Demo account challenge: 2 months to build up 10k! Swing trading EURUSD exclusively!

[FXTrend240]

Right, im a NOOB.

i've developed my own method of getting into trends , im sure others use it, but i didn't steal it.

The method is simply to fade counter-trend movement, or buy dips in uptrends and sell rips in downtrends...

buy dips/sell rips where?!?!? to S/R, that is- trendlines, the 50/200 ema off daily charts.

Also, i think this is where every trend trader gets tripped up- which frikkin' trend do i follow?!?!

take a look at EURUSD from a few months ago and price on the left hand side of the screen is higher at the right hand side of the screen-so shouldn't i be buying?
NO because ECONOMICS is what is driving these trends and economics is what gives these moves context, had you known the short- dollar carry trade was going to unwind-would you have kept buying? probably not.

Anyway i'm a noob who hasn't traded real money yet and i'm swing trading just the EURUSD, why just one pair? well it's much easier to keep track of two economies than dozens of economic data whizzing about the place- get a focus somewhere....

I'm a noob as i've said twice so i really would like help on anything ;stop placement, entries, economics , anything !
Point of this thread is for me to learn something from some good forex traders on here ( i know there are a few!)

 

[FXTrend240]

went SHORT EURUSD 1.3551
target: 1.3260

edit: lol forgot a stop :0. breakeven +100 is stop

 

[FXTrend240]

I use USDCHF as they move very very closely so i like to see S/R mirroring the EURUSD

 

[NoRhino]

Good luck with it, when I was SB'ing gold I was following it closely and just watching the markets really helps you get a feel for how they move. Are you using any other TA or is it simply just about trend following looking to get in on 2nd entry? I would suggest looking at the volume, something like a spike in volume can indicate a reversal but personally I quite like the idea of using momentum.

 

[FXTrend240]

spot forex has no volume, futures do but this is an alpari demo account lol.

Anyway, i'm bringing my target up to 1.3301 - 1 pip above a round number, real big down bar we have here and i may just take 40 pips less.

My TA is simply trendlines and moving averages-moving averages aren't for identifying trends but i use them as price pulls back and bounces of them nicely at times.

70% TA 30% FA

 

[episteme]

Good luck. where are you starting from - and what size are you trading per pip. Could you post account balance after each trade - it will be much easier to follow?

It can be done - but only utilising high risk strategies to build up quickly IMO. Here was my journey doing the same. Be interesting to see yours (even if it is only demo) and how it differs.

http://www.trade2win.com/boards/trading-journals/89544-no-rules-high-risk-capital-building-3k.html

 

[NoRhino]

Oh I see, I learnt something new. Shame no volume is reported then.

 

[FXTrend240]

right i'm bailing 13 pips .
out @ 1.3314

+237 pips
+2370

$10,000 is now $12341.63

 

[FXTrend240]

My next short will be on a bounce up to that trendline, or a 50% retracement of the last swing high

 

[fiatmoney]

went SHORT EURUSD 1.3551
target: 1.3260

edit: lol forgot a stop :0. breakeven +100 is stop

Hi FXTrend240.

Risking 10%of your account on one trade seems a lot. Is this in your trading plan?

 

[FXTrend240]

the demo account lot sizes is silly- it goes from 1 cent a pip to minimum of $10 a pip so $10 a pip is my minimum.

On a live account i'd be risking 5%, probably scale down the risk if account increased...

 

[FXTrend240]

I have a resting sell limit at 1.3549: 50% retracement and close to trendline.

 

[FXTrend240]

after a week of backtesting properly on eurusd, i have decided my stoploss will be 3X DAILY 14 ATR.

1XATR is 'average movement'
2X ATR is above average,
3X ATR is a very good move above average-this means that for me to be shaken out, a 'well above average' move will have to happen, im trend trading here so i want to stick with the trend and don't want to be shaken out by the odd spike here or there, plus means there's less likelihood i'll be stopped out.

Whilst the actual pip amount that my SL is will be fairly large (400 ish pips) the % risk would be 5% on a real account, whereas on this little demo account it will be 40%. lol, oh well, let's see where this takes us- and at the end of the 2 months ill scale the results down, mkay?

 

[FXTrend240]

changed my short to 1.35 - round number and trendline

 

[FXTrend240]

Right, so Greece has pretty much been bailed out- this doesn't fix spain,italy or the rest of the eurozone's debts.

Euro is acting positive to this news but it's nothing major-as of now the euro is going down so im sticking with that.

 

[FXTrend240]

been backtesting a little and a 2XATR TRAILING stop is seemingly effective... i will try it

 

[FXTrend240]

Further research has shown me with a 3XATR stop:
scale out 1/3 position once 1XATR is hit
scale out another 1/3 once 2XATR is hit, and bring stop to breakeven
scale out last 1/3 once 3XATR is hit.the ATR used is the ATR from entry.
this means that:
you can scale out and get to breakeven with a good chunk (2/3) of your profits locked in
you have a small chance of your stop being taken out (unless trend changes)
but again, I can't even scale out on this petty demo account.

 

[FXTrend240]

got short limit filled at 1.4999

 

[SvenFoster]

Further research has shown me with a 3XATR stop:
scale out 1/3 position once 1XATR is hit
scale out another 1/3 once 2XATR is hit, and bring stop to breakeven
scale out last 1/3 once 3XATR is hit.the ATR used is the ATR from entry.
this means that:
you can scale out and get to breakeven with a good chunk (2/3) of your profits locked in
you have a small chance of your stop being taken out (unless trend changes)
but again, I can't even scale out on this petty demo account.

Hi, Am I to understand that you scale out on the "losing" side. I.e that is your SL and not exiting 1/3 @ 1ATR on the TP?


Also change your demo account

 

[FXTrend240]

Hi, Am I to understand that you scale out on the "losing" side. I.e that is your SL and not exiting 1/3 @ 1ATR on the TP?


Also change your demo account

nope, don't scale out of losers

any suggestions for another demo account?

tbh i don't have time to be on this forum for the next wee while, but my prfoit target on this is 1.3260