Multiplied balance by five times by accumulations of over 40 trades in one day

Hi, friends, I multiplied my starting balance by five times in one day, not by one or two lucky shots, instead by accumulations of more than 40 trades. I have attached my trading records here.

I got in touch with Forex just in last November and fell in love with it immediately. I wish I can work for a professional firm or shop to trade on a larger volume now because I am confident that I have great potential to become an excellent trader. I don’t have systematical education background on this but I just have developed my own strategy, theory and mentality about this market, and most time I can predict the trend and moving direction of the price correctly and almost precisely sometimes.

I just want to know, do you think, my friends, there is any chance for me to get into a professional firm?

Well done Ryan! I myself have been practicing making many trades in one day, compared to making one or two longer trades per day.

I am using an MT4 demo account. I use trends and candle sticks and then scalp using very small lots 0.10 If I am confident of the direction of the market or after alot of small winning trades I might increase the lots to 0.50 or 1 lot.

Ryan what size lots are you trading and how much did you start off with>?

maybe you can trade some of your profit now and keep your initial deposit safe.

Can anybody help me on how to put my pictures here correctly?

The size of my lots is depending on how large is my balance. I am trying not to be affected by the amount, instead, I am trying to focus on the trends and movement.

Highly doubtful.

If you quintupled your account in a day, especially with 40 trades, you were overleveraged, overtrading, and overconfident.

How many demo accounts did you blow through to finally get this one to that point?

Besides, if you could multiply your account by five times EVERY day, why the hell would you even WANT to have to clock in somewhere, and answer to ANY sort of a higher up?

If you started with $1,000.00, by the end of the week you would have $3,125,000.00.

One more week would have you sitting on a beach in Aruba, with never another care in the world.

But in reality, not a sustainable set of results.

Do that on a live account for 6 months straight, and we’ll talk. Or maybe we wouldn’t. You could buy your own country… I hear Greece is up for sale.

Yeah, totally agree that these results aren’t sustainable. Your goal in this game should be modest but consistent profits. Then you get compounding on your side, and that is a good ally to have :wink:

Here’s some genuinely bad advice, but if you were extremely confident in your skills, you could take out a personal loan or hell, even max out a credit card to get $5,000-$20,000 and then work your way from there. With the results you claim to have (or even a tenth honestly) you could pay back the debts and be working off profits in just a few months.

But if you also think that is a bad idea, you might have to be honest with yourself and admit that those results are too good to be true on a consistent basis. If you think it’s a great idea, put your money where your mouth is and keep us updated on the results :smiley:

Hi, Master Tang,

Whether it is overleverage, overtrading and overconfident should be depending on how accurate and precise is our judgement. But you are somewhat right, I am a little bit overleveraged comparing with others.

Actually, you will find in the attached pictures that this is a live account.

By the way, I am not saying I can do it everyday,:slight_smile: but believe it or not, in many days I can increase 50%-200% a day. I am sure I can not do 50% everyday in a straight six months, but I have done increasing my balance by more than 50% everyday for a straight week, at least 20 trades everyday.

My problem is I can not be correct all the time, sometime I will lost myself, and then my account will shrink terribly too, this is what I need to solve urgently: how to manage the account!

Just as Tang calculated, it for sure is not sustainable. And quintuple in one day is the best result I have done. But I believe increasing 20%-50% per day can be sustanable if someone can help me with the risk management.

At least now what I can do is that technically I have the ability to quintuple my account in one day by accumulation of over 40 trades.

I believe that on some days you are able to get 200% return.

However, I don’t think you’re actually ready for live-trading yet even with the fantastic results you have achieved. The reason is because if you can not replicate these results consistently and controllably, there is a very major degree of luck involved in your strategy which is NOT good.

The problem is that you’re trying to achieve too much, too soon, too quickly. 50%-200% is an excellent return but 200%/day consistently violates many laws of probability. Keep in mind, whilst it is completely possible to achieve this rate of return - sometimes - sometimes may not actually be good enough. You only need to lose a couple of times before you’re wiped out with that kind of leverage, especially with that kind of leverage.

If you focus on a slightly smaller rate of return, you may be amazed to see that the slightly smaller rate can be replicated more consistently and frequently, because it is a closer goal to achieve. Tone it down a notch a bit, aim for 20-40% over a month and you will find it is easier to achieve this more often than a 200% rate of return per day and you will be more confident and less on edge. It is just my feeling that one day you are going to get really burned at that kind of ROI expectation.

In my strategy I am able to sometimes get ridiculously high rates of return, but so infrequently that what I risk is not actually worth the return when it does occur. Whilst I may be happy in the moment, I am also very much relieved and wiping the sweat off my brow too. Is this really the way you want to trade? NO. You don’t want trading to always feel like some kind of game fo survival, you won’t last this way.

The beauty of a good strategy is when you can walk away, go to sleep, do whatever you want in life and increment your account progressively. My strategy now allows me to do that.

As long as I’m beating and earning more on my capital than any other investment opportunity (i.e. mutual funds, savings interest, business, stocks, property etc…) then I know I am winning and using forex properly - as an investment tool. Not a get-rich scheme.

Well here’s a very simple risk management template you could use to hopefully give you some structure, and help weed out those “terrible” days.

Take a % of your account and call that your “Stop Loss” for the day. Make that value something that you can handle losing, something you won’t FEAR losing even if it happens many days in a row. For me the value is 2%. Now in a trading day, if you lose this amount STOP TRADING. This requires discipline but once you are in control of yourself, you will have this wonderful safety net, knowing that the most you can lose on your account is X%. Now you are free to trade without fear, and THAT is where you want to be.

I make my daily Target the SAME value as my Stop Loss (2% in my case). This is my goal for the day, and while I leave it to my discretion to know when to quit, I start planning to close up shop once I’m above the 2%. At the very least I will trade much less aggressively, maybe even move down to half-sized trades. The key is to not lose that X% once you’ve made it in the day. Once you know yourself and are experienced with your success rate, you’ll be able to tell when it is YOUR time to stop in a day.

Now the last component is consistency. You are going to want to have winning days at least 60% of the time, preferably above 80%. This will do wonders for your confidence, and confidence in this game is self-reinforcing. You will see yourself hitting your target most days, and then when the bad days come, it shouldn’t be so hard to handle because you know it is likely you will make it back the very next day!

One more point, your individual trade risk should be some fraction of your daily Stop Loss. For me each trade is 1/8th of my 2%, so 0.25% per trade. The point is that is a VERY SMALL value, which allows me to take bets confidently, without fear of loss. I seek high R-value trades however, so I only need a couple of those good ones in a day to hit that 2% target. I’m not sure what your strategy is, but maybe you would want to alter my 1/8th setting to 1/12th or 1/6th or whatever works for you!

Hope this helps, just remember all the number values are personal to me, but I think the basic structure could help you with your consistency issues. :slight_smile:

You NEVER need to use a stop-loss if you’re properly capitalized for your trade-sizes/positions. Is the goal to LOSE or WIN?

Look at history. For example the EUR/USD pair rarely drops 400 pips in a week and in extreme circumstances has dropped 500 pips in a month (May) and this week around 400 pips. So many people who went LONG this week got screwed over because their trade size was too large to handle the draw-down, which we see only lasted until Friday morning.

So what does this tell you? If you have a proper trade size that can manage 500 pip draw-down, you have now stacked the odds in your favour. It’s really THAT easy.

If you customize your trade size such that it can handle these historical nightmare scenario’s you’re on the right track. Some people may argue well the trade-size has to be small then, therefore the profit is going to be small.

What do you expect from small account balances? If you want to be a high roller and make big bucks, you INVEST more, giving you the PRIVILEGE of having a larger trade size and consequently larger profit.

It is honestly the mismatch of trade size versus account balance that kills most people in this game. People don’t realize how unrealistic their trade size and profit expectations based on what they think is a good acct balance.

This is only ONE of many fail-safes.

Counter-point:

I trade with stop losses that average 3-5pips. I stick to EUR/USD so that my spread costs aren’t through the roof, and the liquidity is excellent so I rarely get slippage. I took the saying “cut your losses short and let your winners run” to heart. My losses are stopped FAST (as evidenced by the tight stop) and I’ll let my winning trades run to 10, 30, 80pips, whatever the markets offering for that particular setup. I lose more than 50% of my trades but because I’m committed to letting my winners run far and free (with an intraday perspective of course) I end up with net profit MOST days. My definition of most generally falls between 75%-90%.

Of course I can’t say your risk management method doesn’t work, although it does appear to be non-existent so not much to debate now is there? :smiley:

And BTW “xtremeforex”, I couldn’t help but notice that your first post on this forum was some rant about conspiracy theories and banner ads in response to the banning of TRO and MP.

And I seem to remember particularly well how they both advocated not using a stop loss. Now here you are, albeit a year and half later, advocating the same approach :wink:

extremeforex you sound as if you trade similar to me. I rarely use anything less than a 200 pip stop loss in one trading method that I use.

I go with the party that says it is doubtful you may achieve that roi over the long run. All said, nothing left for me. :smiley:

Regarding sl: It depends on strat. If you have a scalper on the minute, you might want to go out early of a losing trade. If you look at daily or higher charts, you might want a little air to survive the intraday chaos.

I have always agreed with the approach of TRO and MP. They are my mentors/idols of FOREX. In the beginning I was confused as to some of the things they suggested until I verified their ideas through thousands of hours of screen-time.

Although these guys got banned from this forum, they were the BEST thing for this forum.

Exactly!

Not only that, trade size should be small enough to handle a 200-300 pip drop, but you should STILL have enough room to enter more multiple trades that can handle 200-300 pip drops with your account balance.

I hope this makes sense, I’m really tired right now…

Many thanks for your kind input, Akeakamai and other friends.

But up to now, no one has answered my initial questions. The first answer I need by this thread is:

I am thinking that my trading style is precise and special. Do you think so by checking my trades? Anyone can go through my each trade carefully by looking at my buying and selling point against your one minute chart? If it is, do you think I have chance to work for a professional firm? (Please bear in mind I am just in this market for one year)

My second question is: Who can tell me how to paste a bigger and clearer image? Why it is not as clear as my original picture? What is wrong with my way using photobucket?

You can use the tags (or click on the yellow icon with the mountain to paste the url into) to insert your pics directly into the body of your post…from either an external source or ones you upload to babypips. If your external source pics are too big for the confines of babypips page size, it will temporarily reduce it’s size it but allows one to click on the pic to get a larger view. The ones you upload to babypips are permanently resized at the time of upload.

Hope that helps :slight_smile:

Yeah, that was the way I did it, but why the larger view after click is still not as clear as my original picture before it is uploaded to photobucket. Do you happen to know how to make the picutre remain the same when upload to the photobucket?