Learning Cycles For New Traders - page 6
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I remember when a grid EA called BMX and its variations were introduced in the Automatic Forex Forum the members there were so excited and were discussing about what would happen to the market. The EA was on a tear and was producing hundreds of pips a day for about 3 months and they thought that they had discovered the Holy Grail.
Some were urging others to keep the EA and the strategy secret. They did not pay attention to the real potential for account blow up. What a bunch of naive folks they were.
A lot of folks bet their farms on the thing and had their accounts wiped out after some time and were devastated.That's why I said You need a big account. That can with stand 8 levels. But that will happen very rarely, the 8 level move.
Thanks,
Dan.
I like how this strategy is very similar to Blessing System, you just changed the lot sizes. Anyway...
I did some quick dry math here...
If you use the following account type
200:1 leverage
initial Lot 0.01
And the market moves 180 pips without any 20 pips retrace or 9 levels, then you will need around $2k to cover the move.
If the currency moves 10 levels or 200 pips in 1 big move with no 20 pips retrace then you will need around $3700 to cover the margin and float.
The more levels the price moves the margin required almost doubles. And when the retraces does happen you only gain 20Pips worth of the initial lot size. In this case 0.01 and 20 pips = 20cents.
So you in a move like that, and it does not happen often, you are puttin around $3700 on the table to make 20 cents.
Now most of the time you donot see that kind of move, but when it does happen and it will, you will get margin called and loose almost all your account.
Only filter I can think of is to use a currency that does not act or move like that. Like GBPJPY is definately out of question. Infact anything with GBP is out of the question.
EURUSD, looking at the previous charts, seems like there were some big moves. Maybe the news days or week or months can be filtered?
I think USDCHF or ERUCHF is best currency for this, as its a slow moving snail or turtle and give enough movement to cover 20 pips but also does nt move like a GBPJPY type of pair.
My 2 centsThe currenicies You suggested are too big of a spread. And no, you are not risking no more that $3700 on a mini acocunt. That is 33,700 pips! I don't think so, really. It can be 2,000 pips though, but that happens very rarely.
Can we modify this monster with 10point3? It can be easily done.
Regards
DavidWhat's 10point3?
Thanks in advance.
Modified Version
I am very happy to here that!
This is how it works, step-by-step :
1) Open Chart. When 00:00 time on MetaTrader 4, buy and sell at the same time. One lot Buy, one lot Sell.
2) At the price level that you entered in, ie., 1.5000
You would set no stop-loss yet...draw a horiziontal line on the 1.5000 Level, and then draw a horizontal ine 15 pips above your enter price level ( 1.5015), then another 15 pips, and another, until You draw 8 horizontal lines above your enter price level. Do the same thing under the opening price level. 8 horizontal lines down. 15 pips apart.
3) The horizontal lines are called levels. The first horizontal line above the price level that You entered is called Level (+1). The second level above the price level that You entered in is called (+2). Same thing at the bottom. Thrid level down is (-3).
4) If after You bought and sold 1 lot each, price reached Level (+1) before Level (-1), You would sell 3more lots at (+1) Level. And let the buy stay at 1 lot. After (+1) Level is reached, put Stop for all open trades at Level (0) the price level You started with.
5) Make sure to not mess up on the bid and price, I want all my orders and limits to be hit exactly. Thanks. Also, I want it to cound with spreads. So like for example, You wont make 60 pips, you will make 58 pips. Something like that.
6) For the trade at Step #4 above, the results should have looked like this please.
#1 Buy 1 lot = Spread(-2 Pips) -$2 ( Eur/Usd )
#1 Sell 1 lot = Spread(-2 Pips) -$2
#2 Buy 3 lots = Spread(-2 Pips)*3 + 15 Pips. +$39
Total : +$37
7) If, at Step 4, above, price reached (+2)
-which is 7 lots sell-
Level, you would immediately set Your Stops for all open trades at Level (+1), and so on. Vice Versa for under price level you entered.
8) Each time price reaches a higher level, lots are added. Here is a chart :
Level #1 = 1 lot
Level #2 = 3 lots
Level #3 = 7 lots
Level #4 = 15 lots
Level #5 = 31 lots
Level #6 = 63 lots
Level #7 = 127 lots
Level #8 = 255 lots
It is previous lot (*2+1)
9) If trade is longer than a day, the next 00:00 time, then wait until your stops are hit, then quickly draw new horizontal ine depening on the opening price level of the next 00:00 time. If trade ends before the next 00:00, make a new trades again. Same rules. Once the Stops are hit for the first trade, the price level that the stops were on, that will be your entering level for the next trade, unless a new day happens.
10) It doesn't matter what timeframe your using. Eveything will be the same anyway. I need You to calculate please what is the minimum balance to trade this method. If You have a big account that can withstand 8 levels, you will never lose, I guarentee that You will never lose. I am serious. This method is all about math, and having a smart overbeyond method. It will constantly give You money everyday.
Wating for the EA. Thank You so much.
Ask away. I will be very happy to answer your questions.
Another thing.......
Also, if You are afraid to lose your account, then don't. Strart at $100 on mini account or so, and and when reahces big, withdraw the money. Easy! Or, open 5 accounts. On monday, trade #1 account. Tuesday, trade #2 account, and so on. I will be posting trades.
Hmm
Dan: and you are trading on real account ?
)
Deaf Ears - This is too funny
Denial in all it's glory is an amazing thing to watch.
FxN
Euro Price 1.3351
Point 0.0001
Leverage 200
Normal Lot $100,000.00
Initial Lot 1
Margin Per Lot $667.55
Levels--Lots---Margin Required For level----Total Margin Required
Level1-1-------$667.55--------------------$667.55
Level2-3-------$2,002.65------------------$2,670.20
Level3-7-------$4,672.85------------------$7,343.05
Level4-15------$10,013.25-----------------$17,356.30
Level5-31------$20,694.05-----------------$38,050.35
Level6-63------$42,055.65-----------------$80,106.00
Level7-127-----$84,778.85-----------------$164,884.85
Level8-255-----$170,225.25----------------$335,110.10
So if Price reaches Level8 without closing any of your previous levels then you need total of $335,110.10 Margin to cover just opening the lots. I am not counting the Negative pips and the float, this is just margin required at 200:1 leverage. As you can see, this is not for the faint hearted to trade. Infact not sure if anyone with 300+K account will trade something like this. You probably have a better chance buying a lotto ticket and winning that.
And not to mention, if price goes to 9th level oh boy. And this is 15 pips step, so 15x8(8 levels) = 120 pips move. I can definately see alot of moves euro made that were 120 pips in one direction without even looking back.
My 2 cents
Dan: and you are trading on real account ?
Of Course! You think trading this system for 2 days on DEMO, and seeing it is very profitable, I won't trade it LIVE? Also, I backteseted it. On Demo, I made 15 trades total. All were progress. On live account :
I made 300 pips of it so far. About $3,000
Euro Price 1.3351
Point 0.0001
Leverage 200
Normal Lot $100,000.00
Initial Lot 1
Margin Per Lot $667.55
Levels--Lots---Margin Required For level----Total Margin Required
Level1-1-------$667.55--------------------$667.55
Level2-3-------$2,002.65------------------$2,670.20
Level3-7-------$4,672.85------------------$7,343.05
Level4-15------$10,013.25-----------------$17,356.30
Level5-31------$20,694.05-----------------$38,050.35
Level6-63------$42,055.65-----------------$80,106.00
Level7-127-----$84,778.85-----------------$164,884.85
Level8-255-----$170,225.25----------------$335,110.10
So if Price reaches Level8 without closing any of your previous levels then you need total of $335,110.10 Margin to cover just opening the lots. I am not counting the Negative pips and the float, this is just margin required at 200:1 leverage. As you can see, this is not for the faint hearted to trade. Infact not sure if anyone with 300+K account will trade something like this. You probably have a better chance buying a lotto ticket and winning that.
And not to mention, if price goes to 9th level oh boy. And this is 15 pips step, so 15x8(8 levels) = 120 pips move. I can definately see alot of moves euro made that were 120 pips in one direction without even looking back.
My 2 centsYou do not understand my method, again. Sorry. Try reading over it again. It will most likely never reach level 7 even. It it will, that iwll be rarely, the last time it did that was in the attached file.