I just wanted to ask.
Is it normal to make between 50% and 120% return of investment in just one week on forex?
I have built a personal strategy that I taught to my friend and we both have arount 100% profits compared to our capital each week.
Risk reward ratio is always more than 1,5/1 and ris per trade is 5-10%.
I backtested my strategy and livetested during 2 weeks and the results are great so far.
My friend is using structure while I am more interested in momentum.
And yeah…just wanted to hear from you.
I will continue testing my strategy for 2 month and see if I can be consistent.
Well usually risks are about 2:1.
More often 3:1 depending of how you are executing.
My strategy relies on momentum/structure/fractal divergence/breakouts when off trend. And on trend retracements and momentum when in trend. Around 100-300 pips per pair per week. It is simple but I have studied a month full time in order to understand all the concepts, explaining my strategy in details would be useless otherwise.
I read everywhere and people are like: Yeah 20% is great It would be so cool to have 20% per month…
And here am I with at least 50% per week.
I learned a lot about technical analysis. Looked for everything. Programmed 12 bots, they failed. Then I was looking for something more organic. Came across Jason Stapleton’s videos on youtube and that helped me to understand structure and its correlation to market very well.
Watched all the Akil Stokes vids (about trading harmonics). Loved it in the beginning but realized there is not a lot of harmonics, lots of them are imperfect.
So I’ve spent 2 weeks working on my strategy like crazy. Next week I will continue testing this out. But from what I’ve seen I am pretty confident. But I know it can be illusive, so I would like to know if I am not in a dreamland.
And don’t get me wrong I perfectly understood the psychology stuff. I understand why most of traders are losing.
I just want to know if there are dudes that have such results per week.
I usually trade on hourly charts.
Lets put it this way. IF your numbers are accurate, and this was sustainable, you will have godly amounts of money, and can write a book/become the next big thing, because nobody does this.
A month is a drop of water in the sea of experience. Plenty of us has had moments like this where everything just rocks, but ultimately we will (hopefully) learn something from it when we crash and burn.
So for you, if its working, keep doing it. If it ends up not working, then learn from it. Just don’t expect a miracle to happen so be prepared to be wrong (you will be wrong alot, and professional traders will be wrong alot, but you can still make money being wrong)
I feel the same. I don’t expect miracles, I just want to see the further numbers.
But before live testing I’ve done a lot of backtesting and even if there are losses they are meaningless comparend to the large amount of pips i can gather from market anomalies or trend based movements.
As long as there is movement and volume I can capitalize on that.
I will be posting recaps of my trades each week (if i don’t forget) and we’ll see.
Originally i was designing my strategy for 10 pips a day. Because with a 10k account i can do trading for a living with 10 pips a day. It came out that the system was more profitable.
Anyway, thanks for the replies.
thats a good performance, and yes, it is normal, but the big question is, are you making that on your CAPITAL or in each TRADE? If you are making that on your capital then the question is, how much % of your cap do you use per trade? For long term consistency and small but regular compounded profits, it is wise not to use more than 1-3% of cap per trade. I know many FX brokers in my region who market their tactics by trading 5 blocks one by one, each block 20% of cap. Not a good way to trade in my opinion and no wonder so many loose their capital. Of course the performance can be very impressive but how long will it last??
[QUOTE=“VladWulf;710482”]Dudes, I just wanted to ask. Is it normal to make between 50% and 120% return of investment in just one week on forex? I have built a personal strategy that I taught to my friend and we both have arount 100% profits compared to our capital each week. Risk reward ratio is always more than 1,5/1 and ris per trade is 5-10%. I backtested my strategy and livetested during 2 weeks and the results are great so far. My friend is using structure while I am more interested in momentum. And yeah…just wanted to hear from you. I will continue testing my strategy for 2 month and see if I can be consistent.[/QUOTE]
Why would you ask an open forum where ~95% of traders are losers? Why not continue forward testing it on your own and have confidence that your system can perform rather than asking people who know nothing about you, how your strategy works, and your current knowledge of trading markets, and you know nothing about them? Why would you and should you believe anything these people even say?
Think hard about these questions… And if you still really have to ask, you’ll probably end up blowing your account at some point.
PS - Sorry for being such a negative nancy, but I’m just realistic about how the FX market works. I’m one of the few who are knowledgeable enough to tell you the truth about how it really works, and if you took my advice, you’ll question what I say; Which is good because it’s up to you to use your own head with due diligence.
Yes it is normal to make between 50% and 120% return of investment in just one week on forex, but not on every week. Only 2 weeks are not enough for a strategy to be called good. you need to check it at least for 6 months.
I just wanted to see if I am in the 5%. (but I guess we’ll see it in 6 months) It’s not that I am psychologically weak, I just found it too easy.
But yeah you are totally right, thank you for being direct.
I do not think one can make much profit as you mentioned. returns are possible but 50% to 120% is much difficult. May be some make it with high skill and experience of forex trading. It is possible some times to get highest profit from your capital .Regularly one can not make it.
Everything is possible in forex, so you are asking the wrong question. The correct quesiton would be:is it sustainable? and the answer is NO. It is not sustenaible in the long term to make 50-120% a week without going broke. So my gues is: 1) you are gambling or, 2) you have been on an incredible good streak. either way, expect a brutal drawdown any time soon.
Sorry to dissapoint you , but I am here to give realistic answers. If I were you, I would review some basic money management rules.
In your case, I think you are lucky. 2 weeks is a short period of time to test. Things could turn badly depending on market conditions. I also made over $3000 in one day, the next day is $1500 but by the end of the week, I lose $2000 per day.
It is not normal(average). The returns you mention are an anomaly in a retail trading.If you develop the consistency with this system*( at least 6 months) you are destined to rule the world! Good luck buddy!
I think that with a proper strategy you can easily make 50 pips a day. (I am making 20-30 no problem)
Today if my drades close well it will be 50 pips at least.
Plus there has been a breakout on the EUR/X pairs so i will wait for the first signals of reversals on all the EUR/X pairs and buy. This will yield about 30-50 pips per pair averaging 300 pips in just one day.
But yeah even if i don’t make 100 pips a day I am still happy with at least 10 pips, because that’s all I need to make it for a living.
If your strategy is working, stay focused on it. Of course there are a lot of people going to say it is impossible
I have the same idea as you, 10 pips a day is enough, if they are consistent.
Regarding your latest reply, I think you’re taking it for granted. The greedy can kill you
If you trade on reversals and you see a big movement its normal to take that trade, but taking it on every EUR/ trade its too much of a risk no? Imagine it going the other way?
IMO you have the right thinking (about that 10pip per day), I’m working on a strategy myself (I’m a newbie so its still very unclear by now) to make 10 - 15 pips consistent.
I’m waiting for updates on this, I’m very interested to hear some news from you
Something does not add up. You risk 5-10% on each trade. risk to reward is 1.5% That means at most you would make 15% (not to mention that 10% risk on one trade is too much.)
So how come you make 50%-100% a week? You take 4-10 trades a week? If the answer is yes, I’d lower my risk to 2% then. Just in case you hit a drawdown, which everyone faces all the time.
Just thought I would throw a thought into the mix here regarding you guys saying that you are shooting for pips, which is not a bad thing. Just remember how much those pips earn you is also important.
I know it would never happen like this, but I am using it to show my point. If you only get $.50 per pip but make 10-50 pips a day, or you could make $1.00 a pip, you would need to make less pips per day to match the equivalent pips at the other value.
My point is do not get fixated on just making pips.
heyy,
in my view, it depends upon how much margin you are using in your trade and the number of trades as well. for example, if you are using full margin in just one trade investing whole of your amount, you are exposed to greater risk, in this case, you may loose your money. but if you are putting small trade using less margin, you are exposed to less risk and along with it if you have back tested your strategy and it gave good returns, then its normal, you can go on with it. happy trading
Interesting. If you are risking 10% with a 1.5 risk/reward ratio you stand to make 15% if you are correct so I’m guess you’ve had a few winners in a short space of time to be up over 100%.
Its great fun but keep in mind if you are still risking 10% then 5-6 losers will cut your account in half meaning you need to make another 100% to get back to where you are now.
You should run a second test in a demo account. Keep everything about your strategy except the position size. In the demo account start out with $50K and risk only 1-2%.
If your current strategy fails then all might not be lost if the demo account performance is more long lasting and durable.
