I plan to accomplish something that would seem impossible to every forex trader (aside from some perfect storm students trading the BBREW). I am going to turn a $200 micro account into a $50,000 in less than 3 months. If I was making my weekly target of 400 pips, then it would only take 7 weeks, but i am giving myself room for error.
I will start with week 1 (or my first 400 pips) trading 10K positions.
After I’ve made 400 pips I will trade 20K for another 400 pips.
Next 400 pips - 40K lots.
Then 80K lots
. . .160K lots
. . .320K lots
At each level - my maximum risk will be about 10-15% of my total account size, and winning trades are usually closed between 80 and 160 pips. If you do the math you can see that after making 400 pips 7 times the balance will be over $50,000.
Seems crazy.
Seems impossible.
I don’t care I am still gonna try - and post every trade I make - as I make it and the results as I go.
Whether I make it to 2000, 10000, or lose it all after 3 trades - I will continue posting until I’ve either lost all my money or have reached my goal.
After I make my first 400 pips -hopefully after next week - I will outline my trading method for making entries and how I trail m stop-loss for closing trades.
My next post will be Monday Feb 15th next week as I begin the endeavor.
Such as using 5 trade to losing it all, equals to the opposite win it within 5 trade. I believe there is something there for you to learn.
One of the most failure of player is cutting every losses too much. So the opposite of this is don’t cut too much. Plan your trade very well. Cut only you know where you have planned first.
However, you must decide yourself, big pip to win or small pip to win.
Obviously you’re trying this for fun and wouldn’t do this for your normal trading so I wont fill this thread with how it’s too much risk etc etc!
Instead, go for it and please do keep us updated on how you get along. There is some interesting research on the internet regarding the optimal level of risk and some might be surprised to hear that 2% is often not considered optimal for maximum gain (although it obviously makes sense if you’re trading for a living).
please do keep us updated and good luck
I agree with matt and am not going going to bother to give the usual warnings. I have done some research on k value and read a lot of contest threads on broker web sites to try and see how people have those huge gains. Luck plays a part for sure. You cant get lucky if you are not in a position to be lucky;)
R will vary from trade to trade, since each trade will have an initial stop loss of 60-90 pips, and a trailing stop will be used that usually closes the trades anywhere from 80-200 pips (based on previous trading of my method) - I guess usually it will be about 1.5-2. And yes, this is obviously just for fun. And I could have started with more like say 1000$, but i think it’s more exciting knowing that when starting out, 2 trades stopped out can end the account -but its kind of like just rolling the dice. If that happens I probably will try again with 1000$.
A change I’m gonna make to my plan is for the first week(or first 400 pips) I am gonna start with 5K positions first. I forgot you could do that with a micro account. That will be more appropriate for risking 15% per trade. So basically just added an extra 400 pips between me and my goal.
My 2 pending orders were triggered and here are the results:
GBPJPY sold at 140.04, Stopped out by trailing stop at 140.53
(-49 pips)
GBPUSD sold at 1.5574, Stopped out by training stop at 1.5644
(-70 pips)
Another note about when I start trading the micro account next week:
I will start by only trading GBPUSD - which I usually can expect 200 pips/week, then after I make more than 400 pips I will start trading GBPJPY with my method on the micro account as well. The thing iswith trading them both off the bat is that they usually both take losses together and when im starting with only 200$ I dont want to start with a 50 pip+ loss for both pairs - or 2 losses in a row like that for both pairs.
I do intend to tell every trade I make in advance so that I can’t say what I did after the fact.
I will show an account statement when I reach a couple thousand.
MM? well lose 5 in a row and the accounts gone thats simple. although with the way i trail the stops, i almost never experience getting stopped out at the initial price i set the stop loss at. - unless i fall asleep right after making the trade!
unless i fall asleep right after making the trade!
or your internet goes down, or your pc breaks, or your broker slips, or your dog pees on the rug and you have to clean it up before your wife gets home…
All of those things and more can and will happen at the worst time trust me on that I know;) You need to make sure your plan is robust enough to take a few unexpected trades that go bad for reasons out of your control. It happens its the nature of trading online, expect it plan for it don’t whine about it when it does happen you have been warned
and good luck