Trading Hours:
London/US Session – 08:00 17:00 BST
Monday -> Friday – No Trading on Sunday, Friday or anytime when there is a bank holiday.
Timeframe / Currency:
5 Minute Chart
GBP / USD
Indicators:
Exponential Moving Average 35 Close – Colour: Red
Exponential Moving Average 3 Close – Colour: Green
Risk / Reward per trade:
2%
Stop Loss & Profit Taking level:
20 Pips
Closing the trade:
Either when: Profit Taking Level is reached. Stop Loss is activated. The EMA lines cross and close in the other directon or it reaches end of the times ive stated to trade. All trades will be closed at 17:00 BST
Aims and targets:
20% Increase in my account balance each week.
Starting balance £1000, balance after 52 weeks 13Million. I know this is a huge task, its massive and im sure many people will say its impossible but i do enjoy a challenge and a goal.
Whats your opinions? Any critizism is welcomed with any advice! Ive back tested this the past 2 weeks and had good results. Ive had great advice in my old thread and this is what ive come up with. Any extra advice before i try it live?
great plan you have clearly defined money management, entry and exit. The only part I don’t like is…
Aims and targets:
20% Increase in my account balance each week.
Starting balance £1000, balance after 52 weeks 13Million. I know this is a huge task, its massive and im sure many people will say its impossible but i do enjoy a challenge and a goal.
Realistically 20% weekly is possible but by the time you start hitting 6 figures liquidity will become an issue and 7 figures a huge issue.
Also by the time you get to those numbers psychology will be a huge issue. imagine you have 1mil and you are risking 2%
2%=$20,000 are you really going to be able to close a $20,000 loser or pay $3000 just to enter the trade. I know it seems easy but it isn’t $1000 a pip is alot of money and psychology will be much harder than you think.
other than that I am cheering for you. I hope you make it. I like your system is so simple and is effective.
**edit sorry my examples are with dollars but it is the same numbers
Not saying an EMA cross cant make you money but you make want to look at some different systems. Also, 20% a week is a very high goal. Just take the profits you get.
Before you try it live you need more realistic goals. And, like I already said, you may want to look into other systems. I can name at least 5 off the top of my head that provide more consistent results than an EMA cross. You’ve gotta find a way to avoid the false signals. Another thing, Your entering late every trade because your waiting for an MA cross over therefore price has already gone in that direction and you’ve missed it. Remember, I’m not saying your system wont work. I’m just trying to help you see the flaws in it so you may try something to make it better. I think everyone has experimented with MA crossovers at some point, I know I have lol.
Thank all for the posts so far! Yea i know my aims and targets are gonna be a huge issue ill need to tackle, but i suppose its an aim if i meet it great if i just make 2% profit its better than a loss.
Good point, even if you move it to 2 pips under, personally i’d risk 2 pips for the chance of it going an unexpected 10 pip breakout in my favour. At you level youll be risking hardly anything.
Why not take every valid entry your system gives you and take what the market gives you? Goals are great but its your system and how you trade it that will give you profit. If in one week your system produces x trades that yeild y% profit great. If the next week you recieve less trades and less % so be it just stick to your system.
Exactly, that’s the conclusion you will arrive at when you work from the bottom up, rather from the top down.
With any decent strategy, I think 1% is easily achievable (but lets not start an argument about that here), the point is then that you will hit your 1% comfortably and then you take what the market gives you.
I’m happy to find someone trying to do the same as me as long as you are not risking the grocery money.
As others have mentionned, you’ll quickly move away from MA for two reasons:
Fake setups: you see the crossover and the divergence of MAs and then PA goes the other way because there wasnt any real trend
Lag: you find the perfect crossover setup and jump in and then it goes the other way because the signal you saw represented the breakout that happened 1 hour ago.
Also, I agree with those talking about psychology. It is my main fear. With such a fast growth, looking a 50 pip loser for 20$ is one thing. But 2 months later, that 10 pip loser is 200$ and then 2000$… May be hard to stomach and that’s when stupid trades happen.
But hey, to each his style and welcome aboard the “future forex millionaire club”. Maybe we could compare our results every 2 weeks or months and help eachother out!
Comparing results would be amazing! Ive changed my strategy heavily since my original post. My new strat has a much better win rate. Ive been back testing it and got the following rises in my balance:
Week 1 15%
Week 2 4%
Week 3 12%
Week 4 16%
So i hope thos results keep coming! Im going to be demoing the strat live for the next week or 2 before going live with minimal risk whilst i get used to it.
The trade is the same no matter what the position size. Trade for hundreds or thousands of dollars per pip really doesn’t matter when your focus is on the trade. Liquidity can become an issue when your broker realizes you are taking his lunch money.
But when your eyes see -100 pips and then -1500$ in unrealized P/L, you tend to forget that [B]it’s the same -100 pips[/B] for -40$ that you used to trade.
A better exemple: give 1 000 000$ to an homeless person. First thing you know, he wasted it all and is back in the street. Why? He didn’t know how to handle so much money.
When you are not used to dealing with huge amounts of money, that’s where it becomes dangerous and with fast growth, you don’t have time to get used to those big numbers as the growth is exponential.
5 Min us/gmt and 107% a month with compounding? How many hundred trades did you check in backtest you said over how much years?
I am an ea coder and checked a lot of different too optimized systems over years only to see that all of them make profit in one year and give it all back plus the deposit in the next year.
But well, you are finished after one year, right? Lets pray and hope it is the lucky year for you.
To throw another 2 cents in: Don’t be surprised if it takes another road down, though.
