken out or see the trend reversing?

Just some food for thought. Saz, if you have any suggestions I’d love to hear them. I will be happy to keep you in touch with what I’m up to if you like as well.

Happy PIPin!

Scott

just google ozfx.

…Or look at the OzFX thread here at BabyPips… It’s been getting quite a bit of attention, so it’s usually near the top of the first page. Also, ForexFactory.com has a very extensive thread on it as well.

ozfx has awesome entry signal. but i have some problems following the money mangament. it againest the the golden rule: let your p run cut your R short

Over the past couple weeks I’ve been tinkering with many different systems, even trying to devolope my own… Somehow I always seem to end up back at the OzFX system. It’s just so easy to follow and understand… Yes, the money management can use a little work, but that can always be tweaked to your liking… I’ve been using MT4 visual mode to practice this and am doing really well with it. I’m around 75-80% success. I always wait for a corresponding signal between the AC and the AO vs just the AC. I may miss a few PIPs now and then, but I find that waiting produces more in the long run and reduces fake outs.

One thing I have also been playing with is drawing Fib lines along with Support/Resistance lines with the OzFX system. It seems to be allowing me to understand why the price seems to retrace where it does. Pretty cool!

Long story short, if you’re looking to trade a system that has 80+% success, try OzFX. Being on the daily chart, news doesn’t have a real large effect on things - it may get the market started in one direction, but your indicators should give you plenty of warning before your trade goes bunk.

Plus, 5 PIPs/day min??? Try at least 25-50+/day… Combined with not having to sit in front of the computer for 9 hours a day watching for entry/exit signals and eat up PIPs with spreads and commisions. Just a few min a day to flip across a few charts and adjust stops…

Hy!
I’m also new to fx trading.
But I have had a lot of success with this ea.
It very good, but you have to follow it.
I use a stoch and relative stranght index to validate my entries.
I use a tp of 10 pips. But I don’t use a stoploss.
If the trade goes 30 pips minut I open An opposite trade and close the first one if the trend is strong I can back those 30 pips and make a little profit.
I works good for me.
Try it out.

5 pips? Is it worth it given that the spreads are usually 3 to 5 pips?

Hi Everyone,

Its good to see so many replies. Thanx Scott for ur replies. I have been looking OZFX. For sure its good. But for beginner you need nerve to apply it in real account. 100 pips SL … its bit too much for me at the momnet. Well in future I’ll have no probs to follow OZFX but not now.

Well with out sprade if I can get 5 pip net a day combinding from 8 to 10 trade sitting infront of the pc … I dont mind . Coz… with proper money management you can make ROI nearly 1000%. so think about it :smiley:

Looking fwd to more replies.

[QUOTE=saz;39932]Hi Everyone,

Well with out sprade if I can get 5 pip net a day combinding from 8 to 10 trade sitting infront of the pc … I dont mind . Coz… with proper money management you can make ROI nearly 1000%. so think about it :smiley:

As you will find out with more experience this would be an insane way to trade. 10 trades will cost you up to 50 pips in commission and you are looking for a profit level of 10% of that. Do more reading my friend and do NOT trade real money yet

When I first was intoduced to 4X a bit over a year ago I had the exact same theory… “All I need it 5-10 PIPs a day with good success and I’ll be rich” You’ll also notice that in my first reply I made a similar statement… I neglected tonymand’s statement about spread and the cost of trading that way.

Spreads will eat you alive as I eluded to in my most recent post about OzFX.

You mention that you need nerve to with the OzFX… This is true; however, from my playing with both types of systems, I’m finding that the nerve required is actually more so with the scalping type styles…

Think about it - to make any money scalping you need to place multiple trades a day and you will likely be using short time frames where thing can literally happen in less than a second. You need to be lightning fast with placing trades, and with things changing so quickly you can get stopped out before you blink. And since stops are so close to entry points you can loose a ton in that blink of an eye… Also, if you’re trading this way you will probably be trading when the market is most volitile, like during news, where spreads can reach 10+ even on the majors… Now you need to make 15-20 PIPs instead of 5-10. YIKES!

With a style like OzFX on the other hand, you’re using daily charts (or 4H if you choose his ‘squeezing more’ strategy). Thing happen MUCH MUCH slower on these charts. You can take all the time you need to really analyze the trade - Draw Fib lines, Support/Resistance lines, look at and understand multiple indicators, look at economical related news for both currencies in the pair… Once you have done all this the currency may have moved more in favor or against your original decision, further enhancing your current decision. Worries about loosing PIPs in this time? Don’t be - If the PIPs you stand to loose by analyzing the market causes your trade to finish you shouldn’t have gotten in to begin with. Now, regarding the SL @ 100 PIPs… If your indicators and your analysis are saying good trade, this shouldn’t be a big issue since you SHOULD be fairly confident that it’s a wise trade. Plus, if you follow the first part of the MM, you take a lot off the table at 50 PIPs and move your SL to break even. If things go bunk you just scored 50 PIPs… Try again next time… Look at the EUR/JPY chart and TRY to find a move that was less that 50-100 PIPs - it’s tough because it moves so much (sometimes 1500 PIPs!!). And if you take a look at the basic indicators for the OzFX, those smaller moves didn’t meet the criteria anyway!

Sorry to be long winded, but over the past week I have really really come to understand that this way of trading is a less stressful and more successful way of trading. As a beginner it may seem that it takes more nerve to Swing trade than to Scalp/Interday trade, but when I sum it all up it seems to make more sense to go the Swing route. I, personally, am very attracted to the interday stuff due to my short attention span and my personality in general; however, I am learning very quickly that the least stressful way to succeed in this 4X craziness is in the longer term stuff.

Here’s my little novel… enjoy! :wink:

Check my thread !

The problem with catching only a few pips is your stop loss… what kind of stop are you going to use? especially if you use a 4h chart you will need a large stop to give it room. If you use a 20 pip stop, for example, that means you will have to win 4 out of 5 times or 80% as you mentioned just to breakeven. In other words, you will need to win 90%+ consistently to be profitable. Not likely in my opinion.

[B]

Any tested strategy with 80% + success rate ??
[/B]Yeh:

http://forums.babypips.com/free-forex-trading-systems/10766-trading-systems-new-concepts-technical-trading-systems-j-welles-wilder.html

Forget about 5 pips and 2 pips and 1 pip profit. The idea behind any ‘scheme’ like this is that you open HUGE lots and ‘hope’ that you’re going to get your 5 pips ‘quick and easy’. Remember: it’s just as easy to lose 5 pips as it is to make 5 pips and as per ‘murphy’s law’ trust me: you’ll lose 10 pips a lot sooner than you’ll make 5 pips!!!

Hey uptick:

My ‘club membership fees’ are WELL on their way!!!

If we were to trade by your principles we were broke till now. Murphy’s law in forex ? Murphy’s law is more about talking than doing things, but I guess that’s why some people just talk and don’t act.

For starter of this topic: A mentality of a winner will bring you success and think that failure is part of success as long as you have knowledge to control it. Knowledge and self improvement means power, things that few achieve for real.

Hey, use it, don’t use it, not my problem.

I’ll tell you this though:

I hope you know what you’re talking about. From what I gather the ‘thread starter’ is a new trader (and unless I’m mistaken so are you) and by perpetuating this ‘myth’ that it’s easy to make 5 pips 80%+ of the time you’re only setting up yet another new trader for disaster i.e. this ‘strategy’ (if you want to call it that) is tantamount to ‘scalping’ and, unless you’re some kind of ‘expert’ with experience, ‘scalping’ will finish you off. You’re also perpetuating the ‘get rich quick’ idea. Believe me ‘pal’: I’ve spent enough time at this and lost enough REAL money trying just about every system ‘in the book’ INCLUDING (but not limited to) ‘5 pips with big lots equals big money more often systems’. Like I said: if they work for YOU then great but don’t encourage new traders to think this is ‘easy money’. As for ‘Murphy’: I’d be REAL interested to evaluate YOUR trading ‘system’ i.e. if ‘Murphy’ does not play a part in YOUR trading system then you must have a 100%+++ trading system and I’d sure like to get my hands on it!!!

Don’t be offended, wasn’t that my purpose, but to inform you that not everyone is reading so much the “stuff” from internet. I don’t listen anymore to big brokers, banks and “guys” that SHARE with everyone their knowledge. It’s ALL FAKE, made to lure people. I’m not anymore that trader that lets him influenced by false and non-sense information. I get my laugh everyday when I read commentaries and thoughts from THE experts :slight_smile: I have my personal laws, strategies and developments, I don’t need anyone’s book, I am a winner and I will be as long as I keep myself in shape. I lost money also, until I began to make my own rules, because I must feel them, I must feel the market if I want to win. It’s easy money when you have a open and clear mind. And I still lose money, when Stop Loss is reached, but not more than 10 pips :slight_smile: and it’s happening once after 8-10 trades.

Ah and one more thing, Spread counts. People should look for good brokers with less than 1-2 pips spreads on major pairs. Better pay a commission than letting broker to play you in their spread :smiley:

Ciao

On the other hand: you make some VERY good points!!! :slight_smile: !!!

I’ve EVEN started to believe that the way to trade is to watch one of the financial channels, listen to the ‘experts’, and then do EXACTLY THE OPPOSITE!!! I reckon you’ll make a fortune!!! (Don’t try this at home)!!!

If I’ll make a fortune some people will be very upset :slight_smile: I will start selling books And finally I will die letting my fortune to some smoked nephew :slight_smile:

I live on the basis that everyone should live and have their time of trying. Forex thought me that opportunities can be missed and if you’re there watching you will catch new ones and maybe better, in no time.

Thanks, this was refreshing … :slight_smile:

Saz,

Are you looking for a money management system, to go with your already existing trading system, or you are looking for a trading system too?

How much is your initial margin and are you using more than 1 lot (mini/micro/std)?

According to my spreadsheet, if you are only looking for 5 pips, with an acceptable 10 pip loss only 8 times out of 10 (80%) you should still be making a little money…and I mean a little and over quite a lot of trades.

So as you say “you’re losing money”, then perhaps you’re not being honest with yourself with respect to your success rate or pip loss, or are miscalculating something somewhere.

Either way, it probably would not be considered a “smart” way to trade, and I don’t think anything can be added to improve it by trying to apply some advanced money managment strategy unless you can try & “feel” a few more pips out of the market first :wink:

Good luck with that :slight_smile: