I’ve been developing my own system for the last few months and will try it out on live data. Ive not finished developing it yet. I just want some real experience to learn from. I will demo for 3 months and update the account % at the end of each month.
Here are the basic rules. (Back testing showed 39% accuracy over 500 trades)
8 currency pairs
1% Risk per trade
2% per currency maximum
1:2 RRR
Following the trend and using Indicator for signals.
Daily candles
Will add to winning positions
I dont really know what to expect as this is my first time live trading. Im sure I will make a lot of mistakes and hopefully learn a lot as well.
You have the right idea and the fact that you backtested 500 trades would put you ahead of 90% of new traders in here. Document your trades and you will see patterns overtime.
Well done. It’s good to see someone who has actually put in the work.
Hey Steve, your partially responsible for helping make this plan haha. I was debating between 1:1.5 and 1:2. They both produced very similar results. I chose 1:2 as I am going to add another position at 1:1. It just made it easier to manage.
Good, but new position only 50% of first. And on the first, bring up your S/L to breakeven. Trader Tom says there will be times you lose out at half your original risk. That’s the norm. But when the trade developes into a great trend, you’ll make enough to obliterate your losing ones.
Mind you, I have great difficulty to restrain myself from FOMO in such situations, because I’m trading small beer right now. With a $100k account, a $100 risk is not going to break the bank. Ironically, I could quite happily trade that level without any fear of missing out…
When the Turtles were being trained, they were told to sit on their hands throughout the trade - and even today some traders black out the screen price movement.
For anyone thats interested I am now 10 trading days in. Currently 6% down on my account from £10,000 to £9,400. I have taken 14 trades so far with 1 winner and 8 losses.
Its been a steep learning curve and I have come across a few practical problems that I was not aware of. A few mistakes have been made such as (entering the wrong direction, entering when there was no signal, entering the wrong lot size) basically all beginner errors.
Overall I am glad that I have started demo trading as its teaching me a lot of real practical knowledge. I will keep going for the full 3 months. At least by then I should be able to execute my trades correctly.
It’s great that you are demo trading before risking your money in the live market. But make sure that you don’t set unrealistic expectations on the basis of the results you get on your demo account, because a simulator can only make you well-versed with a trading platform and the real experience is gained when you go live.
No, of course not! I am just saying that trading on a demo for a long time can make you believe that your strategy is working fine and you are ready to use it in the live market. But the live market conditions are entirely different from that of demo trading. There are many brokers like turnkey forex with minimum deposit requirement of $10, and forex com with $100, where a trader can trade in the live market with a small amount of capital. For me, it is far better than trading a demo account. Rest is up to the individual requirements of a trader.
So far, your strategy for this looks promising to me since you’ve used a lower risk and indicators. It is best to not expect anything higher from your trades so try not to look for or expect more profits from this. Just trade as per your understanding and practice. Good luck!
I think you can manage to do quite well. The first time in live training is a bit disconcerting but if you have a good plan you do not have to feel at a loss at least you have a strategy to move with.
3 month update 77 trades in total.
7 still open
52 Loss
18 Win
Account down from original £10,000 to £8260
3 months completed resulting in 25% accuracy. Account down 18%. I am going to continue this test to reach 100 samples.
Well this sucks. This should be a warning to any newbies out there to demo test prior to entering the markets. I have no intention to use real money until I can consistently be profitable on demo.
Final update- 105 trades in total
80 Loss
25 Win
Account down from original £10,000 to £7117
4 months testing resulting in 23% accuracy. Account down 29%.
Well on the bright side I now have a 77% accurate system to use doing reversal trades. Just joking because I want to be a trend follower. Back to the drawing board over the next few months for me.
Perhaps that very same system will work if and when the market environment changes? The drop in accuracy, to me, also correlates to the choppy markets we’ve been having the past 2 months. Risk on/Risk off seems to switch about every week or so, sometimes even intra-week. Perhaps that’s what contributed to the more marked decline?
All the best though with getting your new system up and running.