Please advise, experts and masters, I have some cold cash/savings of around 8 million. Planning to trade forex with FBS broker. Planning to open a standard account with 1:500 leverage. Planning to trade xauusd, eurusd, gbpusd pairs. Maximum of 5 trades per day with a maximum lot of 0.1. Target take profit at 30 pips, stop loss at 40 pips. If 3 trades hit stop loss, stop for the day and continue tomorrow. I am familiar with the BBMA technique and candlestick patterns. What do you think?
2 Answer
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rizki rosadi
27 Jul 2021, 08:02
@Henry: Good. You just need to calculate the expected value of your trading.
Expected value = (winrate x $ average profit) - (lossrate x $ average loss)
To calculate the winrate, use a sample of 30-100 transactions.
If the expected value is positive, then your trading is making money (profitable) in the long run.
If the expected value = 0, then your trading is just BEP (break-even) in the long run.
If the expected value is negative, then your trading will lose money in the long run.
E
Erwin Bakrie
27 Jul 2021, 14:43
8 million/14,500=551USD maximum lot 0.1 means floating 550 pips MC. My advice is to reduce the lot between 0.01-0.02 maximum. Has your mainstay trading system been tested in a demo account? Minimum 6 months of testing in a demo account, is the win rate more than 50%? TP 30 pips : SL 40 pips. Try to make Risk/Reward=1:1 if scalping SL 40 pips : TP also 40 pips. 5x/dayx22days= 110x/month for example 100x entry/month correct 60x, wrong 40x still profit 10x correct. So you don't need to stop first when 3x SL hits. Just be disciplined and always set SL. Don't be afraid to hit SL, it's normal in business. But the important thing is disciplined money management. Hopefully profitable.