I was curious if some of you guys could post your typical stop losses and max drawdowns. Late Apex, i noticed on another topic that you had posted some very good (IMHO) 27pips/week results. But i was very curious about your comment of a max DD of only 10%? And the lower leverage was quite interesting... i think you mentioned between 4 and 9:1. I was thinking of starting at about only 4:1 myself. For me though, i would like to use a %risk position sizing model. I am currently trading stocks and will continue to do that .... i am just considering expanding into FX. I have not yet even put on a single real (or demo) FX trade, so I am very new to this. Thanks guys for the responses
Great job, Ivan I remember what % profit you got last year and glad that the target for this year is about to be reached. How do you say: "I love it when a plan comes together."
It's almost my bedtime, so let me reply some time tomorrow. Between now and then, hopefully others will have something to say...
Sounds good...i will be searching the threads to see if i can find any other posts about draw downs and stops, etc.
It's nice to see some others making a profits. My Frozen REFCO account is running at 130% profit. I have another FXCM account that is at 200% profit. About 7K of that profit is interest. Got to love the GBP/JPY and GBP/CHF pairs!!! BTW, I trade by looking at the following indicators: bollinger bands MACD RSI Williams % Yes, I know some of these indicators overlap. But when I see that all of them say OVER SOLD and the prices are flattening out. I buy, buy, buy. I also do the same thing when they say OVER BOUGHT. And as a general rule, I like to buy positive interest pairs. I've found that it's not good to go against intrest. Unless the interest is cheep, like the CHP/JPY pair. BTW, my trades can go anywhere between a week and 3 months. No pip scalping here. My draw downs are generally no more that 30% of my equity.
Those are some very decent numbers Zone! Congrats! What sort of leverage do you make use of? I ask just to put the 30%DD figure into some perspective. Considering the leverage and that you seem to be more of a position trader....likely giving your winning trades lots of rope, the 30% is really quite impressive. What sort of stop losses do you use, and what time frame do you use?
I'd rather not get further away from the core of this thread, by posting a detailed reply to some of the above. Instead, I'm going to start a new thread in the next couple of days, by posting a spreadsheet I've been using for almost a year. With just a few succinct comments, initially. What it does, it translates pips earned and leverage into % returns and % drawdowns. No more and no less. Nothing fancy, but I've always found it to provide an essential framework for all my forex trading and contemplation.