I am a complete newbie to forex and I have only traded a few stocks. I tried the Drain the bank system for the first time about 6 hours ago. After I understood how to do it, I made $470 in a matter of hours while learning.
I would recommend anyone with a MT4 platform to check it out.
good to hear that, but you could also make 0.47 cents 4.70 dollars 47.00 dollars it’s better to explain your lot size and total pips gained instead of saying you made xxx amounts. i could have made 47000 thousands by using xx lot size.
I was trading 1 lot per trade. So I guess I should have said 47 pips profit. About a 9.7% increase in the virtual account balance… Now I just need to make it with real money.
So you’re trading standard lots at $10/pip. I assume your starting balance was no less than $10000. A practice account of that size doesn’t help you prepare at all. It only provides a false sense of security by making you think, “Look…I can make $470 in a matter of hours.” I’m glad you had positive results, but look at it in terms of where you’d be starting with real money. Mini lots would’ve earned you $47 on a $1000 account. Still nice, but remember that large gains are generally only possible with large accounts. Don’t be afraid to start small and build.
The account balance was $5000 to start. It’s a realistic amount for me since I already have a trading account for trading stocks and options that is funded. I have read some bad things that folks have experienced using them for Forex though (Tradestation). So I’m looking at Alpari or MBT.
I will be trying it on a demo account for a bit longer until I’m comfortable with doing the real thing.
Best.
cool. im glad that you are doing well with your demo account =)
could you explain the strategy a bit i am allways interested in hearing about different nets to catch those pips with. =)
whats drain the bank lol
it doesn’t work don’t waste your time …
It does seem to work actually… It’s easy to find out though. You can learn about the system and setup and try it on a demo account for free. It doesn’t cost anything.
You can read all about it here:
http://forums.babypips.com/show-me-money-daytrading/16021-never-lose-again.html
There is a forum on Kreslik that has downloads as well.
I am no expert by any means and I have mostly just lost money on any investments. This is the first ‘system’ that I have used that worked for me.
I am going to put real money in but I’m still not confident in my basic understanding of trading forex. I deviated from the ‘drain the banks’ strategy trying some new things and didn’t do well. I need to stick to what is proven.
Best,
well stick with it. =)
forex takes some time to understand and then once you understand what its doing then you can figure out how to profit from it. best of luck to you =)
Do yourself a favor and DO NOT put, “real money in.” You’ve said you don’t understand the basics of forex and have deviated from a system you are testing. Both of those are recipe for losing your account, Demo until you at least understand all the basics of forex. Little misunderstanding can make you lose trades and cost you money. Things like not understanding the spread and when you get the bid and the ask price.
All, basic, mechanical entry things. Beyond that demo a system until you do every step of it easily and get a sense for when a trade is going to lose and when it’s about to win. In other words get a sense for when set up is working as planned and when it’s not working, then you can get out early before the trade even hits your SL and minimize losses.
When you do go live, trade rediculously small lot sizes. Down to $.01 cent a pips if you can. Do 100 trades and record you win loss ratio. If the ratio is good and you’ve followed your plan, then slowly up your lot size. If you can keep your win/loss ratio good and consistent. Then you know you are developing skills and can slowly compound.
At the start of trading live, trade as small as you can and keep your initial SL in place. Don’t take it out thinking the trade will come back. This way you’ll have lot of trades to get experience with live. In the beginning experience is WAY more important than making money or making your account increase.
P.S. Day trading is NOT investing. Investing is handing your money over to a broker who quotes you a yearly or quarterly or after x amount of years of % return, and usually puts your money in a mutual fund. You don’t see the ups and downs.
Day/Forex trading is speculating. It may seem I’m splitting hairs here, but it is an important difference when you think about it. Speculation/day trading is much more risky, but potentially exponentially more profifable if done well.
Investing is traditionally slow and steady and usually for retirement. People who have been saving from their first working days and letting it grow until retirement, so they have enough to live off of for the remaining 10-30 years of their lives. The only people who make a lot of money off of investing, already have a lot of money.
Speculating by comparison is trying to make significant amounts of money from your money in the near term.
phoniex … do u have a fan club 
see danno, I guess I really don’t understand it.
I can understand reversals (sell when price below red dot and goes down through magenta dot; buy when price above blue dot and goes up through aqua dot). simple enough.
ok. price is going up (red dot moving up on top of present candle). this is a breakout candle. if anything we should buy, right?
but doesn’t the directions say to short when we have a new resistance dot made? so on this breakout candle (which may have started with price going down and triggering the 5 pip trail entry magenta dot) I have sold. Now I wait. The next candle or two give me another opportunity, now at a higher price. So I sell at magenta again. Once more it goes against me, so I wait, and enter a third time. Problem is, price hasn’t come back into profit yet, I have entered 3 times, and price is now consistently moving up against me. See, TRO didn’t mention a stoploss, only buying when a new red dot appears.
i have a problem knowing when to stop and reverse to a buy, or to continue selling. I have tried to make an EA, but have gotten lost because of my misunderstanding TRO’s directions probably. Will you be so kind as to tell me, in your words, what you do for the following types of trades: BreakOutBuy, BreakOutSell, ReversalBuy, ReversalSell, including stop losses and take profits? how do you know when there is a trend vs. small false breakouts?
I am very interested in finishing the EA I have started, and have basically all definitions in there:
Semafor value on this H1 or last H1, and if not 0, meaning semafor is 1,2,3,-1,-2, or -3 appears, 1st conditon for trade is met, so move on to see if other conditions are met.
Have red dot value, magenta dot value, aqua dot value, blue dot value, and bid to see where it is in relation to these dots.
Have last bid, to make sure the direction if selling is bid passing through magenta dot going down.
Just need the conditions made using those definitions, as well as you can explain it. Along with all the other work I’ve been doing to try and get the EA’s money management and stop loss and take profit values to work with auto-determining number of lots with an equation I created, using the stop loss value, I am not giving up on this EA, it’s just that I need your directions as you place the trades, when, why, how.
Thank you very much.
Don
well, i guess an ea is not wanted.
don
It does work. It may not mesh with your trading style or personality. I’m late responding to anything. I don’t post much for one, and I am now just trying to catch up on the TRO threads …looks like he was busy getting banned while I was on mat leave! lol
I have developed my own trading style based on TRO, the Three Ducks System, and I have recently found Dredding82. Dred’s use of the Heiken Ashi was a convenience for me and a wonderful addition to my trading.
There is no “my way is best” theories in the forex. If you are making money trading your own methods, then that is all that matters in the end. You are a profitable trader. Years ago I tried trading the Cowabunga way. Guess what? It’s not and never will be for me. However, it seems to be a winner for many traders. You don’t see me crying on the other person’s thread stating it doesn’t work now do you?
Are these the reasons this site is called “BABY” pips??? I have never seen so many males that need a strong dose of midols!! 
Give me your instructions and I’ll try an EA. That’s only if you want. Also, I’ll only go by what you give as instructions. I don’t add or take away, so unless it is plainly spelled out, don’t bother giving bits and pieces of what you do, or worse yet, just post a pic. Not going to help in programming of an EA. Also, if you aren’t going to test EA and give feedback, don’t bother. Just saying these things up front since these are common problems when I spend time writing EAs and don’t get feedback, it makes it time wasted and effort spent for nothing.
I say the biggest problem is the trader. At least in my case, this has been the problem point consistently.
My problem is me. Always has been.
I fight the trend the whole way (I would say like 90%+ of traders who lose do, e.g. looking for sell reversals when the trend is going up consistently, or vice versa).
I’ll hold a position until my account is blown. (Crazy, I know, but if there is ANYTHING I’m consistent at, is losing LOL).
It’s personality defects (pride, fear, greed) that an EA doesn’t have (and like most people, it’s not that I haven’t had a good EA, but if I override it by turning it off - which I do even though I know it’s a bad idea, then I lose in end).
So yes, many people lose because of themselves, in fact, every one of us who lose I would say it’s because of system-jumping, emotions, holding losing trade instead of turning around and profiting, etc.
Just my 2 cents. Not worth much. But why I have always wanted to trade by EA. Best way for a person with what seems like ADD to trade LOL. Anyways, I won’t say it doesn’t work. It has for many people. Just that I’m the hardest case there is I guess. TRO said I was hard headed as a billy goat. I agree LOL.
Kindest regards to all,
Don
P.S. I strongly agree that there’s no one size fits all approach. There’s traders who make money with a 5 SMA and Stochastics and that’s it. But they only trade certain times, and without the time limitations being put in the EA, the EA will not trade as the trader does. This is just one instance of how pertinent information, if left out, gets left out of EA, and makes a huge difference. Also, it can’t be assumed that when an MA is used, that the direction is used. It can be price in relation to the MA that is used and NOT direction. These things matter. And this was just a very simple 5 SMA and Stochastics example that shows missing information makes an EA NOT trade like the trader. This is why I put the note like I did about needing complete instructions.
disbellj:
Am I understanding you correctly? You do not understand this method of trading yet you want to code an EA and let that trade for you?
An EA is an Expert Advisor. It gives you a heads up to a potential winning or losing trade. In order to use an EA you should understand how to trade before you set an expert advisor loose to help you find potential trades. I do not suggest you try any expert advisors until you learn how to successfully trade manually.
First you need to go back to babypips school and learn your basics.
Second may I suggest you google these other methods and see if they fit your personality:
Three Ducks trading
Freebie Newbie System
Invictus trading by Udine
Perhaps one of these will let you see the light. Devote yourself. Study it, learn it, demo it, trade it on a penny account, then upgrade.
Excellent advice by Phoenix. I second it.
This method does work; I do use an offshoot variation of it. But the idea of automating this method is disaster if you do not know the actual rational of the method!
forexdude12,
Never mind. I said I would make an EA for you. Since it’s obvious you are not interested in an EA and would rather pick on me, nevermind. I know how to manually trade. No need for your instructions on that. What I said is I would make an EA according to YOUR instructions. But as I said, if you take that to mean I don’t know how to trade, vs as I said that I am the problem because of the turmoil in my life and the effect that has on my emotions and trading, then take it as you will. You obviously didn’t read my post. No where in it does it say that I couldn’t make an EA if someone wanted to give instructions and answer questions I may have when building it. Sorry to have bothered you. Like I said, a 5 SMA and Stochastics can be used. “You cannot trade a proven system without discipline”. Does that statement make it sound like I don’t have a system? To me, that statement that characterizes me well says I don’t have discipline. And since me not having discipline concerns you more than having an EA for your strategy in your words, then I’ll gladly find something else to do with my time and excuse myself for intrrupting.
Honestly, my take is to buy bounce from bottom Semafors when hour direction is up, and vice versa for when hour direction is down. Take a few pips unless daily direction is same as hourly direction. If it is the same, hold on and ride it. Now this is few words, gives my understanding of the strategy, but is not TROs words, and is not your words. If you can’t understand that I would make an EA for YOUR strategy using YOUR words, then I can’t honestly think of any other reply than what I’ve given.
Kindest regards,
Don
Enlighten me in YOUR OWN WORDS then. Please? Pretty please? I guess I ask too much. If so, then nevermind. If you can’t define criteria that YOU use to take a trade, NO EA CAN be made.
EAs, if you’re not aware, use rules. That’s all I asked for. Your rules. Again, this is obviously too much to ask.
Well, since someone deleted my latest post, I’ll revise this one. Anyone wanting an EA that is good will give instructions, not just pictures, and won’t get mad or go off on tangents when asked for instructions to make EA work correctly.
Anyone wanting an EA that sucks or wants to drive away a generous EA creator, reply as the last couple chaps have. EAs NEED SPECIFIC INSTRUCTIONS. Is this not understood?
Why would you ask me if I know the system when I offer to make an EA for you if you can give me instructions in your own words?
Kind regards,
Don