Quote:
Originally Posted by PippinTom
Hello David,
I will also be using a modified Anti-Martingale Methodology found on Robert Borowski's article called "Forex Freedom" ( http://www.geocities.com/neng_dyah/Forex_Freedom.pdf)
The good thing with this methodology is that after I passed the first step (turning $300 to $400 by trading 1 mini lot per trade), I can "accelerate" my trade by going to Step 2 (trading 2 mini lots as long as your equity if $400 - $599). If I failed during the period where I have to trade 2 mini lots I have to go back to Step 1 (trading 1 mini lot as long as your equity is $300 - $399).
Here is an example:
1.) I started with $300 trading capital. Because I fall in the $300 - $399 equity range
I have to trade 1 mini lot until I reach $400.
2.) A week later my equity turned into $420. Because I fall in the $400 - $599 equity
range I have to trade 2 mini lots until I reach $600.
3.) A week later my equity turned to $380. Because of this I have to go back to Step
1 again until I reach $400.
4.) And so on and so forth....
Another good thing with this is that even though I experience a loss and went to $380 this is actually a profit compared to my starting capital of $300.
My FOREX teacher told me that in real-life an average investor who only relies on Channel Trading can turn the $300 capital to $14,000 in 2-3 years if he just stick to the plan and have great discipline.
I was overwhelmed by the complexity of MetaTrader 4. Is it possible to chart trade on MetaTrader 4 using historical data in a 1-hour period? If so, how?
I still like the user-friendliness of FXCM because you can trade on the chart itself.
Regards,
Jeff |
Hi Jeff,
Good to hear from you again.
I had a look at the ebook linked to above. To be honest I am always very skeptical of anything that uses the type of sales technique which basically tries to convince people that trading is easy by saying things like "you can make a living in an hour a day" and "turn $300 into $30,000 in as little as 6 months".
It is my opinion that sales tactics such as these are one of the major reasons why so many traders loose money as they read things like that and come into the markets with a get rich quick and easy type of mentality.
So anyhow I would take anything said in this book or by the person who puts it out with a heavy dose of skepticism.
With that out of the way in my opinion the way that you are going about trying to figure out a way to enter trades, manage trades once you are in them, and then exit those trades is the right place to be focusing your attention.
With this in mind I think most traders would agree that the basic idea of having a methodology to up your trade size as the account grows is a good one.
In my opinion however traders should find a way to do this while staying inside their risk parameters. So with this in mind with a 20 pip stop loss trading 2 mini lots on a $400 account you are upping your risk per trade to 10% of your account which I think most would agree is pretty high.
Dr. Van K. Tharp in his book Trade Your Way to Financial Freedom outlines two popular methods for position sizing which are known as the % Risk position sizing method and the % volatility position sizing method and which may be a better starting point for you. If you have not seen them already I also have two videos on this in my free basics of trading course which are located at the links below:
How to Increase Trading Profits Using the % Risk Model
Maximize Trading Profits Through Correct Position Sizing 2
I also highly recommend Dr. Tharp's book for more info on this as well as the many other steps involved in developing a trading strategy which can be found here:
As to your question on Metatrader if you are looking to simply trade from the charts then you probably don't need all the additional functionality of the Metatrader platform as there are many other options such as FXCM's platform as you have mentioned which will allow you to do this.
What I am referring to is using the platform to test out ideas on historical data something which if you are not familiar with I will be doing a course on in the coming months.
Thanks again for sharing your development here I think many benefit by seeing someone go through the process of putting together a strategy.
Best Regards,
Dave