I think he is generally setting his stops just on the other side of the nearest major support or resistance point.
Edit: actually I think I misunderstood your question sorry carry on.
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I’ve been using your strategy since shortly after this thread started and so far, it’s been working very well for me. It’s such a relaxed way of trading and I like it.
There is one thing that’s always in the back of my mind though - and I hope you might have some thoughts on this.
Remember back in the middle of January 2015 when the Swiss Bank did something (can’t remember exactly what), which caused the CHF to suddenly “gap” in a huge way … like … big time.
My greatest fear is, that if such a thing happened again (on any currency pair) then it could quickly take out an entire account where the strategy includes large drawdowns while waiting for things to turn around.
I did notice though, that on the CHF related charts that I observed, the currency pairs were sitting at a weekly resistance level, so it’s possible that, using your strategy, it might have worked just as well in your favour.
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Forgot to update this week.
Nothing much going on.
Total so far is at £11,100.73 to be exact.
For those into all these equity charts.
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It’s always something to bear in mind, that’s why you should only invest what you can afford to lose.
That means, not investing your life savings, partners life savings, money you need to pay your mortgage and bills.
Even if you plan for every single scenario you can think of, there is always something else that could catch you out.
Personally I’ve never been affected by any gaps or flash crashes and if I was, I wouldn’t be losing 100% of the hard work and time invested, I’m always withdrawing cash on a regular basis.
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On a side note, this was pretty interesting, Day Trading for a Living?
We show that it is virtually impossible for an individual to day trade for a living, contrary to what course providers claim. We observe all individuals who began to day trade between 2013 and 2015 in the Brazilian equity futures market, the third in terms of volume in the world, and persisted for at least 300 days: 97% of them lost money, only 0.4% earned more than a bank teller (US$54 per day), and the top individual earned only US$310 per day with great risk (a standard deviation of US$2,560). Additionally, we find no evidence of learning by day trading.
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This Method still working for me. Been a quiet couple of weeks but the AUD retracement at the end of last week let me close a few in profit. Just need the cad to do the same now
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I always have to remind myself of this. Follow the leader not the lemmings.
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Ok, so after a few delays, I’ve started testing this out on a 1k demo account. 1% up after 3 days, but I’m not confident that I’ve read these charts correctly.
Can @The_Baller provide some feedback on the below please? Just showing 1 of 7 positions. I currently have open (AUD/USD)
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All I can say is looks good to me.
I been short since end of August now.
First area to take profit would be somewhere here. Ideally just before.
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Awesome, thanks man. What’s the reasoning behind placing the TP there though? Thanks again.
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- I’m happy with making a £9K return if price goes there, you can’t be greedy.
- Many many years ago, price got to that point and then reversed.
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Right demo week two coming up, this time with what will likely be as close to real world conditions when I go live with this strategy:
£10k account
1:20 Leverage
Risk up to 10% per position to determine SL
0.5 Lots
TP depending on where I think the trend is going
Messing around in the platform though, it seems lot size is irrelevant if I specify a SL percentage. Is that correct or have I missed something glaringly obvious?
Thank you.
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How are you determining your SL?
If you are determining the SL position based on a certain location on the chart/number of pips away from your entry then you simply adjust your Lot size to achieve your required risk % - in your case 10%.
0.5 Lots may not always be the case to achieve your 10% risk.
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Sorry bro, but I just feel like I have to share my opinion here.
-10K account. Acceptable. Very good indeed.
-1:50 leverage. Acceptable. Its logic.
-Risk up to 10% PER POSITION. Not acceptable. Its too high. What is your total sum of position would be?
-0.5 Lots? Per entry? Per Pair? Per total risk? Its not precise enough.
-TP. Also not precise. You must atleast have an objective exit for the TP.
Since this thread started. I tried this method on demo accounts for 2 times and failed. But ever since, I have modified and tailored it to my own style and had found what will suit me perfectly. Im still on the third attempt on demo and its doing very well. Im going to start on a real account soon. The specs of it would be:
-$50K account
-1:888 leverage
-Risk up to 10% of total account per moment. 1% max per trade.
-Down to 0.01 Lot per trade. Up to 0.30 Lots per trade per pair. (If I trade 8 pairs at one moment)
-Up to 240 entries of 0.01 Lots per trade. (If I trade 8 pairs at one moment)
-200 pips minimum stop loss (Never close a trade if it is under 200 pips loss)
-TP varies. But it will always be before any clear Support or Resistance handle.
-If I happen to close or TP early or before targets, 1/3 positions will be closed If atleast 50% of target reached, 2/3 if atleast 75% of target reached. But If I still happen to close earlier, I would reenter or trail my stop or even scale.
-I will not enter my full margin entry for a certain pair at a certain direction.
-I will enter apart of it and I will capitalize the float.
-I will order pizza.
-I will eat pizza.
There’s no real issues with this, except if you were trading in real life, how many £10K accounts could you afford - if its just 1, then 10% risk might not be the smartest move when starting out.
To add to that, when a position goes against you on a demo, you don’t feel anything. On a live account, you will be feeling it regardless of what anyone says.
0.5 lots is an acceptable size to trade on a £10K account - this is the same size I’ve been trading throughout this whole experiment.
It might be smarter to simply go in at half, using 0.25 lots - chances are it will go against you, when it does you can look to add the second 0.25 lots for a much better return.
Lot size is still important. If you set 10% as your SL - the bigger your position size, the closer your SL will be.
As you can see from the above, you could be risking 10% as your SL but the more you increase your position size the closer and closer your SL gets.
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You need to hook me up with this broker.
Fundamentals of success.
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Basically this.
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Got it. I was using the platform’s built in loss percentage field to set it accordingly:
Obviously lost sight of how all the other values are exist in a type of feedback loop, since my other account was trading 0.01 lots
Rookie mistake, but better to get these lessons in demo rather than live.
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Typo. Was actually 1:20 since UK doesn’t let you go 1:50 until you have X months of experience apparently.
Yes, definitely not right for this account. Was fine on the 1k, 0.01 lot per position account. But for this the lot sizes will be reduced in future.
I do, but it depends on what the chart is telling me about a specific pair’s direction. Once I gauge that I’ll set a TP somewhere just above/before where I think the trend will end
Good luck man. I’ve spent time going over it to be sure I understand how it works, and the first week was very successful.
However the small lot sizes and leverage meant that not much was made, so this new account is my aim to mirror what would be my live circumstances.
The strategy suits my lifestyle objective perfectly I think, though I’d be intrigued to hear how you get on with your modifications.
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WTF?!? How is that even legal anywhere on Earth?
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