Newbie With New System

[andyfx]

Is this a good return for trading a new system. I have tested it on demo and it has lived up-to the claims of 2000+ pips per month, so far this month i have 700. And 400 of them were from today. Should i close everything and say thank you very much, or let things run?

Thanks in advance.

[Yarcofin]

If you know that it can consistently make profits, then why stop?

But if you are just gambling and have no idea how or why it works, you are probably better off calling it a day.

If you mean you still have all of your positions open, then yes you probably want to close that one that's up $130 when you are only trading 0.01 lots o_O. Nothing goes up forever.

Probably better to close off everything and start again tomorrow, rather than just closing your gains... because the losses might keep going down even further.

[andyfx]

Thankyou for your advice. I do understand the system, but i do not know if i should set profit targets..? If i had i would be finished this month i suppose.

The trades in the attachment were on demo only. I didnt think it would be advisable to post my 'Live trade results' as they are the same pip profit but larger lot size.

And also does it look like a good system to a more experienced trader on recent results. I am really excited about this but am not sure if i am counting my chickens..

Thanks again.

[mytwopips]

Hi Andy,
There are no "experienced" traders that can give you advice if a system done well or not over a short time period just by showing the results of that system over that time period.

I have no clue how many people have come into the Forex and tripled their live account over three weeks just to walk away the fourth week broke and busted.

My best advice is to know how that system trades and trade it yourself on demo, not automated. Not that later down the road if you are comfortable with it you can't automate it. In my opinion manual discretionary trading is better than automated no matter what the comfort level. And this opinion is coming from a programming geek.

Demo it for three months. Then you will have a more clear answer. I know that isn't the advice you wanted to hear. It's human nature to want to get them dollars right now if they could be possibly handed out at this moment.

[GBLilleyUSMC]

Uhh.. sorry if I missed something, but all I see is an image of your profits. Where is the system we are supposed to be analyzing?

With Respect,

[andyfx]

I have devoted the last 2 months (16 hrs a day) of my life to learning this system. I am not automated trading and don't think i ever will. Those trades were placed according to the trading system. I understand what you are saying about the going broke after a month. But i have now been into forex for over a year which i know is nothing compared to most. But really i am not struggling with making the pips, but the exit stratagies are a different matter.
Do experienced Live traders have pip/profit targets? I also have been reading up on trading psycology and taking what the market gives and not trying to take. I have closed all trades for today and am happy with that result so maybe i have answered my own question.

But again are pip targets advisable?

[andyfx]

Originally Posted by GBLilleyUSMC

Uhh.. sorry if I missed something, but all I see is an image of your profits. Where is the system we are supposed to be analyzing?

With Respect,

Maybe analysis was not what i was looking for.. Just an opinion on a simple question.

With total respect.

[daedalus]

Originally Posted by andyfx

I have devoted the last 2 months (16 hrs a day) of my life to learning this system. I am not automated trading and don't think i ever will. Those trades were placed according to the trading system. I understand what you are saying about the going broke after a month. But i have now been into forex for over a year which i know is nothing compared to most. But really i am not struggling with making the pips, but the exit stratagies are a different matter.
Do experienced Live traders have pip/profit targets? I also have been reading up on trading psycology and taking what the market gives and not trying to take. I have closed all trades for today and am happy with that result so maybe i have answered my own question.

But again are pip targets advisable?

You're asking the right questions Andy! Sounds like your serious about trading - good. You HAVE to be. Its a business - not a hobby. Sounds like your taking a systematic approach to the entries and their criterion. GOOD. This is the key thing most newbies lack. If one trade goes against them they start looking for a new system. Systems suffer losses, thats just part of trading. Stick with your system, it looks like it has solid results, but don't bend your RULES EVER.

As you mentioned exit strategies are the HARDEST part of trading. I don't care what others may say, you can find entry signals from any number of the millions of systems out there and they will all work. The degree to which they succeed is directly related to the management and exits each system employees. I can't give you a 1-2-3 exit strategy and i'll be honest, i've tried it all. To answer your question - yes, traders use targets for exits and I would advise that you do as well. You have to know when to fold just as easily as when to get in. Personally I use Fibonacci Targets for my exits and try to systematically reduce risk on the way down as the trade works in favor.

If you want some possible exit strategies, look possibly at something really simple, like maybe an RSI extreme reading, or a slow stochastic moving into extreme territory. If nothing else they could give you a general idea on how extended the current move is and if you should start locking in profits or closing out positions all together. Take a look at them and see if they would've helped or hurt your profit results and then go from there.

Also, pick up the book "Trading in the Zone" by Mark Douglas. Its the best book i've come across on trader psychology and its a MUST read before you go live. Otherwise you'll be doomed to commit all the mistakes he outlines in the book in real life and have someone else walk away with your hard earned money.

Hope this helps!

[mytwopips]

Originally Posted by andyfx

I have devoted the last 2 months (16 hrs a day) of my life to learning this system. I am not automated trading and don't think i ever will. Those trades were placed according to the trading system. I understand what you are saying about the going broke after a month. But i have now been into forex for over a year which i know is nothing compared to most. But really i am not struggling with making the pips, but the exit stratagies are a different matter.
Do experienced Live traders have pip/profit targets? I also have been reading up on trading psycology and taking what the market gives and not trying to take. I have closed all trades for today and am happy with that result so maybe i have answered my own question.

But again are pip targets advisable?

It's good that you are trading your system and know how it trades. By your first post you stated something like "so many pips promised per month", which made me assume it might be an automated system.

I set my profit target by price action. I look for where I think price will go and shoot for half. Once the halfway mark is achieved I move my stop to there. Either it will go for some more or stop out at my original profit target.

[andyfx]

Thanks for an extremely informative post. And thanks for taking your time to help. I understand totally what you are saying about breaking the rules as i have experience about it. Yes i do think i have been lucky to come across this system and i am going to keep on with it as you advised. I have been assured that in the less profitalbe periods it is exactly that. Just less profitable.

I am doing my very best to have the correct psycology, thnkyou for your book recommendation. I am currently 1/2 way through- 'The way to Trade' John Piper. And Trading in Mind course i have just completed.

I was testing the COG for exit recently would that be suitable maybe?

I have taken my profit thanks to your advice. by not doing it before i was breaking a rule. I have taken what i was given and i will now enjoy my weekend.


Thanks again for taking your time to help.