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$1,000,000.00 Challenge (By Damon )

The user has deleted this system.

$1,000,000.00 Challenge Discussion

Damon (Damon)
Mar 22 2011 at 04:20
129 posts
The proprietary EA (robot) that runs this account is using a custom indicator, it takes awhile for it to start as it needs to find a range to to trade, once it starts making trades it will rarely be out of the market.

Please feel free to comment and question.

Damon Hunt
https://fundsforexmanaged.com
1 pip pip banked is worth more than the rest out in the market.
Dmitry (Delmio)
Mar 22 2011 at 07:45
11 posts
Damon (Damon)
Mar 22 2011 at 08:04
129 posts
Hey Dmitry! Long time no speak ! How are things with you?

Damon
1 pip pip banked is worth more than the rest out in the market.
James_Bond
Mar 22 2011 at 08:10
556 posts

Damon posted:
    The proprietary EA (robot) that runs this account is using a custom indicator, it takes awhile for it to start as it needs to find a range to to trade, once it starts making trades it will rarely be out of the market.

Please feel free to comment and question.

Damon Hunt
https://fundsforexmanaged.com

What happens when the range breaks? How many trades it must make in a range to stay profitable? Does it work well in trending markets?
Damon (Damon)
Mar 22 2011 at 09:34
129 posts
It does not do anything when in the range, it just hangs out, when range breaks it takes a trade.

It loves a trending market, and does nothing when bangin around inside the range, it's only way to exit the buy positions is when it sells and vice versa.

The trading system is very simple and based on Nikolas Darvas's book 'How I made $2,000,000.00 in the stock market' It will pile up trades if ranges keep breaking in the same direction, you'll see. But that does not mean it is flawless, far from it. But it has made me 100% in 2 weeks live and has good although choppy back tests. The managed account is not set as heavy as my personal account. (and talk is cheap)

It's the indicator that is the amazing part, it predicts very accurately where the ranges are going to be, not where they are after it is established like other systems but where they will be... sounds crazy, but it does work very well.

I am working on a robot that will trade inside the range after this one settles in and I can take my eyes off it. But first I need to assess the different strategies that are used in a range bound markets and find the best one.

When I have that one made I will put in this account too :)
1 pip pip banked is worth more than the rest out in the market.
fxuma
Mar 22 2011 at 20:58
5 posts
You're on my watch list!

Regards,
Marcia
The way UP is IN ...
duzyfx
Mar 22 2011 at 22:34
257 posts

Damon posted:
   ... But it has made me 100% in 2 weeks live ...

can you upload that 100% in 2 weeks account into your profile ?
Damon (Damon)
Mar 23 2011 at 01:05
129 posts
fxuma. cool :)

duzyfx. I probably could, I don't know, it would be very confusing because I'm manual trading and running a few other EAs in my account, plus I learned a valuable lesson in the middle of this 2 weeks when I left the chart that had this EA on 1 minute (instead of 1 hour) and it started making little 1 minute ranges and trading them with one hour settings. I lost 20% of my account in 10 hours. I did not know the EA re-initialized when I changed the time frame. So I would have to explain these things and it would not really be any good as proof... that's why I am doing this account. You will see the trades in due time to see if it is your cup of tea or not. Don't get too excited, for some this will be too risky for them or they will not at all like the graph, I don't even like it. I just like that it makes money and survives the hard times and does very well in the good times. Unlike Asian scalper EAs that do 'ok' in the good times and break your account in the bad times.
1 pip pip banked is worth more than the rest out in the market.
Damon (Damon)
Mar 23 2011 at 01:57
129 posts
Here is a picture (attachment) showing nearly uninterrupted trading with the EA, Those ranges it created (blue and red) were created before it bounced around inside it. You will see I manually closed the last buy, there was 3 of them, you can see how much profit the EA leaves on the table in the moves (I have not figured a way to capture that last bit of profit at the top), but because it can stack the trades up it can actually make more more pips than the whole move was, for example in back test I had one position make 400 pips out of a 300 pip move of the market because it had multiple positions on.

I know this is not what you were asking for duzyfx, but it's all I can really do.

Attachments:

1 pip pip banked is worth more than the rest out in the market.
Raiden
Mar 23 2011 at 06:48
244 posts
To get from $300 to $1,000,000 :-

Years_Months_Monthly%gain_EffectiveAnnual%gain
1________12______96.60%_______333,233.33%
2________24______40.21%_________5,673.50%
3________36______25.27%_________1,393.80%
4________48______18.41%___________659.84%
5________60______14.48%___________406.50%
6________72______11.93%___________286.50%
7________84______10.14%___________218.62%
8________96_______8.82%___________175.65%
9_______108_______7.80%___________146.28%
10______120_______6.99%___________125.05%
11______132_______6.34%___________109.06%
12______144_______5.79%____________96.60%

The table as a milestone to know how far you are from your goal.

With aggressive settings, it would be 'reasonable' to achieve 10-20%/month consistently. Might want to increase your leverage to minimise margin exposure for the larger lots you'd need to trade. In the later years, you would also need to consider the maxlot limitation your broker may have.

All the very best!
Consistency above all.
Damon (Damon)
Mar 23 2011 at 08:43
129 posts
Hi Raiden,

First of all that is a hideous picture.

But thank you for taking the time to build the table, I use a compound calculator: https://www.moneychimp.com/calculator/compound_interest_calculator.htm

I would be very happy to hit $1,000,000.00 in 3 years, that would be 25% per month :)

I cannot adjust the leverage after I have created the account, but please explain your concern, I don't think I understand.

I will ask my broker about Max lot sizes, thank you for bringing that to my attention.

Damon

1 pip pip banked is worth more than the rest out in the market.
Raiden
Mar 23 2011 at 09:21
244 posts
;) couldn't get it to fit a proper table. It's just a milestone reference so you know how to pace yourself.

For 36 months, you need to be getting 25.27% per month consistently, and that's not averaged out, it's gotta be compounded month-on-month. A little tough going by most fund manager's standards, who are already very happy with 6-20% per annum.
And also from a personal viewpoint.

Yes, you can't change the leverage within an account, I was suggesting to use a higher leverage account with the same broker or another broker altogether. You should still open the same lotsize per trade as with a 1:100 account. With higher leverage, you use less margin to open the same position. This helps greatly with a system that has recovery logic where additional positions are opened.

You can query the maxlot via: double MarketInfo(Symbol(),MODE_MAXLOT)
Just make sure the MT4's connected as I've come across a different return when offline.
Consistency above all.
Damon (Damon)
Mar 23 2011 at 10:21
129 posts
Hi Raiden,

I am not saying it will do 25.27% I am saying I would be VERY happy if it did that :)

What are the draw downs like for these fund managers doing 20% per month consistently? And where are they? And what is there minimum account?

Am I right in thinking 'recovery logic' is martingale? If so, I do not use Martingale.

Max lot is 10,000 -Jesus ! Thats 1 billion units of base currency... WOW. -I won't be getting that big where one pip = $100,000.00, incredible to think in that size.

1 pip pip banked is worth more than the rest out in the market.
Raiden
Mar 23 2011 at 13:02
244 posts
Damon posted:
What are the draw downs like for these fund managers doing 20% per month consistently? And where are they? And what is there minimum account?
I have no idea.

Am I right in thinking 'recovery logic' is martingale? If so, I do not use Martingale.
Averaging down is not martingale. The usual caveats apply.

Consistency above all.
Damon (Damon)
Mar 23 2011 at 18:02
129 posts
Hi Raiden,

I have some cute fuzzy kitten photos you could use as your Avatar?! Please take them.

My EA does not average down. Actually it is opposite, it will buy more as it gets more dear. Not buy more when price moves against.

Please explain 'Averaging down is not martingale', I thought they were one and the same?

Only one Caveat needed: 'Only use money you can afford to burn.' :) I apply that to all trading.

Thanks for keeping me entertained while this thing starts up :)

Damon

1 pip pip banked is worth more than the rest out in the market.
Raiden
Mar 24 2011 at 12:10
244 posts
I get the impression that you think I'm being hostile or cynical about your endeavour. Far from it. I was merely suggesting ways to achieve your goal.
Consistency above all.
Damon (Damon)
Mar 24 2011 at 13:12
129 posts
Raiden,

No, not at all. You have offered only help and advice. And my questions are legitimate and sincere.

By 'entertained' I meant that I had nothing to discuss in here until some trades were in the history, so by your advice and help I have someone to speak to.

And I must mention your brutal Avatar every time you post. Why would you have an old Chinese CGI face for your avatar?
1 pip pip banked is worth more than the rest out in the market.
Damon (Damon)
Mar 25 2011 at 21:16
129 posts
Well, it looks you are going to see what draws look like in this account before you see what gains are like... Awesome.
1 pip pip banked is worth more than the rest out in the market.
James_Bond
Mar 27 2011 at 08:48
556 posts

Damon posted:
    It does not do anything when in the range, it just hangs out, when range breaks it takes a trade.

It loves a trending market, and does nothing when bangin around inside the range, it's only way to exit the buy positions is when it sells and vice versa.

The trading system is very simple and based on Nikolas Darvas's book 'How I made $2,000,000.00 in the stock market' It will pile up trades if ranges keep breaking in the same direction, you'll see. But that does not mean it is flawless, far from it. But it has made me 100% in 2 weeks live and has good although choppy back tests. The managed account is not set as heavy as my personal account. (and talk is cheap)

It's the indicator that is the amazing part, it predicts very accurately where the ranges are going to be, not where they are after it is established like other systems but where they will be... sounds crazy, but it does work very well.

I am working on a robot that will trade inside the range after this one settles in and I can take my eyes off it. But first I need to assess the different strategies that are used in a range bound markets and find the best one.

When I have that one made I will put in this account too :)

Sounds good.

I think the last 2 weeks were so good for your trading since those were very trendy.
In any case, take minimal risk until you're sure the system works in the long term. It's very easy to be fooled by the market thinking the system works well after a few trades, only to discover it isn't, after starting to trade real money.
Damon (Damon)
Mar 27 2011 at 21:36
129 posts
Hi Wilkinson,

Actually although it does have draw down periods it works in any year I have tested it in, it is robust, in choppy periods it sleeps, BUT if it breaks out with 80 pip 1 hr candles it takes on a lot of risk if there is a reversal, I am programming the EA with pending orders on break out instead of just buying at market with confirmed break. I do have it trading pretty small, the biggest draw down I could find in history with this setting is 20% On my personal account it would take me for 50% DD

Very good advise, I agree, if I wasn't convinced that it worked in the long term I would not have it on my account let alone managed. I did not curve fit the EA and it needs no tuning, it is missing a few features that will make for smaller DDs and allow me to trade it heavier.

By the way, the worst period I could find for this EA in back test, it was trending down, it is not that the market is trending or flat or choppy or anything, it is if the indicator finds the real range or not. And in this case it was the last week of December and it obeyed no ranges, but still it survived, which is why I use it.


But the account will tell whether or not I am just talking out my ass, and so far it is not looking sexy.
1 pip pip banked is worth more than the rest out in the market.
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