From 10k to 1 million...
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thread: From 10k to 1 million...

  1. #1

    From 10k to 1 million...

    Hi ,

    starting this thread I will try to reach something which some already have achieved and many never will manage to do.

    I want to create my first million by investing in the FX market starting with just 10,000 Euro over a period of 10 years. And I wish to document it here so everyone can find out if I fail or not.

    10 years are a long period at least at the FX markets and market requirements will change in that interval. Just how will I try to realize my objective?

    The first two weeks I tried a pure mechanical approach utilizing inside bars. This effort failed. So now I simply do straightforward optional trading working with some fundamentals and simple technical things. I trade reduced leverage, typically 0.5:1 around 2:1 per entrance...

    like I begin my christmas/new year vaion shortly I'll begin this journey in January 09. You may ask why I post this right now if I primal begin in January? Hmm... Do not know, have some time now so I do it.

    So be warned this will be among the very boring threads !

    Tracking - final update 23-October-2009

    Monthly Average: 8.20%
    Estimated weeks to million in the rate: 59 overall / 50 left

    Starting Balance 08-Jan-2009: #8364;10,000.00
    Current Balance 13-Oct-2009: #8364;25,799.41 157.99%

    Jan 2009: #8364;9,215.92 -7.84%
    Feb 2009: #8364;8,943.03 -2.96%
    Mar 2009: #8364;9,128.69 2.08%
    Apr 2009: #8364;8,559.92 -6.23%
    May 2009: #8364;11,000.73 28.51%
    June 2009: #8364;11,777.97 7.07%
    July 2009: #8364;14,059.48 19.37%
    August 2009: #8364;15,344.71 9.14%
    September 2009: #8364;19,130.28 24.67%
    October 2009: #8364;25,799.41 34.86%

    And that is the equity how it ought to look like 2009:

    http://www.xaron.net/dl/fx/2009/ib/equity.png

    light green: the required equity excluding taxation
    orange: the required equity such as taxes
    green: the True equity

  2. #2
    Member ina99's Avatar
    98
    Inspired by the way this guy was overtrading and overleveraged I think he was margin called.

    Trade safely
    how can you figure 1.5:1 to 3:1 leverage is over leveraged? His balance hasn't come within 10 percent of it's use, because he started with his XWILC technique.

    He's among the best managed accounts I have ever seen everywhere including experts, in my 22 decades of trading.

  3. #3
    Junior Member david30461's Avatar
    4
    It may seem to be among the very boring threads ever! However if/ when you create it, then it will be the longest and among the most essential.

    After all it is just

    Trade Target $ 1,000,000.00 Number Years 10 $100,000.00 Monthly Goal 12 $ 8,333.33 Weekly Target 52 $ 1,923.08 Daily Target 246 $406.50

    give or take

    best of luck.

  4. #4
    Thank you guys! That is one of my objectives, yes. A complete trades log without gaps to demone how up (or down).

    I've tested this approach both with forward and back testing and it appears reliable and resistant against market conditions changes as the stops/trade dimensions and so forth are just variable and dependent in the volatility...

  5. #5
    All of the best.

  6. #6
    Thanks!

    BTW Kiwi06, I'd use compounding, therefore approximately 5% each month must do it.

  7. #7
    Junior Member david30461's Avatar
    4
    Thanks!

    BTW I would use compounding, so about 5% per month must do it.
    Just how many pairs will you be trading and what lot size are you starting out with.

  8. #8
    I'll trade EUR/USD, GBP/USD, GBP/JPY, USD/CHF and USD/JPY. The position size is changeable, the initial risk if 0.25percent per trade. I use a limited(!) Martingale egy where I double up 3 times and end up with a overall risk of 3.75percent per sequence. Those losses occur sometimes but in the future my spine tests (and forward tests as well) have proven the benefit of such a limited martingale sequence.

  9. #9
    Junior Member daloxta1973's Avatar
    1
    You will not make it with that system. Period.
    You want a beter risk/reward ratio, 1:1 means you want to be right at least 51% of the time to be miniature profitable. Additionally martingale never functions, at some point you will blew your acc.
    Did you know: If you create 2 percent of your 10K acc. Every single day, together with compounding you'd have your million in 1 year (working labor day's being 100% correct )?
    Now, before all of the gang drops at me and inform me that's impossible, dude, I KNOW!
    I just want to explain to you how you CAN do it if you've got a much better plan.
    What I am looking for is a system that has a fantastic efficiency, I mean 60%-70% or more, then comes the MM, your ratio must be at least 2:1, 3:1 better.
    AGAIN: I am not saying that I have that sort of system nor that you could find one with that characteristics (I've seen a couple commercial, but I do not know whether they're authentic or pure BS such as 99 percent of them), but that I can not feel it doesn't exists, not talking about Holly-Make-Me-Richer-Than-Buffet-And-Bill-Gates-
    Combined-Mambo-Jumbo-Grail,
    Just a profitable system with good MM, thats all folks!

    So, in order to succeed, you will need:

    1- An honest broker that's not a bucket store
    2- A good, simple system that's profitable a good percentage of the time, like 60%
    3-A good MM and good risk/reward ratio.

    That is all! KISS

    Perhaps you can not make it in a year, that's not realistic, but maybe (just maybe), you can make it in 5 instead of 10, and then you can call me and buy me a meal,'cos I am still hoping to ch as much free lunches as I can get

    Well, anyhow, fantastic luck and have a wonderful day.

    PS: back test and forward test is crap, before you exchange with real money in a true broker you won't receive the actual feeling that requires to make real money. Do not waste your time with that, better finding a fantastic system, maybe one a prof. trader has live trade it for a couple of years with mod. Success.

  10. #10
    You won't make it with that system. Period.
    You want a beter risk/reward ratio, 1:1 means you want to be right at least 51 percent of the opportunity to be miniature profitable. Additionally martingale never works, at some stage you'll blew your acc.
    I utilize a restricted martingale sequence that stops at a loss of 3.75% and kicks in with a probability of 6.25% when I have a success rate of 50 percent (really this success rate is greater ).

    I did some tests and using this restricted martingale sequence has some benefits that are due of the kind of system I use. I frequently do stop and reverse and just use volatility breakouts. A false breakout (which frequently occurs) usually breaks down in another direction with a momentum...

    Did you know: If you create 2 percent of your 10K acc. Every day, together with compounding you'd have your million in 1 year (working labor day's being 100% correct )?
    Now, before all the gang drops at me and tell me that's hopeless, dude, I KNOW!
    I just want to show you how you CAN do it if you have a much better egy.
    What I'm searching is a system that has a fantastic efficiency, I suggest 60%-70% or more, then comes the MM, your ratio should be at least 2:1, 3:1 far better.
    I really don't like this 2:1, 3:1 and so on and have never found that a professional trader who really utilize it. In fact all professionals that I know don't utilize any risk/reward calculation at all. Sounds hopeless, mhh? Should you exchange with ultra low leverage you don't want stops, scaling out and in, with hedges and so on and you just don't require that humorous calculations.

    Only a profitable system with good MM, thats all folks!
    Yes. That's right.

    Thus, in order to success, you will need:

    1- An honest broker that is not a bucket store
    I've one. You may laugh but Oanda is not a bucket store for me.

    two - A good, easy system that's profitable a fantastic percentage of their time, like 60%
    Winning percentage is usually nonsense if you don't possess the risk/reward stuff. Actually everything about it is nonsense because backtests say nothing about the future.

    and then you can call me and buy me a meal,'cos I'm still trying to ch as much free lunches as I can get
    I will do, I guarantee. To be fair: I will be glad if I just have more than 10k in 10 years in this account.

    Well, anyway, fantastic luck and have a nice day.
    Thanks! Same for you and thanks for your view!

    PS: Again evaluation and forward test is crap, until you exchange with real money in a real broker you won't get the real feeling that takes to make real cash. Do not waste your time with that, far better finding a fantastic system, maybe one a prof. trader has live exchange it for a couple of years with mod. Success.
    I did forward test it in a real money account and it worked nicely. Again this does not automatically mean it will keep working well - we'll see.

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