Greetings ForexFactory!
I have started a challenge for all the people who are thinking about starting trading but they don't have the money or the expertise needed.
I am on purpose starting here with $200 and the goal is to produce ~2% per week return.
The Method
----------------
I deposited $200 by means of Visa and I have used a 1000:1 leverage.
This means that I can buy 1.0 lots and if the price moves by 1 pip it means I either make or lose $1.
My default starting size is 0.01 lots which is essentially 1 cent per pip. I then adjust my positions automatically depending on how right I think my guess is. I will be running my strategy on 5 currency pairs: EURUSD, USDCAD, AUDCAD, AUDUSD, and GBPUSD.
The Trading Methodology
------------------------------
I wrote my own trading strategy in the form of a computer program which opens and closes all my trades.
I trade without stoploss. There is a good chance I might lose all of the $200 and that's OK. However, the test I did show that I have an edge on ~90% retail traders and that there is no emotion associated with my trades, they are executed by my ExpertAdvisor.
Learning Points
-------------------
I think the biggest problem is that "day-traders" or wannabe traders trade too much and get emotional and make trades which are not backtested in their reason and which are not sound in their setup (ie why trade now). It is something to keep in mindwhen constructing a strategy.
How will we make the money
-----------------------------------
Essentially we will chose our opens based on a set strategy and we will just focus on managing our winners agressively even if it means risking more in order to get higher returns than otherwise would be optimal as a sake of excercise.
We will utilize not only aggressive winner management but we will also compound our wins. Over 5 different pairs simultaneously. The risk of encountering very severe drawdown in equity is very real, but since its not our lifes savings & we should be OK.
And most importantly, there will be no human intervention for the next 8 weeks.
I will be going over simple concepts in this thread which are necessary in order to become a successful trader on your own.
Cheers and subscribe!
$200 Forexville Challenge
I have started a challenge for all the people who are thinking about starting trading but they don't have the money or the expertise needed.
I am on purpose starting here with $200 and the goal is to produce ~2% per week return.
The Method
----------------
I deposited $200 by means of Visa and I have used a 1000:1 leverage.
This means that I can buy 1.0 lots and if the price moves by 1 pip it means I either make or lose $1.
My default starting size is 0.01 lots which is essentially 1 cent per pip. I then adjust my positions automatically depending on how right I think my guess is. I will be running my strategy on 5 currency pairs: EURUSD, USDCAD, AUDCAD, AUDUSD, and GBPUSD.
The Trading Methodology
------------------------------
I wrote my own trading strategy in the form of a computer program which opens and closes all my trades.
I trade without stoploss. There is a good chance I might lose all of the $200 and that's OK. However, the test I did show that I have an edge on ~90% retail traders and that there is no emotion associated with my trades, they are executed by my ExpertAdvisor.
Learning Points
-------------------
I think the biggest problem is that "day-traders" or wannabe traders trade too much and get emotional and make trades which are not backtested in their reason and which are not sound in their setup (ie why trade now). It is something to keep in mindwhen constructing a strategy.
How will we make the money
-----------------------------------
Essentially we will chose our opens based on a set strategy and we will just focus on managing our winners agressively even if it means risking more in order to get higher returns than otherwise would be optimal as a sake of excercise.
We will utilize not only aggressive winner management but we will also compound our wins. Over 5 different pairs simultaneously. The risk of encountering very severe drawdown in equity is very real, but since its not our lifes savings & we should be OK.
And most importantly, there will be no human intervention for the next 8 weeks.
I will be going over simple concepts in this thread which are necessary in order to become a successful trader on your own.
Cheers and subscribe!
$200 Forexville Challenge