yep really will be on tonite.

Why does everyone want to scalp?

What do you think the advantage of it is over going for trades w/ huge reward in relation to the risk?

This question really seems outrageously naive.

Sure trades with huge upside and low risk are great!!!!... the problem is finding them. And anyone who think this is easy is just a gambler running hot.

Huge is relative, you can always put more contracts on if you need more money. The key is your sharpe ratio.

I wanted a reply from someone trying to scalp and not from someone who wanted an example screenshot of what a scalp is.

I would think it would be "outrageously naive" to try and scalp spot forex and play the brokers video game rather than going through an exchange. But that's just me and that's why I asked.

And finally a quote from Paul Tudor Jones....

"I'd say that my investment philosophy is that I don't take a lot of risk, I look for opportunities with tremendously skewed reward-risk opportunities. Don't ever let them get into your pocket - that means there's no reason to leverage substantially. There's no reason to take substantial amounts of financial risk ever, because you should always be able to find something where you can skew the reward risk relationship so greatly in your favor that you can take a variety of small investments with great reward risk opportunities that should give you minimum draw down pain and maximum upside opportunities."

Guess he's a gambler running hot.

Yeah because he said 'its easy'.

http://www.mediafire.com/file/dd2mgyw2nmr/the4aces.htm

Here is an insane strategy that I helped develop a few years ago... The timing that we tested it was perfect... I have ran this live at a few places but never was able to actually get the money out (trading at crap brokerages before I knew better)...

Now I am working with a few bigger players in NYC and in Hong Kong to try to make this a reality now. It takes a lot of infrastructure and capital to get something like this off the ground (multiple prime broker accounts and super low latency)... Even if I am eventually able to get it to work under a live situation (with commissions and slippage) it is likely only able to do 1/100th to 1/10th as good as this statement.

Currently I am running live this strategy with alot more filters to work with the feeds I currently have access to... Trades maybe 1/1000th as the system above does and only a 70-80% win rate.

Note the statement above is for 1 ~ 24 hour period.

http://www.cnbc.com/id/37336219
Mad money from yesterday. My guess is Julien asking about PIR.

+1

If it is PIR, i'm in vietnam right now at my buddies house that own some factories that outsource to them along with others like restoration hardware. But doubtful its julian, cuz tony is in new york and works at a firm of some sorts.

ya, this is still missing the point, not due to what you're saying as far as trading, mainly because of the presumptions you're making about poker.

Can some of the regular forex traders tell us what is the average and maximum percent risk they accept on each individual trade? Is this your own preference through experience or do you follow an optimal statistically proven formula?

Depends on your risk to reward and winrate. Also depends can you afford to lose the account and redeposit or are you counting your entire nominal account (even if might not be with your broker). Risking more than 1% of your nominal account on an individual trade would be the absolute max I would consider.

we risk quite a bit more than that regularly. but we trade far less frequently and hold few positions at any given point in time. the fund though is fundamental (which is obv linked to the trading frequency). so i think while the 1% may be correct for your trading style, i think more should be ascertained about the previous poster's situation before concluding that his situation is identical/strongly similar to one in which a 1% max bet would be ideal.

Barron

There is no "optimal formula".

Most of this kind of analysis in forums... is done by and for people trading $5K or $10K Forex accounts... or poker rolls. It's virtually irrelevant because you ain't going anywhere with your micro account. You might double it or go bust, coin flip so what? And if you're in your 20s or even 30s... you can go bust with your micro operation many times and start over.

But let's say you are middle aged...
And are managing $5,000,000...
And you might typically have 10 Partners...
To whom you are accountable via a web site.

The level of risk you take becomes PARAMOUNT. To the point where the financial condition of your broker is critical. To the point where you won't take capital from dodgy investors. Your psychology is "I'm running a long term corporate business professionally"... a psychology that is almost non-existent here at 2+2... except maybe a handful of veteran poker pros.

To be more specific, any 6 of 7 figure trading operation would be diversified in at least 100 positions and largely market neutral. A 10% or 20% drawdown is generally not acceptable. The pain of losing 20% on $5 million... is infinitely worse than the satisfaction of making 20% on $5 million. I'm talking YOUR money.

Obviously there are people out there running very volatile hedge funds with OTHER PEOPLE'S MONEY. This a completely different Business Model that generally depends on skimming massive fees.

A character on my favorite TV show said,
"Anyone can be poor... but you must learn to be rich."

It's impossible to understand that truism...
Until you actually have that problem.

Yes you are right I was definitely thinking in terms my trading

RedMan's old man grumblings aside there would be an optimal formula if you had a means of quantifying your edge and estimating the probability of the various possible outcomes.

That doesn't seem to be the case though.

These are the ramblings of a man who hates money.

I've been trading fx for two years and just started learning Poker. I would disagree that Fx is easier. Learning to trade is like finding the cure for cancer. Except the cure for a winning FX strategy exists, but it is extremely hard to discover. You will also find more people who are successful at Poker than those who are successful at fx, every trader you meet is not living off their FX earnings and even those who teach how to trade, most of the time they aren't successful either. I like trading, I'm good at it, but the stress is nothing compared to poker, and the biz is overrun by scammers.

It really depends on the stop loss, if I'm risking 15 pips, I'll calculate it so that if the SL is hit I only lose 5%. If I win 75% of my trades I can risk more money even if I'm on a losing streak.

There are different methods, if you average out your losing trades, you'll have a lot more at stake, trading forex is like playing basketball, the more accurate you are, the more points ($) you score.