|
Hi Dirk and Larry,
I can understand that it all looks a bit confusing.
The amount of contracts the profit I make, my account balance the margin required etc...
But if I can help a little bit...
I trade from a managed account. And the amount that you see is actually an amount that I placed on a sub-account of the managed account. With the money that you see one can trade far more contracts that I trade.
But I keep it very small.
If one wants to trade the MaTRiX scalping system there are severall ways to solve this.
Till 1 week ago I was in favour to only trade this system on the BUND because of the low daily volatility. But after swizzguy pointed me out to the eur/gbp I am convinsed that one can trade as succesfully on that pair then what I do on the bund.
The reason I do not trade the eur/gbp is because I do not have a forex account. I have a normal broker where I trade the currencys true cme futures.
The cme provides the eur/gbp but with a spread of 4-5 pips.
Impossible to be profitable with that spread. One needs to have a broker that asks maximum 2 pips spread. I explained in the room already severall times the reason for that. I gonna explain here again.
It is a scalping system. Scalping means that one needs to be pleased with 1-2-3 pips profit per trade. If one wants to make more on the intraday swings you needs to trade according systems like the standard zorro system. You can make this way 3-400 pips on a good day but also loose 2-300pips on a daily base.
With scalping you will make +/- 10-20 pips and only loose 10-30pips per day.
If I say make a profit of 10-20 pips you need to accept that this profit can be with 10-20 trades. That means that your profit per trade is 1pip/trade.
So lets say that you have an average profit per trade of 1 pip. And that you have +/- 10 trades per day. That comes to an average of 10 ticks per day.
That comes to 10ticks x 10€ = 100€ per day. That multiplyed by 22 trading days in a month comes to 2.200€ in a month trade with normall contracts and have a goal of 10 ticks/day).
That multilplyed by 12 months in a year comes to 26.400€! I can garantee you that this is an amazing! result.
And all this is based on only 1 tick profit per trade. The same example stands fore the eur/gbp on forex.
OK...now if we do not have this 1 tick per trade...that means that we have an average of 0 ticks or pips per trade we drop from a very profitable system or result suddenly to ZERO!.....YEP.
So first of all very important to know that EVERY single pip or tick is VERY VERY important. So if you pay your broker 1 pip or tick spread to much you turn a highly profitable system in a B/E or lossing system.
Secondly about the margin problem, as said it is not nescessay anymore to trade this from the BUND. For all the same you can trade this from a forex account on the eur/gbp.
If you want to trade this from the bund then one has again severall options.
You trade this from a broker that works direct on the eurex.
But you can also trade this from some spread brokers that allow you to trade mini or micro contracts and where margin is not that important anymore.
If you want to trade this from normall contracts then I sujest to trade this first with a demo account that reflects the same value/tick and the same account balance. If you manage to get away with a profit at the end of 1 month you can accept that you are suited to trade this system.
If you trade this then in real with normall contracts then is sujest that one needs to trade this from a 10.000$ account.
The maximum of contracts you can have in averaging out is 6. So 10.000$ is enough to cover this amount of contracts.
If one has only 1000$ at his disposile, as said you can go to spread brokers like WHC who offer mini and micro contracts and you devide everything by /10.
Hopefully this answer clears out some things.
Friendly reagrds...iGoR
|