1:7 Trading Strategy - Page 2

I hope the admin will approve this trading journal thread. I want to use this thread as an observation and as a tester for a strategy, initially I will use a demo account, if there is some weakness, then I will try to improve this trading system until it becomes a strategy that generate good profits, though not big, at least it can generate a good profitable strategy, and if I get good results, then I will apply it in a real account.

DESCRIPTION
Idea
I have an idea to create a trading system by relying on Risk:Reward Ratio. Why? Logically ... the forex market is up and down. There are only 2 possibilities. But it's not as easy as what we thinking about. Because in fact, getting consistent profit in forex is not easy, because there are other factors psychologically. However, if we think mathematically, then the chances of winning in each trade are 50%, yup ... of course, that is absolute by mathematical formula (without any influence of psychological factors). So, winning trade vs losing trade should be 50%:50% if we trade without analysis with 1:1 of SL:TP. Then I want to create a trading system by favoring the ratio of risk and reward. Here I use the name "1:7 Trading Strategy" because I will use the ratio 1:7 of Risk:Reward. This means I use a ratio of 1 SL: 7 TP. Why I do use 7? Why I don't use 1:2 or 1:3? The answer is : I love the number of "7". Hohohoho.

Market Analysis
What is the strategy of market analysis that I used for this trading system? The answer is "ANY", yup, whatever the analysis, it can be applied.
Like what I said before, I do not take a fixed analysis strategy. I say that the chances of wining trade is 50% if we trade without analysis with 1:1 Risk to Reward ratio. I want to know how if I used 1:7 Risk to Reward ratio without analysis, but wait a minute...., oh oh no..., I think I must analyze the market for my trading in order to make the reward ratio is bigger then risk. Okay...okay... I will do analyze the market with whatever type of analysis.

Money Management
At first I will divide equity to 20 trades, so I have 20 trades chance. But I will use a demo account, and I will use the smallest lot size. So I would say that the strategy will fail if I get 20 losing trades in a row even though there is still equity remaining in my demo account. Because I do not want to create multiple demo accounts for this trading journal just because I get many stop out. For stop loss and take profit, I will initially set SL = 15 pips and TP = 105 pips (7 * 15 = 105).

Conclusion
Once again I speak, I created this thread to build a trading strategy by relying on Risk Reward Ratio. I do not rely on skills in market analysis. So I hope you understand, understand, and again....understand....., also giving a good contribution to my trading journals.
Because : I am here on this trading journal is just for LEARNING, not for TEACHING. Thank you

2. Originally Posted by coolless
THank u brother, that is only my luck, but unfortunately this is not a real account, I still use the demo account as a tester for this strategy. If I see a good results in this demo at least two or three months then I will try to implement it in a real account. I hope I get a good luck always. hehehe

My weekly report
2018-04-28_104329.jpg
I've 5 loss trades, and have only 1 win trades. But the weekly final result is 2.59 profit. This is the POWER of 1:7 risk to reward. The 1 win trade can cover all 5 loss trades with profit.
The calculation is : (1*7*15) - (5*1*15) = (105)-(75) = 30 profit points.

3. ara. Well not luck at all to me, you are good in your analysis, I believe luck exists in forex market but in this situation it is not luck that help you to achieve profits in your trade. Don't see it that it is not real account that you are making profits, of course that is the more reason newbie traders find demo account not to be that helpful or useful to trade with, in the sense that the profit make in demo is like a waste to them, but to me it is not a waste at all, it is for you to be able to know how skillful and improvement you have made.

4. Originally Posted by coolless
in the sense that the profit make in demo is like a waste to them, but to me it is not a waste at all, it is for you to be able to know how skillful and improvement you have made.
yep I think so my brother, I do not want to take the risk to trade directly in a real account using a strategy that I myself do not know the quality without testing in a demo account first, it does seem boring, but at least it is better than having to lose money in a real account. Thank you for your kind comments.

2018-04-30_122604.jpg
Eur/Gbp, I see the price break out from the bearish trend pattern with strong movement last week, I'm waiting to correction but till now I don't see any enough correcting, so I decided to put buy position in this pair. I don't know what will happen in London session, if the price goes down around 15 pips, then I continue my losing streak in some trades.

5. It is good to practice strategy that you believe will work out, i admire what you intend to do of course it will really gives you a lot of experience and skills to trade proper in this business. However you should consider proper analysis which will add more value to your trading skills, if only beginners can copy this approach then it will be very easier for them to trade forex market.

6. Truly it regards build up the capacity and see you in this area, a debt of gratitude is in order for your string, in any composed words there is an affair or word to pick from it. The reality of the matter is that there are just two conceivable outcomes in forex market of which I see to be it is possible that you misfortune or win, that is the attitude a considerable measure of amateur merchants like me use in this market, novice dealer don't have a decent information and experience yet additionally needs to go out on a limb that they feel will give them the colossal benefit in their exchange, exchanging with the mentality of two things will occur in forex showcase either misfortune or win isn't that adequate, in light of the fact that you won't trouble much about investigating your exchange legitimately a long time before exchanging.

7. Practice makes all things perfect, it is necessary to practice and learn in the demo account, a lot of traders, like beginners fail to practice and expect to make profit in this business. However it is not possible for a beginner to succeed when him/her is not ready to learn and practice to understand forex. It is necessary that i have to test and confirm any strategy in the demo account before making use of it.

8. Originally Posted by kebikemor
Practice makes all things perfect, it is necessary to practice and learn in the demo account, a lot of traders, like beginners fail to practice and expect to make profit in this business. However it is not possible for a beginner to succeed when him/her is not ready to learn and practice to understand forex. It is necessary that i have to test and confirm any strategy in the demo account before making use of it.
We have to practice to know what to do in the field of forex, we can not do what we like when we don't know anything. The more we are trying to practice all the time will make us know the forex better and the possibility of us to make bigger income will increase also. We can confirm strategies when we have many of them too.

9. Honestly it is important for all traders to have the act of practice in the demo account and put in mind that your practice in the demo account is not a waste of time at all, and the profit made in demo account is how far you have gone with your practice in the demo account. Nothing is wasted of time when it comes to practice in the demo account or learn from various web sites properly about forex trade, as a newbie traders we need more knowledge of forex trade.

10. that's high bro,that means your going to be following the trend for very long.well its possible if you spot a reversal in time or you spotted a breakout on time then your stop would be less while you expect a huge reward. that's the kind of trading setup i like to see in a chart but i wouldn't hold for that long am not that patience.i only target 1:4 and am okay with that so i don't get to lose the profit and my own money,i hate winning trades turning to losses.

11. Ara, you must be a professional trader of high value, that is how it will be possible for you to have a risk to reward ratio of 1:7, that is a big one, and by that you would have suppressed all the power of the market to a standstill level. I am not particular with your strategy because i have mine, but i will try and work on higher risk to reward ratio like you.