It depends on the type of trading you are doing and your accuracy. If your are trading long term, then risking a low % makes sense like 1% or 2%. But if you have a high accuracy level, then you may afford to risk more than 1% if you have a high probability of coming back from a lost.
How did you find it? What did you search for? I can’t find shiz on myfxbook without a user name.
-Adrian
I’ve seen traders with that sort of track record before. They usually daytrade with an extremely loose, or even non-existent, stop loss. However, they balance this with very small contract sizes, so if price runs away from them, they won’t blow up (much). They’re aiming for tiny, but consistent profit.
Personally, I’m not comfortable with this style of trading. As Lexy and Adrian pointed out, black swans are always around the corner. I always aim for a R:R of 1:1 (or thereabouts), as you can quantify your edge pretty quickly (maybe around after 100 trades).
However, with a R:R of 1:100 or 1:1000, you’ll need ALOT of feedback before you can quantify your edge, probably thousands of trades. A small contract size will help defend you from blowing up, but it won’t turn a negative edge into a positive one, and with extreme R:R ratios, you won’t know your edge for a long time.
My 2c.
An [U]essential[/U] point which, it strikes me, many fail to appreciate in such conversations. [I]The closer your risk/return is to 50/50 (1:1), the smaller the number of “samples” your testing needs for its observed outcomes to have statistical significance, validity and any predictive value[/I].
Greatly undervalued at this price, as ever. 
You can use 1 or 2% rule if you have accounts in millions of dollars but with less account such low percentage is just time wasting in my book.
Correct. People who are trading with millions don’t even use leverage, so by risking 1% of their account, it would be impossible for them to margin call. Us on the other hand, try to pick tops and bottoms which of course is what the main stream media says is the “logical thing” to do, but if we as a group, tried to focus on scalping and high precision positions, then essentially, we would be countering on a very short term the algo which the market sets forth. That to me is the only way to survive long term. The less time you are exposed to the market, the higher chance you have of not being exposed to black swan events and sudden reverses in the market!
Hi Peterma ,
Long time ago now … Good to see some intelligent life in this forum … I like people who using their brain to find information…
Mr Jeff scalper, Last 2 days 35 closed win trade ,not bad,
Backside is he let losers run , It will become interesting to study how he will handle last two open trade is in minus , how he will trade him self out that minus position.
I think EUR/USD will take a small trip north to testing out some levels before heading more south or maybe is start a period with sideways …
My plan is to open a thread about Jeff later ,Im irritate today i forget to follow up my USD/PLN short trade so i miss a very good short opportunity , I hope you trade my USDNOK call is up 5000 pips now …
You said you were in prison. While you were away, FXCM introduced new pricing, and as you can see from this live table, it’s very competitive.
The voice of reason.
Jason, THANK YOU.
Some people may never learn their lesson…
Actually, I just thought the fact that you said you were in prison would help other readers of this discussion to decide for themselves about your credibility.
And since you asked, I’m happy to say I’ve been with FXCM for over 10 years and find my work to be extremely rewarding. It’s a pleasure for me to talk with fellow my traders here on the forums. 
If you think it’s so terrible, then why are you here?
Great reply, Jason!!
[B]I would like to ask you Jason ,What in heaven have my Tax issue to do with my forex credibility !!!
[/B]
Can you point out some “forex” discussion regarding about where you can question my credibility !!! …
I know I have been strongly critical against FXCM price policy … Is that wrong to point out in a forum 2,5 pips EUR /USD spread is madness !!
and as i predicted FXCM had to change their price policy.
Or was that wrong to be strongly critical against FXCM and their treatment of fxcm client to pay back minus one their account and as I predicted again fxcm would change their statement in that case …
[B]Jason don’t misunderstanding me, I really enjoy when you trying to slander me with a 20 months old post …
With that purpose to promote FXCM .
THAT telling me what you ARE , as representing ambassador for FXCM .[/B]
I should gladly sitting 20 more month if my payment continue to be 20 average FXCM account a month.
[B]Credibility is a word I would be carefully to use in a FXCM setting.[/B]
They saying a Photo telling more then 1000 word …
A FXCM chart shares saying all, NO CREDIBILITY , in the market even one year after the crash.
KBW also points to additional risks to FXCM’s business, including added regulation, further unexpected losses, and “unforeseen material lawsuits.” The analysts’ message was clear: stay away.
2011 fined to cheating client in US
Forex Capital Markets LLC Ordered to Pay More Than $14.2 Million to Settle CFTC Charges Relating to Its Failure to Supervise Customer Accounts
2014 Worst of all , FXCM continue to cheat client in UK
https://www.fca.org.uk/news/fca-fines-fxcm-uk-4-million-for-making-unfair-profits-and-not-being-open-with-the-fca
2015 France fined FXCM
French Regulator Slaps FXCM with €200,000 Fine | Finance Magnates
What about FXCM client who are client outside those regulation area are FXCM cheating them ?? Why can they trust FXCM
What about the pension fund who sue FXCM have they credibility to FXCM …
Pension fund sues FXCM for fraud over drop in stock on Swiss franc | Reuters
Fraud fraud and more fraud
A CFTC order will require Forex Capital Markets LLC to pay a civil penalty of $700,000, disgorge commissions and fees of $143,922, and hire a third-party compliance
“FXCM failed to follow its compliance procedures that require that it ‘know all of its customers’ and that its employees identify and promptly report suspicious activities to appropriate authorities,” the CFTC said in a statement.
CFTC Fines Futures Merchant Over Worker Supervision - Law360
What about all ex employer’s who have giving bad credibility to FXCM .
Cons
- If you’re ambitious, this is a wrong place to be or it should be a stop along the way - very brief stop.
… … … …
It’s important to understand that as an industry leader, FXCM is subject to a greater level of scrutiny than smaller, less-regulated forex brokers. We are one of the only retail forex brokers in the world that’s regulated on four continents and a publicly-traded company (NYSE ticker: FXCM) averaging $15.2 billion per day* in retail customer trading volume. We welcome this position of responsibility, and our retail clients who place 513,724 trades through us per day* are glad we do.
FXCM takes regulations very seriously and believe it is in our clients’ best interests for us to have regulatory oversight and transparency. That’s why we have over 80 employees in our compliance department as mentioned by our CEO Drew Niv in a recent earnings call. That’s not to excuse previous regulatory actions, but rather to emphasize how we actively work with our regulators to resolve issues and ensure the best trading environment possible for our clients.
For example, the NFA and FCA actions for positive slippage not being passed on prior to 2010 have been mentioned previously on this forum. FXCM reimbursed current and former clients who were affected in full. Furthermore, the changes we made in 2010 mean that FXCM is now one of the only firms in the industry to pass on positive slippage on all order types including market and limit orders.
It’s worth noting that to this day, some brokers may still not provide positive slippage to their clients, while others may provide positive slippage on some order types, but don’t provide it on other order types. Some brokers may re-quote their clients when the price moves in their clients’ favor but fail to re-quote when the price moves against them. There are no re-quotes at FXCM.
Furthermore, FXCM offers true limit orders on all the platforms we offer including MT4. That means our clients cannot receive negative slippage on their limit orders, only positive slippage. By contrast, some brokers treat limit orders on MT4 like market orders when triggered opening up the possibility of negative slippage.
When FXCM was founded in 1999, we were one of the pioneers in what is still a relatively young and quickly evolving industry that is retail forex. The key to our continued growth and success while others have come and gone is due in no small part to our ability to adapt to and lead change in this market. The stats below demonstrate this.
Below are the data from over 43 million orders executed through FXCM over a twelve month period from September 2013 through August 2014. In that year alone, FXCM clients benefited from over $21 million in positive slippage.
[ul]
[li]76.2% of all orders had no slippage.[/li][li]13.5% of all orders received positive slippage.[/li][li]10.2% of all orders received negative slippage.[/li][li]Over 58% of all limit and limit entry orders received positive slippage.[/li][li]52% of all stop and stop entry orders received negative slippage.[/li][/ul]
Note how FXCM clients receive positive slippage more frequently than negative slippage. That’s due in part to the Market Range and Range Entry order types on our Trading Station platform that allow clients to specify the amount of negative slippage they are willing to accept on market and pending orders respectively. These unique order types allow FXCM clients to limit their negative slippage while still receiving the full benefits of any positive slippage that’s available in the market.
[I]* As of the latest publicly available data from October 2015[/I]
It’s important to note that our stock price is a reflection of shareholder value as a result of the Leucadia loan which we expect to repay in Q1 of 2016.
Since we are a publicly-traded company (NYSE ticker: FXCM) the details of our loan from Leucadia are well known. By contrast, most other forex brokers are privately-held companies, so it’s hard to know how much debt they have on their books or the state of their finances. We are repaying the Leucadia debt with proceeds from the sale of non-core assets.
As you can see above, we sold our FXCM Japan for $62.2 million. At that time, our CEO Drew Niv said the following:
“FXCM is pleased with how our debt reduction plan is proceeding. We are ahead of plan and the results of the FXCM Japan sale exceeded our expectations. With all the increased attention to our other properties, we are expecting robust and competitive auctions for the other non-core assets we have targeted to sell.”
As a further update last month, we announced the completion of our sale of FXCM Hong Kong to Rakuten Securities for a total consideration of approximately $38 million. $203 million remains outstanding as of our latest SEC filing on October 8, 2015, which we expect to repay in the next 6 months.
It’s worth noting that despite the events of January 15th, FXCM’s capitalization remains at levels similar to before the SNB event. Below are the latest financial data regarding the capitalization of our US entity as compared to other US-regulated brokers:
The column that says “Total Amount of Retail Forex Obligation” shows the amount of money retail traders have on deposit with FXCM US which is over 50% greater than what is on deposit with the number 2 and number 3 retail forex brokers in the US.
Jason ,
Nice words regarding regulation and of course lot of slander of other brokers …In good FXM style …
Jason how many times you warning against brokers can become bankrupt ironically
FXCM would been bankrupt today , if they do not make a pact with the devil …
Lecudia say they may triple its money on the bail out …now worth 947 $
Leucadia Says It Tripled Money on $300 Million FXCM Bailout - Bloomberg Business
I want to remind you that the penalty FXCM got from was FCA was not only making unfair
profits but not being open with FCA…
800000 Pund of 4 mill was penalty for breach of principles 1,1 relation to regulator .
Important in 2011 FXCM agreed to pay back US client BUT did not treat its UK customers in same way .
Let read FCA director word : I am particularly disappointed that is was not transparent in its dealing with the FCA …
Headlines telling all how transparent FXCM was to FCA …
Your information is out of date, but perhaps that’s understandable since you said yourself that you were in prison for tax fraud.
FXCM is on pace to repay the Leucadia loan in Q1 2016 well ahead of schedule.
We also reimbursed all current and former FXCM UK clients in full for positive slippage that was not passed on prior to 2010, as mentioned in my previous post.
Furthermore, the changes we made in 2010 mean that FXCM is now one of the only firms in the industry to pass on positive slippage in full.
It’s no use, Jason, he will never give up shouting at the world…