live account increased by 42% in 2 months,DD=5%, looking for investors/advice

[KOLKA]

1)
I didnt trade on monday b/c I had a midterm yesterday and I think I failed

hey tommy, 100% agree one should never rely on the system to trade for them (see my post about ITA above).

let's see how our methods perform over the next couple of months and post the results at the end of each month.

i still think with an ITA you could potentially quadruple your performance or more (because thats what it did to me, i'm forever grateful to a friend genius who coded it).

I assume even with your method - you use fundamental drivers to decide which way to go and then TA on what to do during the day, right? Don't know anything about option markets, for fx fundamentals don't really change on a daily basis, weekly more like it, so an ITA is very suitable. It may not be so for your things tho.

haha, what course are you doing? it's addictive to trade during university time, so much free time so much desire to get rich quick

 

[montmorencyt2w]

Hey Mike, can you be more detailed what you like about Tom's system better?

I think there was some misunderstanding about my system. It's a 'non-system' or manual, or whatever terminology is more appropriate. What I use programmed is not a system, it's a module, an ITA (Intelligent Trading Assistant). The difference between Coded System and an ITA is like this:

System - you turn the script on and let it run, you build it based on past data typically over a large period of time, you optimise it to that data to find out best band of parameters, etc. I don't believe in Systems myself as it's like letting a car be driven by a monkey and you sitting on the back seat - a bit suicidal.

ITA - is situation specific. You build a code with a series of modules to do different things dependent on what happens in the market. The modules will not do these things themselves - you have to activate and deactivate certain modules dependent on what you think market is doing right now. This is typically done on a weekly basis, but sometimes two times a week or something like that depends on what happens.
When you prepare an ITA for work, you do NOT follow the same procedure as you would testing a System. It's like this: System is supposed to replace the person, an ITA is a tool you turn on/off, tweak, modify. It's like Car Running on AutoPilot (System) and You Driving a Car (you managing an ITA).

One more thing, ITA does not analyse the Market Direction, etc. Although mine has a module built in, I have it deactivated (I don't want the car to run on autopilot). So it just does entry/exits and I tell it around what levels and how to do it to give me what i need.

does that make more sense?

What's the point in an ITA? The way I use mine is to 1) enter the market when I'm not at my desk, 2) High Frequency of Trading (Trade Repetition NOT opening too many trades) = example: Price goes up -> ITA Enters -> It Drops ITA TP's -> It Rises Again -> ITA enters -> Drops again ITA TP's. If you do this right in 1 day, you can get multiple trades TP'ing repeatedly when in reality price isn't moving up or down (just bouncing around). Like for instance if you set your TP's to be below 1H Typical Bar Range, in high volatile situations (let's say yesterday, eurusd) ITA with TP=30 pips, will TP 4 trades for you (120 pips) = with exposure being of only 1 trade at any given moment in time. I call this High Frequency part of the approach, it's essential to getting a higher %return with this method.

Yes, I think I see better now, and I could see how even I might use something like that - I am talking about the high-frequency bit, e.g. when a market is ranging rapidly, and you could both buy and sell the same market in the same day several times and make money each time. (I never both buy and sell personally; I choose a direction based on a fundamental sentiment, and then stick to it, but that's just me). EDIT: At the moment, I just use pending orders to try to take advantage of this, but a properly programmed approach would probably be better.

What I liked about what Tom described was his emphasis on fundamentals, which is also my emphasis (with "technicals" (not very) for entry and exits). BTW, I have little experience with stocks. My experience (such as it is, only 2.5 years; I'm no guru) is mainly FX, gold and oil.


Perhaps I'm too lazy to get involved with systems, which is ironic, because almost all my former working life was in computing, of which I enjoyed programming the most, and I probably could program half-decent "systems", but pretty early on in my trading "career", I decided (rightly or wrongly) "systems" was not the right place to be putting my energies. For the last year or so, I've been concentrating on how markets work and interact. I don't think it's easy. I don't think trading was ever meant to be easy. That is why I am always rather suspicious of trading systems. However, I always like to keep an open mind, or try to, and, as my .sig says, I am still learning.

 

[montmorencyt2w]

2) Create My 'Personal Fund' in a couple of months by borrowing money from the bank

Oy vey! I'd avoid banks like the plague if I were you!

 

[KOLKA]

(I never both buy and sell personally; I choose a direction based on a fundamental sentiment, and then stick to it, but that's just me). .

yep same here. My method is about 80% Fundamental analysis (I only trade in 1 direction as well), 15% Risk Management, and 5% trade execution/entry management. About fundamentals, my homework for this weekend is to read&note John_Perkins_-_Confessions_of_an_Economic_Hitman. You read that one before? It comes highly recommended.

It would have to be a bank if nobody else will back me, as i'm too impatient to wait for my own money to rise. But it's early steps now, in due time will make more sense.

About the Code part of it, it depends what your objective is. With my objective I need the code. My objective is to spend maximum of 20 minutes per day trading, about 2 hours on weekend reviewing the week and updating myself on fundamentals. I have a couple of other businesses which means I often can't come to the computer at all, so the vps+ATI save me at those moments.

By the way Mont: Do you know how to find out if central banks are starting to buy their own currency? I'm only interested in eurusd. Aparently it's not announced, but somehow people find out. Also can you recommend any other sources books to learn more FA for forex?
:smart:

 

[montmorencyt2w]

yep same here. My method is about 80% Fundamental analysis (I only trade in 1 direction as well), 15% Risk Management, and 5% trade execution/entry management. About fundamentals, my homework for this weekend is to read&note John_Perkins_-_Confessions_of_an_Economic_Hitman. You read that one before? It comes highly recommended.

Yes indeedy, before I ever got into trading actually. It might have been updated since. You can also find interviews with him on YouTube. In my time, I've been quite into conspiracy theories and if you are into that kind of thing, Michael C Ruppert is a fascinating guy (nothing to do with trading though, or at least, not directly). It's easy to get a bit obsessed with that kind of stuff though, so I have to back off from time to time.

It would have to be a bank if nobody else will back me, as i'm too impatient to wait for my own money to rise. But it's early steps now, in due time will make more sense.

Well, you know what they say about impatience and trading
Just remind yourself in the meantime, first thing in the morning, and last thing at night, that banks, all banks, are the spawn of Satan Do you really want to sell your soul to them?

About the Code part of it, it depends what your objective is. With my objective I need the code. My objective is to spend maximum of 20 minutes per day trading, about 2 hours on weekend reviewing the week and updating myself on fundamentals. I have a couple of other businesses which means I often can't come to the computer at all, so the vps+ATI save me at those moments.

Good objective. I spend far more time on it than I ideally would want to, although I justify it to myself because I am trying to build up my trading capital. I originally just wanted to be a long-term trend-trader, only placing trades once per week, and occasionally checking them during the week, but somehow it has not worked out that way.

By the way Mont: Do you know how to find out if central banks are starting to buy their own currency? I'm only interested in eurusd. Aparently it's not announced, but somehow people find out. Also can you recommend any other sources books to learn more FA for forex?
:smart:

I would not care to answer the specific question on central banks. However, I am a fan of Ashraf Laidi. He has a website with free registration, with articles and a forum. The forum is a lot quieter than T2W, but occasionally you will pick up some gems. He also has a book that is inexpensive. Not a trading book per se, but good on currencies and commodities. There is also occasionally some useful stuff on Zerohedge. You have to wade through all the opinionated stuff there, but nevertheless, it can be useful background. The comments are often more interesting than the articles . Other than that, I look at ft.com, the BBC business section, and FXstreet (sometimes).

Cheers,
Mike

 

[KOLKA]

* here's my live statements again, in excell as for some reason html format just isn't getting through, for those interested in going through each trade to see what was done

(the way i started when a coach gave me his live statements with hundreds of trades, going through each one of them manually, linking it to the chart, to figure out what on earth was going on

this experience was better than reading a dozen books on the subject

 

[KOLKA]

Mike

Mike this is pure gold - the info you gave me!

That's why I love these forums!

Total mastermind group here

 

[4xpipcounter]

KOLKA, let me say something, and please in all due respect . If you are making 42% every 2 months, then you don't need to trade anyone else's money. Keep trading your own, and you're a millionaire in 4 years. Why have the burden of everyone else's money when you know you are that good?
The numbers are simple. If you compound the interest, in one year you will make 719.8%. After 2 years, it will be 67.2 times what you started out with; 3 years--551.1 times what you started out with; 4 years--4,517.9 times what you started out with. That means, keep doing what you are doing on your own money, and you are worth over $2 million in the 4 years.
Also, I don't mean to sound demeaning in any way, but I am straightforward. Someone else mentioned that 42% is not very impressive over 2 months. He's true, especially when it stacks up to 11 years of trading. Also 42% return is 420 pips at 10% margin. I've made over 600 pips this month, and it is not half over. I'm not blowing my horn, but I am just trying to make a point.
Usually, the account managers wannabes are the ones who can't trade on their own, but are hoping to strike it rich off someone else's money. I'm not saying that is your case. I'm just saying you can be rich in a short period of time just getting your 42% every 2 months. Keep trading! Keep up the good work! Just stay focused on your own money.
By the way, even though I tell it like it is, I mean to be fully respectful, so even while I am writing this, I'm hoping it is coming across with the spirit intended.

hi, i don't know if this is the right thread for this, let me know if it's not.

I'm looking to manage other people's money & for advice how it's best to go about doing this.

I know little about fund management, the legal/practical side of it.

Regarding trading, you can find my latest results below.

I been trading for about 11 years now, now i'm settled on 1 strategy that I apply, as you all know in this business it can take a while before you have a strategy, tested, re-tested and working. In my case it took about 10 years, with a few short-term working strategies a couple of years appart.

My results: My Live Account, I turned $5,680 into $8,082, in just over 2 months., that's 42% increase.

All positions closed. Maximum Drawdown = 4.33%, Profit Factor: 2.97.

As you'l see I only trade eurusd. Some might say 'of course you made money eurusd has been crashing, anyone could have made money', in that case consider the extremely low drawdown, and also according to the way the strategy was built and tested, it actually works much better during ranges than during a trend, so I am hoping to see that in practice as we are possibly entering a range on eurusd now.

So all in all I expect even better results for the next couple of months.

Plus you'l see that all the trades are very small amounts, this is due to extreme volatility increase in the last few weeks. With less volatility I expect much higher returns than I got now.

My strategy is composed of a variety of modules, it includes a number of approaches from fundamental to statistical, quantiative and technical,as well as a few modules i designed specifically for risk and account management.

I also use an ITA (Intelligent Trading Assistant) that was custom programmed for this strategy by a professional trader/coder.

With the ITA I can let it run and do the trades, and my job is to adjust it's parameters and analyse the market (fundamentally and technically). It's all done on a vps so there's no risk of system being down or anything like that.

My aim is to raise $200,000 to manage. I already have 1 investor putting $20,000 into it, I will have about $10,000 my own (I'm fully invested in my other businesses unfortunately hence can't commit more money). There is no limit on how low or the max anyone wants to invest, every little helps so to say.

I would also welcome trading other people's money for a comission arrangement. I would have to use my own tools though.

This forum is a fantastic place for advice and support. Now, if anyone can help me out with advice how to reach the above target or just generally coach me with advice on fund management - I would not forget it

I am also re-locating to Saudi Arabia to live (and the profit tax there is 2.5%, which means investors already get a higher %age return than in any other country).

Please find my detailed trading statement attached and do ask me for anything else that you may need.

Also, I only trade eurusd and the strategy was built specifically for that pair. To adjust it to another pair would take a couple of months as a whole series of tests will need to be run, and a bunch of fundamental indicators/approaches tested and prepared. Ideally I think it's best to stick with what works.

I look forward to you advice how to raise money or if anyone want's me to manage their money, or for any other useful suggestions regarding fund management/setting up

thank you,

Nick
ps: let me know if there's a problem with the attachment, and i can email/pm it to you

 

[KOLKA]

4pip thats cool,

i agree in my experience people offer to trade others money when they can't make their own, thats why it's important to demand an actual live account.

2 months is not enough, you are right, the plan is to keep it up for 10 months more to get 12 months average performance. by that time we would've seen different eurusd environments.

and about trading others money, it's kinda the other way around actually, i want to start something bigger than trading for yourself. I don't know if you know of 'Pay It Forward', read about it/watch the film if you don't and u'd understand.

I have a vision of sucessful traders running large trading houses and dividing the profits betweeen giving them back to the investors (which would be normal people, even with little amount of money) and using the other half to advance research in conscoiusness evolution and fund 'positive economics' business ideas (like business angels but only for positive economics projects).

This way a lot of beautiful things can be created for people, the planet and everyone involved.

 

[KOLKA]

*** and this way you'd make billions and not millions, and everyone wins. that's the nature of positive economics.

 

[bfirth]

this is turning into very interesting thread,
If you are thinking of managing OPM(Other Peoples Money) try reading the book "Pit Bull Lessons from wall Street's Champion day trader" By Buzzy Schwarts, its a fun read and put me off even thinking about managing OPM big time.

Personally I'm a discretionary trader and have never thought about auto trading anything, but this thread, and you guys have got me thinking.
I have a few setups where a fire and leave ( kind of like a heat seeking missile) prog may make my like easier, ie. I pick direction and timing and the prog manages the position once I've put it on, to maximize the profit, I guess a kind of reverse gray box system, I think they normally get you into a trade and them a human trader manages it to a close.

I still can't view the attachment could be I'm knackered atm. I tried opening it with OpenOffice no joy.....

 

[4xpipcounter]

Bottom line, we are all here to make money. You'll make all you need trading for yourself.
I've only been here for a couple of days. It seems like a big forum. You could start a link and post your trades as you make them, then let us know when you exit them. I cna tell you from personal experience that from early 2005 to 2007 I was posting all my trades and showing gains throguh those trades of <> 2,000 pips per month. I was getting hit by a deluge of e-mails from people for me to trade for them. I was doing weekly updates, having forums, and showing proof over that whole period of time of my trading. What I'm saying is if you want clients, they will come running if you are forward looking with your trades rather than showing them in the rearview mirror.
Let me also be honest, and these are things to consider. I don't know if anyone else was in the same boat I was in, but psychologiically, I could not handle trading others' accounts. I was also not get paid properly for my services as only about 1/8 of all my eanted income was received in a check. The 1/8 was still enough for most people to live on, but there was way too much pressure, and psychologically I caved.
I found out there is nothing like trading your own and being repsonsible for your own money.
Another thing. I still like to post a few of my trades. I have no ulterior motive, but mentally it keeps me sharp in knowing if I mess up too bad, I might get laughed right out of this forum.
I hope thing continue to prosper and you do well.

4pip thats cool,

i agree in my experience people offer to trade others money when they can't make their own, thats why it's important to demand an actual live account.

2 months is not enough, you are right, the plan is to keep it up for 10 months more to get 12 months average performance. by that time we would've seen different eurusd environments.

and about trading others money, it's kinda the other way around actually, i want to start something bigger than trading for yourself. I don't know if you know of 'Pay It Forward', read about it/watch the film if you don't and u'd understand.

I have a vision of sucessful traders running large trading houses and dividing the profits betweeen giving them back to the investors (which would be normal people, even with little amount of money) and using the other half to advance research in conscoiusness evolution and fund 'positive economics' business ideas (like business angels but only for positive economics projects).

This way a lot of beautiful things can be created for people, the planet and everyone involved.

 

[KOLKA]

now we are talking guys,

With the topic of 'wealth' we have a direct door to the human mind and to the mass population. the typical modern mind is obsessed by money and greed, most of it listens to that rather than 'self-development, spirituality, growth, love, peace'. You can see the results everywhere. Even though a change in consciousness is happening, it's still way off from what it could be (according to research we are still on the boarderline between self-destructive and self-developing existence).

People say Greed is bad and it leads to many psychological problems, wars, etc, that is true but very few see that this is also a massive advantage to anyone who wants to make a positive impact.

Greed is like a door into the mind, you can enter it and then shift consciousness towards beautiful things as the person will become a part of whatever it is you are creating. Anything to do with money - people become interested immediately.

The biggest key to this door into the mind - is sucessful trading. By creating something together and offering people good return on their money, it is possible to get masses of people involved (like a 'People's Bank' kind of thing), not only those driven by positive values but also those driven primarily by greed, and then as part of the process re-educate those driven by greed with a range of psychological methods and ways. Re-educate those people to become happier, to feel how they damange themselves with greed and other negative emotions. To Educate them in principles of Napoleon Hill, Charles Haanel, Joseph Murphy.

My background is in motivational psychology (academic and professional), there's a million ways to do this.

Sucessful Trading and Positive Economics will take care of profits and financial stability (but we need an Economist, and not just a normal one, but the one driven by the Positive approach which is very different from traditional economics). Sucessful Trading - is the part of the sucessful traders (i don't call myself one yet).

Imagine a 'International Bank' - 'People's Bank', who's job is not to screw people like banks do now, but to generate money for them and at the same time attach the element of 'positivity/consciousness development' to the money generated (maybe even to the extent of people having to pass a free consciousness course to get a high return on their money, or to do a 'Pay It Forward' kind of thing, people would do it if it means they will have more money, and the course WOULD change them, make them happier, more positive and creative). Then make everybody a shareholder and use excess money on funding positive business ideas. The ideas become a sucess - the People's Bank benefits.

This is not a 'pipe dream' idea, it is an absolute reality. You guys can make it happen! We can start something truly amazing here for the whole world, and I am sure every person on this forum knows someone who could play a crucial part (a positive economist, a financial advisor, sucessful traders, other people experienced in institutional designs).

Structure wise it can be anything, a bank, an OPM, a Ltd, whatever this is a minor point. There is a million legal ways to create a structure for such an organisation, in whatever country is most beneficial for it.

This needs people who want to create something bigger than themselves, much bigger, the size of the entire world, people who believe it is possible to eradicate poverty and create really amazing things.

If this kicks off, by using 'money' as 'bait', the entire world can get hooked and changed.

thanks for the book bfirth, i just ordered it on amazon.

personally i wouldn't leave trading to an auto system, only if to do a very specific task at a certain point in time. like now i deactivated all my modules and trade 100% discretionarily. there's a very experienced programmer/trader in this group, he has been closely with me on this journey and he's the one who built the software and taught me main part of the approach i use now.

**attachments never work, i'l try again

 

[KOLKA]

***lets see if this attachment works (excell 97+)

 

[4xpipcounter]

BTW, I read your other post, and I also could start getting philosophical, but it bores me.
First of all, if you make to much, your broker will shut you down. That also includes trading for clients.
Seccondly, figure the compound interest for yourself, but 42% every two months with an account starting at $5,000 makes you a billionaire in 4 years and 2 months. I also just found out from my broker (I don't want to bad mouth anyone.) that the most I can withdraw per month is $12,000. Therefore, the billion won't do you any good.
Postive econmoics sounds good, but there is only so much money the brokers have to pass around. I would rather keep all the money myself than pass it around to my clients. That, I believe, is the nature of good traders.
I like trickle-down economics better.
Whew! This thing is getting heavier than I thought.

*** and this way you'd make billions and not millions, and everyone wins. that's the nature of positive economics.

 

[KOLKA]

***4pipcounter, you just mentioned 1 scenario. do you know how many scenarios are possible?

have a think, millions! (from setting up your own brokerage, to partnering with an existing brokerage, to trading from a partnership company, to setting up an 'investor' company in an offshore zone (as i'm doing right now with another business of mine) and then doing whatever you want in there, to trading from a boat in an international territory). Process is always the same:

1. Have A Vision -> Believe in It -> The Steps you figure out as you start walking your journey.

In 1954, it was considered as PHYSICALLY IMPOSSIBLE to run a mile in under 4 minutes. Everybody in the world agreed - physicists, biologists, everyone! Nobody's ever done before and why should they if it's considered impossible.

Except for Roger Bannister, who couldn't care less. He simply decided to do it and did it. Run the mile in 3.59 minutes. Within next 12 months, 13 people broke his record.

thats it
* and this is one of billions of examples. look around, everything you see was once considered as 'impossible' by someone and 'possible' by the one who created it (even your clothes).

 

[KOLKA]

* if you'r feeling it's heavy, its because your mind is now starting to grind down against limiting beliefs that you have. it's challenging your perception of reality and what is possible, hence the experience of heaviness. this is great, just don't fight it or become agitated by it. let it be.

 

[4xpipcounter]

Have a think!? Millions!? You missed my point. Trade from your boat in any territory you want to. You make your millions trading for you. I think I did a perfect job in outlining that. Plus, you get to a certain level, there is only so much you can spend.
I've known too many people with that same mentality that did not know how to trade consistently and drove clients' accounts to ruins. Keep doing exactly what you are doing right now and you will have your Billion in 50 months. It's that simple! Well, okay, you'll never be able to withdraw your money from the broker, but that's another story for another day.
BTW, the Roger Bannister example is irrelevant. 36 years ago I set a district record with 2,000 situps. A few people have broken it since. Big deal! That has nothing to do with trading.
This is almost bringing out the sinnister in me, but I am enjoying the conversation.

***4pipcounter, you just mentioned 1 scenario. do you know how many scenarios are possible?

have a think, millions! (from setting up your own brokerage, to partnering with an existing brokerage, to trading from a partnership company, to setting up an 'investor' company in an offshore zone (as i'm doing right now with another business of mine) and then doing whatever you want in there, to trading from a boat in an international territory). Process is always the same:

1. Have A Vision -> Believe in It -> The Steps you figure out as you start walking your journey.

In 1954, it was considered as PHYSICALLY IMPOSSIBLE to run a mile in under 4 minutes. Everybody in the world agreed - physicists, biologists, everyone! Nobody's ever done before and why should they if it's considered impossible.

Except for Roger Bannister, who couldn't care less. He simply decided to do it and did it. Run the mile in 3.59 minutes. Within next 12 months, 13 people broke his record.

thats it
* and this is one of billions of examples. look around, everything you see was once considered as 'impossible' by someone and 'possible' by the one who created it (even your clothes).

 

[4xpipcounter]

Ooooh, we ought to shake hands and get to know each other if you think I have limiting beliefs or this topic is challenging, ahhh, I got news for you. It's not.
Once again, I laid it all out with concrete and evidential facts. No fluff!
This is also not a fight. I have one hand tied behind my back just to make it fair. And...yeah, still enjoying this conversation.
BTW, "heavy" comes from the hippy days. It is only a figure of speech. Now, I gave away my age. lol
Let me get a little more serious. I know you talked about helping floods of humanity. Trade for yourself. You'll still make millions and billions. Develop a love for trading, and then share with others. I have been doing that in private chats over the years, as well as coaching many on my blogs. One of the really nice rewards is I do it for free. Why? Because, I make my pips. I love the business. There is always an ulterior motive beyond a personal devotion of your time and service. I'm not necessarily saying there is something wrong with an ulterior motive. But, let's face it, your ulterior motives and far outweigh some contribution you want to do for humanity.
Also, I would sincerely question the confidence someone has in their methodology when they have traded successfully for 2 months, then want to start talking baout trading millions for others. If I am wrong, and you have the most outstanding confidence in your method of trading, then let me stand corrected in advance, but what I mentioned is not a mere stereotype but is the rule.

* if you'r feeling it's heavy, its because your mind is now starting to grind down against limiting beliefs that you have. it's challenging your perception of reality and what is possible, hence the experience of heaviness. this is great, just don't fight it or become agitated by it. let it be.

 

[pboyles]

BTW, I read your other post, and I also could start getting philosophical, but it bores me.
First of all, if you make to much, your broker will shut you down. That also includes trading for clients.
Seccondly, figure the compound interest for yourself, but 42% every two months with an account starting at $5,000 makes you a billionaire in 4 years and 2 months. I also just found out from my broker (I don't want to bad mouth anyone.) that the most I can withdraw per month is $12,000. Therefore, the billion won't do you any good.
Postive econmoics sounds good, but there is only so much money the brokers have to pass around. I would rather keep all the money myself than pass it around to my clients. That, I believe, is the nature of good traders.
I like trickle-down economics better.
Whew! This thing is getting heavier than I thought.

If that's the case then you need a new broker and not some MT4 forex bucketshop.