How not to make money trading the markets

Hotch

Well-known member
Jul 8, 2008
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#1
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!
 

Hotch

Well-known member
Jul 8, 2008
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#3
Hopefully it'll bring a few laughs either way!

As is my saying "I'm probably the happiest man alive, but hopefully not"
 

Hotch

Well-known member
Jul 8, 2008
1,410
256
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#5
go for it!! (y)(y)(y)(y)
you are clearly mad!! :eek::eek::eek:
your coin better beat that "I made 167 pips in 2 days" bozo!! :cheesy::cheesy::cheesy:
Psst!

It's a double headed coin! I can't lose! :LOL:
 
Aug 28, 2003
809
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#6
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!
 

hwsteele

Well-known member
May 18, 2004
1,227
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Texas
#7
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!!
 

Hotch

Well-known member
Jul 8, 2008
1,410
256
93
#8
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.
 
Likes: hwsteele

hwsteele

Well-known member
May 18, 2004
1,227
181
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Texas
#9
100%


When I make the first million I'll probably die laughing before I can sell it.
You could be like those turtle people when they first started out. You know, only take so many and charge about a trillion bucks each. Then make a hundred trillion. Then one of the little turds sells you out...
Oh well, life goes on right?


You do know that you will make a million right? I mean after all you posted what you did and instead of every one telling you how stupid you are and getting into page after page of arguments, THEY ALL GAVE THEIR BLESSING!! :|:eek::-0
completely unprecedented!!
 

foredog

Well-known member
Oct 15, 2007
1,879
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#10
No point arguing with madness...ha ha ha ha ha
 

Hotch

Well-known member
Jul 8, 2008
1,410
256
93
#11
Stop 5%
Target 0.5%
Percentage of account risked on a trade=1/n
Oh dear! A 10:1 risk reward ratio seems far to secure. 50:3 seems much better.

(Target is 0.3%)

Trying to get 10p/point betting (IG said they would allow me to for purposes of experiment), but I might have to just go more insane with betting the ranch day 1 while they reset it ...waiting a day would be far too boring.
 

PokerBrat

Active member
May 7, 2008
197
25
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#14
You can get 10p per point at iii.com and finspreads, if you join as a newbie trader. Lasts about 8 weeks I think.
 
#15
Target...

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.

If I understand correctly, this is a "cut your winners, let your losers run" strategy. Why have such a huge stop and tiny target?