lol, yeah … even starting with a tiny account (of 1,000 bucks or so) you’d make Bill Gates or George Soros look like a pauper in less than ten years.
Posts like ‘[I]100 pips a day[/I]’ or ‘[I]2% gain a day[/I]’ are so amusing.
O.
amuzing or not the truth is that 1% gains on average is perfectly achievable, the problem is not on the consistency the problem is most times the traders head that some how corrupts the system used and becomes greed, and turns gains in losses…
another bad idea is the conpounding idea that can ruin an account… so let’s see an example today Î win 19 pips = 1% let’s imagine cause i dont want to make to many counts here. now we conpound and wait another trade right and on next trade we lose 15 pips . by the end of the day we will certainly be negative why? cause the first 19pips are not equivalent to the 15pis conpounded that we secondly traded… offcourse we need to evolve on trading and go steady trading more lot’s but is steady rising not conpounded addict rising…
sorry my english is not my native language so many errors may accourr, and also i hope i made my self understandable
what i mean is that we cant conpound on every trade we male we need to create objectivs let’s see we begin with 100$ account it’s the most indicative thing to do . begin small and grow big … i know i know every one will tell you with 100$ you will never make it… well if you can’t make it with 100$ what diference it makes if you have a 10k account none , so here we are clear we can begin with 100$ and grow big …
so we have initial 100$ we now will only conpund and make our trading lot’s bigger when we reach 200$ next level of conpound 400$ next level 800$ next 1000$ and so on … you create your own levels
lol?
Compounding is the most powerful weapon in a retail trader’s arsenal, if he starts out with a small amount of money.
This calculation is incorrect, of course.
If your 19 pips profit from the first trade represent a 1% gain, it means that you’ll open your second trade with a position that is 1% bigger than the first one.
If you now lose 15 pips on this second trade, it equals 15 plus 1% = 15.15 pips of the first trade, money-wise.
Hence you’d still be up by 3.85 pips.
The way to increase position size [B]is[/B] compounding … otherwise how will your equity grow?
I’m not sure you know what ‘[I]compounding[/I]’ means.
That will achieve the same results as compounding every single trade will … only slower (see my reply to the second quote).
You need to improve your maths skills. 
O.
well maybe i had express my self badly…
but as stated i maintain my idea that compounding in each trade you make can lead to ruin your account …
and my maths are good just i dont want nether will loose to much time explaining this… cause it can lead to discussions with people that just dont want to see that it is wrong …
but as we are in a free world I respect anyone ideas… as also i express mine 
no worries
i’ll keep with my ideas of compounding by objectives and not in each trade i make…
I like SLOWLY and STEADY…
If you believe in your version of the 19/15 pips example you’ve given, your math is certainly not good, but simply faulty.
As to discussions: Mathematics and figures speak a very clear language, as they represent facts, not opinions.
So there is no need to ‘discuss’ the validity of mathematical results … they are either correct or incorrect:
[I]A difference of 4 pips represents more than 1% of either 15 or 19[/I] … simple fact, not depending on opinion.
But suit yourself.
O.
Oliver without beginning a discussion here i could prove what i am telling but simply i don’t have time to put it all here… nether I will maybe if and just if I arrange the time i’ll put here detail examples…
but i continue to tell you if we have a system that as SL and TP both set at 10pips compounding on each trade is bad…
the only idea I’m here telling you is that for new guys the compound can lead to disaster. but again this is my way to see things … and i respect other’s …
PS- no need to continue this discussion… be safe good trades.
You’re right, this is a fruitless discussion.
Even though I would have loved for you to ‘prove’ that 4 is less than 1% of 15 (which is precisely what you’ve said in the post I took issue with).
Happy trading.
well there i will have to admit you are right the 15/19 example was poor to explain that at compound is not what is seems to be … the main issue is that if we are using R:R 1:1 and compounding each trade it can lead to disaster if we don’t know what we are doing.
but don’t understand me wrong i love what compound brings and does to our accounts just wanted to alert people that it has a hidden part that can be very very dangerous if not treated with proper system with perfect knowledge of R.R ratio and defined SL and TP that can lead to total destruction of account…
PS i took time to properly do the math and you are right we have to lose sometimes and learning to know when to admit the loss is a win in longer time eheheheh, good you corrected me as I could lead someone to wrong ideas… but with 10/10 (sl/tp) it can be tricky and sometimes transform a wining day into a loss day.
again sorry my english :S sometimes i think one thing but can’t write it right :S
Of course you’re right when you say ‘[I]If you win 10 pips and then lose 10 pips on the next trade when using a position size increased by the percentage of the first (winning) trade, you end up losing[/I]’.
That’s one of the reasons that R:R ratios must be 1:1+x … otherwise you can get hurt badly; expected gain must always exceed possible loss (excluding scalping strategies).
So, in the end, our disagreement was because of a language misunderstanding only.
O.
compounding is a great thing,
I prefer to trade a specific % EVERY TRADE, same % EVERY TRADE.
The key is NOT LOSEING, ANY TRADE!!!
I would suggest setting Trade % amounts per your Win/Loss ratio
There is a happy median somewhere in there for compounding to work correctly…
Alot believe its a SL/TP thing, but really its about Wins and losses,
Its antiproductive to compound 4 losses in a row, because it will be painful, if your SL and way off…
I dont think anybody ever goes into a trade expecting to lose 
lol… It just happens sometimes, its your costs for being in the business…
Hmm, you could still have more losses than wins and still be profitable though - over a given period of time… In this case it comes down to average pips for a win and average pips for a loss…
But at the time same, don’t think it will be wise to be working a strategy which gives you more losses than wins, unless of course the wins can consistently cover your losses, and the some…
Sanj
Hello Sean,
good luck with the platform…I usually rotate them…also I have demo where I test a signal if I am not sure with what configs I have to put him on my live. your signals are not bad, but Iwill add to them as well mybestsystems and CO-FX-2.
From skimming this thread it seems there are mixed opinions about whether a consistent 1% per day [I]on average[/I] is possible.
Let me run some maths by you…
A 1% increase is like multiplying by 1.01
If I start with X amount, at the end of the first day I have
X * 1.01
The second day
X * 1.01 * 1.01 [B][I]or[/I][/B] X * 1.01^2 (read that as X times 1.01 squared)
The third day
X * 1.01^3
The Nth day
X * 1.01^N
Lets say there are 200 trading days in the year allowing for holidays and weekends…
After a year
X * 1.01^200
X * 7.316
Take off the initial investment (7.316 - 1 = 6.316) and this means a percentage profit of 631.6% per year.
This is the power of compounding. Obviously, the actual results would be different since we live in the real world, but this is a pretty awesome gain for a seemingly small daily growth.
So, is it actually feasible to make 1% profit per day?
Lets say you have an equal number of winners and losers, but each winner has a gain of twice the risk.
This means that on average, every two trades, you gain 0.5 times risk amount. (2-1)/2 = 0.5
If the risk is 1% of the account, since the number of winners and losers is the same, the percentage gain from each trade averages to 0.5%.
This should mean that assuming the above is correct, an average of 2 trades a day would increase the account by an average 1% a day.
Is this possible?
[B][I]
tl;dr
Is it possible to achieve a 50:50 win:loss ratio, taking 2 trades a day where the winners are on average twice the size of the losers?[/I][/B]
Edit: Sorry about the necropost! I misread the date of the last post as 02/13/2013. :8:
Every new trader has done this math been astonished then thought if I could only get 50% of that or 25% of that. I would be rich or set for retirement or not. I know professional hedge fund managers aren’t even making 50% of that number so how is a professional retailer much less a noob going to get it. If you want to see what what multi million to billion hedge fund managers performance is check the barclays index
I’d be happy with 1% a week.
1% per day on average is doable. I’m not sure how it could be done, but never say never. You’ll probably need a high-frequency system or a very large portfolio of systems to get enough daily signals to trade. If you’re trading the lower timeframes, you’ll also have one hell of an edge to beat in terms of spread…
The problem is that one thinks that only because a thing is not impossible, that’s perfect achievable. And it’s not!
Some examples of the same kind: it’s not impossible to get 15 tails in a row, tossing a common coin, or win twice in the lottery in the same month, or winning three poker hands in a row with a straight flush, and no cheating.
The thing is that the probability of these events are too low. As already stated in this topic, 1% per day is a huge profit considering the whole year. In a few years, you would get all the money in the world! I know who gets this consistently: the liars.
Remember making 1% per day is not only about profits, its also about the account size. Take a leverage of 200:1 You will need 500€ to play with one lot on lets say the eur/usd. It will only take about 0,7 pip for 1% return.
hey guys,
who are you following lately? still sticking to the same traders ?
I’ve tried to make $10 a day using max leverage on a $200 balance. This did not work out for me in the long run. I don’t recommend max leverage
Maybe… Maybe not.