10.4 A Complete System

[nanningbob]

OK it is reversal time. For example here is the USD/CAD with a 30 MA on the 5M chart. It had quite a run. I will buy when price crosses up back over the 30 MA. This is a CT trade and i look for these on Friday after teh euro close. Looking for traders to close out their profits for the weekend and i am willing to buy. Grabe those 15-30 pips and be done.

[nanningbob]

nzd/usd taking now

[Nidolap]

Thanks for that insight Bob. My problem is that I stick to the trade too long waiting for it to go back on the trend, this costs me to have some big reds and in a reversal situation big hits on the 240 line.

Still trying to figure on how to close the trades after the big move on each market (first half) and just playing the odds with more and more short time trades.

Your trading makes all the sense...

[viper77]

Unfortunately i didn´t take it for not being in front of the screen at next candle cross, finally it went up more than 1 level...

I'm guessing a bounce off the 240, so if i take it, will be a short

[viper77]

I´d love to see anyone ALIVE making not 20% per month, but 8% in average consistently for at least 5 years...
I´ve been using realistic EA´s for many years and have yet to see more than 20-25% per year with a bearable DD, and that´s a great milestone, so for me 20% per month or so would be directly in the reign of miracles and anyone achieving that consistently for years deserves a Forex gold medal in my humble opinion...

Bob consistently reports 1% or more, per day, with VERY few losing days.

1% per day is about 20% per month.

If you can't make a living with 20% per month, you're not likely to make a living with ANY trading approach.

20% a month, means i double my capital every 5 months. Sure MAYBE i can't earn a living with 1K starting capital. Give it 5 months, it becomes 2K, in a year, 4K.

Now stretch that over 5 years, give or take a losing year, you will have a nice nest of at least 30 to 40K at least, which means you can easily take back 6K a month, is that enough for you to live on?

[nanningbob]

I´d love to see anyone ALIVE making not 20% per month, but 8% in average consistently for at least 5 years...
I´ve been using realistic EA´s for many years and have yet to see more than 20-25% per year with a bearable DD, and that´s a great milestone, so for me 20% per month or so would be directly in the reign of miracles and anyone achieving that consistently for years deserves a Forex gold medal in my humble opinion...

Bob consistently reports 1% or more, per day, with VERY few losing days.

1% per day is about 20% per month.

If you can't make a living with 20% per month, you're not likely to make a living with ANY trading approach.

20% a month, means i double my capital every 5 months. Sure MAYBE i can't earn a living with 1K starting capital. Give it 5 months, it becomes 2K, in a year, 4K.

Now stretch that over 5 years, give or take a losing year, you will have a nice nest of at least 30 to 40K at least, which means you can easily take back 6K a month, is that enough for you to live on?

20-25% for the year puts you with the big boys. You could get a job with a bank and make good money. People have unrealistic expectations in this business. I have had several trading companies want to hire me but they all had limitations so I could not trade like I do. Many only want 4-6 open positions at once as a max and that is a difficult thing for me to do. Others their lot sizes would have been too big for the type of strategy I use soooooooooooooooo not interested.

[nanningbob]

Dear Cowboy IBFX Customer,

On Tuesday, September 3rd, 2013 at 5pm Eastern (2100 GMT), Cowboy IBFX, Inc. will be making a change to our platform which will increase the maximum lots tradable in a mini account from 50 lots per click to 500 lots per click. Cowboy IBFX wanted to inform you about this change so that you have time to determine if the change will have any effect on your trading strategy or use of an expert advisor.

OH BOY!!!! I CANT WAIT TO TRY MY FIRST 500 LOT TRADE. Can you imagine playing 500 dollars a pip and you are up 10 pips?

[viper77]

Wow, your posts are pure gold!
Just 2 simple questions:
Which broker do you use that lets you 0.001 lots? Is that what you have right?
My micro account won´t let me trade anything lower than 0.01, and on a 1k account 300 pips in the hole as you said would mean 3% of the account, basically the triple...
Do you use MPTM or similar to manage so much trades at the same times to avoid being glued to the screen all day once you entered or just check them every 4 hours?

Thanks!

First I trade very small lots. A trade would have to go over 300 pips in the hole to equal 1% of my account. Most currencies wont do that in one week especially if I stay on the side of the trend. So I minimize my losses so they cant hurt me. Yes I can get enough losers to lose money in a day, week, or month but they wont kill my account. So it becomes a numbers game for me. (think of a blackjack player who is allowed to count cards, he will almost always come out on top)

Here is how I play the odds. If price crosses the Weekly pivot what are my chances of making a profit. To see this study clean off all indies and just have the WP on the screen. How many price moves make some kind of profit every time it crosses a WP, no other indies. The answer is most of the time.

[nanningbob]

I use Cowboy IBFX USA not their overseas ones. Been with them for years, not many complaints. I do use the MPTM at times but mostly I close and open my own trades using pending orders. I never tolerate a DD of 20% and do everything I can to keep it under 10. Which means I will close trades once it gets into those areas. I am not afraid to take losses if I need to to keep my balances under control. I am also not afraid to be patient with a trade and let it run. I will multi level trade but I dont do that as much as I have in the past. In other words I will try to zero out some trades rather than take a SL hit.

I pay special attention to total lot size in play and try to keep it balanced between buys and sells with a currency pair. To be total AUD sell or GBP buy is kind of dangerous. I will place some pending sells just in case of a major reversal, such as happened with the AUD this week. I had gbp/aud sell going with a eur/aud buy. When price went the wrong way my gbp/aud sell covered my eur/aud buy so I didnt get my clock cleaned on the move. Kind of a hedging strategy just in case of a big reversal move. I dont use that very much but I will if I suspect something is up. After 6 months of DT on the AUD I was getting suspicious that its run was running out so I started to cover my trades with CT trades just in case.

[TFL999]

If you don't have a big capital that you want to trade forex with and you want to trade small lot sizes there are some brokers that have cents accounts.

Cowboy IBFX has has mini account, where the value of 1 lot is 10.000 units instead of 100.000 for a standard lot. So with trading 0.01 lot size you trade 1 cent/pip.
I have no experience with Cowboy IBFX, Bob is happy with them, Steve has a warning in his weekly roundup for them.
FXopen, Roboforex, Liteforex have also these accounts.

There are also some brokers with even smaller lot sizes and real cents accounts, where 1 lot is 1.000 units. So 0,1 cent/pip (or 0.0001 standard lot) trading minimum. XE Markets, Tradefort, Forex4You, Forexbrokerinc (ECN) have these types of accounts.

So if you want to trade small (or test an EA) there are quite some options.

(TIP, these brokers are not the cheapest, but there are some rebate sites on the web that have good rebate programs for these brokers)

Wow, your posts are pure gold!
Just 2 simple questions:
Which broker do you use that lets you 0.001 lots? Is that what you have right?
My micro account won´t let me trade anything lower than 0.01, and on a 1k account 300 pips in the hole as you said would mean 3% of the account, basically the triple...
Do you use MPTM or similar to manage so much trades at the same times to avoid being glued to the screen all day once you entered or just check them every 4 hours?

Thanks!

First I trade very small lots. A trade would have to go over 300 pips in the hole to equal 1% of my account. Most currencies wont do that in one week especially if I stay on the side of the trend. So I minimize my losses so they cant hurt me. Yes I can get enough losers to lose money in a day, week, or month but they wont kill my account. So it becomes a numbers game for me. (think of a blackjack player who is allowed to count cards, he will almost always come out on top)

Here is how I play the odds. If price crosses the Weekly pivot what are my chances of making a profit. To see this study clean off all indies and just have the WP on the screen. How many price moves make some kind of profit every time it crosses a WP, no other indies. The answer is most of the time.