Richard Hill Forex Net Trap

[lemming7]

In short, mathmatically yes. And running the same exponential growth after 4 trading years and 16 trading weeks you would be a millionaire and after 12 trading years (552 trading weeks) your pot would be worth how much ?

The answer is over £105 Billion! (Yes true!).

If you are into maths like me this will float your boat. The power of compounding. Attached is my new NTCompound2.xls. In this new version as well as adjusting the start pot size in the blue box you can also adjust the "weekly average win" size in the orange box.

It's all to do with something called the "Exponential Function" with regards to growth and the doubling time.

I recommend to all Net Trappers who want to dream of making money off this system to set aside an hour to watch an interesting YouTube set of videos all about this maths. The link is below. It may alter the way you look at certain things in life and certainly will make you much more aware of figures banded about in the media by goverments and organisations, especially peak oil theory.

Link below here :

The hard part is maintaining a 50 pip a week average and not bottling it or withdrawing funds from the pot.

I also think that unfortunately vanilla NT does not even have a weekly avaerage of 25 pips which is my initial target. However some of the systems we are all developing now on here certainly have the potential to average 25 pips a week and maybe more.

Currently TNT60/60 with a 33 sell stop is running @ +297 pips for 4%MM over the last 5 weeks. That is an average of 59ish pips a week. And this is over a 2-3 week period where vanilla NT has really suffered. All that has changed is the addition of the 33 sell stop and the dual running of MNT with NT.

Now go and adjust the NTcompound2.xls orange box to 59 and see where £1500 goes if it could be maintained. Then repeat the same with a £6k starting pot that I will be using from mid july.

This is the power of the exponential function in growth. dream on boys.

M

(p.s. Lets be realistic and crack an averasge of 25 pips a week first!)

Hi Mark

Your numbers and logic are correct, the problem will come when you hit a couple of serious drawdown months. I have tried two compounding sytems, one recovered after a couple of bad months and the other would have wiped out my account had I continued. Therein lies the problem, you don't really know if the system will recover or will continue to lose. I guarantee if nt has a couple of bad months 90% will drop out.

Having said all that some people have made massive amounts of money compouding.
Best of luck.

 

[Trader333]

There is another issue that you will face once you start to use a large value per pip and that is you will be put on manual trading. That means you will only be able to trade using the telephone and they will quote you a price that they are happy that you enter a trade at. This will be a much worse price than you would get from the automated system. You may need to consider moving to a broker such as Dukascopy who would be able to handle this.


Paul

 

[mark120169]

Hi Mark

Your numbers and logic are correct, the problem will come when you hit a couple of serious drawdown months. I have tried two compounding sytems, one recovered after a couple of bad months and the other would have wiped out my account had I continued. Therein lies the problem, you don't really know if the system will recover or will continue to lose. I guarantee if nt has a couple of bad months 90% will drop out.

Having said all that some people have made massive amounts of money compouding.
Best of luck.

True, but if you stick to 2% NT or 4% TNT per trade compounding down on losing weeks mathmatically it should just reverse your pot size until if it was bad enough you would reach £1500 again, unless the losses start immediately of course.

The other thing to consider is so far, vanilla NT has only had 1 losing month, Feb this year. Not too sure about losing weeks, but then again I have already decided vanilla NT is not for me without tweaks. TNT would have had no losing months, but probably a few losing weeks at least.

M

 

[mark120169]

There is another issue that you will face once you start to use a large value per pip and that is you will be put on manual trading. That means you will only be able to trade using the telephone and they will quote you a price that they are happy that you enter a trade at. This will be a much worse price than you would get from the automated system. You may need to consider moving to a broker such as Dukascopy who would be able to handle this.


Paul

I think this is a nice problem to have for the future! I did read somewhere on this forum in the last two months that IG's auto net bid pip limit before you have to go manual is £300 a pip! Now that's a big pot already!

Also I'm sure ETX, capital spreads etc have similar limits for auto bids?

I think the really hard parts will be either

A) Not bottling it and sticking to the system when you are something like £50 a pip.

B) Keeping it secret from the Wife and thus in turn not spending the pot.

C) Not being caught by the taxman for Income Tax / CGT etc. I know S/B gains are tax free but if you make £3k a month gross in your day job taxed but £12k a month tax free via spreadbets surely the taxman will say.....no, no, no, no, no........and nobble you for a huge tax bill?

Anyone with experience of this?

M

 

[lemming7]

There is another issue that you will face once you start to use a large value per pip and that is you will be put on manual trading. That means you will only be able to trade using the telephone and they will quote you a price that they are happy that you enter a trade at. This will be a much worse price than you would get from the automated system. You may need to consider moving to a broker such as Dukascopy who would be able to handle this.


Paul

ODL now Fxcm may shake the UK spreadbetters up . They guarantee no re qoutes on any size. I think that's right but dyor.

 

[gbdru2]

In short, mathmatically yes. And running the same exponential growth after 4 trading years and 16 trading weeks you would be a millionaire and after 12 trading years (552 trading weeks) your pot would be worth how much ?

The answer is over £105 Billion! (Yes true!).

If you are into maths like me this will float your boat. The power of compounding. Attached is my new NTCompound2.xls. In this new version as well as adjusting the start pot size in the blue box you can also adjust the "weekly average win" size in the orange box.

It's all to do with something called the "Exponential Function" with regards to growth and the doubling time.

I recommend to all Net Trappers who want to dream of making money off this system to set aside an hour to watch an interesting YouTube set of videos all about this maths. The link is below. It may alter the way you look at certain things in life and certainly will make you much more aware of figures banded about in the media by goverments and organisations, especially peak oil theory.

Link below here :

The hard part is maintaining a 50 pip a week average and not bottling it or withdrawing funds from the pot.

I also think that unfortunately vanilla NT does not even have a weekly avaerage of 25 pips which is my initial target. However some of the systems we are all developing now on here certainly have the potential to average 25 pips a week and maybe more.

Currently TNT60/60 with a 33 sell stop is running @ +297 pips for 4%MM over the last 5 weeks. That is an average of 59ish pips a week. And this is over a 2-3 week period where vanilla NT has really suffered. All that has changed is the addition of the 33 sell stop and the dual running of MNT with NT.

Now go and adjust the NTcompound2.xls orange box to 59 and see where £1500 goes if it could be maintained. Then repeat the same with a £6k starting pot that I will be using from mid july.

This is the power of the exponential function in growth. dream on boys.

M

(p.s. Lets be realistic and crack an averasge of 25 pips a week first!)

-----
Hi Mark,

I thought I'd make myself useful. I upgraded your spreadsheet a little. You can now vary stop loss size and it shows amount risked on each trade in cash and %.

Your calculations assumed that the %daily bet was equally spread across both NT and MNT? I was thinking about adjusting it for the that vary the amounts i.e say 75/25?

Anyway, everything with an orange cell can now be changed

 

[insidergates]

-----
Hi Mark,

I thought I'd make myself useful. I upgraded your spreadsheet a little. You can now vary stop loss size and it shows amount risked on each trade in cash and %.

Your calculations assumed that the %daily bet was equally spread across both NT and MNT? I was thinking about adjusting it for the that vary the amounts i.e say 75/25?

Anyway, everything with an orange cell can now be changed

Don't worry Rodders, this time next year we'll be millionaires. Cushti

 

[SA Trader]

New Private Forum : It seems that many Net trappers on here are keen on the idea of a private Forum, but nobody seems to have stepped up to the mark to 'own' it. I normally trade in front of my PC for the full 2 hours each morning, and have been trading live on RH's system since 1st Feb, so I am more than willing to take on this task (if nobody else has already)....let me know guys.
Graeme

 

[bombettor]

Richard Hill Forex Net Trap System Stats

Many of the net trappers have done a lot of researchj on the system.
I was planning to use optimal kelly criterion for money management of the system.
For this purpose, I'd be grateful if someone can provide me the following stats:

Average Win
Average Loss
Winning Porbability

~Thanks in advance

 

[Tanguero]

Heh, kicked in just before the break out @ 14887.

 

[Tanguero]

On a private forum: nice idea but what will be the reaction of those 'left behind' in the open forum? There might be a rebellion here people deliberately trying to piece together the system and make it public.

 

[BigBrassBalls]

Mnt +10

 

[FxMax]

MNT +10 - Great
NT set at limit +25 because of major resistance.

 

[mark120169]

Mnt +10

Yippee.....me too!

 

[Melb]

Mnt +10

Within about 20 seconds

Took 1 pip IG slippage though - could have made a cup of tea in the time it took to fill my order!

 

[mark120169]

Mini Net Trap MNT banked again today

Buy 14901 limit 14911 stop 14871

June TD +20 (Wins x 11 +110 loss x 3 -90)



M

p.s For those that could have avoided Monday 7/6/10 and thursday 17/6/10 unfortunate losses due to tighter spreads than IG 3 pips or running a 33 stop limit on a sell order MNT would be +100 for June to date.

 

[BigBrassBalls]

Resistance at 14915, RSI chart showing it's fairly overbought! Might take a few waves to brake through

 

[SA Trader]

Did most people enter at 14901 ?

 

[mark120169]

Within about 20 seconds

Took 1 pip IG slippage though

Same here with IG. Anyone get slippage on ETX or CS etc ?

M

 

[Tanguero]

Resistance at 14915, RSI chart showing it's fairly overbought! Might take a few waves to brake through

Oh yeah the top of 15 May. Still, check out all retracements from 2:30 are very shallow. Heh, as am writing this stuff it made a nice spike proving the point!