How I trade forex and make a profit.

If a picture is worth 1000 words than a video is worth 1 million, so I made some videos for other traders to see how I trade the markets. This is not the only way to extract money from the markets but it's how I do it. This first video is on learning how to trade the markets for the beginner.
http://youtu.be/fjrxfbOTbiw
This next video is what my desktop looks like.http://youtu.be/V5SJgW7j6L8
Then I have a video of how I prepare for the trading week. http://youtu.be/gH1G-1oPxF0
This next video is on how I managed trades.
http://youtu.be/RvaDwjQRH-g
Then I have a couple more on understanding volatility and trade volume.
http://youtu.be/CnaUXVhAHHw
http://youtu.be/d9mCrvDgLEg

I hope you all enjoy these videos and maybe gain some knowledge to help you along your path to being a profitable trader. I am not commercial in any way nor am I selling anything. I am just a home-based retail trader like most people on the forum. Good trading to all, TraderAllen

P.S. If you think trading it hard try to make a video about trading.

Hey TA

great stuff....

interesting to see you set up your day witha strengthmeter ...........is that Henry Liu's or your own you are using ?

N

Traderallen said:

If a picture is worth 1000 words than a video is worth 1 million, so I made some videos for other traders to see how I trade the markets. This next video is on how I managed trades.

http://youtu.be/RvaDwjQRH-g

TraderAllen

P.S. If you think trading it hard try to make a video about trading.

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hey TA - thats a nice video .....just a question ....your screen says new highs and lows are traps but you still sold on the breakout of a new low ?

N

sorry - one more question TA

are you generally 90%+ on those scalps ?

thats top gun stuff

N

Hi NVP, Yes it is Henry Liu's strength meter. The notes on my chart are reminders to be cautious. That corner of the chart pertains to low order flow and not to give new highs and lows much room if the volume is low. The chart notes are reminders where I have made a mistake more than once. According to my optimal F worksheet (the only place I keep a running total) the the last 150 trades 92% paid off. the lowest i have been in the past nine months was 89%. Most of my losers are where I made a mistake or just did not follow my trade plan. Allen

Traderallen said:

. . . the the last 150 trades 92% paid off. the lowest i have been in the past nine months was 89%. Most of my losers are where I made a mistake or just did not follow my trade plan.

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Hi Allen,
Of your 150 sample, what was the profit ratio? I ask because, as you know, a very high success ratio is pretty meaningless on its own.
Tim.

I dont understand the fixation with the "win-rate" ! Surely as humans we love to be right nearly all the time , however it has nothing to do with being profitable , your win rate could be 99% and still lose money . Infact a high win-rate always put me off , and i then know the trader isn't going to be successful in the long run ...

I have made $8.36 in profit for every $1 that I lost.

timsk said:

Hi Allen,
Of your 150 sample, what was the profit ratio? I ask because, as you know, a very high success ratio is pretty meaningless on its own.
Tim.

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The amount of profitable trades versus the amount of losing trades is very important. To keep it simple. I average around 90% profitable trades. If I have a bad month I may drop into the 80s. If you're only winning 10% of your trades and you have a bad month you'll likely blow out your account. The idea that's taught to most people that you can win 30% of the time and still be a profitable trader is for the most part not reality. Because one error or mistake will cost you dearly in reality. Just because it works on paper doesn't mean it works in real life. My win loss ratio is high because I focus on not losing instead of winning. Winning trades take care of their self.

tar said:

I dont understand the fixation with the "win-rate" ! Surely as humans we love to be right nearly all the time , however it has nothing to do with being profitable , your win rate could be 99% and still lose money . Infact a high win-rate always put me off , and i then know the trader isn't going to be successful in the long run ...

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We didn't discuss how much to risk per trade , so i don't see how "one error will cost dearly in reality" ...

So a 90% win rate and each and making $8.36 for every $1

Congratulations on being perhaps the best trader on the planet.

Traderallen said:

I have made $8.36 in profit for every $1 that I lost.

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Amazing, T2W is blessed with yet another trading god! As DionysusToast suggests, you must be right up there with the all time greats - and eye wateringly wealthy to boot no doubt.

Tim.

Despite this obvious wealth - he still has a $70 web site!

I wish I was wealthy. currently I'm battling in the trenches everyday. Feel free to poke fun at my success I don't mind. I already know the hard work and perseverance that it takes to make money in the markets. My goal here is to improve every day by being able to communicate what I do. And if I can help someone along the way that's even better.

Let's consider those numbers for a moment....

Take a 90% win rate and you can quite comfortably risk 10% of your account per trade.

You make 8.36 x your risk every winning trade.

On a $10k account, your first trade risks $1k and returns $8360. Your account balance is now $18360 and your second trade risks $1,836 and retutns $15,348.96.

At this point you are sitting on $33k - tripled the account in 2 trades.



Here's 20 trades, I threw in a couple of losers.

Like I say - it's either BS (content removed)

As for "offending your family" - not half as much as your attempts to offend our intelligence.

Im done, sorry for offering to talk to others about how i trade and make money. I have posted every trade i have made in nine months on here. There is nothing false. I work to hard to have to deal with this person. It now see why the good traders all leave. Its not worth it. Good trading to all

Traderallen said:

Im done, sorry for offering to talk to others about how i trade and make money. I have posted every trade i have made in nine months on here. There is nothing false. I work to hard to have to deal with this person. It now see why the good traders all leave. Its not worth it. Good trading to all

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Hi Allen,
There's really no need to take umbrage at DionysusToast's - or my - comments. The former's 'hookers and coke' post was, quite clearly, made in jest. That said, if you really are offended by it, or any other post on T2W for that matter, please use the red flag 'Report Post' button to bring it to the attention of the Mods who will deal with it accordingly.

T2W has a history of members making the most incredible claims. As a knowledgeable and experienced trader, you will know that 99%+ aren't anything like as good as they sound and, sadly, that a good many of them are just plain lies. Often as not, they are made by vendors preying on novice members or Walter Mitty type egotists. I'm not accusing you of being either. Indeed, perhaps you're the exception that proves the rule and really are as good as you claim. If so, I shall happily eat some humble pie when you show us how you do it. Otherwise, you'll forgive us for our scepticism and for thinking that perhaps you're being a tad economical with the truth or overlooking some key details which would paint a rather different picture regarding your success.
Tim.

Morning guys

I was as interested as all other contributors on this thread of Trader Allen claims - as they even make my figures look like total novice ;-)

However - I tend to think he probably gone wrong somewhere on his maths - and that really his sample size is just not enough

He claimed 92% win ratio on approx 150 trades - which I am sure we would all admit is really extraordinary. The only other well known guru trader I know who says he has had this type of success is a Dr Silvraman - A trader I used to follow many years ago before he ruined his reputation by going with algo trading and fortune telling ;-)

I have seen in many trading contests - traders achieving 100% record on 50+ trades - with the odd trader making the magic ton with no losses.

On real live account contests - never seen over 90% on 100 trades - and of course these were really experienced expert scalpers - on a roll and having luck as well.

My own live records - average between 62% win ratios on 100 trades - to my personal best of 87% win ratio on an 100 trade batch.

To maintain - 70 -80% ongoing is extremely difficult - and that will even include many trades with just plus 1 or 2 pips - hardly great trades - even with 5 pip stops.

With regards to an average RR of 8 - well we all know that cannot be correct - some error there

My own average RR over thousands of live trades is only just above 1 - even though many days I get RR's of 4 and 6 and of course the occasional 10 or 20 - but 80% plus of all my wins are under 10 pips with stops from 3-7 pips - so not even an average RR of even 2.

One point I know DT and all the other commercial guys get wrong though - is the compounding lark

Yes its great in theory - and can give you fantastic results in the future - but not many retail traders on a few dollars a pip with their money - will be able to handle 10 lots a pip and 25 lots per pip ongoing etc etc - as they will not be able to handle it psychological wise - after all its their money - not some Banks or Hedge funds

This is why Random and Shakone - were wrong and out of order trying to take the mickey out of my results -as they were compounding them - and of course I had said from day one - I don't do compounding - as I got burnt at 25 lots and cannot hack it with my own cash

So for me to make 25 -50% per month on capital account under $100 k is true and provable .

But all profits are withdrawn - and nowadays I dont even try over 15 lots never mind 25 lots - as its too much stress and pressure on a 60 yrs old using his own money

Plus the fact - even on 5 or 10 lots per pip - a 70% win ratio - stops under 5 -7 pips - stakes 0 .3 - 1 % - and an average RR of just over 1 - you can still make a great return .

But try and do it on a $1 mill plus account - i would probably struggle to do 5% per month.

Its a different ball game - just like commercial trading and retail trading - chalk and cheese.

Meanwhile I suggest Trader Allen - don't leave - just recheck your figures and also be aware you will not keep you 85 -92% win ratios up ongoing - they will fall - but if you are good you should be able to keep them over 70% ongoing

Only my thoughts and view

Regards


F

DionysusToast said:

Take a 90% win rate and you can quite comfortably risk 10% of your account per trade.

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For anyone subscribed to the thread - especially newbies - who think DionysusToast (DT) and I are being unfairly harsh on Traderallen - let's see what the figures look like if we don't compound profits and risk much more conservative amounts per trade than DT provides in his illustration.

Tradeallen has told us that of his 150 trade sample he enjoys a success ratio (i.e. number of winning trades relative to the number of losing ones) of between 89% and 92%. Let's call it 90%. He also says he enjoys a profit ratio of 8 : 1 (i.e. the profit on winning trades is eight times larger than the loss on losing trades).

For the sake of argument, let's say he has a $5,000 account and risks 2% on each trade. In other words, he loses an average of -$100 on the 15 losing trades, totalling -$1,500. On the plus side, he wins an average of +$800 on the 135 winning trades, totalling +$108,000. This gives him a gross profit of +$106,500. On a $5,000 account, this represents growth of 2,130% which, by anyone's standards, is nothing short of stellar.

Even if one goes ultra conservative and assumes he only risks 0.5% on each trade, the results are still amazing. In other words, he loses an average of -$25 on the 15 losing trades, totalling -$375.00. On the plus side, he wins an average of +$200 on the 135 winning trades, totalling +$27,000. This gives him a gross profit of +$26,625, which equates to an account growth of 532.5 %. If one assumes that the 150 trades represent a full year's trading and he re-invests his winnings (i.e. compounds on an annual basis only), he will be a multi-millionaire by the end of year four.

If Traderallen can do it, fair play to him but, for the reasons given in my previous post, he needs to back up his claims to silence his sceptics, or be prepared for a bit of gentle ribbing. Unfortunately, the fact that he appears to have quit T2W without offering any kind of explanation, suggests that not everything is quite as he would have us all believe.
Tim.