Ridiculous High Risk Trading by The Backyard Trader. Should you choose to follow this signal start with small capital and let it grow - withdraw often - DO NOT TRADE WITH MONEY YOU CANNOT AFFORD TO LOOSE!
So, I tried to hedge my way out of a very unexpected move by GBPUSD and the hedge got stopped out all the time due to volatile price movement, which led to the current draw down I'm in. I cannot close the order, because then I'll face a 50% loss on the account so I have to ride this hedge until I reach a BE point on the 4 open buy orders. The short that hedges the 4 buy orders also got stopped out during Asian session so I have another ending short about 20 pips away from current price. All I can hope for is that GBP's CPI result this morning will push the price bullish far enough to hit my BE point.......
Some of you might not know my journey up to where I am today so I'll start from the beginning. I got introduced to Forex Trading back in 2008. Like many newbies I started trading myself and blew all the demo accounts I opened...
"HOW MUCH MONEY CAN I MAKE COPYING YOUR FOREX SIGNALS?"...........
This is a question I get asked a lot and I answer it as follows:
It depends on how much money you start with and what risk exposure you are comfortable with. Had you started with $150 with me about 2 months ago and followed the same risk exposure (volume trading size) you would also have had an account size of +$800. However, my max draw down during this period was 37% and many traders are not comfortable taking such high risk. So if you are not willing to risk more than 20% of your acc balance you can trade half the volume I trade, which means your risk would be +- 18% with equity growth of +- 200%. On the other hand if you increased your volume of trade you would have been much worst of on the draw down side.
My recommendation is as follows. Start with a small amount like $100 so that you get a feel for my trading style. Also do not trade with money you cannot afford to loose - this is very important. I am 100% committed to always keep my draw down and losses to a minimum, but the Forex market is a High-Risk environment to trade and price spikes and volatility can upset any trader and it's strategy. Use my past performance as some sort of guidance, but it is not guaranteed for future performance. I also said a couple of times that my equity growth will slow down as my account grows, because it is only natural to trade more cautions and less risky the bigger the account.
My goal is 5% to 15% per week and if you are comfortable with that goal and can handle the risk then please go ahead and copy my signals. Remember, you control the risk and you can close trades on your side as you wish.
It is the end of the week and time to look at my performance this week as well as my Risk assessment.
Result for Today: +3.61%
Result for the Week: +25.90%
Overall Gain: 401.84%
Risk is as follows:
There is a 30.81% chance of loosing 10% of my account, 8.26% to loose 20%, 1.86% to loose 30% and 0.33% to loose 40%. I did mention previously that the bigger my account grows the less risk I'll apply.
It has been a great week for me and I'm very satisfied with the result I achieved this week. The +25.90% gain this week is just about the max I see going forward unless I pick up extreme momentum on a trade.
Now it is weekend time and back to watching good Tennis at Wimbledon!
#AUDJPY - This is as close to 80% accuracy as you will ever get...... double top with lower high on 15min near a key Daily Level. I have 2 x Orders, of which one is active and the other is a Pending Sell. Once both orders are active my overall Risk would be 15pips and my Reward is 65pips.
Due to a Bearish spike on GBPJPY, which by the way I did not see coming, I lost the profit I made yesterday, which is not cool..... I have 2 more orders on this pair, because we are still Bullish and heading for an upper key level as indicated on the chart. I only hope there is no more "surprises" on our way there....
GBPUSD orders have been setup and now we wait......
Anticipate price to push down to 1.3225 region and pick up on previous key Demand Level. I have a 20pip SL in place just in case the bearish momentum is too strong, but then I'll pick up another Buy order on the swing. I see this pair head to 1.3380 by tomorrow.
An awesome start to the week with a whopping +9.79% Profit for the day pushing my Overall Gain to +337.63%. I'm hoping to tap into tomorrow's volume to push the account a further +9%, but only time will tell.....
With Monday around the corner it is time to switch on the charts and start looking at what to trade.
USDCAD is still very much on my radar. I see this pair heading down to 1.3050 region on Monday/Tuesday and even lower to 1.3000. I do anticipate a short term bullish move to 1.3110 region first though.
Also keep in mind the rate change announcement on Wednesday.
As always we look at my Risk at the end of the week. You will know that is was a tough week for me with some draw down periods as well as some good recoveries. I admit I made some unnecessary trades, which lead to some over trading from my side. This however did not exceed my max draw down I allowed for myself, but the recovery would have been much sweeter had I not over trade. So lets look at the Risk for the pas week:
There is a 40% chance to loose 10% equity, 14.68% chance to loose 20%, 4.66% to loose 30% and 1.24% chance to loose 40%.
Use this as a guide in your own account and adjust your trade volume accordingly.
As one is never to old to learn in this market I was reminded again this week how quickly things can get out of hand.
So next week I'll push forward towards $700 and then $800. My weekly goal is still 10% to 25%.