Billybobtroll, you’re back! I thought you quit trading and went back to selling milk (haha jk!).
Thank you sir. Consider this demo account to be doing some tough work for the next few months. My goal is to have everything lined by the end of this year for a live account so rest assured that I will link it up on here. In the mean time I am hoping we can get some serious volatility so that I can do more stress testing on this. I am liking the very slow and steady uptrend I have been getting with the strategy but I’d like to put it through some serious market turbulence to see how it does.
Not sure what you mean by “terrible”. As in just not an accurate feed or that it is easy to manipulate? I don’t have any plans on using metaquotes when I go live, in fact I don’t believe I can since I am in the US. I will most likely go with Oanda since they don’t have a limit on how small you can have positions, but I will need to open up two accounts to be playing each side of the market which will be annoying. The US banned hedging in forex accounts in like 2009 which is a shame. I will tell you though that whichever broker i go with will want to be my best friend. I’ve logged over 4300+ trades since Middle of May this year lol.
If I recall I chose metaquotes for the demo because they were one of the first options within metatrader when opening a demo account. As far as the feed for linking up to myfxbook I will run a few tests with some screenshots to see how accurate it is. Apparently myfxbook doesnt update every hour at night but here are some screenshots from Meta trader vs MyFXbook page with 1 hr old data. Look at the equity and balance sections. I don’t see anything that immediately concerns me since it is 1 hour old data.
hey bronz, I’m new to the forex trading game here; I basically read your whole thread but TBH it went right over my head; is there anything you can suggest i read so i can follow your thread BUT at the same time UNDERSTAND what is going on & what exactly is your “strategy” as i know you say it isn’t one but more how you manage your trades;
This would be helpful; also may i make a suggestion? it seems you are really dedicated to this thread. I would love to see videos with you explaining exactly how this works and what you do in certain situations!
Thanks for reading my thread! Much appreciated! To be frank, my strategy that I run on here is probably the most abstract of any strategy that you will find on babypips. I don’t use any analysis at all (i.e. you don’t really need to!). I don’t look at charts and I don’t pay attention to the news or any fundamental information. I am really looking at trading in its most basic form and really getting to the roots on how you make money on any trade. To help understand this concept, throw everything you have learned out the door and think in the most logical sense in answering the following question, what consists of a profitable trade?
The answer is simple, sell higher than your cost basis for a trade the you are long (i.e. where you want the price to go higher) and buy lower than your cost basis for a trade that you are short (i.e. where you want the price to go lower). Now there are two important pieces of any trade that determine profitability: 1) Cost Basis and 2) Where you close out your trade in relation to cost basis. The vast majority of strategies on baby pips (and most strategies you hear people preaching about) only focus on #2, where you close out your position in relation to cost basis. My strategy focuses on #1 and #2.
In order to focus on #1, I dollar cost average when price goes against me or when it moves sideways for some time. This improves my cost basis (e.g. Buy at $1, cost basis = $1; buy another at $.50, cost basis is now at $.75; etc.) Now the great thing about the forex markets is that you can trade as small as you want, so it really gives you a ton of buying power at your disposal. The real DANGER with this strategy is if your position sizing gets too big and you have a large move that goes against you. I have had to reduce my position sizing a few times because I kept discovering that I was trading too big. I currently trade with less than .001% of my buying power per trade to give you some perspective (But I trade a Lot and I take super small profits! And I won’t lie this type of trading is a full time job! You can’t part time this one)
In a nutshell, here is what I do: Trade goes against me, I buy more. trade goes against me, I buy more. Trade goes against me, I buy more. Trade moves sideways, I buy more. Trade moves sideways, I buy more. Trade moves in my favor, I take profits (if above my cost basis). The key here is to take profits as they come and don’t be greedy. When you see a profit take it. don’t hesitate. The main objective is to keep your position sizing as small as you can so If you are in a position to take some profits off the table, don’t hesitate and do it. I can’t watch the markets all the time and sometimes I will be taking large positions off only for a few dollars gain, but then later I will get surprised in other instances when I take a look and I am up a few hundred dollars.
I will certainly consider making a video! In the mean time, please continue to ask more questions!!
One more winner for the record. I had also included screenshots of what I am seeing on MT4 before I take off a position. In this trade I took off the buys on USDCAD, so even though the net result of those buy add up to a profit, there are still some losing trades that I take off as well. My win rate on myfxbook is 72% and 74% and everytime I take a net winning trade off there are always some losers in there as well.
Cost basis reduction can directly increase your probabilities of making money on any trade. This direct relationship does NOT hold true with ANY fundamental or technical indicator, yet we continue to devote countless resources towards fundamental or technical research. So my question is why aren’t we devoting a 100% of our resources on researching better ways to reduce cost basis?
