Hello fellow traders,
I’m searching for a trading system that can be optimized for Micro-lot accounts ($0.10/pip). My daily goal is $20 or 200pips. My weekly goal is $100 or 1,000pips. Based on systems I’ve used n the past, I would consider myself to be a swing trader, with large stop-losses and large limits. I am open to any chart and to trading multiple pairs at once. Do I have any takers?
-David
How good a trading system is has nothing at all to do with the position sizes with which you trade it.
There’s no reason for a system to be any more or less optimizable for microlots than for any other size of trading.
$20 per day is a wildly unrealistic target for trading microlots.
If you’re aiming to make $100 a week, or $400 per month in round numbers, you should probably be thinking in terms of an account of at least $8,000 so that you’re aiming at earning no more than 5% per month on it. Very few forex traders ever get as far as achieving that safely and regularly. Aiming for more than that is a really bad idea.
The idea of trading in microlots isn’t to make money. It’s to learn and practice and gain experience.
3 Likes
200 pips a DAY?
I feel like Pippi Longstocking if I can make 30 pips a day, a couple of times a week.
Also, if I recall my research on Average Daily Ranges, there AREN’T ANY pairs that move an average of 200 pips a day. Yes, sometimes a single pair will move that much, or more, in a single day. Those days are few and far between, and are usually there is some kind of news event driving the price move.
You could have, say, 2-4 trades open at the same time, trying to capture 50 pips a day on each trade. I think that if you do this, you will find that you are doubling (or tripling, or QUADRUPLING) down on your risk. For example, if you see trends on four charts, and you go long on the EUR/USD & GBP/USD and short the USD/JPY & USD/CHF, what you’ve ACTUALLY done is go long on the US Dollar FOUR TIMES.
Now all it takes is one tweet from the US president about how “I just met with the German Finance Minister. She’s a hot blond. I’d like to grab HER by her Teutonic poonani.” Then the market goes crazy, and all four of your trades are in the crapper.
1 Like