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[cornellj]

You can most definitely make a living from FX. Many people who write on these forums are successfull. Each of them has developed their own trading strategy and style. The successfull ones stick to what works for them. I have been trading successfull for years. An example of what can be achieved is published in the "Journal" section of this forum under "Cornellj". This journal is updated live in realtime and can not be altered or edited.

I have written about the positive view regarding trading for a number of years, and can prove success in my own case.

Many others have done better so by deduction I would say, "Yes you can make a very good living from trading Forex."

[tstmarkt]

Originally Posted by cornellj

You can most definitely make a living from FX. Many people who write on these forums are successfull. Each of them has developed their own trading strategy and style. The successfull ones stick to what works for them. I have been trading successfull for years. An example of what can be achieved is published in the "Journal" section of this forum under "Cornellj". This journal is updated live in realtime and can not be altered or edited.

I have written about the positive view regarding trading for a number of years, and can prove success in my own case.

Many others have done better so by deduction I would say, "Yes you can make a very good living from trading Forex."

Thank you Cornellj for valued reply, I will certainly view your thread.

[Dan S]

Originally Posted by Knoxy

I'm hoping to sit down this weekend and write myself a rigid set of rules and do the back testing.
Cheers
Dave

Hi Dave,

how is it going?
Did you get to write up your rules?
I am still interested in learning more insight about your method.

Cheers,
Dan

[Knoxy]

Dan,

Yes I did and am trading it. After a lot of back and forward testing I settled on daily charts as most profitable for all but GBPJPY, use 4h there.

Briefly - for a pair I start with a default SMI(21,9,5,4) and optimise the lengths seperately for both long and short as reversal strategy. Entry is on the signal line cross. Added a secondary entry that has made this much more successful. If the SMI value is above an overbought line (below oversold) then trade each reversal of HMA(6), up or down. Sometimes you need to buy even when SMI overbought to catch trend extensions. I ignore HMA when SMI between overbought/sold and just wait for SMI crosses there. HMA length can also be optimised. The best overbought/oversold lines are actually quite low, in the 20 to 45/-20 to -45 area. No pyramiding on entries.

I tested using the above as setup with various entry triggers. None as successful as just trading the setup. In testing all but 2 pairs generate >2000 pts pa with low drawdown and acceptable ratios. Several in 4000 pt territory. So I'm targeting 100 pt per month on 13 pairs realising limitations of optimising.

Will let you know how it trades.

I'm waiting to get 1-2 years salary behind me and to be generating twice my monthly income before I kick the day job. Puts too much pressure on trading if you don't have a large buffer. Fortunately averaging 1000 pt/m so planning to be full time trader this year. The only way to achieve a dream is to first have one!

David

[Dan S]

Thanks David,

what is the main reason to go up to the daily timeframe?
Because it fits better with the dayjob or because its more profitable?

Reason I ask is that I have alot of screen time anyway, even if I wouldn`t trade forex. So I would like to find a method working for me on 4 hrs or below.
Maybe taking additional trades from the daily.


What MM rules do you apply trading on the daily chart?
Still trade 2 separate positions with one taking profit at a certain level? Or just 1 with open target?
And what SL works for you on the daily?

Thanks again!

[Knoxy]

Dan,

The strategy is a promising work in progress, really only starting out. Yes I'm using daily for practical reasons, I'm going through setting up autotrading opening a TradeStation/Gain account, closing FXCM. I'll test the lower timeframes more once I'm rolling.

Daily and 4h are fairly equal for net return. Generally daily has the higher win percentage and smoother equity curve.

Have eyeballed lower charts without doing the testing and 2h looks good, 1h doesn't seem to. I'll test at least the majors down to 1h. Feel that I'd end up with a lot more trades and no noticable increase in profit. The method suits the smoothness and multi-hundred point runs of daily.

As with all strategies, recommend test and start small then build up to a max of 5% risk. Because its a counter-trend method and daily period it does need room to breathe. SL I use 2ATRs up to maximum of 200 pt.

I now only trade 1 position with open target. Tried various multiples of ATR profit with no long term improvement. The method picks fairly consistent exit points as is.

Overall, to make a living from FX I think you need a consistent method that's stable enough to not need a lot of retuning. Doesn't need to wring max money out of the market, just consistent gain. Also need to destress, which for me means spending little time in front of the screen and dealing the longer timeframes. I imagine the main reason for failure is overtrading short timeframes chasing 20 points when chasing 400 (600 for AUDUSD in last 3 weeks) makes more sense. Strategy so far suits me personally.

cheers
Dave

[Dan S]

Thanks David

Somewhere between may1 and may2 my HMA on 4 hrs went red, price traded below the HMA and SMI crossed nicely at an extreme on EUR/USD. I traded this short signal.

Since then, the HMA is pretty flat, its changing colors from red to green, price is above and below, SMI is kinda cabling. So the market is totally undecided here how to react on the dollar madness.

My initial 150 SL is still holding until now.

Would you still hold the trade? Or would you have it killed already?

[Knoxy]

Dan,

If you didn't reverse the trade you've probably been stopped by now. I also took the short on 1 May and took the loss on 4 May. I wasn't game to take the long trade signalled by HMA as everything tells that the EUR is strongly overbought. I'll wait for short entry with fingers crossed for next time. From backtesting EURUSD appears one of the least suited to this method, anything involving JPY, GBP and AUD seem better.

Must admit last week knocked me about. After doing well on the AUD and GBP long trade run up, I shorted both early in week and then didn't reverse. Living in Aus I heard so much commentary that the rates wouldn't rise that I believed it and suffered the loss the push into mid 0.77s caused. No idea why I didn't reverse GBP, idiot.

Should have just listened to the charts and that's why I really need the autotrading.

Cheers and good trading
David

[Dan S]

Yes, I was stopped on fridays NFP.

Thank you again Knoxy.

I traded also the gbp/jpy long with a trailing 150 pip SL.
Unfortunately I got stopped on yen data much too early.

But I took a short on friday hoping for a longer ride

[hugo_trader]

Originally Posted by magoo

Rockinride,
You took my post the wrong way. So I'll explain my joke to you, because you take it too seriously.
I don't think it's easy to live from forex trading, unless you start with a huge capital.
But with a huge capital, you can earn your life in many different ways but forex.
Forex is no exception, no easy money. It's a very risky market where sometimes risk may pay. But you're right, my post is humorous. It's even ironical...who starts with 2 millions???

Tstmarkt you are dreaming. Sorry, but nobody makes 50 pips a day. Constant 50 pips a week yet, is aiming very very high.

Nobody makes 50 pips a day?? BIG LOL

[T.Sanders]

Originally Posted by hugo_trader

Nobody makes 50 pips a day?? BIG LOL

Isn't this hilarious!

Nobody makes 50 pips a day!!!!! Oh, okay, I guess I've been living in a dream world of somesort??????????

What complete, COMPLETE imbeciles.

That's what's funny about Moneytec, you can find nuggets of gold on the same plate where you find complete and total ignorance.

People making posts that have NO CLUE what they are talking about, and yet stating it like it's a total fact! LOL
LOL LOL LOL!!!!!!!!!!

[BENEX]

...that's encouraging news for me, especially that I'm fresh to this industry. I need something to hold on too, to dream, and to finally reach my goal as trader so I can leave the "service industry", that I been in for more than 18 years.

[SeanB]

If you can't manage to even get atleast 20 pips over two days, then there's a major problem! I think there's alot of people that have traded demo, gone live and been burnt and then created a wall and say it's not possible because they weren't successful.
Having that happen could mean one of two things, trading isn't for you or you just didn't put enough hard work in. Get your strategy and money management working and it's possible. Also if you are heart-broken after your first loss and aren't sure about getting back in, rethink about doing trading. All of us have taken a big hit in our early years, losing money is a lesson, learn from it and move forward with the new knowledge. Persistance, knowledge and hard work pays.

Being a trader doesn't happen overnight, it's years. This isn't a get rich quick scheme, sorry to tell you. As someone also said, there's no holy grail. Be prepared to lose money but plan to gain more than your losses. Ever heard of the saying, it takes money to make money? That includes spending it/giving to hit stoplosses.

[4xis2ez]

Originally Posted by tstmarkt

Since posting my question, I have read a number of books and I have a few more still to read. I am now able to consistently make profits and will slowly move up my margins. My intermediate plan is to be making a few thousand dollars a week by the end of 2006. Long term plan here is still unclear but can see myself making 5 - 10 thousand a week a few years from now.

Well, hows it going? It is now near the end of 2006. Have you answered your original question?

[tstmarkt]

Yes, you can make a living from FX.

you need:
1. account size min $20,000.
2. I would say most ppl take 3-4 years before they make consistent profits.>


From my experience so far it’s very hard work and does take years to master for some ppl, most will fail.


My recent lesson was surfing the forums seeing what other ppl are saying about the market, this just confused the h e l l out of me, it caused me to make some major mistakes.


Now I only focus on my own analysis I no longer read anyone’s predictions; now I am making much better calls.


At this time, I am making close to 50 pips a day on average but I am not close to making a living yet, I see a few more years of trading still before me.


I recently increase my account to 10,000 dollars and have taken a few hits, so over all I am down but I and constantly learning and have made good progress. With the larger account I have learned a lot more about MM and how important it is. The other thing that I am working on now my exit strategy; letting you profits run is SO important.


My biggest loses happen during news and trying to pick tops/bottoms adding to a losing trade hoping to finally catch the top.

- I trade with much smaller amouts during NEWS, I no longer try to pick tops/bottoms, I never add to a losing trade and I have tight stops and DON'T move it! GET OUT AND REVISE YOU ANALYSIS.