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Im an investor. How to find a consistent traders?
Jun 11, 2015 at 06:52
Miembro desde Sep 16, 2014
posts 59
Guys i have changed my strategy from taking profit of risk reward of 1:3 to only 1:1.5. Do you guys think it will be more profitable in the long run as i have noticed a lot of trades which should have taken profit at 1:1.5 but beacause i let it run till 1:3, ,most of them have reversed resulting in only small profit. What do you think guys? please let me know, thank you.
Miembro desde Jun 18, 2014
posts 63
Jun 28, 2015 at 13:38
Miembro desde Jun 17, 2015
posts 42
There is a line you can cross between investing and speculating (gambling)
Managed FX as an investment should look to return 25-40% per year after fees with draw downs of less than 3-4%
Max gearing used should be no more than 3:1 and a max of 2:1 is preferable.
Here are the simple sums (no gearing)
Two trades per day average win +25 average loss -15 Hit Rate of 70%
assume 20 trading days per month that a total of 480 trades per year
per month 28 wins of +25 (average) = +700 pips
per month 12 losses of -15 (average) = - 180 pips
that's a gross total of 520 pips
Assume a USD account trading say EUR/USD and Cable then you have a gross profit of 5.2%
Take a 35% management fee - gives you about 3.4% net per month
Ignoring compounding that's 40.8% net after fees to the client
Remember the above are simply averages as viewed over a 12 month period - there may be times where a traded stop needs to be further than 15 pips from open (and obviously spreads and therefore trading time is a key factor) but never should more than 0.5% be risked on a single trade.
If you can do that and keep the draw downs below 3%: - You will have access to all the Assets Under Management you will be able to cope will and you will make a fortune...
In the real world you cannot sell high leveraged programs as the risk element to too great - remember savvy investors always look at the downside risk before they consider the profits!
Of course these are just my thoughts and targets from working in the sector and having my fair share of wins and losses over many years.
Sean
Managed FX as an investment should look to return 25-40% per year after fees with draw downs of less than 3-4%
Max gearing used should be no more than 3:1 and a max of 2:1 is preferable.
Here are the simple sums (no gearing)
Two trades per day average win +25 average loss -15 Hit Rate of 70%
assume 20 trading days per month that a total of 480 trades per year
per month 28 wins of +25 (average) = +700 pips
per month 12 losses of -15 (average) = - 180 pips
that's a gross total of 520 pips
Assume a USD account trading say EUR/USD and Cable then you have a gross profit of 5.2%
Take a 35% management fee - gives you about 3.4% net per month
Ignoring compounding that's 40.8% net after fees to the client
Remember the above are simply averages as viewed over a 12 month period - there may be times where a traded stop needs to be further than 15 pips from open (and obviously spreads and therefore trading time is a key factor) but never should more than 0.5% be risked on a single trade.
If you can do that and keep the draw downs below 3%: - You will have access to all the Assets Under Management you will be able to cope will and you will make a fortune...
In the real world you cannot sell high leveraged programs as the risk element to too great - remember savvy investors always look at the downside risk before they consider the profits!
Of course these are just my thoughts and targets from working in the sector and having my fair share of wins and losses over many years.
Sean
market nobility
forex_trader_186239
Miembro desde Apr 15, 2014
posts 224
Jun 29, 2015 at 06:34
Miembro desde Apr 15, 2014
posts 224
Hmm. You are right in general. It depends how you present your system : in high risk mode or in low risk one.
All depends on the lot sizes you trade. Nothing is wrong to have 25 DD if you get 250 % profit per year. If you want to have 2.5 DD just divide your lot size by 10 and here are your 25% of sure secure profit. It is like a sportive car, you can drive on high or low speed, all depends on investor wishes.
All depends on the lot sizes you trade. Nothing is wrong to have 25 DD if you get 250 % profit per year. If you want to have 2.5 DD just divide your lot size by 10 and here are your 25% of sure secure profit. It is like a sportive car, you can drive on high or low speed, all depends on investor wishes.
Jun 29, 2015 at 10:00
Miembro desde Mar 02, 2014
posts 20
Look009 posted:
Hmm. You are right in general. It depends how you present your system : in high risk mode or in low risk one.
All depends on the lot sizes you trade. Nothing is wrong to have 25 DD if you get 250 % profit per year. If you want to have 2.5 DD just divide your lot size by 10 and here are your 25% of sure secure profit. It is like a sportive car, you can drive on high or low speed, all depends on investor wishes.
hi alex,i remember you. i also added your account to watch last year but after 2 month why your system not visible? are you delete it..? why you delete your system? you blown your account?
forex_trader_186239
Miembro desde Apr 15, 2014
posts 224
Jun 29, 2015 at 13:41
Miembro desde Apr 15, 2014
posts 224
Hi Billy, I deleted some demo systems that is true, no point here ! The DD had to be important (but no Margin Call or blown up) so I had to change algorithm and made some new adjustments, that changes completely the system which is not the same anymore. I hope I answered your question, wish you a happy trading !
Jun 29, 2015 at 13:47
Miembro desde Nov 13, 2012
posts 102
60% of the profit for the investor.
Miembro desde Jun 18, 2014
posts 63
Miembro desde May 20, 2011
posts 724
Miembro desde May 04, 2012
posts 1608
Jul 04, 2015 at 01:23
Miembro desde May 04, 2012
posts 1608
mdjvlr posted:
hi chek my robots reports
@mdjvlr
I checked your robots' reports... This one is really 'impressive': https://www.myfxbook.com/members/mdjvlr/robot3/1273391
Please click "Vouch" if you liked my post. If not, just put me on your Blocked list. :o)
Miembro desde May 04, 2012
posts 1608
Jul 04, 2015 at 01:33
Miembro desde May 04, 2012
posts 1608
waarlog posted:
https://www.myfxbook.com/members/waarlog/harvester/1288473
Hi. Stable and working system.
@waarlog
Other than being a GRID strategy, it looks good (until it does not look good).
I am very skeptical about GRID strategies. Why...? Because sooner or later they all face major drawdowns. The question is not IF, but WHEN...
For example: Here is the famous Caesar400% GRID strategy: https://www.myfxbook.com/members/togr/caesar-400-eurusd/662462
- Although the curve looks good, it has not made a single penny profit since January of 2015 (i.e. for the past 6 months).
- Max. DD: -51%.
Would you bet the house on a grid strategy...?
And Caesar400 is still one of the best of the 'gridders'.
Please click "Vouch" if you liked my post. If not, just put me on your Blocked list. :o)
Jul 06, 2015 at 06:44
Miembro desde Mar 09, 2015
posts 2
I am searching for a consistency trader / fund manager...
I loose a lot of money in Forex Envy pamm (solaris) cause i was a really newbie, without understanding how grid and martingale strategies were so dangerous...
I have lost my faith, to find out a good fund manager. I do not want to have HUGE DD, but i wish i could have consistency.
I have 10k to fund, but before to put all my money in one account i wanna split to see the performances... so 1k here 1k there....
Right now, i am using 1k only to Wise Invest Mam Low Risk. Till now, so far so good, they are working very well.
But is too early to judge. So I will keep you posted. By the way stay away from grid stategies...
I loose a lot of money in Forex Envy pamm (solaris) cause i was a really newbie, without understanding how grid and martingale strategies were so dangerous...
I have lost my faith, to find out a good fund manager. I do not want to have HUGE DD, but i wish i could have consistency.
I have 10k to fund, but before to put all my money in one account i wanna split to see the performances... so 1k here 1k there....
Right now, i am using 1k only to Wise Invest Mam Low Risk. Till now, so far so good, they are working very well.
But is too early to judge. So I will keep you posted. By the way stay away from grid stategies...
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