100$ trading

Trading Systems Free Forex Trading Systems
1

Hi everyone!

Why 100$ trading ?

After a long period of having been thinking and crunching numbers, calculating and removing the more possible risk, I’m now so confident with this strategy on my mind and mainly on my spreadsheet that I choose to test it NOW on a REAL account with you guessed, 100$ on it. Well, the exact amount is 101.03 We will see if this thing grows up or not in the following weeks, months, years…

[B]The System in Short:[/B]

In short, this is another grid system but with an edge on “standard” grid systems. This edge comes from the following:

First, You! The trader must sense the market, have care and not just apply the grid blindly !

Second, the dynamic side of the legs vs static legs in standard grid systems. The legs become larger while a down-trend unfolds or when trading at historical high prices.

Third, Use only swap paying pairs and preferably (AUD/JPY). We are paid for maintaining danglers instead of hoping for a reverse or closing them at a loss.

[B]The rules:[/B]

1 - No indicator on price is needed but you can use an oscillator on day and week time frames to check if we are over-bough/sold .
2 - No Stop loss. YES ! This is a No Stop Loss strategy which is equivalent to say A No Loss Strategy. !Important!
3 - Use of low leverage (around 10:1), to keep sufficient margin reserves is mandatory. !Important!
4 - We buy only and never go short.
5 - Starting with 100$, we will buy micro-lots (0.01 lot), for the time being.

[B]What you need:[/B]

1 - Patience, as sometimes we will have days without trading.
2 - Some more capital in reserve in case we are caught in a down trend at start. !Important!

[B]Wich pair will we play and why: AUD/JPY[/B]

1 - It pays swap during losing times while we wait for a trade to be profitable. !Important!
2 - It’s enough volatile to make profits all the way up and also the way down during retracements.

[B]The strategy:[/B]

We calculate buy levels starting from 81.00 and adding 0.3 all the way up : 81.30, 81.60, 81.90, etc.
When a new level is reached, you set a trailing stop on the precedent and do that all the way up until you feel that the trend is coming to an end.

But how you know that the trend has come to it’s end ?
Well, you will have your last order open for a day or 2, 3 or more… and certainly your oscillator is overbought…

Then when trend reverses, wait for the dust to settle or that your oscillator is near the oversold levels then you start buying the way down the same way but applying the following multiplicators :

Skip the text below (in gray) which is now obsolete, keep reading and look for updates at the end of this post.
1, 1, 1, 1, 1, 2, 2, 2, 2, 3, 3, 3, 4, 4, and then 5 for the following…

We subtract 10.30 for the first 5 levels, then 20.3 for the 4 following levels, then 3*0.3 for the 3 next, and so on…

Lets say we are near the end of a down trend and start buying at 78. Applying the multiplicators we would buy at:

78 (level 0)
77.7 (level 1 = previous level - 10.3 )
77.4 (level 2 = previous level - 10.3 )
77.1 (level 3 = previous level - 10.3 )
76.8 (level 4 = previous level - 10.3 )
76.5 (level 5 = previous level - 10.3 )
75.9 (level 6 = previous level - 20.3 )
75.3 (level 7 = previous level - 20.3 )
74.7 (level 8 = previous level - 20.3 )
74.1 (level 9 = previous level - 20.3 )
73.2 (level 10 = previous level - 30.3 )
and so on …

Of course, doing so, you may need to add additional cash to your account to avoid a margin call. BUT, If you feel also that price is headed south, or that we are at the beginning of a major down trend, or that the price is well above it’s historic average, you can also skip some levels or stop buying for a moment.

[B]Benefits:
[/B]

  1. You are emotionally detached from your trading. If price goes up, you take profits and when price goes down, is no more than an opportunity for future profits. This is in fact the philosophy of this strategy !

  2. No more complicated charts with dozens of indicators. This saves you time and will make you more confident because this strategy is simple to manage.

  3. You are paid for holding losing positions while waiting for the price to come back.

If you are curious about this, I have already began to trade this on a real account. So I will regularly post my trades, open positions, account balance, etc.

[B]Keep in mind that we play safe and protect our capital. If you want to be rich quickly, this is not a thread for you.
Note also that as no system as to be trusted, You should use a demo account and no real money, and conduct the due diligence in the case you would test this system.
[/B]
Curious and ready to go a long trip with me ? Follow the thread and you are welcome to comment.

[B]30-10-2012 Update. Please see post 63 on page 7.[/B]

For current performance and status, please consult: 100$ T System | Myfxbook

2

Time to go by numbers:

Started trading on Sept 24 2012 with a balance of 101.03

Here is my current order history :
04-10-2012 Bought 0.01 audjpy @ 80.000 STILL OPEN
03-10-2012 Bought 0.01 audjpy @ 80.000 closed 03-10-2012 @ 80.150
25-09-2012 Bought 0.01 audjpy @ 81.000 STILL OPEN
24-09-2012 Bought 0.01 audjpy @ 81.000 closed 25-09-2012 @ 81.150

Balance: 104.95, Equity: 101.55, Margin Level 985.95 %

3

The truth is “forex is a monster”,dont do it BRO…No stops …no trading…
Check the history, sometimes AUD/JPY was down for about 600/800 pips within a week,(60%-80% DRAWDOWN for u).

Atleast u can (to some extent)hedge ure account by adding some negetively-correlated pairs…Though thats not enough as the INTEREST rates are getting down to historic lows everymonth…

1 Like
4

I don’t understand when you close a position and take profit. Could you explain, please?

5

Im agree with you 100%

6

Take profit is implied by the stop loss of another trade (ie trade at a higher price).

7

Interesting strategy you have there :), will be stopping over to check how you’re doing :slight_smile:

PS: your usage of +ve swap as a core part of your strategy just reminded of an NZDCHF buy trade I had a short while ago, the positive swap was positively fantastic :slight_smile:

PS2: with the leverage you’re using, what’s the margin required for a 0.01 trade? Can you sustain it during heavy loss times? (they will come…)

Offtopic: why do you call yourself “broketrader” friend? (something you would NOT want to be)

Cheers!

8

@Broketrader : I’m currently using a strategy based on small positions and mainly on AUDJPY and NZDJPY spots as they pay swap (as you explained on your 1st post).
The main difference is that I don’t trade with 0.01 lots but only 7 units and set take profits from 9 pips to 99+ pips.
I also use indicators but let’s say it’s not such a big deal.

9

I’m also curious about it :wink:

10

Hi, sorry for responding late.

[B]taskman9:[/B]
As everyone knows, you know also that 99% of retail traders are losers (including myself until now), and no offense here.
Guess what, 99% of traders use Stop loss, I have just decided to jump on the other side and will prove that it’s possible to do it. The key is to begin small and making careful usage of leverage. No need to edge.

[B]ISMartin:[/B]
I take profits when trade is positive and if possible using trailing stops. Please re-read Take profit policy on first post.

[B]dudest:[/B]
Thank you for following.
PS: Yes, it’s kinda carry trade derivative. PS2: with 0.01 lot, the required margin is 5.20 actually which leaves 94.80 as free margin and not counting current profit or loss. As a rule, I will keep at least 50% of balance as free margin anytime adding to account when price is going down and as needed.

Offtopic: I call myself broketrader because after trading for more than 10 years, trying dozens of techniques, EAs, books and etc I terminated losing everything. So, yes, I’m a trader and really broke but don’t worry about that, I live well. This is also why I started with such a small account of 100$, and more important, with my mind open and clear. So don’t try to convince me to use stop losses again or any holy grail indicator, for me it’s all BS. Hope you understand and let’s see how this baby works.

[B]zeuhl50:[/B]
Welcome on board !

Thanks everyone for posting,
Regards.

11

Hi again BT,

Thanks for clarifying on those points.

10years + no success = crazy nasty tough luck :frowning:
You must really have a strong spirit to still continue trying and swinging, mad respect bro

I actually would be the last person to try to convince you to use indicators…coz I also don’t.
I only use horizontal support/resistance lines (drawn off weekly or daily) on a clean empty chart (thanks to Johnathon Fox)
I’m def concerned about the no SL policy, but then again that’s none of my business.

I’m really hoping this goes well for you, it’s quite an interesting live ‘experiment’ :slight_smile:

Cheers bro!

PS: my AUDJPY D1 chart:

20121005_audjpy_d1_explanation.jpg700×296 20 KB

12

Im curious, could you share your backtesting/papertrading results with us?

13

Thanks dudest.

I also have a look at S/R levels and daily or weekly charts to know where I am, To see the big picture.

Thanks for contributing,
Cheers.

14

I Richard87,

Sorry, I will not backtest/papertrade this.

As I said in my first post, this is a LIVE experiment with real money that you can choose to follow or not.

I want to be very clear. By “follow” I mean “to watch” and contribute if you want. Not to put your own money at risk for this baby.

Thanks for posting,
Regards .

15

have not traded before and after reading that 99% of the retail traders are losers (not making a living at it) what is the motivation to trade? does this group just trade as a hobby? all of these losing trades are just benefiting the big players

16

Hi harness,

You should ask yourself, why you are here.

Every trader in my humble point of view wants to make money, if possible quickly, if possible constantly.
Every trader know the stories of Jesse Livermore and others that became rich by trading, so why not us ?

Why we (almost) all lose ? My view is that we are perturbed by all the marketing around technical analysis and written in stone rules that say that you have to protect your capital with stop losses. In fact banks and brokers want us to take small loses, but regularly in order to them to take the spread. From time to time you win something ? That’s good, it means future spreads for them.

Not to say that all is bad in technical analysis, it’s generally people which is bad with it. With a position too much leveraged and that a stop loss being reached, your emotions come in, you begin ask yourself about the distance of your stop loss, your system, etc. After 1 win and 3 losses, you change for another system and start again.

This is why I don’t use stop losses and I don’t care about price direction my this strategy. I stay cool without any emotion in my trading and just wait for future opportunities while cashing the Swap.

I hope you see the whole picture.

Thanks for posting.
Regards.

17

Quote: 76% of all stats are made up…

(hope you got it…)

On a serious note, i donno where the stat that “98%/99% of retail traders fail” came from. It may or may not be true, I donno. The truth is, a significant percentage of retail traders struggle to be consistently profitable (after all, that’s what we’re all after). Probably this is due to the fact that:

  1. Learning an edge (system/method) over the market takes time/discipline
  2. Learning to master oneself (the hardest part) takes time/discipline

Are the above two impossible? NO. They are attainable. But not for someone out for a quick get rich scheme.

My advice to you friend is:

  1. Don’t listen to gloom and doom and what people are saying, [B]beat your own path[/B]

  2. There is a school right here in BabyPips (look at the tabs at the top of the page); go through it, and you’ll get sound basics.

  3. Open a demo a/c, and as you work through the school, actively correlate the concepts with what you’re seeing in the demo a/c

  4. After working through the school (getting the basics nailed down), now pick a trading system ( there are many here on BabyPips ) and test as many as you feel an affinity for in your demo account.

  5. When you finally have the method/system + some self-learning down, open a [B]tiny[/B] live account, and continue with the journey from there.

Beat your own path. And all the best to you!

Cheers

18

I don´t trust in No-Stop-loss strategies, but I will be very interested to follow you, broketrader. Your “baby” sounds well, and it has something of Carry Trade, which is a winning method.
Good luck.

19

This is another Grid strategy without any edge… your account will be wipe out sooner or later… this kind of things already have been tested… you [B]must[/B] use a SL even if it is a disaster SL.

20

Stop loss is not necessary if margin used is very small. Many stop loss are chased by stop hunter systems.
Btw, such system is easy enough to build an EA.