$50000 Challenge

[goldtip]

No stop loss, I noticed.

So what is your risk control policy ?

How do you manage it if the market is against you ?..Do you do a hedge with an opposing position ?

If you do, what is your contingency after May 15th ??

EXPERT

At the moment if my positions work against me it happens in a progressive manner throughout the day so I have plenty of time to react be it add to my positions when the RSI is exhausted ready for retracement or wait for the market to comply with the advice the model has generated. So even during times of price spikes where other traders positions will be flushed out due to stop-losses, my hedged positions will typically offset such surges.

My model only hedges against unique pairs so it will not be effected by May 15th. The model can include other asset classes such as commodities and bonds.

[o990l6mh]

Depends on the leverage I could of equally lost 430 pips but I guess that’s the whole point of the model to mitigate (hedge) such risk.

Have you taken a look at the attachment below ? Anyway the most important think is that those that took up the trades would have made money. happy days.

I just looked now and 10 points do equal 1 pip. Congratulations on successful trades.

Questions about money and risk management do remain however.

[goldtip]

No. I think the most important thing is how much money you stand to lose in order to win 430 pips.

So the question is how much did you end up making and how much could you have lost ?

EXPERT

I made around $2900 so far today with first exposure/margin req’d of around $1000 and on the reverse trade about $500.

However keep in mind that the positions are begin hedged and the risk reduce as some prices change quicker than others, offset and swing throughout the day.

[goldtip]

I just looked now and 10 points do equal 1 pip. Congratulations on successful trades.

Questions about money and risk management do remain however.

Fair enough. Thanks

[experttrader]

I made around $2900 so far today with first exposure/margin req’d of around $1000 and on the reverse trade about $500.

However keep in mind that the positions are begin hedged and the risk reduce as some prices change quicker than others, offset and swing throughout the day.

The question was how much did you have to risk to make this $2900

EXPERT

[goldtip]

Here are some more pips (290+) that I 've just closed. I added to some positions with lower lot sizes and waited for the retracement.

Total pips so far 700+ total profit around $3954 with very low risk and systematic trades.

[goldtip]

The question was how much did you have to risk to make this $2900

EXPERT

At the time I made around $2900 my first exposure/margin req’d was around $1000 and on the reverse trades about $500.

Is there an oversight here ?

[experttrader]

At the time I made around $2900 my first exposure/margin req’d was around $1000 and on the reverse trades about $500.

Is there an oversight here ?

YES.

The question is how much do you stand to lose to make $2900.

The answer to this would be a figure in number of dollars.

EXPERT

[goldtip]

YES.

The question is how much do you stand to lose to make $2900.

The answer to this would be a figure in number of dollars.

EXPERT

I would normally like to close my positions when negative p/l equals margin requirement, however I tend to do this after the US is open to see if any chances occur. However keep in mind the p/l always fluctuates throughout the day so there are a number of opportunities to close my positions or use other techniques to profit on the retracement.

[experttrader]

I would normally like to close my positions when negative p/l equals margin requirement, however I tend to do this after the US is open to see if any chances occur. However keep in mind the p/l always fluctuates throughout the day so there are a number of opportunities to close my positions or use other techniques to profit on the retracement.

Maybe I need to repeat the question again for you to understand it. I can’t make it any simpler.

How much do you need to risk to make your $2900 ? Again the answer is a NUMBER of dollars…not an explanation of why how or whatever.

EXPERT

[goldtip]

Maybe I need to repeat the question again for you to understand it. I can’t make it any simpler.

How much do you need to risk to make your $2900 ? Again the answer is a NUMBER of dollars…not an explanation of why how or whatever.

EXPERT

Originally Posted by goldtip View Post

In this case no more than $1000.

"At the time I made around $2900 my first [B]exposure/margin req’d[/B] was around $1000 and on the reverse trades about $500. "

[experttrader]

In this case around $1500

Good…how do you come to this figure, how do you base this on ?

Will it always be this figure ?

EXPERT

[experttrader]

So which is it ?

$1000 or $1500 ??

EXPERT

[experttrader]

Ok.

Never mind.

I think this could be too difficult for you.

EXPERT

[goldtip]

So which is it ?

$1000 or $1500 ??

EXPERT

No more than $1000.

For those that don’t understand, at the start of this discussion I had made two sets of trades the first required around $1000 margin, the second set on the retracement $500 margin req’d. Do the maths !

[o990l6mh]

No more than $1000.

For those that don’t understand, at the start of this discussion I had made two sets of trades the first required around $1000 margin, the second set on the retracement $500 margin req’d. Do the maths !

But the margin isn’t what you stand to lose. The risk in your trade equals number of pips to your stop loss times the dollar value of each pip.

I think that’s the figure both I and experttrader are after.

[goldtip]

But the margin isn’t what you stand to lose. The risk in your trade equals number of pips to your stop loss times the dollar value of each pip.

I think that’s the figure both I and experttrader are after.

I don’t base my overall risk on pips pre-se, I base it on overall exposure and overall return (no stop-loss [hedged]). I think I have given you all the figures is this something you guys calculate on a regular basis. perhaps you can tell me the risk in terms of pips

[goldtip]

Yesterday was another volatile day for currencies however although I don’t do pips and focus more on % return the model turned over an amazing 800+ pips with pin point accuracy on retracement.

Balance:
$58,990

Equity:
$58,990

Return
+17.4%

Current Performance
+9.3%

Will the challenge be won the public consensus at this point is:
37% (Yes), 63% (No), 0% (Not sure)

[goldtip]

Will the challenge be won the public consensus at this point is:
45% (Yes), 55% (No), 0% (Not sure)

[mastergunner99]

Hedging is to be banned here shortly by a good number of brokers. How will your system fare in a market where hedging potentially couldn’t be allowed?