Gambler trading (with some MM), who says it cant be done?
Notice: Of course I don't advoe this MM for all your capital. This is a extremely large risk, its nothing more than a side project. It's a bonus, for if you ending up being a much better trader than you feel you are, then this will work for you.
The reason I am posting this is because, there can be others out there who have not thought of this either.
Take it or leave it. But winning 3 trades in a row using a 1:1 RR, is not especially difficult
(in my opinion)
I believe we've all heard the story of the trucker who rolled into Vegas with $100 and parlayed it on Blackjack hands until he had over $100,000.
The simple fact of the matter is, from a statistical standpoint, this is nearly impossible to perform. Especially when the advantage to get a non card counting Blackjack player that plays each hand perfectly (to acquire the best advantage ), he ends up with only a 48% win ratio.
But with trading, it is a completely different story.
Trading is 0% luck, 20% skill, 40% plogy, and 40% patience.
Gambling via casino games is 95% luck, 5% ability, 0% elsewhere.
That is the difference.
Take whatever you would ordinarily risk on 1 commerce, (for me that is 0.5%), just so you do not feel like this is a huge deal. Since its not.
Say that risk is 100.
Here is how it goes.Start balance $100 You win commerce 1 = $200 balance You win commerce 2 = $400 balance You win commerce 3 = $800 balance Currently if you lasted this to 6 wins in a row, you'd be around $6400, 7 in a row is $12800... etc As you win more in a row, your chance of losing is raised. Plogically it's challenging to risk all profits on one trade. So this is the mindblowing variant I added to it that. After 3 winners in a row, pull half the balance. 3 wins in a row, really is not tricky to do. After a reduction, withdraw $100 or 10% of profits whichever occurs to be greater (if $2000 is at savings, then we begin with $200 this moment, if $1500 in savings we begin with $150. .) By doing this you guarantee yourself lots of chances to keep trying, to get that winning series (5 gives you very Pleasant profits considering everything you began with) Example scenario:
Start balance = $100
Trade 1 = $200
Trade 2 = $400
Trade 3 = $800
Deposit to savings = $400
prices total = $400
Trade 4 = LOSS of $400 -- streak over
Withdraw from savings = $100
Savings total = $300
New trade series, begin bal = $100
Trade 1 = $200
Trade 2 = $400
Trade 3 = $800
Deposit to savings = $400
Savings total = $700
Trade 4 = $800
Trade 5 = $1600
Trade 6 = $3200
Deposit to savings = $1600
Savings total = $2300
Trade 7 = $3200
Trade 8 = $6400
Trade 9 = $12800
Deposit to savings = $6400
Savings total = $8000
I am a firm believer that many professional traders do this as a side project (what other reason would there need be for offering such high leverage, besides a trader not needing to keep much capital in the broker bank, that can be smart) There's absolutely no downside to doing this. The risk/reward is phenomenal. This my friends, is the true reason the CFTC doesn't allow U.S. retail brokers to supply leverage of larger than 50:1 (fine im kidding but it probably doesnt help). Should you insist on trading using a U.S. broker although there is not any law forcing you to do so, then if you would like to risk 100% of account you will require a 200 pip stop loss and 200 pip TP. But if you risk just 50% of the account, using a stop loss of 100 and take profit of 200, you can still double your account every trade. VariationTogether with 1:2 RR and risking 50% to create 100% (rather than risking 100% to create 100 percent ), after 1 winner, you have instant peace of mind. You understand a reduction is only going to move you back to BE.
