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GalvestonForex

15 pips to a FORTUNE

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15 pips to a FORTUNE

 

The 15 pip Challenge: It’s well worth our time!

 

We are hoping that every member in this trading forum can share their insights and thoughts in an effort to develop a consistently profitable 5 minute charting system.

 

As we all know the daily range of many currency pairs is in excess of 100 pips, which means that with the major up and down movements the potential trade-able range goes up to around 150-300 pips. When we utilize a smaller charting timeframe we allow ourselves many more strategic opportunities to enter into a new or developing trend with a smaller downside risk.

 

The goal is simple: 15+ pips on average in any given currency pair per day, considering the daily price swings this is a very conservative goal and should not be a problem for a group of intelligent traders to figure out. Whether we come up with a strategy that wins consistently or simply wins one more than it loses it doesn’t matter.

 

The WHY!

15+ pips doesn’t sound like much, but when you step back and look at the bigger picture it all becomes worthwhile. If we consistently can make 15 pips on one currency pair, odds are we can do the same in a few other currency pairs. If we extend our system out to say 8 currency pairs we could pull in 120 pips per day or 600 pips per week. 15 pips is very small, but 600 in a week is unheard of, but if we can make the 15, we can make the 600.

 

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From a mathematical stand point of view sounds good, but from a RRR (risk reward ratio ) its not practical... you have to aim more gains when it comes to good trades in order to be able to get a good promediation on your stop losses... so lets say you take a trade and you can have a 50 pip potencial, you should take the entire potencial and not condition yourself to a low daily target.. any way your objective is a good concept...having objectives is good... I think that would be wiser to take that objective to a week... for the entire universe of a week you should aim x amount of pips.... that will give you more flexibility to take only the best trades and also have a good RRR strategy... I have done some proyeccions... and if you do 35 pips per week you will make in two years a humble climb from 10.000 dollars to 300.000.000 and if you dont want to go any bigger.... with 300.000.000 you can make at a pace of 35 pips per week 150.000.000 per month , not bad to pay your bills... now the truth is other... you have to be a very well focused trader to finish every and other week with 35 pips... most probably that will not happen, becouse from a RRR stand point of view you will need to make more than 35 pips per week in order to absorb all your future and past stops.... so in other words... just trade with good money management (RRR) and you will make the "equivalent " to that money or even more, but dont get yourself conditioned to making certain money in certain time.... you cant tell the market do this or that... just take in the proper fashion what he (the market) can give you and you will be surprised on the results.... I still like your positive spirit, that will take you to good results, just dont think to much on the money.... think on trading well, money comes alone... cheers Walter.

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In general terms trading is a bussiness of RRR (Risk reward ratio ) where your risk has to be at least 1/3 of your winning potencial.... so when you take a trade you have to take into acount where is your stop vs where is your "basic" target... if technically your target is small in relation to your stop level then you dont have a good RRR on your position.... many people loose money because they dont understand the fact that there was no enough potencial on their trade vs their risk... taking small stops its not a problem if you had Potencial of gains on your trade... the problem is taking 1,2,3,4 uuups small stops and then when you take a good trade you win the same you lost on 1 stop.... there you have a big problem you are -3 on your performance... :p now... just about any techniche has whipsaws included on their trading plan... like it or not even the holy grail has whipsaws... so you have to get cool and friendly with the whipsaw fact and complement that having a good trailing sistem for your good trades staying inside as much posible.... does trades will finance your whipsaws and hopefully will make you a + diference... (maybe the 15 pips) if you dont trail a good trade you are most probably not going to make it.... cant finance your business with so small profits... need good trailed trades to make this bussiness posible... now good news ;) the market does trend.... so if you have good tren definition plus good timing plus good trailing + +++ dicipline, actitude , perseverance, patience, dilligence, technical skill, trading skill, etc etc you can make possible what our friend herewants to make.... 75 +net pips per week.... not imposible... just remember the fact of RRR on the entire picture... its live or die... non-experienced traders dont loose money on one trade... they loose in too many stops vs to small gains on some good trades, what is needed is : several stops vs several great trades... thats how it works.... cheers Walter... and yes you can make finally 15 pips to a fortune ¡¡¡ :cool:

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I dont trade forex myself actually, I am trading futures (eminis)... I plan to trade forex some time second half 2007... any way I always sniff around to see whats new on technical resources for forex... I personally on my experience find harder to trade forex than futures (did trade forex on 1998-2002) not very happy with performance, doing well actually on futures and being more enlighted thru some of soultrader techniches .

I want to share with Galvestone a site I came around and find it atractive from a technical stand point of view also from a RRR point of view (KEY TOPIC) and is LeverageFX Foreign Currency Trading Software and Brokerage they are topgunsoftware version for forex... very good stuff they have some videos too explaining their aproach... even looks like you can have free data and software if you open acct with some x brokers.... I did trial topgunsoftware some time ago... nice stuff... any way I am with linnsoft now and really once you trade with delta its adictive the win ratio you have.... maybe I will create a new post with my aproach some time later... but forex traders, Galveston and other folks keep up that work ¡¡¡ hope this helps to this thread. cheers Walter.

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Tingull, you can take a look to my aproach on Technicall trading thread :"my entry vs my stop vs my exit" unfortunately I dont plan to keep using deltas... I just experimented with them and didnt find more edge than I have actually... any way I would aprecciate your feedback to my aproach on that thread... cheers Walter.

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