“I think traders who have smaller accounts need to be more aggressive if they ever want to grow their account size.” Interesting mountain statement. I am a gleaner in your fields @Sir Nial – I carefully follow behind you as you scatter the seeds. Thank you for depositing yourself into another generation of pro traders.

Hello Robert,

What price action setup did you master or use in your trading?

Thanks,
Reynor

I have been on daily chart frame and I use .02 for my $3,000 demo account and made 10% returns in just 2 weeks. With this lot size I am able to trade any good set up that come my away without worrying about the amount I will lose. So far this month I have lost three trades of -25.82, -26.92 and -90.74 (gbp/jpy) due to Brexit whereas my best trade gave me 231.81 (gb/nz), followed 188.18, 158.18 and 3 others. Just stick to price action, daily chart frame and good money management and I believe one can achieve 300 or 400% and above in a year depending on the volatility for that year because that is another strong consideration.

Happy Trading!

– Probability that the account blows up is about 3.5%

– Probability that the account size is less than 10000 after 52 trades is 17.5%

– The most probable (11.2%) account size after 52 trades is 21000.

– Probability that the account size is larger than 36000 is about 3%.

And the same for 104 trades:

– Probability that the account blows up is about 3.5%

– Probability that the account size is less than 10000 after 104 trades is 7.6%

– The most probable (7.9%) account size after 104 trades is 32000.

– Probability that the account size is larger than 56000 is about 3.8%.

Sunny, Remember this article is the raw theory of the concept, for educational purposes only. In the real world you would trade an amount that you are comfortable risking per trade, and you may trade more or less than 1 trade per week.

Danny. On one comment here you have said you prefer the idea of the percentage of account money management concept, and now your saying we should risk ‘what we are comfortable risking on a per trade basis’. You can’t have it both ways :)

Danny, I am saying that if a trader chooses to use the percentage of account money management concept, it is arbitrary. Risk per trade can’t just be plucked out the air and based on what is in your margin forex account.

Nial,

I am a member of your site and I respect and appreciate what you teach…it has really helped my trading and how I view the markets. But as someone who is not completely new to the trading arena I just can’t see how the 1% rule is nonsense. If you have a 25K account and you’re risking 1% per trade with a 50% win rate and a 1:2 risk/reward, then trading 52 times per year would give a 26% return. I guess opinions as to what constitutes a good return are all relative, but there are many who would say that this is not half bad at all. If you compound that on an annual basis over the next 5 years, then the 25K will have grown to 80K. Maybe not aggressive enough for someone who’s in a hurry to build an account to trade off of for a living, but again, this is a phenomenal return.

In my humble opinion, what we should be asking ourselves is what we’d be comfortable risking on a per trade basis if our next 5 trades were all losers. The answer to that question should be what drives our decision as to what we put on the line for every trade.

My 0.02 worth

Wow….I love to trade a huge account like yours in the near future.

Congrats Robert, very clever and disciplinated man….1000 account into 4000 in one year is 400% return… envyable for all profissionals traders!

I 100% agree with you! It depends on the size of our trading capital! When I traded my $5K account, I risked about 3%-5% per trade, however, I rarely risked 10%.

I have been trading 4 years the chart patterns and when I found your sites, I started making much more thanks to a solid win rate. I think that the price action is the best way to trade. I do not know what is your trading capital, though, if I risked more than 1% per trade, the investors would probably say to me goodbye. I trade an 8-digit account and cannot imagine risking 10% per trade.

How much do you personally risk per trade? I had 8 losses in a row since January 1, 2013, and If I had risked 10%, it would have been an 80% drawdown. I trade off of the dailies only and had a lot of false signals on AUD/USD.

According to Mr. Brandt, we should start at least with an $100,000 account. What do you think about it? I must agree with him if we want to live off trading FX.

I respect you as my mentor and thank you for your effort!

Pavel – The 1% rule in my opinion is nonsense. I guess we have different opinions on that. When your trading huge money, the risk per trade will be much less I agree on that. Realistically if a trader with under $25,000 trades 1% per trade, he won’t make much money. I think traders who have smaller accounts need to be more aggresive if they ever want to grow their account size.

Just to let u knw that you have really drive my spirit fully back to FX biz. I do read your articles on forex on daily basis since i discovered your site. You have really given me hope

More grace to your elbo, keep the good work you’re doing flowing, by this youhave transformed so many ppls life around the world & not just in Australia alone. God bless you 4life.

Fidal Friday
Nig.

Each reading makes it more appreciated

Very wise and sensible explanations.

Edward

If you lose 10 trades in a row, your clearly doing something very wrong, also this lesson is just an example, it’s main lesson/idea is about trading less often and with precision.

Your thoughts?

Hope you are well. Thank you very much for another awesome lesson, very much appreciated.

Thank you for all your help

Thanks and Regards

Gurpal

Great stuff

Cheers