How not to make money trading the markets

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Old Feb 27, 2009, 9:00pm   #1
 
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How not to make money trading the markets

Right! Trading starts on Monday!

An experiment in random trading.


System Rules are thus:

Going to be spread betting. Starting with £500

Currently looking at USD/JPY, USD/CHF, GBP/USD, EUR/USD. Will look at some others probably, the more the merrier after all.

Entry is done by a coin flip (physically going to flip one). Heads I go long, tails, I go short.

Stop 5%
Target 0.5%
Percentage of account risked on a trade=1/n

where n is the number of markets traded today.

So...

"Bad" risk/reward ratio.
"Bad" amount of account risked.
"Spanish" style stop.
Random "strategy"
Spread betting.
Under capitalised

Less chance of this working then a plane taking off from a conveyor belt moving backwards at the speed of said plane eh?


*Insert something about experiments, me having had enough of people taking general advice and deciding it's gospel for every situation etc*

Let the madness commence!
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Old Feb 27, 2009, 9:17pm   #2
 
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I am going to laugh my ass off if you make a profit.
Good luck to you
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Old Feb 27, 2009, 9:49pm   #3
 
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Hotch started this thread Hopefully it'll bring a few laughs either way!

As is my saying "I'm probably the happiest man alive, but hopefully not"
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Old Feb 27, 2009, 10:16pm   #4
 
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go for it!!
you are clearly mad!!
your coin better beat that "I made 167 pips in 2 days" bozo!!
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Old Feb 27, 2009, 10:18pm   #5
 
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Quote:
Originally Posted by trendie View Post
go for it!!
you are clearly mad!!
your coin better beat that "I made 167 pips in 2 days" bozo!!
Psst!

It's a double headed coin! I can't lose!
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Old Feb 27, 2009, 10:35pm   #6
Joined Aug 2003
My dad done something similar to this once, trading at quite big stakes (£50 per point or so), after becoming very frustrated with the market. He actually done OK but stopped once he'd composed himself and realised what a nutter he was being! Good luck!
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Old Feb 27, 2009, 11:27pm   #7
 
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Hmm, playing the FX markets with such a wide stop and little profit target will most likely work as long as the markets stay "mostly" range bound. If there is a strong trend then it really is 50:50.

Is your risk 1% / number of markets or 100%?

Are the stops "one or the other", or is there a time limit also?

Any way, happy trading.
Oh, when you make you first million from this system don't forget to start selling it. You will make all the more money that way!!
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Old Feb 28, 2009, 4:04am   #8
 
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Quote:
Originally Posted by hwsteele View Post
Hmm, playing the FX markets with such a wide stop and little profit target will most likely work as long as the markets stay "mostly" range bound. If there is a strong trend then it really is 50:50.

Is your risk 1% / number of markets or 100%?

Are the stops "one or the other", or is there a time limit also?

Any way, happy trading.
Oh, when you make you first million from this system don't forget to start selling it. You will make all the more money that way!!
100%

There would be a time limit of the end of the day, but if I'm already long and I flip a heads there's no point paying for the spread again, so basically one or the other, but it might not end out that way.

When I make the first million I'll probably die laughing before I can sell it.
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