Yes majority of beginners not know how much risk they should use in trading. When they go fo trading they are confused especially when positions are out of their range they suffer from high loss. Beginners can manage their risk with stop loss. It is a supporting tool when they are experienced they can skip it it is totally optional.
Hi rrram2,
I’m not here to criticize your methodology. First and foremost, i would like to congratulate you on your current success and your feat is quite extraordinary. Your conviction in your trend determination is truly awesome, and i’m hats off to you for that. Your patience for drawdowns are incredible.
Let’s look at your chart on equity Growth, basically the red line on Growth can be ignore. What truly matters is the yellow line (equity growth) .
From Aug 17 to Sep 1st, max drawdown reached about 8% (on the 29th Aug).
From Sep 1st to Sep 9th, max Equity growth reached around 9%.
After Sep 9th equity continues to grow to current positive 35.83%.
I can see that on the Sep 10th, 17th and 25th, there were 3 more large drawdowns, which one of them probably contributed to your max drawdown of 8.99%.
From your 5 open trades chart, i can see that you can tolerate a total drawdowns of -479.40 pips. This can only means that your every trade entry are probably at minimal position lot size. From the 3 open EURUSD trades, position are opened (or averaged) at an interval of 40 to 50 pips difference. I also notice that you have 40 pending orders waiting in queue.
From my observation, i can see that your are a true contrarian, and have perfected the art of counter trend trading thru the use of a single powerful technique called “AVERAGING” .
i have just 3 question for you.
-
What’s your backup plan if a major trend reversal occurs and move against your Major trend determination by say 2500pips? Your max drawdown may reach as far as perhaps say 50%.
-
How confident would you be, that you will still be able to recover from your losses?
-
How long do you think it will take for you to recover those losses, if a black swan event does occur.
Just some food for thoughts. No offence, i hope. i really meant well for you.
4 Likes
Major trend reversal? for starters the trend is a lie put out by the bank, the trend in forex is to reatrace
100%. I dont trade the trend, I am trading the reversals, and I am playing up to 2000 pip ranges, this is a fresh account, eventaully I will only draw down on banked profits, and I wont overleverage no worries. I reamin 100% confident 
if the world ends tomorrow due to WWIII I guess we need not worry? what if, isnt even a consideration. How long will it take me to recover? a few days is all I need. Drawdown is not a loss, lose that loose thinking behind, DD is risk on, the more risk I put on the more I take off in profit. DD is a mortgage and all part of the plan, and I prefer the +swap trades take note of that. I play the extremes and I play the middle, and the endzones. this isnt my first live account, and it is the smallest! trading a large account is easy! trading the small accounts is where you need skill to prevent from overleveraging, and the small accounts are the hardest to trade, and this account is a demonstration for a friend of mine trying to learn to trade. Many thanks for the comments! I appreciate them! but no worries, soon I will be at 100% profits and will take out the initial deposit, and start again at $1000 with their money. But key here is I trade 17 different models…and this is only one, with the intent to trade huge VOL in a $1000 account, because the broker needs 500 lots traded RT before they get up off that $1000 bonus. And this will be the first time this broker probably has ever actually paid the bonus out! 99.8% of all swans in the world are white! 
and guess what? why does no one realy consider how easy it is to make a deposit to your account? I mean margin call? who cares send the broker a G. problem solved.
2 Likes
Your averaging method are really remarkable. I must admit. I did thought of this kind of method before, but didn’t think it would be possible to execute. Thus, i give it a pass. Psychologically, i don’t think i can withstand such heavy drawdowns. All the best for you man. May the force be with us!
1 Like
yes its averaging what do you think the LP’s do every moment of every day? Psychologically it was hard initially to make 2% profits average a day and 50% profits average a month, DD gets paid off every day or week, in any event carrying DD makes me feel great! because I know contratrend accumualtion works, its what the LP’s do all day! I dont care if I close today or tomorrow for a profit or next week, or even next month, or even next year. For sure I am an expert in long term fundamnetals as well, as I said scalping like
this is only one of my trading MO’s, but suffice to say I am a huge fan of conntratrend accumualtion for obvious reasons.
1 Like
This is one of rrrm2’s charts… his system builds profit and equity at the same time it’s generating DD.
It’s a great strategy, hence the taking of so many pips from the market… Just trading a position from A to B will never garnish the pips (even on the Daily) that this system does…
Some of you guys have to research a little deeper to understand what’s really going on…
As I have stated in quite a few threads this is one of the reasons the MM’s and ESMA wanted the leverage slashed to make this strategy to costly (Margin Requirement) to implement for the normal dullard retail trader. Although with a little thought… high margin usage can be worked around…
1 Like
Now brokers may have to think twice before offering such bonuses to traders like you.
Actually, your method can be easily coded into an EA and run from a vps isn’t it? Have you ever considered that possibility?
1 Like
I have lots of trading bots, but the trouble is leaving a bot running on a broker 24/7, that is killing them doesnt go over very well. aND BOTS that once worked perfect are getting tricked now someetimes or blocked, understand mt4 and there are all sorts of BO tweeks to trick things up, sadly there are very few brokers that are what they “should”: be. I am not going to go into the 1001 shady broker tricks, but the bonus is a trick to get the RT 100% to overleverage, overleverage is the #RT error after the stop loss order. A bot cannot be trusted to be left alone for too long for me, overnight is swell I need to sleep. But when I load my bot on a broker and it eats the liquidity bot(S) at their LP(S), it gets targeted. And thats why yet another new broker. After working with a broker for a while in mt4 I can find all the bugs and bo tweeks they have done to make it harder for the trader to make $. and think about this, if you find a broker where you cannot do something, i.e. they changed backoffice (BO) settings on mt4 so you cannot do something, it is those things they prevent you from doing that you need to find another broker that is less restirctive where you can do those things. for example Blueberry isnt any where near as good as anyone thinks they are. in the DOM, they block leapfrog style, entry stops with tight tpt’s. ANd in DOM they set min profit stop to 3.0 pips, on Turnkey I can set it to whatever I want. The game is about the profit stops, forget the loss stops. Turnkey I can place inside ask quotes, and inside bid quotes (placing orders inside the spread is what this is), blueberry nope! mt5 is really best but I have little to no software for it.
1 Like
Ah ha! No wonder you can execute such a style. Trading manually is psychologically too hard to stomach seeing the account all red.
1 Like
my account is in the red? the latest dev of the bot’s demo account is in red, it doesnt have a decent way to decide that the trade entries it took were obviously bad right off the get go. perhaps its releated to those 4H entries.
None of the live accounts I trade are in the red 
I actually love to see RED you dont get it I guess, yeah its work. but someone has to do it.
3 Likes
How i wish that, i could have such strong faith like you, that eventually all the red will definitely turn out to be Green. Anyway, i think your style suits you well. Keep on sharpening the sword. Just a word of caution. Don’t forget about Bankroll management.
1 Like
part of keeping the DD low is first the correct direction on the trade, and at a good entry point, while the entries really dont matter except in relation to the exits, the better your entry is the easier it will be to exit for a profit. forget playing in the middle then and convert to long term Supply and demand trading. Decide on your max risk per trade and give it a go, i’ll show you if you want. Ill even give you some entries, I’ll explain it the first time, but then you need to figure out the loss stops and profit stops. . but pick a few pairs you like to trade and feel most stress free and most confident trading, I’ll send a few sniper shots your way, I can do the sniper thing, but the waiting and watching is trecherous!
1 Like
I do trade without stop loss. It is possible only if you are yourself a stop loss. You have to control the trade live.
I have been trading for over a year live with no stops, averaging in on increments using micro lots…took over a year of paper trading to get this strategy perfected…rram2 your the shit my friend…first one I have seen that get’s it…STOPS ARE A TRADERS WORST NIGHTMARE…eating you from the inside out…little bit by little bit…right in front of your own face…buuuaaahhahaha…
seriously though…remove those stops people and see what can happen… you will be quite surprised at the possibilities. Start in a demo account
https://www.myfxbook.com/portfolio/linked-capital-management/2224910
1 Like
Talk of stop-losses or no stop-losses is meaningless in isolation. The choice only makes sense when you take into account the style of trading you’re involved in. For most traders, using conventional styles of trading, adding to losing positions doesn’t make any sense, there is no benefit from keeping open a losing trade and adding another and another and another.
rrram2’s style is quite opposite what most of us are doing, don’t assume you can simply keep your style, ditch the stop-losses like he has and start making a profit, it will take a much more radical approach than that. You need to do the work, you can’t just flip a switch from “stop-loss ON” to “stop-loss OFF” and go from losing to winning. I think the switch is beyond most traders (and me) but if you’re interested, I suspect a lot of help is going to be needed from this guy.
4 Likes
Exactly… That’s why I posted a chart / strategy of how rrram2 trades his system…
Many of the Pseudo Gurus here that won’t post their own results don’t understand the amount of pips and percentages gained by this sort of strategy… Kudos to Elijah for displaying what can be achieved and how by using experience and logic as opposed to negativity and drivel…
It’s worth noting that the Dennis successfully trades his SW Currency strategy without stops also…
1 Like
I am pretty sure If a newbie use SL then be sure that most of the time it will go into your direction but first it will hit your SL… So use your SL a litte wide.
2 Likes
Yes mate, absolutely! That’s the 1st rule! This is why, money management is too important issue in Forex.
1 Like
open a demo account and practice…do your due diligence before putting any money on the line…be responsible about it…it’s not rocket science…just takes time and discipline…ninjatrader’s market replay is a great tool for forward testing scale-in incremental levels.
3 Likes
Its not bad advice thanks - its just that what rrram does is not for me.
2 Likes