$300 to $30,000 in six weeks trades by proforextrades

[rossored]

Yep, I always say, you cant beat buying into a head and shoulders...

 

[zdforex]

Today's Result: -43 pips

Week 4 Day 16 Net Balance: $290

I trade 1 mini lot until the balance is $399 then I start trading 2 mini lots

 

[bulldozer]

Today's Result: -43 pips

Week 4 Day 16 Net Balance: $290

I trade 1 mini lot until the balance is $399 then I start trading 2 mini lots

I thought ur account was above 400? maybe I'm getting mixed up with ur other account at Moneytec.

Now trading around 8940
days range 8929--9075

I think many members are thinking u should re-name the thread to: $300 to $600 in 6 weeks.
Looking at ur past xperience's [forex] on this site and on the other one ur having a tough time reaching $600 in 6 weeks [100 %]

How many $300 accounts have U blown so far?

 

[zdforex]

May 03, 2005

Buy 1 mini lot GBPUSD 1.8934 SL 1.8878 TP 1.9039

 

[rossored]

May 03, 2005

Buy 1 mini lot GBPUSD 1.8934 SL 1.8878 TP 1.9039

OK, even I'm curious now.

Why is your stop at 8878? Why not 8900, just under what could either be a new low or the point at which an upmove has failed?

Why is your target 9039? Why not 9015, 9047, 9062, 9092, or 9159? (all much better areas for a target btw)

So far, you've failed to answer any of the (quite reasonable, imho) questions that people have asked regarding your "strategy", and you just continually post cable longs that continue to fail. I rather hoped you would answer some of the questions (even ones that I might not totally agree with), but you just seem to ignore all questions, except those ones that relate to your 'money management' table.

If you can't answer these questions, there is little point in your posting on the board, to be frank - so please answer them, or I think the thread has come to the end of its life.

Thankyou.

 

[FetteredChinos]

i think this strategy might have been backtested from 2003-2004.

one thing to draw from this is that it does go to show that you need to backtest for many years to get a feel for all market conditions.

FC

 

[zdforex]

To answer your questions.

The Strategy is quite simple, it works as follows:

If I have a Buy signal I would buy M2 Target R1 Stoploss under S1, If I have a Sell Signal I would Sell M3 Target S1 Stoploss above R1.
This is today's chart of GBPUSD.

M2 was at 1.8934, S1 was at 1.8888, R1 is at 1.9039. I had a buy signal so I bought M2 SL under S1, Target R1.

Proforextrades

P.S. R and S are pivot resistance and support and M2 and M3 are midpoints between Main Pivot and S1 or R1.

Its a mechanical system, with the only discretionary decisions being the time to calculate the pivots, I use 2100 GMT as my start for the next day, its after the end of the US Session. and also whether to choose a sell or a buy on that day which is based on a computer system I have. I hope its clear now.

 

[rossored]

The Strategy is quite simple, it works as follows:

....or not, as the case may be

I strongly suspect that this current trade will be stopped out, given that the hourly chart has recently printed at 8888 (almost a Nick Leeson moment there ). Can you clarify the other questions, ie how many times do you intend to "top up" the fund (somewhat pointless, given you 6 week target), and how many times has it been topped up on the MoneyTec thread?

 

[zdforex]

During the six weeks on moneytec I have topped up one time with $250, but the main thing was that I had to be less aggressive with my targets. I used to play M2-M4 or even Pivot-R2. and I think for a Set and Go strategy as is the case here its better to have R1 or S1 as targets as they get hit more often, since the trades are not supposed to be monitored intraday. As for how many times I plan to topup the account, The ideal is to not need to top up, but in the event of needing to do so, I think one time is more than enough in a six week period.

As for the stoplosses I put them 10 pips below the S1 or 15 pips above the R1(to take care of the spread). The important point I would like to make with my thread is: you do not need to risk a lot of money to make money in this game, if what you do works then 300 is enough if not than why risk more.

Proforextrades

 

[bulldozer]

During the six weeks on moneytec I have topped up one time with $250, but the main thing was that I had to be less aggressive with my targets. I used to play M2-M4 or even Pivot-R2. and I think for a Set and Go strategy as is the case here its better to have R1 or S1 as targets as they get hit more often, since the trades are not supposed to be monitored intraday. As for how many times I plan to topup the account, The ideal is to not need to top up, but in the event of needing to do so, I think one time is more than enough in a six week period.

As for the stoplosses I put them 10 pips below the S1 or 15 pips above the R1(to take care of the spread). The important point I would like to make with my thread is: you do not need to risk a lot of money to make money in this game, if what you do works then 300 is enough if not than why risk more.

Proforextrades

Pro,
I'm a little confused here and perhaps others are too at moneytec, you said u topped up once at $250 at the same time your post says you made a profit in those six weeks?
Can u pls clarify? what was ur NET profit in those 6 weeks taking into account the top up.

Are u aware that Greenspan is putting UP interest rates today? Normally when rates go UP in the USA the $ gets stronger.
You could have waited until greenspan finished talking and then asess the situation and see where the $ is, you could have got in at lower levels.

Bull

 

[zdforex]

During the six weeks on moneytec there was a loss of about $379 Total invested was 550 end balance was 171. I know greenspan is talking today, and all the scenario, but the system I am using is a pure mechanical one. The worst that could happen today is that I loose $56 and i am not trying to avoid that, if it comes, tomorow is another day in trading.

Proforextrades

 

[FetteredChinos]

Pro,
I'm a little confused here and perhaps others are too at moneytec, you said u topped up once at $250 at the same time your post says you made a profit in those six weeks?
Can u pls clarify? what was ur NET profit in those 6 weeks taking into account the top up.

Are u aware that Greenspan is putting UP interest rates today? Normally when rates go UP in the USA the $ gets stronger
Bull

doesnt Purchasing Power Parity theory imply the opposite?

PPP imples future rate:-

spot rate x (1+US rate)
----------------
(1+UK rate)


if the US number gets bigger, then the rate surely increases, thus implying a devaluation of the dollar.

brain hurts. theory is usually wrong anyway.

 

[bulldozer]

FC,
I think i got your point.

But i still think it would have been better if Pro waited a few hours until Greeny finished on rates. Mind you he did say his loss is limited to $56 [peanuts]

Pro,
If ur account was standing at or over £10,000 would you still have traded b4 Greenspan dicision on rates?

 

[zdforex]

If my account was $19,000 or 10,000 UKP and I traded 5 mini lots per currency pair , 20 mini lots on 4 majors (as the Money Management Table Outlines) at a risk of 56 pips or $280 I would have traded it yes.

Proforextrades

 

[Bulldog]

doesnt Purchasing Power Parity theory imply the opposite?

PPP imples future rate:-

spot rate x (1+US rate)
----------------
(1+UK rate)


if the US number gets bigger, then the rate surely increases, thus implying a devaluation of the dollar.

brain hurts. theory is usually wrong anyway.

As you've already mentioned PPP is often not a good forecasting tool for exhange rate; consistent peirods of departure from PPP can occur in both the short and medium term. Your best bet for using PPP is forecasting moves out from 6 months and beyond but few of us hold positons that long. In the near term a rise in interest rates is typically bullish for the dollar as investors can capitalize on higher returns in treasuries etc... what you can't overlook though is the factor inflation plays in the equation. If inflation outpaces the increase in interest rates (and inflation in other contries) the dollar will fall off to equalize the difference between goods localy and abroad (adjusted for entry and exit costs).

 

[FetteredChinos]

thanks Bull, kinda makes sense..

 

[Rhody Trader]

doesnt Purchasing Power Parity theory imply the opposite?

PPP imples future rate:-

spot rate x (1+US rate)
----------------
(1+UK rate)


if the US number gets bigger, then the rate surely increases, thus implying a devaluation of the dollar.

brain hurts. theory is usually wrong anyway.

Actually (and I'm trying to recall finance class from 10+ years ago) I don't think PPP has any direct link to interest rates. PPP suggests that exchange rates should reflect relative prices in each country. (think of the so-called Big Mac index).

The formula you posted is a forward rate equation to determine the spread between spot and futures (for example).

PPP does have some basic value in that it gives a guideline to exchange rates which can be better than interest rate differentials. After all, as noted, inflation is a major issue. An interest rate of 20% looks great, but not if the inflation rate is 25%. It's the latter which influcences PPP most directly. If it had all to do stictly with interest rates, no one would own the Yen.

That all said, PPP can only provide a vague approximation. Too many other variables.

 

[FetteredChinos]

yup, i know it is meant to calculate the equivalent of the "fair value" of the rates. but doesnt the futures price imply, at least vaguely the future direction of the spot market?

hmm, my knickers might be getting into a twist here.

 

[Mr. Charts]

I would suspect that since a rise to 3% is already factored in, the tone, e.g. use of the word, "measured", is more likely to be the immediate prime mover for the US$.
Sentiment and reaction tend to control initial movement, rather than arcane formulae, in my view.
Later it can be different once the market has absorbed the ramifications.
Richard

 

[Rhody Trader]

yup, i know it is meant to calculate the equivalent of the "fair value" of the rates. but doesnt the futures price imply, at least vaguely the future direction of the spot market?

hmm, my knickers might be getting into a twist here.

I believe studies have been done on that very topic, both in terms of forward rates and the yield curve. The answer, I'm pretty sure, is no. I can't offer you a reference, though.