Proving my Theory of 10

I was inspired by this ebook written by Rob Booker, since the last 3 years ago. Untill now, I have formulate and build and develop a system that would be fitting to trade Strategy 10. I had a theory back those years, what if I can turn $100 into $100000 in 2 years only. But That was the plan I formulate in order to prove its working well, I have even a spreadsheet of what lot size should be used. With only a 50 pip stoploss on the GBPJPY, and 70 pip stoploss on the GBPCHF.

You might be thinking, why the large stoploss when you make only 10 pips. That’s crazy, it does sounds and look crazy. I just take an initial goal of 10 pips, but to get more I just trail the stoploss.

You could live on with 10 pips with a 20 pip stoploss. You need to find a pair whose price movement does not whipsaw quite a lot. This is down to your backtesting. Statistical average vs probability of loss.

The how is when to choose a better entry. Best is at  Support resistance or demand and supply. As long as your drawdown does not exceed 10% and you risk 5% of your capital.  1 trade per day is enough. Hourly chart would be a better signal, use the daily as your cue in where the potential S/R or Demand and supply price is for ‘the edge’ entry.

As long as you don’t over trade. I normaly use this methodology by having 2 trades per day with different currency pairs. It is possible. I had seen and read a trader living off by 10 pips , trade for a living for only that amount. Of course they don’t use smaller lots because by then their equity is far larger and uses far bigger lots size.

If you had $100,000 and trade with 30 lot, with only 10 pips per day which equivalent to $3000 per day, don’t you dind that interesting and is already enough ? Imagine daily for 5 days in  a week , you do the math! Thats more than 50% return in a month of its original equity.

I would be thank ful for that, would you?!

 

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