$1000 to $1,000,000,000
Ahli sejak May 25, 2010
8 hantaran
Nov 01, 2010 at 14:31
Enjoyed reading this, thanks :)
DONT BUY EA'S, THERE ARE PLENTY OF FREE ONES...
Ahli sejak Mar 13, 2010
32 hantaran
Nov 04, 2010 at 10:14
Hi there,
I am an account manager using the Oanda FXManager platform, consistently trading the EURUSD on a daily 1% daily target for 200 days a year. As my corresponds to the above discussion and expectations, if anybody here would be interested to join, please visit my system page here: Budda is my auditor (DGP), https://www.myfxbook.com/members/kokkas/buddha-is-my-auditor-dgp/36084
I do offer joining with any minimal amount (like 1€) for testing up to 6 months. Message me to discuss any questions or details and if you want I'll send you an invitation.
with many prosperity wishes to all,
Vassilios
I am an account manager using the Oanda FXManager platform, consistently trading the EURUSD on a daily 1% daily target for 200 days a year. As my corresponds to the above discussion and expectations, if anybody here would be interested to join, please visit my system page here: Budda is my auditor (DGP), https://www.myfxbook.com/members/kokkas/buddha-is-my-auditor-dgp/36084
I do offer joining with any minimal amount (like 1€) for testing up to 6 months. Message me to discuss any questions or details and if you want I'll send you an invitation.
with many prosperity wishes to all,
Vassilios
Buddha is my auditor
Ahli sejak Aug 30, 2010
19 hantaran
Dec 13, 2010 at 16:51
This is a great thread, and really gets to the heart of the matter with trading!
To quote Albert Einstein, “The most powerful force in the universe is compound interest”.
There is a money management strategy called 'Fixed Ratio Money Management', created by Ryan Jones who wrote the Trading Game. Here is a thread that discusses the details of how it work in case you are interested:
https://www.moneytec.com/forums/f33/fixed-ratio-money-management-17247/
Basically, it provided a formal way to grow small accounts geometrically while protecting from a string of losses as you increase your lot size. The idea is very similar to what you've described already, Elite Trading Team, and it works brilliantly; I am practicing using it on several of my own accounts (demo and live).
In order for this system to work, you need to be able to trade consistently and earn your x pips per week. If your profit factor is less than one you are basically gambling and this money management will not help you. However, if you are net positive with pips each week this system will grow your account at a much faster rate than using fixed lots.
The key thing to note here is that you don't change your trading style EVER - just keep gaining your pips each week and apply the fixed ratio money management to tell you how many lots you should be trading, and watch your equity curve bend upward faster than a straight line.
Hope you guys found this useful, please let me know your experience if you've been using FRMM.
Best regards,
SavvyFx
To quote Albert Einstein, “The most powerful force in the universe is compound interest”.
There is a money management strategy called 'Fixed Ratio Money Management', created by Ryan Jones who wrote the Trading Game. Here is a thread that discusses the details of how it work in case you are interested:
https://www.moneytec.com/forums/f33/fixed-ratio-money-management-17247/
Basically, it provided a formal way to grow small accounts geometrically while protecting from a string of losses as you increase your lot size. The idea is very similar to what you've described already, Elite Trading Team, and it works brilliantly; I am practicing using it on several of my own accounts (demo and live).
In order for this system to work, you need to be able to trade consistently and earn your x pips per week. If your profit factor is less than one you are basically gambling and this money management will not help you. However, if you are net positive with pips each week this system will grow your account at a much faster rate than using fixed lots.
The key thing to note here is that you don't change your trading style EVER - just keep gaining your pips each week and apply the fixed ratio money management to tell you how many lots you should be trading, and watch your equity curve bend upward faster than a straight line.
Hope you guys found this useful, please let me know your experience if you've been using FRMM.
Best regards,
SavvyFx
Ahli sejak Jun 04, 2010
187 hantaran
Dec 24, 2010 at 12:15
Hi
we are a group that managing account with very low risk and safe method,here is our statement:
https://www.myfxbook.com/portfolio/fxpublisherea-trading/38771
we can give you live account with readonly passsword + 10 years backtest for more confirmation too
If interested can contact us with email or Skype
Skype ID :fxpublisher
Email:[email protected]
we are a group that managing account with very low risk and safe method,here is our statement:
https://www.myfxbook.com/portfolio/fxpublisherea-trading/38771
we can give you live account with readonly passsword + 10 years backtest for more confirmation too
If interested can contact us with email or Skype
Skype ID :fxpublisher
Email:[email protected]
-Safety of your fund is the most important thing in our trading
Ahli sejak Dec 25, 2010
1 hantaran
Dec 25, 2010 at 20:12
This is a really awesome thread. Great read, and very motivating. To me it helps remove any lingering doubts as to whether FOREX trading is really just a gambling/scam for gullible fools or not.
You can't build a legacy based on what you want to do, but only by what you do.
Ahli sejak Dec 24, 2010
7 hantaran
Dec 31, 2010 at 02:20
It appears to me that there are 2 critical parts of the equation missing in the calculation of risk management and compounding on this thread.
I believe that compounding is by far the most attractive part about investing in the Forex. However, I have found that very few traders calculate compounding or risk exposure correctly.
First, your investment in a trade should NEVER be based solely on x% of your portfolio balance. In the example given ( $1000 = .1 lot per trade = $1 = 1 pip after spread) you could be putting 30% of your account at risk in a single trade if your Stop Loss is set at 300! If you were going to risk only 5% of you account you would have to set a Stop Loss at no greater than 50 PiPs.
The most important part of calculating the risk versus reward in a trade is the stop loss!
Therefore, if you have determined what your stop will be before entering the trade you can then maximize your investment.
For example: If your portfolio balance is $1,000 and you want to risk only 5% in a given trade then the most you are willing to lose in a trade is $50.00. In addition, if you have determined that your stop loss in case you are wrong in trying to achieve your 20 PiP gain should be set to no more than 25 PiPs, then you can enter the trade at .2 lots not at a .1 lot. ($50.00 divided by a 25 PiP SL = $2.00 per tick or .2 lots if base currency is USD).
Now your 20 PIP gain netted you $20.00 instead of $10.00! We just doubled your profit by calculating your risk % based on SL instead of just using 10% of your portfolio balance!
Second, the above calculation should be made in EVERY trade and not based on a schedule (like once a week), or at a specific portfolio amount (like every 10K).
Obviously every trade will not be a winner. Therefore, if you have several bad trades in a row you will be LOWERING the lots based on you existing portfolio balance.
If you strictly follow these rules you will never risk more than the amount you have predetermined in any given trade whether your account balance is growing or shrinking.
In addition, don’t under estimate the power of compounding in Micro lots. For example; $10,000 = 1.0 lot per trade = $10 = 1 pip after spread
$20,000 = 2.0 lot per trade = $20 = 1 pip after spread
This is a huge spread between lots when it comes to compounding!
At $10.00 per tick a 20 PiP move would make $200.00. It would take 50 $200 trades to get to the next level in standard lots ($20.000 = 2.0 lot per trade = $20)
I.e. an increase of $10,000.
Those same 50 trades at 20 PiP gains when traded in standard lots AND micro lots would net you a whooping $60,240 using only a 5% risk factor!
In order to accomplish this you may need to have 2 accounts (one for standard lots and one for micro lots). When yourMicro account gets to 11K move 10k into your standard account leaving 1k in your micro account and start again.
Ok now here is the real exciting part.
If you STRICTLY follow the rules above with the same calculations as those set forth in the start of this thread (I.e. average 20 PiPs a day), include the 5% maximum risk factor as outlined above and always use a 25 PiP stop.
Starting on Monday January 3rd 2011 and trading 5 days per week (100 pips per week) you will reach
$10,120 by March 29th (62 Trades)
$50,100 by May 25th (103 Trades)
$250.000 by July 2nd (145 Trades)
$500,000 by August 16th (162 Trades)
$1,024,090 on Friday September 11, 2011 (180 trades)
To aggressive. How about 2% risk?
You’ll reach $1,013,670 in 464 trades
(October 11th, 2012) 1year 10 months and 11 days!
By the way 50 to 1 leverage versus 100 to 1 leverage WILL NOT affect these calculations because the number of lots you leverage will be twice as high in a 50/1 account but your risk exposure will remain the same.
Portfolio Balance * x% Risk Factor = Maximum amount of $ at risk in the trade.
Maximum amount of $ at risk in the trade divided by Stop Loss value = Tick or PiP value
Tick value is determined by lots trades and leverage.
Compounding is by far the easiest part of this formula - Making a consistent 20 PiPs average per day, That’s a lot tougher!
I believe that compounding is by far the most attractive part about investing in the Forex. However, I have found that very few traders calculate compounding or risk exposure correctly.
First, your investment in a trade should NEVER be based solely on x% of your portfolio balance. In the example given ( $1000 = .1 lot per trade = $1 = 1 pip after spread) you could be putting 30% of your account at risk in a single trade if your Stop Loss is set at 300! If you were going to risk only 5% of you account you would have to set a Stop Loss at no greater than 50 PiPs.
The most important part of calculating the risk versus reward in a trade is the stop loss!
Therefore, if you have determined what your stop will be before entering the trade you can then maximize your investment.
For example: If your portfolio balance is $1,000 and you want to risk only 5% in a given trade then the most you are willing to lose in a trade is $50.00. In addition, if you have determined that your stop loss in case you are wrong in trying to achieve your 20 PiP gain should be set to no more than 25 PiPs, then you can enter the trade at .2 lots not at a .1 lot. ($50.00 divided by a 25 PiP SL = $2.00 per tick or .2 lots if base currency is USD).
Now your 20 PIP gain netted you $20.00 instead of $10.00! We just doubled your profit by calculating your risk % based on SL instead of just using 10% of your portfolio balance!
Second, the above calculation should be made in EVERY trade and not based on a schedule (like once a week), or at a specific portfolio amount (like every 10K).
Obviously every trade will not be a winner. Therefore, if you have several bad trades in a row you will be LOWERING the lots based on you existing portfolio balance.
If you strictly follow these rules you will never risk more than the amount you have predetermined in any given trade whether your account balance is growing or shrinking.
In addition, don’t under estimate the power of compounding in Micro lots. For example; $10,000 = 1.0 lot per trade = $10 = 1 pip after spread
$20,000 = 2.0 lot per trade = $20 = 1 pip after spread
This is a huge spread between lots when it comes to compounding!
At $10.00 per tick a 20 PiP move would make $200.00. It would take 50 $200 trades to get to the next level in standard lots ($20.000 = 2.0 lot per trade = $20)
I.e. an increase of $10,000.
Those same 50 trades at 20 PiP gains when traded in standard lots AND micro lots would net you a whooping $60,240 using only a 5% risk factor!
In order to accomplish this you may need to have 2 accounts (one for standard lots and one for micro lots). When yourMicro account gets to 11K move 10k into your standard account leaving 1k in your micro account and start again.
Ok now here is the real exciting part.
If you STRICTLY follow the rules above with the same calculations as those set forth in the start of this thread (I.e. average 20 PiPs a day), include the 5% maximum risk factor as outlined above and always use a 25 PiP stop.
Starting on Monday January 3rd 2011 and trading 5 days per week (100 pips per week) you will reach
$10,120 by March 29th (62 Trades)
$50,100 by May 25th (103 Trades)
$250.000 by July 2nd (145 Trades)
$500,000 by August 16th (162 Trades)
$1,024,090 on Friday September 11, 2011 (180 trades)
To aggressive. How about 2% risk?
You’ll reach $1,013,670 in 464 trades
(October 11th, 2012) 1year 10 months and 11 days!
By the way 50 to 1 leverage versus 100 to 1 leverage WILL NOT affect these calculations because the number of lots you leverage will be twice as high in a 50/1 account but your risk exposure will remain the same.
Portfolio Balance * x% Risk Factor = Maximum amount of $ at risk in the trade.
Maximum amount of $ at risk in the trade divided by Stop Loss value = Tick or PiP value
Tick value is determined by lots trades and leverage.
Compounding is by far the easiest part of this formula - Making a consistent 20 PiPs average per day, That’s a lot tougher!
Ahli sejak Dec 20, 2010
4 hantaran
Dec 31, 2010 at 22:39
Happy new year to all!
Clock just turned to new decade and here I am posting first time to myfxbook. I agree to principal that managing risk is very important. I have played NL poker and if you watch and chat with exceptionally good poker players you usually get the grasp of information handling and risk management capabilities well beyond average John Doe. They also rarely speak 'gambling', they just make professional decisions in a very fast pace like traders. Amateurs use often word 'just bad luck' in poker and hardly ever analyze their performance and what they could have done different.
It took me long time to not to try win more than than what could be taken with reasonable risk in currency markets. I also agree that trading with low volume & news without good hedging are situations where risk factors weight more to stay out than trade.
(actually my EA is running just now so that takes little credibility from my words)
Like seen many times you should have a grasp where the market is going whether you are a daytrader or trade little longer periods. I am still learning to be as patient as I was once in poker. I am more and more fascinated with automated trading and just watching over the EA:s shoulder.
I want to thankyou very warmly all the community members and specially myfxbook staff and coders for a very great resource. I have a hunch that next year wont be steady as a rock and we should be ready to rollercoaster again.
Clock just turned to new decade and here I am posting first time to myfxbook. I agree to principal that managing risk is very important. I have played NL poker and if you watch and chat with exceptionally good poker players you usually get the grasp of information handling and risk management capabilities well beyond average John Doe. They also rarely speak 'gambling', they just make professional decisions in a very fast pace like traders. Amateurs use often word 'just bad luck' in poker and hardly ever analyze their performance and what they could have done different.
It took me long time to not to try win more than than what could be taken with reasonable risk in currency markets. I also agree that trading with low volume & news without good hedging are situations where risk factors weight more to stay out than trade.
(actually my EA is running just now so that takes little credibility from my words)
Like seen many times you should have a grasp where the market is going whether you are a daytrader or trade little longer periods. I am still learning to be as patient as I was once in poker. I am more and more fascinated with automated trading and just watching over the EA:s shoulder.
I want to thankyou very warmly all the community members and specially myfxbook staff and coders for a very great resource. I have a hunch that next year wont be steady as a rock and we should be ready to rollercoaster again.
“Logic will get you from A to B. Imagination will take you everywhere.” - Albert Ainstein
Ahli sejak Jan 12, 2011
2 hantaran
Jan 12, 2011 at 18:18
Practically all of hype in Forex is based on compounding While Sitari is very detailed in showing you how you can build up your account there is a simple method for estimating an investment's doubling time (planned or actual) used in finance called “the rule of 72”. A detailed discussion can be found here: https://en.wikipedia.org/wiki/Rule_of_72.
A simple example for a day trader would be if you could increase your account 1% per day after 72 days your account will have doubled. One percent a month 72 months and so on. It is a useful tool for mental calculations and when only a basic calculator is available.
A simple example for a day trader would be if you could increase your account 1% per day after 72 days your account will have doubled. One percent a month 72 months and so on. It is a useful tool for mental calculations and when only a basic calculator is available.
Ahli sejak Apr 27, 2010
47 hantaran
Jan 15, 2011 at 04:34
Hello,
Our Accounts are already up +62.65% in January alone starting with a $1,000 Balance(ie. USD$625.65 within 2 weeks) with little risk. Winning trades are +97% and lossing trades just 3% , Profit factor has high has 5.65 to say a few about the strategy for all types of account.
Click here to verify our live:
https://www.myfxbook.com/portfolio/diamond-fx-2011/41880
Diamond FX Group.
Femi Shitu.
Our Accounts are already up +62.65% in January alone starting with a $1,000 Balance(ie. USD$625.65 within 2 weeks) with little risk. Winning trades are +97% and lossing trades just 3% , Profit factor has high has 5.65 to say a few about the strategy for all types of account.
Click here to verify our live:
https://www.myfxbook.com/portfolio/diamond-fx-2011/41880
Diamond FX Group.
Femi Shitu.
Building a profitable portfolio for our clients worldwide.
Ahli sejak May 30, 2010
64 hantaran
Jan 15, 2011 at 05:16
(disunting Jan 15, 2011 at 05:18)
diamondfx posted:
Hello,
Our Accounts are already up +62.65% in January alone starting with a $1,000 Balance(ie. USD$625.65 within 2 weeks) with little risk. Winning trades are +97% and lossing trades just 3% , Profit factor has high has 5.65 to say a few about the strategy for all types of account.
Click here to verify our live:
https://www.myfxbook.com/portfolio/diamond-fx-2011/41880
Diamond FX Group.
Femi Shitu.
first of all, that is not a 'live' account. It says demo... Secondly, you do not verify your track record nor your trading privileges .
A person is only limited by the thoughts he chooses.
Ahli sejak Dec 17, 2010
83 hantaran
Jan 15, 2011 at 06:24
Voffi posted:
diamondfx posted:
Hello,
Our Accounts are already up +62.65% in January alone starting with a $1,000 Balance(ie. USD$625.65 within 2 weeks) with little risk. Winning trades are +97% and lossing trades just 3% , Profit factor has high has 5.65 to say a few about the strategy for all types of account.
Click here to verify our live:
https://www.myfxbook.com/portfolio/diamond-fx-2011/41880
Diamond FX Group.
Femi Shitu.
first of all, that is not a 'live' account. It says demo... Secondly, you do not verify your track record nor your trading privileges .
femi shitu its right just demo or real...???
voffi..
how about this... https://www.myfxbook.com/portfolio/bpmapan2/75956
i now this real, compound, but not agresive
Ahli sejak Dec 17, 2010
83 hantaran
Jan 15, 2011 at 06:26
https://www.myfxbook.com/portfolio/bpmapan1/71227 this real too start $1000
i hope your analyze
thanks
i hope your analyze
thanks
Ahli sejak May 30, 2010
64 hantaran
Jan 15, 2011 at 06:43
(disunting Jan 15, 2011 at 06:45)
bpmapan, https://www.myfxbook.com/portfolio/bpmapan2/75956 20% drawdown is a lot, and seeing the equity spike on the 15th of december, is something I think would deter investors, as you hold on to losses.
the second account you posted here, looks better to me but again 16% drawdown is too much for me. In my opinion losses should not exceed 2% of the overall equity, but on the first account you posted I noticed a couple 15% losses.... way too risky.
But hey, you do what you want, if it works for you then great. But to me it looks too risky.
i'd say slow consistent growth, with small losses and little drawdown is what would attract investors.
the second account you posted here, looks better to me but again 16% drawdown is too much for me. In my opinion losses should not exceed 2% of the overall equity, but on the first account you posted I noticed a couple 15% losses.... way too risky.
But hey, you do what you want, if it works for you then great. But to me it looks too risky.
i'd say slow consistent growth, with small losses and little drawdown is what would attract investors.
A person is only limited by the thoughts he chooses.
Ahli sejak May 30, 2010
64 hantaran
Jan 15, 2011 at 21:42
(disunting Jan 15, 2011 at 21:46)
when I took a second look, the biggest loss on the second account is a whopping 27%..................................
wayyyyyy too risky buddy.. In my honest opinion, you should cash out now, and start again with 1300$ to bank in your profits.. Because its only time separating you from your account blowing up.
wayyyyyy too risky buddy.. In my honest opinion, you should cash out now, and start again with 1300$ to bank in your profits.. Because its only time separating you from your account blowing up.
A person is only limited by the thoughts he chooses.
*Penggunaan komersil dan spam tidak akan diterima, dan boleh mengakibatkan penamatan akaun.
Petua: Menyiarkan url gambar/youtube akan menyisipkannya secara automatik dalam siaran hantaran anda!
Tip: Taipkan tanda @ untuk melengkapkan nama pengguna yang menyertai perbincangan ini secara automatik.
