A journal of turning my $1.500 into $1.000.000

[peti305]

Hello everybody,

This January I started something bold.
At a different forum I decided to start my trading journal about how I am going to reach 1 million US dollars with forex trading, starting from my $1.500 savings.
Because I liked people's reaction at my thread, I decided to share my journal also here.
I am not going to paste all my trades here back to January, only my monthly statements.
But from now on I am going to share all my trades here.

I trade the fx market only after the best high-impact economic news events.
I created a strategy with years of work, research, and backtest, and I have around 25% loss ratio, the rest of the 75% is win, or break-even.
Also I have 2:1 reward/risk ratio. My stop loss is always 15 pips, my target profit is 30 pips.

Because of this winning ratio, I risk more than usual; always 8% of my current equity (that's the 15pips).
So I am using compound interest as well.

Historically, some trading months end up with little loss or break even, the rest will end up with big profit.




------------------------------------------------------------------------------------------------------



Started at January, 2014, with $1.487.

Current balance is $5.972

Performance

2014
January +47% Proof
February +16% Proof
March +73% Proof
April -18% Proof
May -9% Proof
June +5% Proof
July +73% Proof

 

[Mr Fox]

Hello everybody,

This January I started something bold.
At a different forum I decided to start my trading journal about how I am going to reach 1 million US dollars with forex trading, starting from my $1.500 savings.
Because I liked people's reaction at my thread, I decided to share my journal also here.
I am not going to paste all my trades here back to January, only my monthly statements.
But from now on I am going to share all my trades here.

I trade the fx market only after the best high-impact economic news events.
I created a strategy with years of work, research, and backtest, and I have around 25% loss ratio, the rest of the 75% is win, or break-even.
Also I have 2:1 reward/risk ratio. My stop loss is always 15 pips, my target profit is 30 pips.

Because of this winning ratio, I risk more than usual; always 8% of my current equity (that's the 15pips).
So I am using compound interest as well.

Historically, some trading months end up with little loss or break even, the rest will end up with big profit.




------------------------------------------------------------------------------------------------------



Started at January, 2014, with $1.487.

Current balance is $5.972

Performance

2014
January +47% Proof
February +16% Proof
March +73% Proof
April -18% Proof
May -9% Proof
June +5% Proof
July +73% Proof

Good Afternoon Peti305,

May I be the first to wish you good luck on your journey, and hope you achieve it, along with all traders on T2W achieving their financial goals.

I must admit I do find risking 8% on a trade is far too rich for my blood, as is having fixed stops, and fixed targets, however if it works for you, then who am I to say what's right, and what's wrong.

Best
John.

 

[peti305]

Thank you John.



I traded the USA NonFarm Payrolls today.
I had to exit from this trade before the US ISM Manuf. PMI, so got out at break even.

0 pips

It would have been a nice win if there is no Manuf PMI news. But I didn't want to re-enter my position because it had some push to the different direction.

 

[Mr Fox]

Thank you John.



I traded the USA NonFarm Payrolls today.
I had to exit from this trade before the US ISM Manuf. PMI, so got out at break even.

0 pips

It would have been a nice win if there is no Manuf PMI news. But I didn't want to re-enter my position because it had some push to the different direction.

Your welcome Peti305.

I must admit I do have 2 conundrums which I am trying to resolve in my psyche, and maybe getting your point of view on these may help me out.

First of all I've always pulled out if I am up on a trade before a major news announcement, yet now I am wondering if I would be better off leaving the trade going if I'm say, up over 1%, sometimes the wild swings in spreads trigger you out if your stop is too close. What is your view on this.

My second question relates to fundamental news announcements, and since you trade around these times, what do you do to get triggered in earlier in a trade, if indeed you do. I must admit I detest being slipped 20 pips on a entry order.

I look forward to your response.

Best
John.

 

[peti305]

Your welcome Peti305.

I must admit I do have 2 conundrums which I am trying to resolve in my psyche, and maybe getting your point of view on these may help me out.

First of all I've always pulled out if I am up on a trade before a major news announcement, yet now I am wondering if I would be better off leaving the trade going if I'm say, up over 1%, sometimes the wild swings in spreads trigger you out if your stop is too close. What is your view on this.

My second question relates to fundamental news announcements, and since you trade around these times, what do you do to get triggered in earlier in a trade, if indeed you do. I must admit I detest being slipped 20 pips on a entry order.

I look forward to your response.

Best
John.

Well, I am always closing my opening trades if there is a big economic event coming that have an affect to my position.
In my point of view, if I let my trade open, that is pure gambling. There will be a risk that you'll get a 50 pip spike against you, and that's going to hurt big time.
And I am not gambling here, I am making money, because my historical backtest says I am going to make money without gambling too

Also, I am never trading the spike, I trade the news after the spike when the spreads are normal again.

Have a great weekend,
Peter

 

[hyunski]

Hi peti,

I am currently struggling with building a risk management framework and thought it'd be great to hear from you. By risking 8% equity, do you mean if you had $1,000 account you only position size to $80, or if you had a 10% stop, you position size to $800?

Also when assessing the probability of an individual trade, do you strictly follow your historical win/loss ratio as a measure, or instinct? If by instinct, does your position size risk go above or below risking 8%?

Thanks!

 

[peti305]

Hi peti,

I am currently struggling with building a risk management framework and thought it'd be great to hear from you. By risking 8% equity, do you mean if you had $1,000 account you only position size to $80, or if you had a 10% stop, you position size to $800?

Also when assessing the probability of an individual trade, do you strictly follow your historical win/loss ratio as a measure, or instinct? If by instinct, does your position size risk go above or below risking 8%?

Thanks!

Hello,

With a $1.000 account my 15 pip loss would be equal to $80, and I am never letting myself to lose more.
After every trade I am recalculating my lot size to risk always 8% of my equity.

I am never trading by instinct, I am only trading by historical stats.
I adapted this risk after my historical backtests.

Within my 10 years of backtest I only found a few instances when I would reach 4-5 losses in a row, which would be equal to ~35% drawdown. And I can deal with that.

If your backtest generates more losses in a row for your strategy then I definitely recommend to use lower risk.
I am crazy anyway

 

[hyunski]

I see, so I'm assuming you bet a fixed % of your account and do not move your 15 pip stop loss.

Thanks and good luck!!

 

[peti305]

Tuesday I traded the US ISM Non-Manuf. PMI.

Made a loss,

-16 pips

The price slipped and thats why I lost 16 pips instead of 15.

 

[peti305]

Traded the GB Inflation Report today, and made a win.

+30 pips

 

[peti305]

Traded the US Housing Starts on Tuesday, got a loss

-15 pips



Traded the GB MPC Meeting Minutes yesterday.
It was a big surprise, and yet still a loss.

-15 pips




Also traded the US FOMC Meeting Minutes yesterday.
Won back the last two trades.

+30 pips

 

[NVP]

welcome to the early years of trading ..........most people make a little then give it back ............................sesaw seesaw for a few years

then they either get it and start to make money .....or walk away broke

N

 

[peti305]

Traded US Yellen Speech today.
Got out at break even.

0 pips

After it, it would have been a nice win. Too bad.

 

[WklyOptions]

Traded US Yellen Speech today.
Got out at break even.

0 pips

After it, it would have been a nice win. Too bad.

Hi, peti305,

Are you trading on a discretionary basis - primarily trading off news-related events?

Or do you have a written Trading Plan of sorts? Just curious to see where you are coming up with your trading EDGE and the WHYs of the Entries/Exits criteria.

Regards,

WklyOptions

 

[peti305]

Hi, peti305,

Are you trading on a discretionary basis - primarily trading off news-related events?

Or do you have a written Trading Plan of sorts? Just curious to see where you are coming up with your trading EDGE and the WHYs of the Entries/Exits criteria.

Regards,

WklyOptions

Hello,

I am trading off news events, but with a very strict trading plan of my own.

Regards,
Peter

 

[peti305]

Traded the Swedish Retail Sales.
Got out with break even.

0 pips

 

[peti305]

Here is my statement for August, made a minimal profit of +4%
Current account balance is $6.229


This week gonna be very busy, looking forward to it..

 

[snowgum]

Interesting thread Peter. Way outside my comfort zone, but great to see how others trade the markets. Hope goes well and will watch with interest. JohnO

 

[Matts Micro]

Hello,

I am trading off news events, but with a very strict trading plan of my own.

Regards,
Peter

Hi, nice results so far it seems.

I have being trying a 2:1 ratio strategy for a while now but am determined not to be put off my normal trading. The reason I am interested in finding a 2:1 RR strategy is because I have being following another main stream forum's thread called Rags to Riches in 10-20 trades.

Basically starting with $50 and risking 50% of the account to achieve 100% profit can make $50 000 in 10 (net) winning trades.

So: 1st trade = Risk $25, Target $50
2nd trade R-$50, T-$100
3rd trade R-$100, T-$200
etc.

If you do the math including loses if you have 10 more wins than loses (=net wins)at any time you will have made $50 000. Obviously with trading small pip returns you will need a high leveraged broker. I am using 500:1 lvg and 15:30pip RR can work on this leverage.

Anyhows just thought you maybe interested.

GL on your venture.

 

[Chalky_trader]

Hi, nice results so far it seems.

I have being trying a 2:1 ratio strategy for a while now but am determined not to be put off my normal trading. The reason I am interested in finding a 2:1 RR strategy is because I have being following another main stream forum's thread called Rags to Riches in 10-20 trades.

Basically starting with $50 and risking 50% of the account to achieve 100% profit can make $50 000 in 10 (net) winning trades.

So: 1st trade = Risk $25, Target $50
2nd trade R-$50, T-$100
3rd trade R-$100, T-$200
etc.

If you do the math including loses if you have 10 more wins than loses (=net wins)at any time you will have made $50 000. Obviously with trading small pip returns you will need a high leveraged broker. I am using 500:1 lvg and 15:30pip RR can work on this leverage.

Anyhows just thought you maybe interested.

GL on your venture.

Hmmm

Interesting Math, but 2 bad trades and you wipe out...

ever looked at 3:1 or 6:1 to give yourself a fighting chance?