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Management plan for 5k FX account?

  1. Hi there, can someone please take a quick glance at this, and tell me if this is a solid risk management plan to start with? I will modify it as time goes on, and my trading habbits change, but for now this is the basic guidelines I have set up.


    Starting Balance: $5000.00

    Risk Tollerance %: 5%

    MAX stop loss: 50 pips

    PiPs per week goal: 80 Pips

    MAX std lots per trade: 100


    Anything I should change, or Add?

    Thanks, really appreciate it!
     
  2. What pairs do you plan to trade?
     
  3. I'm assuming your "max std lots" is a typo.
     
  4. EUR/USD

    USD/CAD

    (This plan is based on something im testing out, not for me)
     
  5. Dear Sir

    You are false from start

    1.Divide your capital atleast on 2 accounts ,better on 4 accounts

    2. Exist not fixed stop 50 pips for different pairs

    3. Better not send to any broker any cent
    with exception ,which you won by trader contest
    without charge as prize money

    And if it the case better start mini account with 250$
    4.... PiPs per week goal: 80 Pips

    That is unscientifc objective ,against game theory Puankare,Shannon,Jvon Neumann


    Your respectfully
     
  6. You should be fine with USD/CAD. Eur/usd movement might stop you out a bit more.

    I have no idea what the previous poster was talking about. :confused:
     
  7. I think I figured out what sssssss,ss is trying to say.
    By winning a contest, perhaps your skills will have developed to the point of being profitable with "real money". Still not convinced on having 4 accounts, though.
     
  8. You said Risk Management. PiP goals and lots have little relation to this. They should be treated as seperate parts of your trading plan. Risk % should always apply to the current balance in the account and be maintained without exception. I assume you are doing some type of position or swing trading. I believe a 50 pip stop on the Euro is viable only on wide ranging days. Homework should varify this. As far as the Looney its simply too many pips in relation to its daily movement. If I had a stop that wide I would preempt it with a breach of support/resistance or solid price levels of 00/50. I concur that lot size must be typo. Best of luck.
     
  9. #

    Nature of the risk is complex -legal,technology ,operative

    To win one contest not enough ...

    Must win multiple with paper money and multiple with real money .

    contest which offered in fx
    www.mgforex.com 50$ per month
    paper money -1 price 1500 $ margin

    www.interbankfx.com 250$ real account
    1 price 2500$
    www.fxcm.com king of the mini
    1000$ 1price 2500 $
     
  10. 100 standard lots on just $5,000????????
    Each standard lot is $100,000; so 100 lots is $10 million.

    This means 2000:1 leverage.
    Even if some bucket shops offered 2000:1, you'll blow up all your $5000 with a 0.05% (5 pips) move against you.

    By the way you may pay the 5 pips in commissions (spread) alone.

    No wonder bucket shops (Forex brokers) never really buy the currencies. With people like this they have almost risk-free profits.
     
  11. Take ssss's advice. I can see fromyou questions that you are not ready for this. You will just be a liquidity provider.

    Regarding usd/cad, you better back test further than 5yrs, since the last 5yrs have been uncharacteristically good. Also look at a lot of academic research and you will realise that cad has always come up with the worst results due to the characteristics of it time series. Since it has been gaining against the dollar over the last number of years it has been easy to trade so dont be fooled.

    Your 50pip stop on eur/usd will vary with your time frame, among other things.
     
  12. 100 standard lots on just $5,000????????
    Each standard lot is $100,000; so 100 lots is $10 million.

    This means 2000:1 leverage.
    Even if some bucket shops offered 2000:1, you'll blow up all your $5000 with a 0.05% (5 pips) move against you.
    ################################

    author tested with real quote ,paper money 1000 +attempts ..
    Best result was folloving -

    700% with margin 1:800 in 6 hours ,3 operations .Risk on each operation 75%

    3100 % with margin 1:200 in 15 days ,approx 60-70 operations
    risk on each 20% .drawdown 80% .From 25k until 170 k ,back to 25 k and to maximum peak more as 600 k,after that loss all
    until 1 k .

    10 time in row 20-22% profit by risk 75% .togehter 500%

    But significance of result's is limited ,as attempt's are multiple ,but not infinity .

    In good casino as Montacarlo ,atleast one time pro week
    can be 10 time in row in black(on in red &)

    If operator wil use this tactic -profit va bank ,he would need
    great margin to go with risk near 100 %

    what is better to go with high risk 3 very selected operations
    and make 700% profit or 100% loss

    or try to go with risk 2 % ,perform with 100 operations
    100% profit or loss 20% -40% with loss of conzetration
    depend from operator risk profil ...

    (not possible to make 100 oeprations so good as 3 in equal amount of the time )
     
  13. PiPs per week goal: 80 Pips
    #####################


    1.To make 1200% (13-time) in year is very good result but possible

    2.To make regulary 1% per day (13-time per year) without any loss in any day is ocassion ,which is more as mln time rare as in case one .

    Clear by normal conditions ,if retail operator have not any extra advantage

    Pip per week goal 80 pips is not ob'jective ,which can be meet 52 time's in year .

    False planning .
     
  14. First, you said it all, paper trading; bucket shops (Forex brokers) display real quotes for paper trading so they get novices to deposit real money.

    Then, they manipulate quotes so you just lose money (some 10 pips up or down is usually enough with large leverage).

    Bucket shops seldom actually buy/sell the currencies in the actual market, they just simulate your trades. Since 98%+ of daytraders with high leverage lose money, they have low-risk, high yield profits.

    If you still want to daytrade, use low leverage, start buying just one or two $10,000 lots with your $5,000 (2:1 or 4:1 leverage).
    When brokers see accounts that use such a low leverage, they hedge by actually buying/selling your currencies in the interbank market -as they were supposed to do-, since you could hold your positions for many days, and nobody knows where price would get.

    Better yet buy one future contract with your $5000
    If you are an american citizen you can trade futures with optionsxpress:
    http://www.optionsxpress.com/welcome/tour/trade/futures_products.aspx?SessionID=
    http://www.optionsxpress.com/oxneta...1/futures/margin_requirements.aspx?sessionid=

    When you make some money you can move to 2 future contracts, and so on.
     
  15. I hear this often. Does anyone have hard evidence of this practice?
     
  16. As I thought, more hot air. I have read many posts in the past 6 months with people saying how they are getting scewed by their forex brokers, or had been wronged in the past. But I have seen only anecdotal evidence. There are a few posters here that seem to have a somewhat balanced opinion of brokers, but not many.
     
  17. crgarcia wrote -

    First, you said it all, paper trading; bucket shops (Forex brokers) display real quotes for paper trading so they get novices to deposit real money.
    ##########################

    ? Tested by fxcm,mgforex ,realtimeforex.de ...
    Quote is compared between multiple brokers
    oanda,mbtrading ,fxsol,gft

    And suspect test result is highly relevant for small real money account .

    As stated before this kind of result was possible only with multiple attempt's .Most of attmept#s was 80-90% loss


    Author is alsov multiple trading contest winner in Germany and USA .... win accepted from SEC and Germany SEC (BAFIN)

    And doctrinal not deposited any cent to any broker with exception this money ,which was won as prize money by trading contest .
    2. You advice is to late sir ,atleast for 6 years ,alsov for non american citizen as author is
    ####################
    ....Better yet buy one future contract with your $5000
    ##########################

    and suspect is advice not only to late ,but false alsov ...
    atleast from author perspective ...

    No demand for this kind of banality
    ------------------------------------


    If you are an american citizen you can trade futures with optionsxpress:
    http://www.optionsxpress.com/welcom...aspx?SessionID=
    http://www.optionsxpress.com/oxneta...aspx?sessionid=

    When you make some money you can move to 2 future contracts, and so on.
    ##################################

    Author is price money winner by marketzar with zg,ert and tested more as 15 different future's platforms long time before ...


    Your respectfully
     
  18. davidmaria1 wrote

    ...There are a few posters here that seem to have a somewhat balanced opinion of brokers, but not many.
    ############################

    1.Have had all kind of possible legal problems multiple time by each contest ...


    2. Owner of MBT MBT Steve stated lies on ET ,that he#s
    company is pure agency

    Owner of Thinkorswim 1.5 month can not perform
    wire transfer by account opening process

    MBT and Thinkorswim belong to the best companies
    on ET

    3. Etrade not payed contest win 36000 euro for author
    in Worldcup 2006 .after that losed some 10 bil $ in market value .Only in 2007 -84%

    Etrade is one of the leading public noted broker

    4 .LEADING public noted FUTURE BROKER REFCO
    dissapeared in 5 days .

    DIVIDE ACCOUNTS FROM SMALL CAPITAL .

    NO ANOTHER WAY

    BETTER 4 ACCOUNTS with 1000-2000 $ each ,
    as one with 4000-8000$

    Your respectfully