The $100K Challenge
I have tried to turn a small amount of equity into a large sum several times, I have failed on each occasion but every time I fail I review what has happened and spend time improving my strategy and changing the way I approach the task. My total return on the 6 separate attempts is a little over $13,000, I lost the initial equity on 4 occasions and won money on only 2. I have no doubt that I get better each time I attempt this and feel that I get ever closer to achieving the dream.
For this seventh attempt I am starting with $50. The target is $50,000, it is only $50 as I have been given a no deposit bonus as a reward for writing a review, rather than add to it I am going to see how far I can trade it, I have opened a MyFXbook account so that the trading results will be verified and available for all to see. A link to myfxbook is on the right.
Success depends on a whole host of things but in truth it boils down to two key points
Hopefully I have got these issues worked out correctly this time.
Trades will risk a maximum of 10% of equity, (not the first one we don’t have enough money) this will be worked out by using the stop loss as defined by retiredearlyFX signals. I will look for trades that have a risk reward of 3:1. This means that loosing trades will cost 10% of equity and winning trades should receive a 30% return.
With a hit rate of 70% and every trade following the 30% win and 10% loss it takes around 47 trades to get to $50,000 or 47 trades to multiply the equity by 1000. I am hoping to average 3-4 trades a month giving me a time frame for the project of 11-15 months. That is much longer than the previous attempts and reflects the change in money management.
I have written at length about the swing trading system I use to choose trades for the RetiredearlyFX signals, it is a relatively simple system that trades pullbacks in a ‘buy the dip’ mentality. I always trade with the trend at higher degree and have developed an effective method that delivers consistent profitable trading.
For this project I will use a subset of the signals I generate, the signals will be reduced as follows:
RetiredearlyFX is a trading name of the investment company Bagehotsway.
We are not a regulated company but we only sell regulated products.
We are not authorised to give investment advice.
We believe all figures quoted to be accurate but past performance in no way guarantees future performance
Trading FX is high risk and not suitable for everyone.