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.