Rsmereka Trading Journal

[spider-man]

Originally Posted by rsmereka

Yes, I know that (as I previously posted),

The rational of using Fore Hacked with a copier is discussed in detail here in this thread and in the Forex Hacked thread.

Please read.

Rick

Hi Rick,

thanks, i'll read and learn.

Cheers.

[Merrygoround]

Originally Posted by Merrygoround

Either he is doing it right, or I am way overexposed when trading manually.

He is right. I need to reevalutate my strategy. Take a look at this quote (I got it from a spam FX email):

(...) VAR (value at risk)
If you decide to use a stop loss then you can control exactly the maximum amount of money that you can lose for every trade - this is called the value at risk (VAR). To calculate your VAR, simply multiply the stop loss with your pip value. For example, let us go back to our first EUR/USD trade, where we set a 20 pips stop (buy at 1.4000, S/L at 1.3980). If you trade one lot, then every pip is worth 10$. Hence, $10 X 20 = $200, this is your VAR.
To properly manage your risk, it is recommended that your VAR does not exceed 2% of your balance. For a $200 VAR, we need a balance of at least $10,000. A typical mistake is to always use the same position size no matter what the stop loss is. The recommended approach is to set the stop loss level then calculate the position size.

I am not sure if they mean that 2% VAR should be per trade, or the accumulated VAR of all outstanding positions?

[rsmereka]

Originally Posted by Merrygoround

He is right. I need to reevalutate my strategy. Take a look at this quote (I got it from a spam FX email):

(...) VAR (value at risk)
If you decide to use a stop loss then you can control exactly the maximum amount of money that you can lose for every trade - this is called the value at risk (VAR). To calculate your VAR, simply multiply the stop loss with your pip value. For example, let us go back to our first EUR/USD trade, where we set a 20 pips stop (buy at 1.4000, S/L at 1.3980). If you trade one lot, then every pip is worth 10$. Hence, $10 X 20 = $200, this is your VAR.
To properly manage your risk, it is recommended that your VAR does not exceed 2% of your balance. For a $200 VAR, we need a balance of at least $10,000. A typical mistake is to always use the same position size no matter what the stop loss is. The recommended approach is to set the stop loss level then calculate the position size.

I am not sure if they mean that 2% VAR should be per trade, or the accumulated VAR of all outstanding positions?

Actually he is very conservative,

In manually trading, the generally accepted level of risk is 1-2% per trade. The most famous example of this is the Turtle Traders of the 80's (Richard Dennis & Bill Eckhardt fame)

I also read that the risk:reward of the strategy that theforextradingcoach.com teaches is something like 1:3 which kind of explains the risk percent.

Man, I am itching to get this going but I have to clear up some things first. I am still waiting for my large deposit to make it's way to my trading account. The issue with my bank has been cleared up. Turns out my transfer was over a certain value and they red-flagged it and starting asking a lot of questions about GoMarkets and why I was sending this money.

Rick

[Merrygoround]

Originally Posted by rsmereka

Man, I am itching to get this going but I have to clear up some things first. I am still waiting for my large deposit to make it's way to my trading account. The issue with my bank has been cleared up. Turns out my transfer was over a certain value and they red-flagged it and starting asking a lot of questions about GoMarkets and why I was sending this money.

Rick

What are you planning to do with this fresh equity? Manual trading or put it all on the FH account? I remember having the same feeling and big expectations about FH two months ago. It resulted in a nearly blown account two weeks later. So be careful.

It is normal for banks nowadays to be suspicious, esp. in case of cross-border financial transactions. They are obliged to follow certain rules and regulations regarding anti terrorism and money laundering.

[rsmereka]

Originally Posted by Merrygoround

What are you planning to do with this fresh equity? Manual trading or put it all on the FH account? I remember having the same feeling and big expectations about FH two months ago. It resulted in a nearly blown account two weeks later. So be careful.

It is normal for banks nowadays to be suspicious, esp. in case of cross-border financial transactions. They are obliged to follow certain rules and regulations regarding anti terrorism and money laundering.

I am planning to give it to FH to be used with my 50/50 strategy. The output of the 50/50 will be traded manually. All of this is as of right now. If manual trading is successful and it becomes apparent that I don't need FH, then I'll dump the EA.

My live copier account has lasted more than two weeks now (since Jan 20, almost 4 weeks) and still doing really well. FH is not pumping out the usual 20%+/mo return as of late but I am happy with whatever I get. I am anxious to get into my typical 5K per mico starting lot size instead of this very high risk at about double the usual.

Yeh, I know. All these regs. I read a while ago what the threshold amount was. I should remember that and break up the transfer but that would incur more than one transfer fee. GoMarkets accepts Paypal (on AUD-based accounts) but they make me pay the fee which for me is a whopping 4.5% which is ok for small amounts but for large amounts, it can be a killer.

Rick

[Merrygoround]

Your equity has exceeded the 10k max allowed for 500:1 leverage at GoMarkets. So now you are trading FH with 400:1 ?

[rsmereka]

The funds have made it to my GoMarkets account,

I have just changed by starting lot size to 0.02 in line with my 5K per micro strategy (actually, I had to change the copier multiplier to 0.333 which represents one third of the master's lot size, the master is currently at 0.06).

For some reason, shortly after the deposit of my funds, the current Forex Hacked basket closed, every trade except one. Right after I noticed my funds had made it into my account and before I changed the starting lot size (the copier multiplier actually), I manually closed the remaining trade from that basket (also at a loss). All in all, I lost around $70 which was almost 3% of my equity (calculating based on the old 2.5K balance). If I calculate the loss in terms of my new balance, it's way less than 1%.

Rick

[rsmereka]

Originally Posted by Merrygoround

Your equity has exceeded the 10k max allowed for 500:1 leverage at GoMarkets. So now you are trading FH with 400:1 ?

Thanks for reminding me,

I just did a quick calc and I currently have two(2) buy orders open for a total lot size of 0.05 (0.02 + 0.03) which is 5K. Logging onto my VPS, I see my margin in use at $14.69 AUD. Here's where it gets tricky. If I divide 5K by 500, I get $10. If I divide it by 400 I get $12.5. It looks like I am already at 400:1 but I sent in a request anyway to change my leverage to 400:1.

One of the tricky things about GoMarkets is that the leverage changes in conjunction with the total amount of equity.

I already worked it out and it should not present a real issue with a 100:1 reduction unless there is a massive amount of DD. In which case I am cooked anyway.

My next leverage change is to 300:1 at 25K (if I make it that far).

Rick

[bayon]

Have you heard about this product : Forex five stars system.?

an algo will detect a trend and will tell you to open a position with a stop loss value...you can use as many pairs as you wish and you will get the signal by many means.
interesting enough, I will give it a try.

your input.?

[rsmereka]

Originally Posted by bayon

Have you heard about this product : Forex five stars system.?

an algo will detect a trend and will tell you to open a position with a stop loss value...you can use as many pairs as you wish and you will get the signal by many means.
interesting enough, I will give it a try.

your input.?

Isn't that the one of the latest system their pitching in spam?

Seems to me, I read the name in a piece of spam that I got.

Anyway, if it can detect a trend , it will be assume. I say if because so many systems have said that they can detect a trend and to date, I have yet to see a system that can actually detect a trend so I am naturally skeptical.

Let us know how it goes.

Rick