Compounding billionaires on t2w

[mik1973]

Spread betting at £100 pip- think you'd get shaffted on short stops

 

[mik1973]

As for £1000 pp unless you want to give your money away you'd be viewed as a profitable client for any SB company

 

[cablemonster]

generally speaking the dreams of endless compounding are made by traders who are under capitalized. Being under capitalized hinders your progress because it plays with your emotions which in turn effects your ability to make sound trading decisions. If you are properly capitalized and are not trading scared money/time you should find it easier to achieve your goals. just my 2c.

 

[cablemonster]

As I was saying the other day very few people make more than some spotty oik working in McDonalds.

yes I agree. if it takes at least 3 to 5 years to learn the game to have a decent chance of making it as a full time pro profitable trader you have to factor in the 'time cost' of this. i.e. that 3 years could have been spent working, even on a mcdonalds £6 ph mcjob that is going to come in at £20,000+ easily. It's a tough old game.

 

[Vasco da Banana]

If we're talking about burgers, isn't it about time someone mentioned horse for courses?

 

[15 min tlb]

It is a myth that this sort of scenario is even remotely possible. Once you get to a certain level of size being traded your ability to execute the size wanted would not be possible without huge slippage.

It reminds me of the nonsensical claims being made by horse racing systems sellers where compounding calculations were used to make it appear that everyone who bought the system would become millionaires.

Eur usd has trilion a day volume , slippage only occurs on losing trades which can be around 20 % of all trading of skilled traders.Not all losinig trades have slippage , and $5m eur usd is filled on single clicks.

http://www.goforex.net/forex-market-snapshot.htm

No real comparison with horse racing systems , as trading systems of traders as opposed to gambling systems have very few losses.

 

[15 min tlb]

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)

No need to add columns , as you are only compounding profits within a tight compounding criteria and a system with a 200 pip draw down during the week or draw down period.No need to stop after 30 pips , as average pips per day is used .

 

[wackypete2]

Eur usd has trilion a day volume , slippage only occurs on losing trades which can be around 20 % of all trading of skilled traders.Not all losinig trades have slippage , and $5m eur usd is filled on single clicks.

eh? say again?

Peter

 

[pboyles]

eh? say again?

Peter

Sounds like he's trading with FXCM.

 

[brewski1984]

Lulz

Am I allowed to quote myself?

 

[15 min tlb]

Sounds like he's trading with FXCM.

So FXCM can move prices to stops and back , then sponsor to delete complaints.

 

[p-lab]

The Ctrl, c and v keys must be getting pretty worn out now 15.

Billions aside for a second it is pretty clear there is only one thing being compounded here and unfortunately on multiple other threads.........

 

[15 min tlb]

The Ctrl, c and v keys must be getting pretty worn out now 15.

Billions aside for a second it is pretty clear there is only one thing being compounded here and unfortunately on multiple other threads.........

Look at those Gurus on this forum boasting to be profitable , professional and minting a fortune , some are 100 % risk free profitable , and advising new traders on how to do things correctly .......the only thing in abundance is new underwears for all these boasters.

http://www.trade2win.com/boards/for...rs-trading-systems-signals-3.html#post2056622

 

[15 min tlb]

interesting thread.
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''.

please look at my thread:
http://www.trade2win.com/boards/forex/152898-gbpusd-action-today-6.html

I can't comment on your thread without all the information on draw downs etc.You state you trade 20 p per trade , you will experience different results on high stakes , because emotions and slippage come into play on high stakes.

http://www.trade2win.com/boards/forex/152898-gbpusd-action-today-7.html#post2042624

 

[Liquid validity]

Eur usd has trilion a day volume , slippage only occurs on losing trades which can be around 20 % of all trading of skilled traders.Not all losinig trades have slippage , and $5m eur usd is filled on single clicks.

Forex Market Overview

No real comparison with horse racing systems , as trading systems of traders as opposed to gambling systems have very few losses.

Well Peters already asked and not had an answer.
I'm curious how this works as well, could you explain please

 

[15 min tlb]

eh? say again?

Peter

It is very simple , win rate is 60% , breakeven is 20 % and loss ratio is 20 %, just trade when there are trends.

 

[Liquid validity]

It is very simple , win rate is 60% , breakeven is 20 % and loss ratio is 20 %, just trade when there are trends.

How does that explain the quote below?

Eur usd has trilion a day volume , slippage only occurs on losing trades which can be around 20 % of all trading of skilled traders.Not all losinig trades have slippage , and $5m eur usd is filled on single clicks.

 

[15 min tlb]

How does that explain the quote below?

I get slippage mainly on stop orders , on losing trades , limit orders have rare slippage if any it is positive slippage on winning trades.

What is there to explain?

 

[Liquid validity]

I get slippage mainly on stop orders , on losing trades , limit orders have rare slippage if any it is positive slippage on winning trades.

What is there to explain?

So your limits always fill first time?
And if they don't, what then, market order, or place new limit?
In between the first limit not being filled and then placing a second market
or revised limit, could quite easily result in a worse price than your original limit order.
So although not strictly slippage, in the sense of that particular order, fill price
is nevertheless worse than it would have been.
That applies to all trades, entry or exit.

 

[15 min tlb]

So your limits always fill first time?
And if they don't, what then, market order, or place new limit?
In between the first limit not being filled and then placing a second market
or revised limit, could quite easily result in a worse price than your original limit order.
So although not strictly slippage, in the sense of that particular order, fill price
is nevertheless worse than it would have been.
That applies to all trades, entry or exit.

I trade only eur usd , but I have sometimes traded cable and dax , the latter do have slippage , but eur usd rarely has liquidity/slippage issues.

This is why most pros trade eur/usd.