Making Money Trading

This is a discussion on Making Money Trading within the First Steps forums, part of the Reception category; If the opener involves anything by Lewis Carroll, or mystifying a warthog by waving grey blankets at it, I'm off!...

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Old Oct 27, 2007, 1:22am   #36
 
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If the opener involves anything by Lewis Carroll, or mystifying a warthog by waving grey blankets at it, I'm off!
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Old Oct 27, 2007, 4:47am   #37
 
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trader_dante,
I am hooked and can't wait.
And thanks in anticipation of sharing your knowledge.

Cheers,
Nash
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Old Oct 27, 2007, 1:11pm   #38
 
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Originally Posted by trader_dante View Post
I have recently reviewed all the trades I have done in my account since starting to use this methodology. From this review I can see that my win/loss ratio is just under 80%.

Losses will be cut very quickly and winners will be left to run until it looks like the move is running out of steam. Naturally, some retracement will be necessary before this is realised. Nonetheless, some of the trades I will show you have incredible risk:reward ratios.

The latest trades I took were in the Bund (German Treasury market) and in Crude Oil. The last setup my methodology generated in the Bund returned a reward of 12 times the risk on the hourly timeframe. (180 ticks reward for a 15 tick risk). In Crude Oil, the method generated a reward of 5 times the risk (362 ticks for a 67 tick risk) This is without adding positions which was also possible.
Hello Dante,

With a Win Rate of around 80% (very impressive) and a R:R currently ranging from 5-12 then would I be right in assuming that your are trading short-term?

If so, can I ask what your average time in Trade is and what your Max DD is?

Finally, do you think that your entry conditions/filters could be hard-coded and thus backtested to see how it performs on other instruments? I'm guessing though that with the Fibonacci element this is probably not possible but I'd be interested in your thoughts on this.....

All the best,

Chorlton
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Old Oct 27, 2007, 1:41pm   #39
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Why are you prepared to reveal your trading methods if you have discovered a method which is highly successful? What are you going to achieve by revealing all the secrets in this thread?
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Old Oct 27, 2007, 1:47pm   #40
 
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Originally Posted by Chorlton View Post
Hello Dante,

With a Win Rate of around 80% (very impressive) and a R:R currently ranging from 5-12 then would I be right in assuming that your are trading short-term?

If so, can I ask what your average time in Trade is and what your Max DD is?

Finally, do you think that your entry conditions/filters could be hard-coded and thus backtested to see how it performs on other instruments? I'm guessing though that with the Fibonacci element this is probably not possible but I'd be interested in your thoughts on this.....

All the best,

Chorlton
Hi Chorlton,

The R:R ratio is not always that high, those are simply two examples taken from the latest trades I entered. The reason they are so high is because the EMA system I use showed me that the trend was strong and likely to continue.

If the EMA system is not showing any particular setup but I still get a price action setup then I usually trade for a fixed target. This can often be a R:R of 1:1. I can afford to do this because my win/loss ratio is good.

I trade daily and hourly setups. If I am in a trade based on a daily setup it can go on for any length of time from being stopped out the day I enter to continuing for several weeks. If it is an hourly setup I often get out same day but if the trend is strong I will often hold until it runs out of steam which may be well into the next trading session or even longer. I will be honest with you, average time spent in a trade is not something I have analysed.

To answer your other question: I don't think this method can be hard-coded. It is not a system with strict rules. You may find the EMA system (which can work on its own regardless of price action) can be hard coded but I will give you a word of warning which also will help to explain why I am here doing this in the first place.

I learnt to trade price action on another forum. All credit for what I am going to show you will go to the other forums and threads which I will name in due course.

What I have done is simply take that knowledge and add my own experience and instinct in trading which I have been doing for over seven years now. That means I have my own unique take on it.

I will give you an example. Recently in this other forum there was a price action signal to go short EUR/CHF. This setup looked picture perfect but for some reason I didn't want to take it. Those that did lost money because it went straight up. Somewhere in that decision I made was my "reading" of the market that differed from what I had been taught.

I am aware that I will no doubt face criticism on this thread. But all I am trying to do is impart what I have learnt.
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Old Oct 27, 2007, 2:02pm   #41
 
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Originally Posted by hanzam View Post
Why are you prepared to reveal your trading methods if you have discovered a method which is highly successful? What are you going to achieve by revealing all the secrets in this thread?
Hanzam - I was waiting for someone to ask this.

Ultimately you will believe me or you won't but I will tell you hand on heart there are two reasons.

First is that lately, I've started to realise that there is more to life than trading. I've gone through hell to learn to trade. I've cut myself off from my friends and family and nearly wrecked a six year relationship with the girl I love. My attempts to learn this game have led to anger and frustration. I found that all I would do is be thinking about the market and I became gradually more introverted until I lost sight of everything that really matters in life.

And then suddenly it dawned on me: the market doesn't care who I am - it was here long before I was born and it will be here long after I am dead. I am giving up precious years that I can't get back in order to learn how to make money. And I am ignoring the things that really matter in life like: "Do I show the important people in my life that I appreciate them?", "Am I making the most of my time here?", "Will I be remembered after I die?".

I'm only 28 but I felt like I was having a mid-life crisis. My father died when he was only 44 so perhaps I am...

Anyway, by frequenting forums I read about people who are far older than me, people that just want to become financially independent, support their family, perhaps enjoy their life without becoming a slave to the markets. Or people that are where I was - struggling in their trading, losing money, becoming disillusioned with it all.

When I found I was making money and still hearing they were having difficulties I thought I would share what I know.

The second reason is slightly more egotistical. It has taken me seven years to find my way in this game. And now I am having success, I want to tell everyone about it. I will tell you now I've had many detractors in my life. Colleagues, friends, sometimes even close family that have told me I will never make it. To stop trading - to stop gambling and to pursue a "worthwhile career". This is my way of showing that I am making it and that I can help others make it too. Perhaps the irony of all this is that the people I want to prove myself the most too, will never see this.

Tom
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Last edited by trader_dante; Oct 27, 2007 at 2:08pm.
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Old Oct 27, 2007, 2:03pm   #42
 
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Quote:
Originally Posted by trader_dante View Post

I am aware that I will no doubt face criticism on this thread. But all I am trying to do is impart what I have learnt.
Hi Dante,

Full respect to you for creating this thread. I hope that others do not become critical of your posts/methods/etc.

As we all know the main purpose of these forums is to share knowledge and experience so I hope that everyone remembers this as we move forward.

Quote:
I will give you an example. Recently in this other forum there was a price action signal to go short EUR/CHF. This setup looked picture perfect but for some reason I didn't want to take it. Those that did lost money because it went straight up. Somewhere in that decision I made was my "reading" of the market that differed from what I had been taught.
The comment in Bold is very important. Just because a method is taught to others, does not automatically mean that everyone will be profitable especially when there is a discretionay element to it which, clearly your method definately has.

Additionally, IMO two elements that can shift a strategy from profit to loss is the Exit rules & the overall Money Management side. Out of interest, will you also be sharing your thoughts on these important elements or will you be only focusing on the entry conditions?

All the best,

Chorlton
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