this is your one and only warning do not
do what i'm about to do this is for
entertainment purposes only
but i also want to show you how
important risk management is in this
four-part series so for today and the
next three days i'm making an episode
every single day doing this what i'm
gonna do is take 1 000 of my own money
and place one trade per day either long
or short depending on one thing only
and that is going to be a coin toss so i
have a 50 50 chance of getting it right
[Music]
welcome back to the channel everybody my
name's artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable on a consistent basis so my
original plan was to do this monday
through friday but instead of doing it
yesterday i was doing this sorry not
sorry so what we're going to do is four
back-to-back episodes for back-to-back
trades trading exactly at 9 00 a.m
london open for me at that point we have
the highest probability of getting a
large movement so the way that i'm going
to structure this is i'm going to be
trading gbp usd
and i'm going to have proper risk
management 10 pip stop loss 20 pip take
profit and i'm going to be risking five
percent per trade which is reckless do
not do that
but i want to make this fun and
interesting so a five percent risk for a
ten percent gain and on the one thousand
dollar live account a ten percent profit
is one hundred dollars and that ten pip
stop loss with a five percent risk is
going to be fifty dollars we got 15
minutes till market open so let's set up
the live account so after doing some
basic mathematics i've deduced that if i
trade a 0.5 lot size on gbp usd and my
stop loss is 10 pips that will be a risk
of 50 which is 5
of my one thousand dollar account that i
just made so as you can see right here
this is a live account and it does have
one thousand dollars in it and i'm about
to place a trade either selling or
buying with a 0.5
now because i'm doing this at market
open at 9 a.m sharp i'm going to change
my stop loss and take profit after the
market opens i'm gonna try to do it
within a few seconds but i want to get
the opening second of this trade just to
keep it consistent throughout these four
videos all right i have this uh nifty
little blue coin and i have written l on
one side and s on the other side long
buy short sell here goes nothing
we are going long on gbp usd
so another four minutes to go and i'm
going to click this buy button this is
doing zero technical analysis not even
looking at the trend not what direction
it's going not looking at engulfing
candles just keeping it a 50 50 chance
i'm gonna explain why
after i place this trade and five four
three
two
one
that's my alarm so we have placed our
trade
uh we are going along
at what was the price that we got in at
1.35325
so our stop loss is going to be
1.35225
and our take profit is going to be
525 that is a 10 pip stop loss and a 20
pip take profit now the reason why i
want to do this challenge is not only
for fun and entertainment purposes but
also to show you the power of risk
management because if you look at 10
trades with a 50
win rate that means that of all your
trades half of them win if you have
proper risk management on 10 trades and
you have a 50 win rate according to your
back testing and your demo testing that
means that five trades lost and five
trades one if you've set it up correctly
at a one to two risk to reward ratio
that means that if you're risking
let me break this down visually for you
if you have ten trades and a thousand
dollar account and you're risking one
percent per trade and a take profit of
two percent per trade
and you have a 50
win rate that means that five of them
are gonna be losses and five of them are
gonna be wins for every loss you lost
ten dollars that's one percent and for
every win you got two percent that's 20
total loss for five trades is 50 bucks
total win for five trades is a hundred
bucks putting those two together you are
in profit fifty dollars meaning the in
ten trades on a one thousand dollar
account
you have five percent profit now if
you're looking at trading a funded
account they require you to get 10
profit in 30 days there are 20 trading
days per month if you trade once during
each one of those trades and you have a
50 win rate you will pass that funded
account challenge the reason i chose a
thousand dollars to do this little fun
experiment is so that you can have a
nice correlation between a funded
hundred thousand dollar account and a
tiny little baby one hundred dollar
account so whatever my numbers are you
would divide by ten to get a hundred
dollar account and you would multiply
oh my god
okay so i snoozed my alarm it's going
off right now that's a nine minute
snooze
check this out dude
look at this monster candle that just
happened on gbp usd
okay so take profit was hit what do we
got here total account balance is one
thousand ninety six dollars and fifty
cents let's look at the history so we
set that trade hit take profit um
and the total profit was a hundred
dollars but minus the commissions or
whatever let's put it on there minus 350
in commissions we got 96.50
so this is unplanned but because that
happened and that was so funny what i'm
gonna do is give away a hundred dollars
to like the funniest comment in the
comment section that i deem funny so you
gotta know my humor but that hundred
dollars is gonna either help you with
your rent or help you get started in
actual live trading god i completely
forgot what i was saying that's crazy so
my screen was cut off the first time but
right here you can see a hundred dollar
profit and 3.50 commission on that trade
so total account balance is now 1096.50
and now you're done trading for the day
and you can go to the park or whatever
[Music]
so
you could have just said it and forget
it knowing that you have proper risk
management that's what i would suggest
doing we're gonna dive deeper into this
whole risk management 50 win rate thing
in the subsequent videos coming out
tomorrow and thursday and friday and on
friday we'll see what the account ended
up at anyway i hope you guys enjoyed
this video make sure you're in the
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me about new videos and all that stuff
if you want to check out how to grow a
small forex account check out this video
right here that almost has a million
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already stop texting me while i'm doing
my outro thanks for watching and we'll
see you in the next video