Many hours have gone to other endeavors as of late including job related study, personal health and fitness, and research for a business start up. There's been much development in those areas, in line with my 4:1, give to take ratio. Still, a yearning for more moves in trade has been growing. There have been 3 notable trades since my last post. Using the MT4 app, the Buy/Sell Stops have been implemented; +$157, and two -$80 results. This morning, two more trades will be entered balancing the buy and sell stops. Interesting results are expected.
A little math in the notebook:
365-52 = 313 forex days a year
risking 2% per trade and making 52 trades a year,
you need to make about 70% a trade to double your money (risk) in a year.
x = reward
y = risk
system of equations:
x/y = 1.7
x + y = 52
y =19, x = 33
So I need to have <33 52="" a="" days="" good="" of="" out="" p="" risk:reward.="" trade="" with="" year="">
If I started with $1000, risking .02(1000) = $20, I can double the $20 to $40 with 33 good trades of 1.7:1 risk out of 52. This doesn't take into account how 2% changes with each trade, but it gives a good gauge of how quickly I can build a small account with that metric. After a year, $1040. That's actually a 4% annual return when risking 2% of the starting account. Something to keep in mind going forward. I need more than that.