To compound on a weekly basis , a trader needs a low risk method with low draw downs of less than 200 pips , and maximum 12 pips risked per trade.On three lots risk is 36 pips or $360 per trade on a $100,000 account.
3 positions * 30 pips a day * 1 lot , compound it on a weekly basis.
That also raises another interesting point. How many traders here are full time? Those that trade part time, do they trade just evening sessions?
The full time traders have to be making enough to survive on and pay their way.
I would have thought most traders (experienced ones) make about 70-100 pips a day in winning trades and maybe give half of that back in losers, so over a week they should average out to approx 100 pips a week.
I do however think that these trades are not taken at £100 pp or even£10 pp, but maybe £2-£5 pp. I imagine the larger the size the harder it is to maintain consistency unless you have a large account size.
I trade at TINY stakes.
Over the last 6 months or so I appear to have been getting some real consistency.
My average pips per month isn't fantastic. I seem to be averaging about 100 pips per month (whereas from what I can gather, the better traders here are doing that amount of pips in a day or 2)
I'M ok with that for now, though. My only concern at the moment is
''what if the market suddenly changes(as you often hear it does) and my method stops working, and i'll have to spend another 4 years, not earning any money from trading, trying to find another method that works''.
30 pips a day "on average"?
Or just 30 pips a day?
If you just go for 30 pips, and STOP, you're in for some trouble.
The flip side becomes, how many pips do you lose and stop for the day?
If you want to average 30 pips a day, you would necessarily go for more than 30 pips a day, so that you can ride out the losing days.
For example, if you just go for 30 and stop, and stop at 30 loss, for every day lost, you need a winning day to break even.
So, in a week, 5 days, if you have 1 losing day, and 4 winning, (-30, + 120), you have 90 pips, thats 18 average a day.
If you want 30 pips a day average, and have 1 losing day a week (I'm dreaming here), you need to make 150 nett in the winning 3 days, ie 50 a day.
Thats gives you lose 50, win 200, (50 pips a day for 4 days), giving a nett 150 for the week, averaging 30 a day.
Reality is, winning trades clump together as market conditions are in-line with your rules, losing trades clump together as market state is sub-optimal for your rules, and most of the time, you grind out wins/losses, as market is neither good nor bad.
I think we all started out with these fantastical spreadsheets in the early days.
Reality is more challenging.
(try adding a column using the random function. if value (between 0 and 1) is greater than 0.8 its a loss, and if less then its a win. then either add or subtract accordingly. you get to a million, but it hovers around 90 weeks)