What, Monopoly money isn’t real??? So does that mean I’m not living in the penthouse of the hotel I built on Mayfair???
Haha excellent, Bob!
Finally I found out where “back of Whoop Whoop” is: it must be those 5* suites just behind Down Street in Mayfair (for short traders, judging by the name - not that I’m questioning your height) behind the [I]Four Seasons[/I] … 
Can we get a link to Jeff’s myfxbook? Why is his username and verification status cropped out of the images?
A quick analysis of this information (if it is a verified real account): The trader above has a 17.78% annual return which is not bad but it is a far cry from yielding a true 201.81% return in 20 months. We can see the absolute gain is 31.36% in 20 months.
So why does the gain say 201% when the absolute gain is 31.36%? Because the trader has withdrawn money over time and that skews the results. One can make a deposit just before taking a loss and that will make the percentage lost smaller. Then, one can make a withdrawal just before booking a gain and that will make the percentage larger.
Also, the yellow equity growth line is almost always below the red growth line and there are many instances wherein the yellow line takes a sharp downward spike before returning back upward to the red growth line. This tells us that the trader spends most of the time holding negative positions and sometimes holds them into double digit drawdowns without closing them. He holds them overnight and in some cases for days while taking profits on trades that he held for hours or less. This may actually indicate that this trader doubles down on losing trades.
In fact, you can see that the trader did double down on Oct 6. He shorted EURUSD at 1.12159 and 30 minutes later added to that trade at 1.12253. So his first trade was 9.4 pips in drawdown when he doubled down on the position. He later took profit of 7.4 pips on that first trade. With the account leveraged 2.25 times to one in just EUR/USD at the time he was in those two trades, a black swan the size of the CHF last January would have taken half the account.
Can we get the link to this myfxbook?
-Adrian
Hi Bob Bill
To Information this thread is called ”Challenging the 1 %rule”
So i guess topic we discuss in this thread is about MONEYMANAGMENT .
Earlier I have wrote one post about money- management in this thread .
Accidently I find this professional retail trader who have a very conservative money management … in Myfxbook ,he run 6 money-management system .
Ps ,everyone can join his fond that way he public his result to promote his work ,he run total 12 mill $ …
I find it interesting and wanted to show to forum members how a successfully forex trader with a very extreme conservative use of risk
Make great result in % and in $ over 1 Million from one of his account not bad ,That show he handle stress .
I understand he is specialist to trade him self out of bad trades and he prefer to trade after strong news movement like today .
So my question Bob Bill why you calling my post TRASH ?
So that is not interesting for forum members to study a TRADER who really make money in this industry ?.
He post every trade he doing .
Is is not interesting to study his 7 trades today ,how he trade , trying to understand how he is trading after news ??
You and Mr pip hit the nail one the head regarding monopoly money ,
You and PIP trading with monopoly money , that is ok to have forex like a hobby , some goes to the garage and do some useful, your are spreading **** one a forum .
Actually that is some people one this forum who have a dream to achieve the same like this trader I showing in my post .
One way to success is to study people who really have success in trading .
That way I trying enlighten serious members in this forum .
Ps under you find his 7 trades today ,Interesting how little gain every trade is giving . he really minimalize his risk …
Picture 2 is taken from another of his account study how little lots he is using one a 200 K account
Uh-oh…
Pipmehappy
Is no doubt you are not the brightest bulb on the Christmas tree:45:
Who is trying to share interesting and useful material in this thread.
Who are the net troll you or me…
Try to provide with some intelligent substance in this forum
Yep, it’s a real account and verified.
Highest drawdown in the early days was 13.8%, which is sizeable money numbers, the drawdown decreases as the a/c increases.
I’d say he learned from that experience when the account was not yet 6 months old, though he hit 11% 6 months later.
From then you can see that he is aiming for lower returns, instances of drawdown decrease, averaging around 3% - only one blimp at 7.6% in August past.
Strangely, it’s easier to maintain his 94% win rate on a larger account, his favourite play is Eur/Usd, he will usually target less than 10 pips, though sometimes take some more. Averaging around 7/8/9 dollars per pip, so rough avg money win around 50.00, some more, some less.
Average loss is much more, but on a loss rate of 6% can afford that, likewise large balance can afford the drawdown - that’s the big difference.
I’m going to guess on today he will look for the small pull backs that always happen and trade them up - ok, now I’ll check -
No, I’m totally wrong, he did the opposite, he waited for the little pull backs and sold them, taking less and less - this is a guy who will take a profit of 4 dollars and 60 cents on a 2 million account - 7 sells after NFP, all wins total about 69 pips.
Anyways, like Torulf says, lots of food for thought.
Btw, took me about 2 mins to find the a/c, don’t want to post a link since Torulf didn’t do so, it’s up to him.
Thanks Peterma…
Thanks also to Adrian/Arbitrager for his analysis.
Anyway, good thread.
It’s really very good information. I understand what you mean.
Torulf39, old mate. Hope things are well.
First those are your words mot mine. I believe I said
So I do owe you and explanation. Therfor lets keep it in context with the OP original message.
and our original contributions
Now, I’ve been here long enough to know you have something to offer the community. I follow your posts and try to learn something every time. However, you simply choose not to. Instead you snoop around, offer out these snippets of knowledge over presenting relevant guidance to help us monkeys playing around with monopoly money. And that I don’t understand.
Now point in question. Hands up all those here trading multiple, million $$$ account. One, two, three of you. Any of you. No. We simple don’t. Hell my main account only has three zeros attached to it and I’ve had to work bloody hard over the past years to get it to that. So why do this?.. Well, just maybe, if I keep doing this for the next 10+ years there might be a couple more zero’s on the end and then some of what you say might apply. But by then I imagine how I speculate probably will have a different form to that of now.
So lets take my one pair, one trade, once a day strategy that’s easy enough to find. The only thing that makes this strategy profitable is application of risk. For this exercise lets compare my target balance of $10 000 to your trader example of $2.6 million. We’ll trade fixed lots based on a % risk of the initial account balance for one year for ease of calculations. We’ll take 180 trades in lieu of things like sickness, holidays or other activities preventing us to trade on a day.The pair of course is the EURUSD, so again for easy of calculations we consider our account currency is in USD therefore given a pip valve of $10 per pip per standard lot. I trade a 10 pip SL and TP and aim for a 60% win rate.
My $10 000 account has a 3.5% in/out commission and I can collect a 1% rebate on volume. Your $2.6 million account gets VIP treatment. You only pay 2% in/out commission fees and receive a 3% rebate on volume. The calculations are for example/educational purposes only. They are free for criticing. They should not be taken as representative of the system’s performance and has yet to be proven valid over the long term. Although results achieved so far suggest so. I will post the maths but not explain. I figure people should be able to figure things out or ask questions.
At your suggested 0.2% risk my account has the potential to yield between 1.1-2.9%. My bank pays 3% pa in a 90 day term deposit. There’s simply no point to trading like this. Even your account isn’t worth it with a potential return between 1.8-3.8%.
But if we increase our risk to 2% the figures improve. My account can now yield between 11.1-29.1%. This makes it worth my effort. Maybe not for 11.1%. But if I work hard, select my entries right, keep costs like spread and slippage to a minimum then 30%pa return is achievable. In theory. And that is at fixed lots. As you have rightly pointed out, compound interest is the secret. Instead of trading fixed lots I now risk a % of my running account balance and reinvest profits back into the account then that 30% only goes up. Speculating is worth my time and effort.
Your account however, simply because of it size and the advantages that has, shows a potential between 22-40%. Wow 40% pa. Thats like $1 million return. Makes the mind boggle. But whats the cost. Draw down. My calculations have potential draw done at 1:1 for this system. Meaning draw down has a potential to match 1:1 profit return. Thats real things went belly-up black swan case scenario. Would I really risk these figures. No way.
To me, with this sort of capital base I would be looking to generate income over return with preservation of capital as my goal. Reality is I can reduce my risk to 0.4% and get a return of 8%pa yielding me a pre-tax income of $200 000+. Draw down now is calculated to 8% max worse case scenario. But again, for an 8%pa return is it worth my effort. Hell no. My supa has return 10%pa for the past 5 years. So I would be far better off taking my capital, given it to a fund manager and let them deal with the head duck. Much prefer to be hitting golf balls down the 17th at St Andrews with old mate PipMeHappy enduring psychedelic moments with Adrian.
Next we could go through the process with the turtles methodology but we are only going to come to the same conclusions. The more zeros in that account balance the “easier”(used loosely) it is to speculate. The methods you describe and talk off are accessible. To the point where you account hits a critical mass and your best handing it over to the pro’s and then living of the returns.
And isn’t that the dream?
To come along and suggest that we “hobbyist” should look at the traders managing multi-million dollar accounts for guidance in our MM practices is just plain irresponsible and bluntly stupid. We are polar opposites. How we manage risk is dependent on the relationship between our trading style, methods, goals and account balance. Unique to each of us monopoly money traders. And therefor up to each of us to understand. There are no rules to trading when it comes how each of us go about our craft. Rules apply only to those of you that live and work in your would. Applying these to our world will only occur pain.
And that’s why your comments on a forum designed to help the likes of myself understand how this majestic market works are no more helpful than newspaper as a fire blanket.
I applaude you, Bob…
Majestic post …
Thank you
It is not just the content but the haughty,
belittling, and insulting tone of Torulf’s posts
that trigger the Troll bells in me, if
you catch my drift…
Pip It is amazing, That you still crying after I criticized and called you a useful idiot for Anton Kreil.
Due to your 100% uncritical promotion of Anton Kreil utopian fantasy representation of trading profit on an Excel spreadsheet.
Do you not understand today 2015, Gaining 25K to be 25 million after 11 years !!!
Is an almost impossibility task ,
In the video Kreil statement is simple to do it … !!!
Only a super idiot truly believe that you can manage 25 K to be 25 million after 11 years …
And Anton Kreils know very well , The world is full of idiots who willing to pay overpriced courses .
Hi Bobby Brown ,
Try to read my original post again … Bobby
You will find word like “ Aktiv trading …” “adding you position “
My MM contribution was to active traders .
You MM contribution …
I don’t like trading cause every time I’m risking my hard cold cash. So when I do I want to make as much as possible each and every time. I’m certainly not going to achieve that if I only risk 1 or 2%.
So maybe you can enlighten the forum members what % risk do you using . I understand that is more then 2 % .
Let playing with you math model
Let say you win ratio is 50% , then you are down 36 % , Let be realistic take a bad trading year ,let say 40 % win ,wow you are blowing you account down minus 800 $.
A good point Bobby to show the influence of transaction cost connected to trading , This discussion I took with forexunlimited x times …he was so happy with fxcm 2,5 pips commission…
But that DO NOT PRECLUDE hobby traders to do the same …as jeff doing.
Is logic bigger account get better price .
A 10 k account give 3 in/out commission
50K 1,8
2,6 mill 1,4
So what is the value to sharing successful stories like jeff ? .
Is much more then MM , As mention before he prefer to trade after news release and one of his strongest side is to trade him self out of bad situation . This can people study when follow his myfxbook.
I remember Bobby I wrote a thread about Kozok Flemming the Danish trader.
You contribution in that thread was highly valuable if I don`t remember wrong …
[B]Another useless thread brought to you by the good people at torulf39, troll & son Pty Ltd.com
[/B]
As I mention in that thread was Kozok flemming article (take a feel ) use of probing compare with Don Miller …And how Jeff using it to trade him self out of bad trading situation …
I know you have no idea what I speaking about …
But to study successful traders skills and working with that knowledge then you will expand you own skills as a trader.
With a 10 K account I’m afraid only active trading will increase that account .
I think it is rather rude to call people names. We are all here to help one another, and should be here to provide content which allows people to learn. On the other hand people who use these simple excel sheets, and speak about how you can make x amount of money in x amount of time are delusional, only because they aren´t factoring in losses. People like to place things in perfect little ¨statistical bubbles¨when they shouldn´t. People think that 98% win rate is better then say a 20% win rate only because they are looking at the %, and aren´t taking into consideration money and trade management.
Agree 100%
Well… I am happy with 30% per annum on profits. And I still use the 1% rule.
Hi I to come from a PKR tourney background and have very similar view,I am proper newbie bout 8 moths in but am allready experimenting with a bankroll management/power profits system based on Dan harringtons traffic light system with some other strategies I learnt for blackjack profit and now from fx school.#hybridisation
The guy that Torulf speaks of has over 30 years experience, he is a scalper and he operates the accounts off a large balance (not necessarily his own money).
He is very conservative with risk, and uses his experience to hit the profit button, he operates a number of accounts, the one posted has more leverage than the one that I mentioned, same trades.
On a site ,mentioned here too many times by a cold guy, there is a reference to Torulf’s guy, they review his approach, mention the 13% dd as being acceptable to some given the ‘conservative’ approach.
Bottom line is that if you check all things, there is really no Damascus moment, nothing that most older guys haven’t seen before, he may use the name of a snake but it’s not snake oil, it’s just plain sense coupled with a guy that knows what he is doing, learned from experience.
Mr Gone can hit 30% whilst adhering to 1%, that too comes from experience, I’d say likely not one or two or three years, good chance more.