Day 12

Monday, July 30 Account Balance: $1,122.06

Trades for that day:

5300 EUR/JPY long@ 162.04500
4500 NZD/USD long@ 0.76153
5300 CAD/JPY short@ 111.21800

Results of those trades:

EUR/JPY: stop out profit of 20.5 pips
NZD/USD: take profit of 52 pips
CAD/JPY: stop out profit of 5 pips

Total for day: +77.5 pips
Total dollar gain for day,(It just now occurs to me you may be more interested in this than pips, my apologies) $34.74
% gain for the day: +3.1%

Day 11

Sunday, July 29 Account Balance: $1,111.34

Trades for that day:

2200 EUR/GBP long@ 0.67448
5300 USD/CHF short@ 1.20665
5300 EUR/CHF long@ 1.64650

Results of those trades:

EUR/GBP: stop loss profit of 5.2 pips
USD/CHF: take profit of 50 pips
EUR/CHF: stop loss of -25 pips

Total for day: 27.2 pips

An important note, in the introduction post I said there are 15 currency pairs that have spreads of 4 pips or less, I was wrong there are 16, GBP/JPY is usually 4 pips but when I checked on Oanda it was 6 at the time, so I apologize for the mistake.

The good news is that this change will not effect the expirements, since from the beginning I have actually been useing 0-15 for the random number generator, and GBP/JPY (10) hasn't ever come up.

WEEK 2 summary

% profitable trades this week: 61.1%
% Profitable trades cumulative: 53.3%
Pip Profit this week: +248.4
% Cumulative gain: 11.11%
%/week: 5.4%
Annualizing cumulative weekly performance to extrapolate annualized performance: 1,541%

Note: This week was a very good week, though I know that extrapolating the 2 week performance for a whole year is insane, wouldn't it be a pleasent surprise if it turned out to be true;)

Day 10

Friday, July 27 Account Balance: $1,098.26

Trades for that day:

5300 USD/CHF short@ 1.21071
5200 CAD/JPY long@ 112.74600
5200 CHF/JPY short@ 98.23000

Results of those trades:

USD/CHF: stop loss profit of 5 pips
CAD/JPY: stop loss of -24.8 pips
CHF/JPY: take profit of 52.4 pips

Total for day: +32.6 pips

Day 9

Thursday, July 26, Account Balance: $1,139.34

Trades for that day:

6700 EUR/JPY short@ 163.44900
5600 AUD/USD long@ 0.87649
6700 AUD/JPY long@ 104.52900

Results of those trades:

EUR/JPY: stop loss of -23.9 pips
AUD/USD: stop loss of -24.9 pips
AUD/JPY: stop loss of -24.9 pips

Total for day: -73.7 pips

Day 8

Wednesday, July 24 Account Balance: (I apologize for the confusion of how I wrote up the previous Account Balances, I copy the Account balance from Oanda each day before I place the trades, so actually each previously stated balance was from after all trades closed and interests were paid. From now on I'll report what the balance was prior to placing the trades) $ 1,094.02

Trades for that Day:

5200 GBP/CHF short@ 2.49115
5200 USD/CHF short@ 1.2142
5200 USD/JPY long@ 120.33000

Results of these trades:

GBP/CHF: take profit of 52 pips
USD/CHF: take profit of 50.5 pips
USD/JPY: stop loss profit of 5 pips

Total for day: +107.5 pips

Day 7

Tuesday, July 23 Account Balance: $1,082.84

Trades for that day:

5300 EUR/CHF short@ 1.66532
4600 EUR/CAD short@ 1.43099
5300 USD/JPY short@ 120.64000

Results of those trades:

EUR/CHF: stop loss -25.3 pips
EUR/CAD: stop loss -24.6 pips
USD/JPY: take profit of 50 pips

Total for day: +.1 pip

Day 6

Tuesday, July 23 Account Balance: $1,071.00

Trades for that day:

4200 EUR/USD long@ 1.38140
5100 CAD/JPY short@ 115.61500
4100 USD/CAD short@ 1.04612

Results of these trades:

EUR/USD: stop loss profit 5 pips
CAD/JPY: take profit of 50 pips
USD/CAD: take profit of 50 pips

Total for day: +105 pips

DAY 5

Monday, July 22 Account Balance: $1,018.01

Trades for that day:

4900 EUR/CHF long@1.66075
5000 AUD/JPY long@ 106.79000
5000 EUR/JPY short@ 167.76500

Results for those trades:

EUR/CHF: take profit of 50 pips
AUD/JPY: stop loss of -24 pips
EUR/JPY: take profit of 50.5 pips

Total for day: + 76.5 pips

WEEK 1 summary

% profitable trades: 41.7%
Account value: $1,018.01
% profit/week: 1.8%
% profit/year: 52.94%

Day 4

July 20, Friday Account Balance: $1,031.24

Trades were:

4100 NZD/USD long@0.79790
4900 GBP/CHF short@2.46671
4100 AUD/USD short@0.88011

Results of trades:

NZD/USD: stop loss -24.2 pips
GBP/CHF: stop loss -24.9 pips
AUD/USD: stop loss profit 17 pips

Total for day: -32.1 pips

Day 3

July 19, account balance $1,000.43 (Note that you earn daily interest on your account balance)

trades were:

4900 EUR/JPY long@168.55300
4900 CHF/JPY short@101.58200
4000 NZD/USD long@0.79293

Results of these trades:

EUR/JPY: stop loss -25 pips
CHF/JPY: take profit 50.2 pips
NZD/USD: stop loss profit 5 pips

Total for day: 27.2 pips

Day 2

July 18, account balance $1,000.03

Today's Trades:



4900 AUD/JPY long@106.93800
4900 CAD/JPY short@116.65000
4200 USD/CAD short@1.04313

Results for those trades:

AUD/JPY: take profit of 50.5 pips
CAD/JPY: stop loss of -25.8 pips
USD/CAD: stop loss of -24.7 pips

Total for day: +0 pips

Note: Forex trading is all about patience, days in which you break even are important because the preserve capital for when luck turns your way.

DAY 1

July 17, account balance $1,000.00


Today's trades:

4800 USD/CHF short@1.20305
4200 EUR/CAD short@1.43770
4000 NZD/USD short@0.79093

The results for that day:


USD/CHF: take profit of 49.5 pips
EUR/CAD: stop out loss of -24 pips
NZD/USD: stop out loss of -25 pip

Total for day: +.5 pips

Greetings!

Greetings to all who want to become rich, and who believe that Forex trading can help them do it.

The purpose of this blog, as the name implies, is to prove that making money trading Forex requires no grand knowledge of fibronnaci retracements, trend lines, elliot waves, stochastic, MACD, RSI, CCI, ADX or any other indicator, only of money management.

By this I simply mean managing one's risk and making sure that one's wins are greater than one's losses.

Thus I propose the following system to making a fortune in forex: I dub it "Propritripooko" after Bazooko, the brilliant person from forums at babypips.com who inspired the basic idea, and "prop" the prefix for three which is the number of trade/day this system executes.

Here is how the system works:

Each day 3 random currency trades are made. Each trade is of a different and random pair.

Stop losses are set at 25 pips, Take profit at 50 pips for a Reward/Risk ratio of 2:1

There are 15 currency pairs with pip spreads of 4 or less, these are the only ones I will be using.

They are:
AUD/JPY: 1
AUD/USD: 2
CAD/JPY: 3
CHF/JPY: 4
EUR/CAD: 5
EUR/CHF: 6
EUR/GBP: 7
EUR/JPY: 8
EUR/USD: 9
GBP/CHF: 10
GBP/USD: 11
NZD/USD: 12
USD/CHF: 13
USD/CAD: 14
USD/JPY: 15

Note I numbered them 1-15 in alphabetical order for the purpose of random selection.

This is accomplished by going to random.org and using the random integer generator to pick 3 numbers between 1-15.

The decision whether to go long or short is also made at random with the same random integer generator, choosing 3 numbers 1 or 2, with 1 = sell, 2= buy.

That's it, the whole system, no time frames, no technical indicators, no charts of any kind.

The key to this system is money management, which in this case means risking 1% of my demo account, (I will be testing this system for several months before I dare risk real cash) per trade and risk management, meaning that all my profits are 2X the size of my losses.

The specifics of this experiment are as follows.

I will be using Oanda as my broker since they allow trades of any lot size, which means I can adjust each trade to risk exactly 1% of my account each time.

I will also be using a manual trailing stop loss to lock in profits at certain points:

20-29 pip profit, change stop loss to +5 pips
30-39 pip profit change stop loss to +10 pips
40-49 pip profit change stop loss to +50% profit, so for example if I'm up 44 pips, I change my stop loss so that I make a minimum of 22 pip profit.

I will follow the above rules for manual trailing stops whenever I happen to be able to check on my account.

Now a final word of note: I have been running the above stated system since July 17, 2007, and will post each day's outcomes in individual posts that will lead up to today's live trades, 1 of which is still open as of 6:01 PM eastern, when I am writing this.

So enough of the introduction to the Propritripooko, and lets see random trades and money management stack up in real life.