Just for curiosity, what is the annual return and max draw down for your trading forex? Also, why not show off your's achievement in this thread? Hope the number is couraging. I now just trade stock, but previously loss $1000 in forex mini, two year ago and stop trading forex.
Looked at some trade system performance on collective2. The number 1 trading system has 68% max draw down with 829% annual return. The #2 trading system has 56% drawdown with 466% annual return. The #3 trading system has 27% drawdown with 276% annual return.
My returns are still too small to give up my high paying dayjob. If you only lost $1000 you are doing very, very well. Here is an old post where I posted one weeks trading sheet. (better than I usually do) http://www.elitetrader.com/vb/showthread.php?s=&postid=1063058&highlight=appeal#post1063058 The main thing is limiting drawdown. Any trading that has losses of more than 15% of account size is dangerous. Forex trading needs understanding of current economics, fundamentals are essential imo.
Are you trading 0.1 lot or 1 lot? The earned pips in 4 days are 500 pips? All your trades are made after work? You mentioned you didn't quit current job. If 500 pips a week, trading 1 lot, that's $5000/week, $20000/month, definitly you can quit your full time job and as full time trader.
When you see $ signs it means $$$ not pips. My job is very flexible. And 4 years ago I took a year off work to try trading fulltime. I lost money nearly every month.
BillF, How are ya mate, good to see you've come to a forum that is not full of dreamers like moneytec. On ET it's only 98% dreamers but at least there is that 2% of people who are wayy cool. If your in Sydney I owe you a beer or two. My ALL TIME favourite thread that you started a few years ago: "Just don't fiddle? Have you ever noticed that the longer the timeframe you trade (hrs, days versus minutes) the more profits you make? Have you ever noticed that the less you interfere (watch, adjust stops etc.) with your trade the more profits you make? Comments please? .... You obviously recognised a fellow "fiddler" at first sight - funny you should mention the EXIT fiddle!! My Achilles heal at this moment. My entry method is simple: 30min bars, a s/l of +-20 pips and a oco profit top of +-40. ... Now the EXIT fiddle: alternatives are: a) set and forget - very easy, no fiddles!!! or b) a simple trailing stop based on: Long - Highest Close - 20 pips, Short Lowest low +25 Fiddle fiddle!!! Bill.... ------------------------------------------------------------------------------- We should start up fiddlers annonymous! NZDFiDDLEr
Backtesting FX is mostly a waste of time. Forward test your model in realtime. Most people do not have the patience to do so.
I think if trading is based on 1 hour chart, it might be probable. But if in day chart, it is very difficult to test so long time. I am thiniking the best appraoch is when test in real time, find the difference with real test and back test, remodel, test again in back test, then observe in real time ... The most difference is when then news comes out, the market change drastically. I am using stop-loss in back test model. I do not know if in real test, how many pips will lose additionally from the stop loss. Any one has idea?