Does the "system" matter - money management is key

[Sweet Pip]

Originally Posted by cgrey

Hi SweetPip -

Mostly, though, my basis for the underlying system is more of an effort to catch a "move" toward a logical price level (live a pivot point or a "sweet spot").

Yes I can see how this would be like a safety net when not using a s/l in case the price doesn't move to that logical price level...like what happened with USDJPY....

Thanks

[cgrey]

Today, with two trades in and moving rapidly away from me (USD/JPY and GBP/USD from a few days ago), I had a margin call in the test/demo account. As a result, all open trades were closed, and the account is blown up.

Still, based on the two months of results prior to my starting this thread, I would have taken a little under $800 out over the past two months (one month was $430, the other around $350), so at the time the account blew up (or, my "stop" was hit), I still generated a profit of $300 for two months of "work".

Despite the margin call, and the "stigma" that goes with it, I am still feeling positively about a 60% ROI for two-months. In July, I will start with a new $500 demo account. July will be the month that I can potentially "lose" for the first time with this strategy. If the account blows up before the month ends, the $500 loss will wipe out the $300 gain, and as a whole, I'd be down $200. I'll be hoping that doesn't happen...

Other than potentially some commentary between now and then, there won't be any further daily updates (from me) to this thread until 1-July.

[Sweet Pip]

Oh No!!! What a shame

[cgrey]

Originally Posted by Sweet Pip

Oh No!!! What a shame

It's the calculated risk. The way I approach it, it really is no different that losing a single trade in a more traditional approach. Takes a while to train the mind to look at it that way, but in reality, it isn't any different. I'm still going in to month #4 up 60% overall.

[Sweet Pip]

Hi cgrey,
So have you restarted yet or still planning to?

[cgrey]

Originally Posted by Sweet Pip

Hi cgrey,
So have you restarted yet or still planning to?

Hi Sweetpip -

I haven't restarted yet, but I do plan to. With the US Holiday today making this a short week, and another business trip next week (I'll be away Monday - Thursday and will probably miss my trading time most, if not all, of those evenings), we'll already be halfway through July before I can get going. I'll probably pick up on Monday the 14th of July - not necessarily with the double-the-account-in-a-month goal, but just to continue to test the mechanics of it