Thread: In FOREX, is 10% return per month good enough?

Originally Posted by ;

I've a buddy who thinking that in forex market, because the risk is large, the yield ought to be high too. Any opinion men whether yield of constant 10% per month is great enough in Forex with launch account of USD100. Would love to hear from expertise traders here.

Hmmmm someone make 100- 9000% seem in transactions tab. . .that mean 10% is too little

I really don't get it. We see that egies function nevertheless there are so few profitable traders. Something is missing from the bigger picture...

Originally Posted by ;

I do not get it. We see that egies work nevertheless there are so profitable traders. Something is missing from the bigger picture...

plogy

trading is 90% plogical, the other 10% is in mind

How many traders do any work at all in this area?

Originally Posted by ;

We see that egies operate....

I wonder just how many of the egies from the Trading Systems forum have been examined over several hundred transactions, and lots of years of changing markets.
Or put another way, just how a number of these egies are strong enough to maintain their current level of profitability, 5 years from now?

Originally Posted by ;

quote plogy trading is 90% plogical, another 10% is in your mind How many traders are doing any work whatsoever in this region?

However, if method was relevant, then each EA would be profitable.
And arbitrary entrances and exits, traded with perfect subject, would likewise be profitable; but that isn't only clearly false (random entrances and exits = no possible edge), but also oxymoronic (because any sort of undisciplined trading is effectively arbitrary!) .

When we have no procedure, then we have no frame to remain disciplined to; plogy becomes immaterial. Hence if trading is 0% method, then it is 0% plogy too. LOL

Another angle: perhaps it is dependent upon approach. For the mechanical trader, success is dependent primarily on egy; for the discretionary trader, plogy becomes a larger factor. For instance, here's Merlin's view on the subject; it seems from his comments that his approach is highly mechanical.

So that is more important?
-- When the method is unprofitable, then no quantity of discipline, tenacity or positive thinking can make it profitable.
-- But on the other hand, a profitable method is effectively worthless when the trader's faulty mindset prevents him from trading it regularly.
Thus method is 100% important; plogy is 100% important. Each is symbiotically determined by the performance of another.

Or another possible angle:
Three prerequisites to profitable trading:
#1. Basic method (egy) #8212; enter on a suitable combination of indiors or'price action'; depart likewise if a given set of conditions exist
#2. Discretionary nuances #8212; the capacity to differentiate visual patterns, apply contextual filters, weigh up apparently conflicting TA and/or FA established variables, adapt rules to suit changing market requirements, avoid or exploit news, etc
#3. Plogy #8212; having the patience, self-belief, nerve wracking and discipline essential to execute a egy always
Now:
-- A fantastic human trader can quickly implement #1, can create #2 after years of practise and chart study, but is always vulnerable to #3
-- Whereas an EA claws #1 and #3 by default, but lacks the intellect to apply #2
Therefore, to whatever extent proficient human traders outperform even the best EAs, it seems to imply that #2 is significantly more significant than #3.

I published a few more in-depth ideas about trading plogy http://www.forex-fx-4x.com/trading-p...e-methodology/.

I am not saying that I am correct.... Just offering some thoughts that I think are worth considering.

Originally Posted by ;

Newbies look at this wrongly: 1 ). They think that something like 1 percent per month should be easily attainable, but 10% should be almost impossible. .... You're able to invent a risk model (money management) to make almost any return which you wish, provided that you're willing to take the associated drawdowns.

Just to clarify: what I am saying is that when 1 percent yearly return is possible, then 10% return is every bit as possible, provided that the account (along with also the trader) can defy the increased drawdown.

It depends on the equity... when I stumbled reading this thread I noticed someone saying 10 percent on $100 account won't even cover your internet bill well that's true BUT if a trader makes 1% CONSISTENT profit every month on whatever the equity then he should be valued.

As usual Hanover's posts are of fantastic price. Those less experienced would be wise to select the time reading.

Originally Posted by ;

quote . Hence method is 100% important; plogy is 100% important.

My reply was to somebody asking about why we're several profitable egies but so few profitable traders. I dont disagree about the importance of method but that was not the circumstance of my reply. The 100% plogy quote is only a meme but it functions well to make my point. I believe traders fail largely due to plogical reasons. If They're using a system that has no possibility of profitability that may also, be the result of these individuals mindset, which makes plogy 100% to blame for the lack of success

Originally Posted by ;

quote My reply was to somebody asking about why we're several profitable egies but few profitable traders. I dont disagree about the significance of method but that was not the circumstance of my response. The 100% plogy quote is just a meme but it functions well to make my point. I believe traders fail largely due to plogical explanations. If they're using a method which does not have any possibility of profitability that could also, be the result of these people mindset, which makes plogy 100% to blame for the lack of success

Understood. I likewise believe that plogy is essential, but I guess that a fantastic many newbies fail before they even get to there. They have a few profitable months, and they believe that their egy will continue to work forever.

I know that some people today begin inventing a egy as being part of the total trader mindset, but I love to create a clear distinction between method and implementation, because (for me, anyway) it's important to know where some source of collapse lies, i.e. whether the method is unprofitable (in which case I need to reevaluate the rules/concepts involved, or reassess my own understanding of how markets operate); or whether the procedure is sound, but I'm failing to follow the rules/concepts as a result of plogical foibles (fear, greed, impatience, ill-discipline, etc). Then I know which of those two areas I need to work on, the'academic' procedures or the plogical.

Originally Posted by ;

... Therefore, to whatever extent skillful human traders outperform even the best EAs, it appears to suggest that #2 is much more significant than #3

I agree with said but would love to ponder a bit...

There is one parameter to include which may alter human decision over time and less a mechanical trading egy which is time .

So, how long a person could be able to consistently outperform the best EAs before renewing itself sooner or later? And I'm not talking about weeks but years...

I eventually think like Merlin, folks go optional because a method is quite tricky to discover or execute and also you won't find anything here onnigeriaforextradingrevealing you 5-6 decades of back-tests with several hundreds of transactions and terminating with a decent profit.

So mechanical is in my opinion the only thing to do.

If you can reliably do 10 percent per month, then you'll be doing better than 99.9percent of everyone else out there. So yes.