How To Make 504% in a year?

How To Make 504% gains in a year via trading?

Pick the right broker, the right instrument, the right leverage, the right size and learn a consistent trading style.

If you are American or Canadian, consider obtaining another citizenship (by blood line or marriage or buy one in the Caribbean) so that you have access to a broker with 500:1 leverage.

There is only one instrument that can make you money in under a pip move in your favour, and that is EUR/USD.

To understand the power of the high percentage gains consider the following things:

  • You could sustain yourself for the rest of your life with minimal capital.
  • You could beat Warren Buffett by all risk parameters.

Example 1:

I bought a house in the Philippines for 1,3M pesos in a gated community (27k USD per current rate). Daily 30 USD is more than enough for expenses where there is no car insurance to be paid, only need to buy gas to drive around.

Example 2:

Say you are using 2% of your net worth to trade. You can make 1k percent a year, which leaves you with 20% gains on your entire worth. You are lousy enough to be trading at a 60% draw down, which makes for a net worth fluctuation of 1.2%, and have plenty of cash available for temporary loans (to boost margin). The best risk control is high risk and small size.

The math

100 x $1 = $100

Start appreciating small gains. A trade that made money was a successful one and you no longer have any risk associated to its size. If a trade made at least $1 after expenses, it was a worthwhile trade.

252 trading days => average 2% gains per day

Figure your own personal maximum risk based on the instrument’s typical volatility and your own rate of income / savings.

For instance, if you can tolerate $40 draw down per 10 pips, you can open up to 8x 0.05 lots a few pips apart (3, 4, 5).

Be in and out quick and often, if you get into a draw down, refrain from doubling down immediately. Consider hedging.

If you end up having to put in extra margin, do not take on more directional risk.

Since you are trading without stops (but with trail stops) you should have automatic hedging available. I set a ½ hedger at $700 equity and a full hedger at $400. This would prevent from the account being blown and would buy you time for topping up margin if needed.

A fluent trail stop routine can allow you to use up exit codes (I call these croppers) based on a certain moving average displacements or RSI, stochastic readings / sequences.

Having multiple trail options is very helpful. For instance, if I am uncertain about what might happen overnight and I would end up having to positions with me, I can opt to have code “2” stop loss for a long (0.2 for long) and the trail stop routine would lock in 1.5 pips from the open upon achieving 4 pips in gains, then 3 pips after 8 pip gains, then starts trailing a fluctuation size behind. It also makes sure that after your commission and swaps you are still in gains. This can liberate up some or all of your risk.

Our theoretical example

Start with $1500, need to make $30 on average daily.

My example

Started with $1430 on the 30th of July, 2020.

5 months and 2 weeks into the trial run, my equity is up 380% with a 99.5% win rate. My local objective is to make 1000% gains by the 30th of July, 2021. I feel it is more than doable.

I got lucky 2,557 times in a row.

A typical day would go like this:

 A not so typical day (when you are trading against your directional holding) could look like this:

Personal info:

My pay is £10.73/hr out ow which 23% deductions => £8.26 net

8 hours of labour = £66

I’m making $48 average a day with trading while holding a full time job. Am I a professional trader? Some months, yes. In January I have made $1,417 in the first 2 trading weeks, so this month for sure.

Terminal Sequence

First, let’s show 2 examples on the left for a continuation divergence where you had to get in at market –

…and 2 examples on the right where the momentum carried the price a smidge further and you had to get in at above the hourly highs.

Now, what happened after the two on the left: there was a Maroon Fake-out with a flat nosed RSI print in the overbought. Let’s call it a single Zero (a possible start of a new wave).

The two terminal sequences on the second image are the 0-10-0 and the 0-0-2.

The “10” was a 10-pip beat, the “2” was a 2-pip beat. What is important here is the two zeros and a beat as a group of 3.

This was all I wanted to say today (prof. out).


Beat Kevin

One thing led to another. I saw this video yesterday>

Since recently I volunteered myself into a challenge of making 1000% gains in a single year, I was thinking: this is the ice bucket!

Beating the game and retiring early are not major challenges. Beating Kevin is. He claims to have a portfolio equity of $8 million ($17 million minus $9 million mortgage) plus $9 million in stocks. He started with cca $19k in 2009, and so 12 years is the time limit to beat him. Only cash, securities and equity would count, not net worth derived from yearly gross business revenue multiplied by 10.

So I was to leave for my shift (can’t work from home), and in the last few minutes at home still, upon realizing that I was missing out on 2 continuation sells, I made plots for them (there is a continuation buy as well on the left):

This of course used to cost me fractal-search recursions, but today I opted for ArrayMaximum / ArrayMinimum. The realization that these functions may be returning the index of the array, not the value was sobering.

if (RSI2[ArrayMaximum(RSI2,16,i)]==RSI2[i] && iHigh(symbol,60,iHighest(symbol,60,MODE_HIGH,15,i+1))>High[i] && RSI2[i]<75)

I had no time to make my green tea.

Sitting on the Central Line I was staring at the non-moving screen somewhere between Infe Station and Mole Station. I figured I should automatize these trades.

After I got to work, I grabbed my work tablet and started coding remotely. It is rather slow trying to copy-paste things from a distance, but I had the new cropper inserts and the Continuation Buy & Sell ea ready and running on my system at home less than 30 minutes.

By utilizing the stop loss value as a code as well as the target, I can now call upon two different croppers at the same time: I can have a close below an RSI reading as well as below a Stochastic reading or at a distance from a moving average – whichever comes first.

From here on the continuation trades would happen automatically (in & out), regardless of me being underground or without coverage or sleeping shamelessly.

Of course, my denominator would not be “1 professor of trading” if I did not make the necessary, elegant changes for sustainability.

if (nlongs==0) shortsz = NormalizeDouble((MaxLots-nshorts),2);
else shortsz = NormalizeDouble((nlongs-nshorts),2);
if (shortsz>MarketInfo(symbol,MODE_MAXLOT)) shortsz=MarketInfo(symbol,MODE_MAXLOT);

I opted out from overhedging, consulted with the broker for maximum lot size, and even cranked down the size to

double MaxLots = NormalizeDouble(AccountEquity()/2/1000,2);

which I now refer to as Trading Size (T/S), not Full Size (F/S).

Honestly, I would only need a handful of these fluent solutions and I would gain the confidence to nominate myself.


Correctional Memory

(for myself)

A long pullback is a 26-sample higher low (30min) that dips below the E-32 by more than 2 pips. It has the potential for prolonged continuation, but it at least should take back the price to the safety level (0.28). Use 0.28 cropper code for a quick in & out.

The risk of a pullback is that it can be turned into a deeper correction and such it has a draw down potential of a fluctuation maximum (cca 38 pips).

A correction takes price back to a previous resistance area to set up a stochastic divergence. Crack Ho discretion is advised, plotting support / resistance can help. Monitoring is advised.

This one had a draw down of 12 pips from the higher low.

This one presented 2 different opportunities if you were not in time to ride out the first.

Deep forestation correction can take a while to play out. Crack Ho is a tease.

This one put a divergence beyond the 98+ read (not a guarantee).

This one got choked at the safety net (was lousy to enter too). Conclusion: use a trail stop, fear the number 0.28! Use 0.94 or 0.98 cropper code, but watch out for the rejection at the safety.

Extra Deep Correction. This one made it to 0.49… 0.47 is the E-16 channel watched by the shaded eye of Darth Fader.

This one made it to 0.46 and was tickling 0.45 from then on.

Xtra Deep Correction. The tricky one to take, for it may do a K2Pi first. Loop is in the name for a reason. Since it is coming from deeper than an Extra, it is expected to fizzle out somewhere between the safety (0.28) and 0.45. Use 0.28 cropper code to finish itself off.


Pop Music

How to maximize profit potential?

Let’s talk about it.

Imagine going long and not having a clue how far the market might go.

You could utilize the perceived bias of Mr. Maroon residing above the Green River & put on some Pop Music.

How does getting in after two downside Pops sound? Optimal. The purple dotted bands? 10-pip displacements of the previous hour’s lows and highs.

Of course you could get in on a pullback as well, even on a flat consolidation after the first green pop.

As for optimal ride, you could do the following: make a trail stop EA, that adjusts the trail stop – based on the TakeProfit being at 11 – to the last hourly low minus 12 pips if that is higher than the opening price by 2.5 pips.

I intentionally let the Trail Stop come back lower if the downside volatility does not bring the stop back below the entry level: this way you can ride out smaller bows.

if (OrderType() == OP_BUY && OrderTakeProfit()==11)
if (OrderStopLoss()!=NormalizeDouble(iLow(symbol,60,1)-120*Point,6) && iLow(symbol,60,1)-120*Point>OrderOpenPrice()+25*Point)

OrderModify(OrderTicket(), OrderOpenPrice(), NormalizeDouble(iLow(symbol,60,1)-120*Point,6),

At the same time, the optimal exit would be a magenta Pop on the upside -> cropper utilizes the same TakeProfit code.

if (OrderType()==OP_BUY && OrderTakeProfit()==11 
if (Close[0]>hup && Close[0]>iMA(symbol,60,32,0,MODE_EMA, PRICE_MEDIAN,0)+380*Point && OrderProfit()+OrderSwap()+OrderCommission()>0
OrderClose( OrderTicket(), OrderLots(), MarketInfo(OrderSymbol(), MODE_BID), 5, Red 

This way you guarantee yourself some locked in gains after the position comes into money as well as the best possible exit when a magenta pop comes up with price being beyond the safety band of E-32.



Glossary

E16: exponential 16EMA (1 hour) HL2

E32: exponential 32EMA (1 hour) HL2

Crack Ho: 60-sample (3 delay, 3 smoothing) D hourly stochastic SMA (High & Low) or 120-sample (3 delay, 3 smoothing) D 30-min stochastic (High & Low)

Mr Maroon: exponential 67EMA (1 hour) Highs and exponential 67EMA (1 hour) Lows

Green River: exponential 207EMA (1 hour) Highs and exponential 207EMA (1 hour) Lows

Promoted direction: Mr Maroon above the Green River = Long; Mr Maroon below the Green River = Short

Upper Safety: 28 pips above E-32

Lower Safety: 28 pips below E-32

Upper Grand Exit / Upper Overdrive: 87 pips above E-32

Lower Grand Exit / Lower Overdrive: 87 pips below E-32

Upper Minor Exit: 47 pips above E-16

Lower Minor Exit: 47 pips below E-16

Long Pullback: E67>E207, Crack Ho above 50, price drops below the E-32 by 15 pips and makes a higher 30-minute low after having been above it for most of 5 consecutive hours (Target: Upper Safety)

Short Pullback: E67<E207, Crack Ho below 50, price gets above the E-32 by 15 pips and makes a 30-minute lower high after having been below it for most of 5 consecutive hours (Target: Lower Safety)

Long Correction: E67>E207, Crack Ho above 56 or above 90 within 3 hours, price drops below the E-32 by 15 pips and makes a higher 30-minute low after having been above it for most of 5 consecutive hours (Target: Crack Ho Divergence)

Short Correction: E67<E207, Crack Ho below 44 or below 10 within 3 hours, price gets above the E-32 by 15 pips and makes a lower 30-minute high after having been below it for most of 5 consecutive hours (Target: Crack Ho Divergence)

Deep Long Correction: E67>E207, price drops below the E-32 by 24 pips and makes a higher 30-minute low after having been above it for most of 5 consecutive hours (Target: 90+ on Crack Ho)

Deep Short Correction: E67<E207, price gets above the E-32 by 24 pips and makes a lower 30-minute high after having been below it for most of 5 consecutive hours (Target: 10- on Crack Ho)

Extra Deep Long Correction: E67>E207, price drops below the E-32 by 35 pips and makes a higher 30-minute low after having been above it for most of 5 consecutive hours (Golden entry to go long)

Extra Deep Short Correction: E67<E207, price gets above the E-32 by 35 pips and makes a lower 30-minute high after having been below it for most of 5 consecutive hours (Golden entry to go short)

T1 is always beyond E-32 for a fade

T2 is always the safety line

T3 could be a projected distance value

Upper Hedge condition: E67<E207, a pull back below E-16 after having spent 15 hours above it; 14+ pips beyond the printed swing high, not totally exhausted 30-min energy. (Target: Upper Grand Exit)

Lower Hedge condition: E67<E207, a pull back above E-16 after having spent 15 hours below it; 14+ pips beyond the printed swing low, not totally exhausted 30-min energy. (Target: Upper Grand Exit)

Darth Fader V1.0

Just a chirstmas backtest update for Mr. Fader’s Laser Bird.

The first visible conclusion is that the rise of the Wolfram thread has exceeded the expected trajectory a bit.

The second conclusion – which might come as a surprise – is that Darth Fader does not favor any side, he is fair and balanced between the dark side and the other one.

There is no 3rd conclusion. Happy Holidays!

bool incline = (E16[6]>E16[10] && E16[10]>E16[20]);
bool decline = (E16[6]<E16[10] && E16[10]<E16[20]);

// Buys
if (longsz>0 && incline && Low[0]<e16d[0] && Low[2]>e16d[2] && Low[1]>e16d[1] && iClose(symbol,15,1)<e16d[0] && iClose(symbol,15,2)>e16d[0]
&& iMA(NULL,60,67,0,MODE_EMA, PRICE_LOW,0)>iMA(NULL,60,207,0,MODE_EMA, PRICE_HIGH,0)
&& iHigh(symbol,1440,0)<iHigh(symbol,1440,iHighest(symbol,1440,MODE_HIGH,23,1))


// Sells
if (shortsz>0 && decline && High[0]>e16u[0] && High[1]<e16u[1] && High[2]<e16u[2] && iClose(symbol,15,1)>e16u[0] && iClose(symbol,15,2)<e16u[0]
&& iMA(NULL,60,67,0,MODE_EMA, PRICE_HIGH,0)<iMA(NULL,60,207,0,MODE_EMA, PRICE_LOW,0))

After plugging the sword into an 800V architecture, the Emperor’s naked hedge produced enough money for new clothes.


Plus a little anecdote, that does not really work in writing:

– Why did you name your company Spring-board?

– ‘Casuse it was Spring, and I was bored.


Irrational Fears

My own Devil Dog.

To overcome this, I need to gain a deeper understanding of the exits and the prompting conditions as well.

On Monday, there were 3 long entries. Since I am short at all times, these longs would had been risk free, so by the way of “getting stuck with longs due to a black swan” I passed on these entries. Knowing the exits I missed out on a potential 1k on the first entry which was a buy below the E-16 stretch, and an easy 3K on the at market buy at the E-32 stretch (aka) overdrive line. The fact that the upper E-16 channel line was neutral (in blue) and the bottom one green (promoted side)

There was a 3rd entry, the cyan box on the hourly RSI2, which I did take, but not being conscious of the exit, I got out prematurely – overall this did contribute to the daily gain of $176.70 at least a third.

This trade I call the numbers trade, and they are good till a red number prints (I even have modified the stop loss EA to have a cropper at the red numbers). There was an 82+ print which would had been the perfect entry, so all I had to do was put 0.99 “Numbers Target Code” for the stop loss of the longs and the exit would had been automatic.

The hedge trade that I did not take on Tuesday was a Shape / Continuation / Maroon Fake Out trade for a higher high. 1K not banked this time.

Wednesday’s not taken trade was the E-16 stretch again, although the exit is more like E16+ “stop loss code 0.5” (instead of E-32+ “stop loss code 0.6”) by now for the configuration is not as bullish with Mr. Maroon dipping below the upper guard rail. The promoted green color is tied to Mr. Maroon being above the Green River -> looking like it is about to change.

$800 was missed out on. These figures were calculated with 1:1 hedging, with overhedging could had been 1.2-2x that.

My God Awesome V1.7 indicator had different terminal wave and ending move plots in black and purple, and I probably should start using these plots again for extra confidence.

This last image shows Mr. Maroon dipping inside the Guard Rails (Chartreuse) and preparing to cross over the Green River.


Market Olympics

(From the Hunting Highs & Hugs series)

In continuation to the prior articles discussing the revisited Blow off top of Wave 3 and the 3-day mean reversion, we’re hunting the highs and the lows.

From the Root on what were the identifiers of bottoms?

All of the lows went through Mr. Maroon and did not have multiple closes there plus the Crack Ho made a scare on / spanked on the 50 line.

If these were the events to get in, what were the ones to get out at?

Wave 1 up being a measuring move, ran a Cooper test till a Crack Ho Stopper read of 94

After that you had the Wave 2 pullback to the other side of Mr. Maroon as it goes.

Wave 3 ended up in a reversal divergence between the Beat and the Thrust.

As for having the end point at hand before hand, the projected distance level was tagged (1.2210) before the correction down to the Green River for a Wave 4.

As a minor detail, the up thrust prior the Mean Reversion was the qualifying move that generated this target, so it was present even before wave 1 of Wave 5 started.

wave 4 of Wave 5 was about working up volatility – you can see clearly below how price first tagged the upper end of the E-16 channel (star 1) before it got the other slam from the other side (star 2). This was a superball bounce to stick with the sports theme.

Now, what about this wave 5 of Wave 5 up then?

There was a qualifying move up that set the projected distance. What is really missing currently is a Thrust after some pullback.

Price has been having serious issues with maintaining 3x fluctuation maximum distance from the mean, and you would need an up candle with 1/3 close down with 4 pips+ wick and good body length for a go crazy short signal, so the wait is on for LEMA30NSX to pick up something just right.

A higher high is very likely, and there is less than 12 hours left to make that thrust. I would look to buy below the E-16 and 40 pips below the current high – puts you in the low 30s.



Here’s a little trick for finding a buyable low in an uptrend:

long term stochastic with 40 for fixed maximum

One more benefit of my 15-minute charts: they can predict tops>

Check the highlights, the red end of an extra 29 pips (32 is the fluctuation size, but we want a value that is going to be hit with high odds).

NSX performed as expected.

The Wick That Does The Trick

30 min and I used to be dating a lot in the past, so it is a candid reunion now that I found some fitting OrangeRed jewellery for her.

First grasp the concept of a buy/sell signal, the presence of a moratorium field and the dynamics of relapse / progression.

No, this won’t work well on the hourly.

Now do some practice on the following snapshots & appreciate the beauty.

Good, you have just realized that you need some inaction to process the action, meaning back to back candle prints trump each other.

More like this then:

After adjusting your clock watch to every 30 minutes, there is now also a time delay placed in your head: certainty comes 31 minutes after an orange wick, but the LEMA30 NSX can help you overcome this window by providing with the right moving averages and the fluctuation maximum grid.

Your last exercise for the day:

Homework is to finish the code:

 if (Close[i]>Open[i] && High[i]-Close[i]>(High[i]-Low[i])/3.7 && (High[i]-Close[i])>38*Point) {yellow[i]=High[i]; orange[i]=Close[i]; yellow2[i]=High[i]+90*Point; orange2[i]=High[i]+100*Point;}