Critque my strategy please. Newbie

[Michaelakhouri]

i Just want to hear some criticism on this strategy, methodology, whatever.

My edge is using elliot waves to predict reversals or just getting in on any major impulse move that satisfies risk/reward ratio .I use price action with the support of rsi and the macd. The macd gives me a an idea of the volume behind the anticipated reversal and the rsi lets me know of any divergance. I always look at price before indicators and usually have a trade plan before even looking at indicators. They are mostly used for confirmation.
What i think really gives me an edge is my comfort level and feel for the elliot wave. Before even hearing of the elliot wave I recognized the wave patterns and tried making sense of it but stopped because I believed it was a coincidence. I am currently still trying to learn as much about the elliot wave theory as possible to enhance my edge.

risk reward ratio is 1:~6
I look for 200 pip moves with a 30 pip stop loss that would be above a point where I would be proven wrong .

I have just been practicing on a demo so far with this strategy and will open up a forex account with 1,000 I would be willing to lose. I will be executing every trade at a 50:1 leverage with all capital in each trade at an attempt to double my capital at each win while losing approximately 1/6 for each loss.

This strategy obviously could not work forever but I just want to know how you people feel about it
I look for 200 pip moves on the hourly chart while looking at the 4 hour and day chart for primary trend.

I know many will say 6 losses and your out the game and my justification is with good application of the elliot wave theory many people claim to achieve %80 accuracy. I am no expert and with %50 accuracy I think this strategy could still be profitable.Not for long term but maybe a boom and withdraw before a bust. A little bit of luck would be needed of course

 

[Michaelakhouri]

anything?

 

[pboyles]

i Just want to hear some criticism on this strategy, methodology, whatever.

My edge is using elliot waves to predict reversals or just getting in on any major impulse move that satisfies risk/reward ratio .I use price action with the support of rsi and the macd. The macd gives me a an idea of the volume behind the anticipated reversal and the rsi lets me know of any divergance. I always look at price before indicators and usually have a trade plan before even looking at indicators. They are mostly used for confirmation.
What i think really gives me an edge is my comfort level and feel for the elliot wave. Before even hearing of the elliot wave I recognized the wave patterns and tried making sense of it but stopped because I believed it was a coincidence. I am currently still trying to learn as much about the elliot wave theory as possible to enhance my edge.

risk reward ratio is 1:~6
I look for 200 pip moves with a 30 pip stop loss that would be above a point where I would be proven wrong .

I have just been practicing on a demo so far with this strategy and will open up a forex account with 1,000 I would be willing to lose. I will be executing every trade at a 50:1 leverage with all capital in each trade at an attempt to double my capital at each win while losing approximately 1/6 for each loss.

This strategy obviously could not work forever but I just want to know how you people feel about it
I look for 200 pip moves on the hourly chart while looking at the 4 hour and day chart for primary trend.

I know many will say 6 losses and your out the game and my justification is with good application of the elliot wave theory many people claim to achieve %80 accuracy. I am no expert and with %50 accuracy I think this strategy could still be profitable.Not for long term but maybe a boom and withdraw before a bust. A little bit of luck would be needed of course

Why forex, the entire industry exists to fleece you. Will it work on futures? Then you may have a chance.

 

[Splitlink]

i Just want to hear some criticism on this strategy, methodology, whatever.

My edge is using elliot waves to predict reversals or just getting in on any major impulse move that satisfies risk/reward ratio .I use price action with the support of rsi and the macd. The macd gives me a an idea of the volume behind the anticipated reversal and the rsi lets me know of any divergance. I always look at price before indicators and usually have a trade plan before even looking at indicators. They are mostly used for confirmation.
What i think really gives me an edge is my comfort level and feel for the elliot wave. Before even hearing of the elliot wave I recognized the wave patterns and tried making sense of it but stopped because I believed it was a coincidence. I am currently still trying to learn as much about the elliot wave theory as possible to enhance my edge.

risk reward ratio is 1:~6
I look for 200 pip moves with a 30 pip stop loss that would be above a point where I would be proven wrong .

I have just been practicing on a demo so far with this strategy and will open up a forex account with 1,000 I would be willing to lose. I will be executing every trade at a 50:1 leverage with all capital in each trade at an attempt to double my capital at each win while losing approximately 1/6 for each loss.

This strategy obviously could not work forever but I just want to know how you people feel about it
I look for 200 pip moves on the hourly chart while looking at the 4 hour and day chart for primary trend.

I know many will say 6 losses and your out the game and my justification is with good application of the elliot wave theory many people claim to achieve %80 accuracy. I am no expert and with %50 accuracy I think this strategy could still be profitable.Not for long term but maybe a boom and withdraw before a bust. A little bit of luck would be needed of course

I was going to tell you not to do it. What's the use, though? I've been on this site a long time and I know that If it is not you it will be somebody else. Your kind of optimism is seen every day.

Just keep the stakes as low as possible and remember. You may not mind losing your money now, while you have it. Afterwards, you'll think differently.

 

[Michaelakhouri]

I was going to tell you not to do it. What's the use, though? I've been on this site a long time and I know that If it is not you it will be somebody else. Your kind of optimism is seen every day.

Just keep the stakes as low as possible and remember. You may not mind losing your money now, while you have it. Afterwards, you'll think differently.

Oh no Im not optimistic I was hoping I would have many people telling me it wont work and why it would not work. I have good faith if I played with the risk/reward and put less capital towards each trade and followed the system thoroughly it would be long term profitable. Obviously it would grow very slowly since I do not have a lot to put down and thats the reason I wanted to just test it out to see what happens . maybe I could use a similiar approach with a more conservative risk while at the same time being somewhat aggresive.

I also thought that maybe to make the experiment last a little longer I could start using the strategy on only 500 dollars of my capital after my first win to minimize the risk on the whole account. But that would be saying I will definately double my money before I lose it all and i know nothing is certain.However trading is a numbers game and the odds of me doubling my money are the odds of me winning one trade which means the odds are heavily stacked with me .


Please correct me anywhere that im wrong

I got the money very easily so its not going to hurt too much. im 18 so I dont have much to pay for . I have a part time job and I sold a few gadgets I got for good deals on ebay and my profits were like 1,000 so the money wasnt really earned with too much effort ahah.

 

[Splitlink]

Oh no Im not optimistic I was hoping I would have many people telling me it wont work and why it would not work. I have good faith if I played with the risk/reward and put less capital towards each trade and followed the system thoroughly it would be long term profitable. Obviously it would grow very slowly since I do not have a lot to put down and thats the reason I wanted to just test it out to see what happens . maybe I could use a similiar approach with a more conservative risk while at the same time being somewhat aggresive.

I also thought that maybe to make the experiment last a little longer I could start using the strategy on only 500 dollars of my capital after my first win to minimize the risk on the whole account. But that would be saying I will definately double my money before I lose it all and i know nothing is certain.However trading is a numbers game and the odds of me doubling my money are the odds of me winning one trade which means the odds are heavily stacked with me .


Please correct me anywhere that im wrong

I got the money very easily so its not going to hurt too much. im 18 so I dont have much to pay for . I have a part time job and I sold a few gadgets I got for good deals on ebay and my profits were like 1,000 so the money wasnt really earned with too much effort ahah.

Remember the old adage. Easy come, easy go!

First things first. Your demo trading is with whom?

Don't tell me. Ask yourself. Is he a well known dealer? What kind of spread does he give?
There are spreadbetting firms who will allow a 1 point spread on their bets and I would imagine that they are where you would be with an account of less than 1000 pounds. Demo accounts have a reputation for being made easy to trade because the SB firm wishes to instill confidence into the user.

I trade with an SB. I am content with the service and do not know much about the others, but you need to check that out before getting started. There's enough to do making money trading without the hassle of not trusting your dealer. Many on here believe that they are less reliable than brokers, but mostly, the fault is with bad trades.

Brokers have other advantages but I know of none who open accounts with small sums and they deal in contract size, which means 10 quid per point. You need around one pound per point size.

So, ask around and investigate them.

The other thing to do is get help. There are plenty of threads on this site and Forex Factory.

 

[Michaelakhouri]

Remember the old adage. Easy come, easy go!

First things first. Your demo trading is with whom?

Don't tell me. Ask yourself. Is he a well known dealer? What kind of spread does he give?
There are spreadbetting firms who will allow a 1 point spread on their bets and I would imagine that they are where you would be with an account of less than 1000 pounds. Demo accounts have a reputation for being made easy to trade because the SB firm wishes to instill confidence into the user.

I trade with an SB. I am content with the service and do not know much about the others, but you need to check that out before getting started. There's enough to do making money trading without the hassle of not trusting your dealer. Many on here believe that they are less reliable than brokers, but mostly, the fault is with bad trades.

Brokers have other advantages but I know of none who open accounts with small sums and they deal in contract size, which means 10 quid per point. You need around one pound per point size.

So, ask around and investigate them.

The other thing to do is get help. There are plenty of threads on this site and Forex Factory.

i use oanda

 

[Splitlink]

i use oanda

They have a good reputaton. I might come to you for advice about them, some day!

Go to forums and see if there are any Elliot Wave experts, probably in "Systems" and ask about Oanda on the Forex sections.

 

[Shakone]

i Just want to hear some criticism on this strategy, methodology, whatever.

My edge is using elliot waves to predict reversals or just getting in on any major impulse move that satisfies risk/reward ratio .I use price action with the support of rsi and the macd. The macd gives me a an idea of the volume behind the anticipated reversal and the rsi lets me know of any divergance. I always look at price before indicators and usually have a trade plan before even looking at indicators. They are mostly used for confirmation.
What i think really gives me an edge is my comfort level and feel for the elliot wave. Before even hearing of the elliot wave I recognized the wave patterns and tried making sense of it but stopped because I believed it was a coincidence. I am currently still trying to learn as much about the elliot wave theory as possible to enhance my edge.

risk reward ratio is 1:~6
I look for 200 pip moves with a 30 pip stop loss that would be above a point where I would be proven wrong .

I have just been practicing on a demo so far with this strategy and will open up a forex account with 1,000 I would be willing to lose. I will be executing every trade at a 50:1 leverage with all capital in each trade at an attempt to double my capital at each win while losing approximately 1/6 for each loss.

This strategy obviously could not work forever but I just want to know how you people feel about it
I look for 200 pip moves on the hourly chart while looking at the 4 hour and day chart for primary trend.

I know many will say 6 losses and your out the game and my justification is with good application of the elliot wave theory many people claim to achieve %80 accuracy. I am no expert and with %50 accuracy I think this strategy could still be profitable.Not for long term but maybe a boom and withdraw before a bust. A little bit of luck would be needed of course

Don't do it. If your stop is 30 pips, and your target is 200, then you should expect your chance of winning below 20%. You then plan to risk 16% per trade, with a win rate as I said f most likely below 20%. Consider what the probability is that you will lose all your money. Spend more time learning about money management than about elliott. It's far more important. I can tell you, that your risk of ruin following something like this is extremely high. Better off giving your money away to charity or having a holiday.

It's irrelevant what someone claims their win % with elliott. They are not you, they are not trading 30 pip stop with 200 pip target and they are also not risking 16% per trade.

 

[bedsit]

I got the money very easily so its not going to hurt too much. im 18 so I dont have much to pay for . I have a part time job and I sold a few gadgets I got for good deals on ebay and my profits were like 1,000 so the money wasnt really earned with too much effort ahah.

No need to hurry Michaelakhouri.

Try the idea on a demo account for a year and see if it's any good. There are more enjoyable things to spend your savings on rather than give it to the markets.

 

[Michaelakhouri]

No need to hurry Michaelakhouri.

Try the idea on a demo account for a year and see if it's any good. There are more enjoyable things to spend your savings on rather than give it to the markets.

Thanks everyone for the advice I will definately not be doing that then. would this be a decent strategy if i only applied %5 of capital to it at one time

 

[Splitlink]

Thanks everyone for the advice I will definately not be doing that then. would this be a decent strategy if i only applied %5 of capital to it at one time

With your experience you should use minimum stake and don't increase it unless you can justify your winnings and methods to us, at least. in the first steps.

I mean that. That way you will not get overconfident just because you get a winning streak.

Demo is different. When your cash is on the line you will realise that.