Care to Join My Challenge?

[renner1984 10]

Hello all! I've been in the Forex industry for 18 months and have learned a lot, though I am still at a dead end in settling on a system. However, I've concluded risk/reward ratio is everything. Considering that most professional traders are right at best 50% of the time, it is best to have a good risk/reward ratio.

 

For those of us who want to make Forex a way to put food on the table, I'd like to present a challenge to come up with a mechanical system (doesn't have to be automated, per se), which given a minimum "win accuracy" and a weekly goal (i.e. percentage of account), and a certain risk/reward, how many trades it would take to reach it and to find a reasonable system in which to implement it.

 

I've attached an Excel file which allows you to play around with the numbers. You can change the fixed stop loss & take profit, minimum win accuracy, return goal, lot size, and initial balance.

 

For me personally, I'm looking at a weekly 10% gain. For those interested, any ideas? Any input? Thank you all.

moneymanagement.xls

[forex5x 10]

Break your 10% up into bite sized pieces.

 

It is hard to place a trade or series of trades and come up with 10%.

 

But if you target 0.3% or 0.5% then you have a smaller battle and less risk per cycle.

 

Assume a $100,000 account. 0.3% would be a gain of $300.

At 1 lot you need to net 30 pips.

At 3 lots you need to net 10 pips.

 

I like to use Entry Orders above and below price and let the market decide the direction and when it opens one side or the other I am "live" and until then I am in a wait and see mode.

 

When I manually trade I place entry orders around the price and let them go for a short distance and TP. I don't close losing trades until I am net positive and then close them all.

 

Hope this helps. If it doesn't don't worry...you need to find your own way that fits your mentality and once you find it you will have a system that fits you.