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Author Topic: Should I go ahead with my plan?  (Read 4658 times)

Offline Alex777

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Should I go ahead with my plan?
« on: April 03, 2009, 01:50:35 PM »
Hi Donna
As I mentioned earlier I am a newbie, I have been trading at my demo account with FAPT for a month now. My broker is Alpari UK.  The results that I am getting are quite good, so I have decided to go live with £15k.  I am going to trade scalper strategy, LLR 20 for both pairs (EURGBP and EURCHF).
Can you give me advice if I should go ahead with my plan or is it hot-headed?
Or maybe I should segregate this money in to two accounts to make it more secure?

Thanks,

Alex


Offline admin

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Re: Should I go ahead with my plan?
« Reply #1 on: April 03, 2009, 04:47:12 PM »
LRR 20 on £15,000 is a fair amount of risk in £ terms. Fair enough on a small account, but when you start trading in larger sizes it becomes more important to protect your capital.

Also note that LRR 20 does not mean you can lose 20%, on EURGBP for instance you will lose more like 25%. Are you willing to lose £3750 on one trade alone? If so then fine, but do be prepared, these losses can and do happen from time to time.

If you have a spreadsheet program on your computer you might find this spreadsheet useful (download the GBP version- the others are included for others who may have accounts in other currencies) to work out what your LRR setting REALLY translates to.

GBP LRR Spreadsheet
EUR LRR Spreadsheet        
USD LRR Spreadsheet


« Last Edit: April 03, 2009, 04:53:53 PM by admin »
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Offline Alex777

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Re: Should I go ahead with my plan?
« Reply #2 on: April 04, 2009, 12:23:17 PM »
Donna,

Thanks for your reply. I think loosing 25% of account is a big thing, however if it is once in a while and net profit is greater then net loss then it is ok. I was checking your account you’ve published and it’s almost quadrupled since December. Of course I can be very unlucky and get few stop losses in a row and end up with quite different result to yours. Is there any statistics how often SL does occur with FAPT?
 
Thanks,

Alex

Offline admin

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Re: Should I go ahead with my plan?
« Reply #3 on: April 04, 2009, 01:53:24 PM »
Well, i only know what has happened on my own account, and i believe i have only ever had 2 major stoplosses on EURGBP which for the number of trades equates to a 2% major stoploss rate (i don't have the exact figures to hand but i did calculate it for the fapt forum somewhere..). EURCHF is a little more frequently, i think around 4 or 5 times since i started on 5 December 08.. still a very good rate, and this pair has had more trades i think so that will account for more stoplosses (it also has a lower SL point).
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Offline forexbob

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Re: Should I go ahead with my plan?
« Reply #4 on: May 19, 2009, 12:33:24 AM »
Donna,

Thanks for your reply. I think loosing 25% of account is a big thing, however if it is once in a while and net profit is greater then net loss then it is ok. I was checking your account you’ve published and it’s almost quadrupled since December. Of course I can be very unlucky and get few stop losses in a row and end up with quite different result to yours. Is there any statistics how often SL does occur with FAPT?
 
Thanks,

Alex
you have to understand that the bigger the drawdown, the longer it takes 2 breakeven a 10% loss needs 11% ; 25% needs 33%;40% needs 65%;50% needs 100% and finally someone goes bust.

Offline Kristofer

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Re: Should I go ahead with my plan?
« Reply #5 on: June 17, 2015, 09:57:19 PM »
I think it is necessary to have a plan. Someone has well said, trying to win in the market without a trading plan is like trying to build a house without blueprints - practically inevitable costly mistakes

Offline hybrid

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Re: Should I go ahead with my plan?
« Reply #6 on: January 21, 2016, 02:02:05 PM »
make a plan apply it and see results. When you feel you can work good with this you can o ahead further trading . Effectiveness of any plan depends on your sight to analyze market , whenever you trade do deep analysis for better results.

 

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