Story so far:
Version-1 started from 23-Jan-2014 until it met the obstacle on 13-Feb-2014. You can see their result in this post
[B]10 Days of Trading Result (27-JAN-14 to 7-FEB-14)[/B]
Version-2 started on 3-Mar until it met the obstacle on 8-Apr-2014. You can see the trade result in this post
[B]MAR-2014 Trading Result[/B]
The Version-3 started on 10-Apr-2014 and it hasnât met any obstacle so far
Obstacles are market conditions where the theory fails. Let me use this analogy: Initially scientists thought the electrons are embedded on the outer surface of the atoms. This theory worked well for a while. When one scientist bombarded gold foil with alpha particles to his surprise not all the alpha particles penetrated the gold foil. Some of them got deflected. So at this point the âembedded theory of an atomâ fails. Because it couldnât explain what made some of the alpha particles pass through the atom while some others failed. One possible explanation could be those alpha particles blessed by almighty God were allowed to pass through while those not blessed were deflected. But this brings another question such as on what basis the almighty God select the alpha particles? The answer: God works in mysterious ways and it is not ours to question but to accept it and thankful for it. While this explanation is good enough, scientists come out with a slightly better theory which is âif you take any atom, most of it is empty space and only at the center of the atom lies the nucleus and the electrons are not embedded. They are orbiting around the nucleus like the earth orbiting around the sunâ so those alpha particles that hit the nucleus were deflected while others simply went through the empty space. To the naked eye the gold foil looks like solid object. For the alpha particle it looks like a sieve you use to drain the cooked spaghetti
Similarly when ever I got a market condition that my current theory couldnât explain I have no choice but to revisit the theory and come out with a better explanation. The alternate to this is âmarket is chaos and it cannot be predictedâ. To me it sounds like almighty God blessing the alpha particles. So I have to use the super computer between my ears to come out with a slightly better theory. So here we are with Version-3 and the result as follows:
US$3000 is created after 3 months of trading . What it means is, as the Pilot, I have now pulled the plane out of the gate, taxied it and brought it to the start of the runway
The 2nd Milestone would be generating the same US$3000 in 1 Month time. That would be analogous to achieving the take-off velocity.
The 3rd Milestone would beâŚwait, let me achieve the 2nd Milestone first!
For this 2nd Milestone, the TRADE Parameters are as follows
COUNTER: EURUSD
TRADESIZE: 1Contract (US$100,000)
1PIP = US$10
I started with US$3000 in a DEMO Account and doubled that amount in 3 months time. Since I played 1Contract Size (US$100,000 TRADE Size which makes 1PIP=US$10) on all my trades, I more or less captured 300PIPs during that trading period. I also made 87 Trades during that period. The whole package I consider it as my 1st Milestone.
If we assume there are 20 trading days in a month, it comes to roughly 5PIPs a day
It also comes to approximately 3.45 PIPs every trade
My equity is approximately US$1000 and the leverage is 100 times. So using US$1000 equity, I control US$100,000 worth of asset
So the return on my Equity is 5% a day and return on my asset is 0.05% per day
Since we must take in to account only the return on asset we consider it as 0.05% (For Every US$100K we make US$50)
Assume there are 240Days in a Trading year this makes the yearly return as 12%
There are 2 things worth noting
It is a DEMO Account
The TEST Period is only 3 months. I am projecting the result to a year
So put aside the 1st Milestone and I start towards the 2nd Milestone. The target is to make 300PIPs (and also US$3000) in 1 Month time. Again assuming 20 Trading days in a month, it comes to 15PIPs per day or 0.15% return on asset per day. This would make the yearly return as 36%
I started the 2nd Milestone on 13-AUG-2014 and after 4 Trading days the result is US$730 or 73 PIPs captured. This comes to 18.25PIPs a day, 3.25PIPs more than target. Here is the result and Iâll see you on next week!
BTW, this is also DEMO ACCOUNT. This is analogous to rolling the (financial)jet plane on a runaway. I need to create enough velocity (300PIPs a month) for take off. This is just 1 Week on the runway and 3 more weeks to go or 300PIPs whichever comes early.
Upon completing the 1st Mile stone, I realized, the next mile stone should be, doubling the USD3000 equity in 1 month time. Now, this 2nd Milestone I have achieved in 13 days time. But this could a fluke, a one time lucky thing. So my next mile stone, the 3rd, should be to achieve the same result, that is doubling the equity US$3000 in 15days time, 3 consecutive times
15Days translate roughly into 3 trading weeks. This also result in 20PIPs average per day
[B]Starting Equity[/B] US$3000
[B]Initial TRADE Size[/B] 1 Contract
(1PIP=US$10. Margin is Between US$1000 to US$1300 for every 1 contract. Leverage is roughly 100 times)
[B]Progressive Trading [/B] For every US$1000 profit made, the contract size will be increased by 1
[B]Trade period[/B] 3 Weeks
I will start the 1 of 3, Demo Trading starting tomorrow 23-OCT with a target date of 13-NOV
3rd Milestone. #1 OF 3 (Not yet Completed). As of now profit is USD2000 only. Started with USD3000 demo money and the closing balance is around USD5000+. Aiming to achieve USD6000 by 27-NOV (By then 1 month will be completed and account will expire)
3rd Milestone. #2 OF 3 (Completed). Here I started with USD3000 demo money and achieved doubling the equity in 2 Weeks of Trading or 10 Days of Trading . So it is average USD300 per day
No disrespect, but this whole thread seems more like a collection of âshort storiesâ and an attempt at âCreative Writingâ instead of sharing trading knowledge, but I am sure that if I were still at school, my teacher would say that they all lack a âplotâ and âcharacter developmentâ.
So, I have to ask, what is the point of all this? Besides the slightly entertaining âlittle storiesâ, there is nothing else. In fact, I donât think we could even classify it as a trading journal of sorts.
So, again I ask, what is the point of this thread?
Hi JakeBVT, thanks for your question. The strategy is proprietary. I created it and it is still evolving.
Hi Carnino, thanks for your question.
Trading is a zero sum game. Trading in itself is not bad. Like atomic energy, its good and bad is determined by the person wielding it. When somebody wants to make money out of trading, it becomes the black side of the trading. It is an unproductive work often detrimental to the society. It is the black side of the Capitalism itself. If you want to list all the bad things about Capitalism, Black side of the trading would come on top
To live a better life, humans need to share goods and services among themselves. Capitalism provides the platform for that by introducing a concept called âmoneyâ. I sell my goat, collect some âmoneyâ and buy some bread by giving out the âmoneyâ. Because I had a goat in the first place, I was able to buy some bread in the end. So all the âmoneyâ did was facilitating the trading between goat and bread
In modern society the money is âFIAT CURRENCYâ which means the money has no intrinsic value. It costs 2 cents to manufacture one number of US$10 bill and it costs the same 2 cents to manufacture one number of US$1000 bill. I have one Ton of Rice. It took the labor of hundreds of people over three month time to finally get this 1Ton of Rice. Now I exchange this with 1 No. of US$1000 Bill
When Capitalism advanced to this level, all kinds of problem creep in. Instead of creating goods and services, someone can focus on accumulating money and start purchasing the goods and services. Imagine everyone started doing this instead of focusing on creating actual goods and services, where will the food come from? Or what will happen to the price of the food?
One must share good things only! Now tell me, how can I share the Black side of the Trading Knowledge with the world?
[B]Then what is the point of this thread?[/B] To tell the peers that here is an attempt to take a crack at the market and these are the results. Compare this with yours and decide how far you need to go further? or how far you have gone ahead?
It seems that you have just answered me with yet another piece of âcreative proseâ with no substance. In other words, you are just âspinningâ words in order to prepare the âterrainâ and ultimately, âsnagâ a few newbies into buying your âproprietaryâ strategy.
No thank you! [B]To any newbies stopping by - beware, it is a wolf in sheepâs clothing![/B]
Donât let it worry you bro. He thinks heâs clever for crossing out the price. But when you analyse trade size vs profit and time held itâs not hard to see what it is the nit wit is doing. Have a look at this trade (#83963024 open on 2014.11.06)
I am just 1 week into real money trading. Iâll be posting the results on a weekly basis for 12 Weeks. I donât know how it will turn out. During the demo phase, I had to change my trading strategy a couple of times. My trading system is still evolving. It is all a big reconciliation effort between my perception about the market and the market itself
Now you have a perception about me that I am going to sell my âno good systemâ to some gullible. It is a good perception to start with. But you must also continue observe how the market behaves (in this case, how I am going to behave) and be ready to change your perception if the market behave differently. Mind you: The job of the perception is to explain the data. Not the other way around
You could have asked me directly is my system for sale? If so how much? Instead you chose to provoke me.
My dear Carnino, are you going to provoke me more than the EURUSD?
As âbobbillbrowneâ has already pointed out, it is a very âbadâ strategy and all you are doing is confusing the ânewbiesâ. As for the more seasoned traders, we can see where you are coming from, from miles away!!!
[B]I donât need to ask if it is for sale nor what the price is because Iâm not interested![/B]
Confusion is the middle stage from which two possible outcome can happen. Clarity and Resignation
Something you desire and embrace it. It bit you and made you feel bad. Now you are confused. Initially you thought it is going to make you happy. That is why you embraced it in the first place. Instead of happiness you are miserable now. So your initial perception is contradicting with the data on hand. You now have two choices:
CHOICE-1: By God, I am going to see the end of it or die trying.
CHOICE-2: this is not my cup of tea and move on
only you can make the choice and no body knows how the choice will turn out (even the person making the choice wouldnât know)
The reason is we donât know what we are capable of. Only the circumstances can reveal our true nature. We have some idea of what/who we are, based on the past experience. So essentially what we have is a perception about ourselves! The future experience (data) may resonate with our experience or it may contradict. If it contradict, will we be ready to change our perception of ourselves? If every time we change the perception of ourselves, then who we really are?
âŚ
