Press review - page 560

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How Much Should I Risk Trading Forex? (based on the article)

How Much Money Should I Put in my Trading Account?

You must be honest with yourself, and consider how much cash you have which is available for building wealth. You should not include assets such as a house or car in that calculation, or pensions: the question is how much free cash can you get your hands on, without debt, and use to try to increase your wealth? Once you have this number, you should be prepared to place no more than 10% or maybe 15% of it into something risky, like trading Forex. 

How Much Money Should I Risk Per Trade?

This is an easy question to answer, if you know the average or median amount of profit you can reasonably expect to make on each trade, and you are concerned only with maximizing your total long-term profit. A fixed fractional system risks the same percentage of your account value on each trade, as we showed in the earlier example of Traders A and B who were using 0.2% and 2%. Fixed fractional money management has two big advantages over other strategies. Firstly, you risk less during losing streaks, and more during winning streaks, when the effect of compounding really helps build up the account. Secondly, it is theoretically impossible to lose your entire account, as you are always risking X% of what is left, and never all of it.

Money Management is Part of the “Holy Grail”

Forget about the result of the trade you take today, and worry instead about the overall results of the next 200, 500, or 1000 trades you take instead. If you can make a profit of only 20% of your risk on average per trade, which is feasible using a trend-following volatility breakout strategy, it is quite possible to turn a few hundred into a million within ten years.

How Much Should I Risk Trading Forex? | DailyForex
  • DailyForex.com Team
  • www.dailyforex.com
Risk, position sizing & money management are important when trading. If you get them & maintain a trading edge, you have a solid plan for making a lot of money.
 

And there are some useful links related to the post above - 

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Money Management


The forum

  1. MM (money management) calculation, indicators, discussion, tools: calculate your lot size and so on. Original thread with several versions.
  2. MoneyManagement EA is on this thread: it shows you market information and money management on the chart. 
  3. Forex Money Management, Part 1 - good small thread
  4. Useful money management expert - the thread with the EA 
  5. Stop Your Mind From Causing You to Take Profits Too Soon - the post with the educational video 
  6. Money Management: How to Determine an Initial Stop Level - the post with the educational video 
  7. Why Most Traders Lose Money and The Solution - the post with the educational video

The articles

  1. Statistical Verification of the Labouchere Money Management System 
  2. Functions for Money Management in an Expert Advisor 
  3. Fallacies, Part 1: Money Management is Secondary and Not Very Important 
  4. MQL5 Wizard: How to Create a Risk and Money Management Module 
  5. Money Management Revisited 
  6. Cross-Platform Expert Advisor: Money Management 
  7. Limitless Opportunities with MetaTrader 5 and MQL5 

CodeBase

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Intra-Day Fundamentals - EUR/USD and GBP/USD: U.S. Gross Domestic Product

2017-09-28 13:30 GMT | [USD - Final GDP]

  • past data is 3.0%
  • forecast data is 3.0%
  • actual data is 3.1% according to the latest press release

if actual > forecast (or previous one) = good for currency (for USD in our case)

[USD - Final GDP] = Annualized change in the inflation-adjusted value of all goods and services produced by the economy.

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From official report :

  • "Real gross domestic product (GDP) increased at an annual rate of 3.1 percent in the second quarter of 2017 (table 1), according to the "third" estimate released by the Bureau of Economic Analysis. In the first quarter, real GDP increased 1.2 percent."

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EUR/USD M15: range price movement by U.S. Final GDP news events


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GBP/USD M5: range price movement by U.S. Final GDP news events


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Chart was made on MT5 with BrainTrading system (MT5) from this thread (free to download) as well as the following indicators from CodeBase:

All about BrainTrading system for MT5:

BEA 2017 News Release Schedule
  • www.bea.gov
Listing of scheduled BEA news releases.
 

NZD/USD Intra-Day Fundamentals: New Zealand Building Permits and range price movement 

2017-09-28 22:45 GMT | [NZD - Building Consents]

if actual > forecast (or previous one) = good for currency (for NZD in our case)

[NZD - Building Consents] = Change in the number of new building approvals issued. 

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From official report :

  • "The seasonally adjusted number of new dwellings consented rose 10 percent (following a 1.7 percent rise in July). For houses only, the seasonally adjusted number fell 0.8 percent (following an 8.8 percent rise in July)."
  • "In the year ended August 2017, 30,736 new dwellings were consented – up 3.7 percent from the August 2016 year."

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NZD/USD M5: range price movement by New Zealand Building Permits news event 


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Chart was made on MT4 using 5 day Breakout - indicator and MaksiGen_Range_Move indicator from CodeBase (free to download).

 

3 Stocks Like Apple: Tesla, Nvidia, And Alibaba (based on the article)

Apple share price on the weekly chart is above Ichimoku cloud in the bullish area of the chart for the ranging within the following support/resistance levels:

  • 164.51 resistance located in the beginning of the bullish trend to be resumed, and
  • 148.12 support locatedin the beginning of the secondary correction to be started.

Trend Strength and Absolute Strength indicators are evaluating the future possible trend as a correction, but ascendsing triangle pattern was formed by the price to be crossed to above for the bullish continuation in the future. So, the most likely scenario for the weekly price is the following: ranging bullish.


  • "When Apple launched the iPhone 10 years ago the stock was at $22 and Wall Street considered it overvalued. Today it trades at $153, showing that it’s possible create wealth in the stock market and that Wall Street is not always right. If you are looking for stocks like Apple for the next 10 years, take a close look at Tesla, Nvidia, and Alibaba."

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The chart was made on W1 timeframe with Ichimoku market condition setup (MT5) from this post (free to download for indicators and template) as well as the following indicator from CodeBase:

 

USD/CAD Intra-Day Fundamentals: Canada's GDP and range price movement 

2017-09-29 13:30 GMT | [CAD - GDP]

  • past data is 0.3%
  • forecast data is 0.1%
  • actual data is 0.0% according to the latest press release

if actual > forecast (or previous one) = good for currency (for CAD in our case)

[CAD - GDP] = Change in the inflation-adjusted value of all goods and services produced by the economy. 

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From official report :

  • "After rising for eight consecutive months, real gross domestic product (GDP) was essentially unchanged in July as 11 of 20 industrial sectors grew."
  • "Goods-producing industries contracted 0.5%, the first decrease in five months, largely as a result of declines in mining, quarrying and oil and gas extraction and in manufacturing. Services-producing industries increased 0.2%"

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USD/CAD M5: range price movement by Canada's GDP news event 


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Chart was made on MT5 with Brainwashing system/AscTrend system (MT5) from this thread (free to download) together with following indicators:

Same system for MT4:

  1. Brainwashing. Trades: manually and using EAs (MT4)
  2. Brainwashing EAs - the thread (MT4)
  3. Brainwashing: system setup for trading manually and for EAs (MT4) - the thread 
  4. Brainwashing: system development (MT4) - the thread
 

EURUSD Weekly - daily ranging near bearish ranging reversal (based on the article)

The price on the daily chart is located near and above Senkou Span line this is the virtual border between the primary bearish and the primary bullish trend. If the price breaks 1.1730/1.1661 resistance levels so the daily bearish reversal will be started, otherwise - ranging within the levels.


  • "Looking ahead to next week the euro is set up for further losses as the path of least resistance has turned lower. Looking to a capper on any further strength there is resistance in the 11825-11880 area (old support becomes new resistance). As long as the euro stays below this area a downward bias will remain firmly intact.
  • Looking lower towards support eyes will be on the August low at 11662 and the 2016 high of 11616, of which the latter just happens to align almost precisely with the measured move target of the ‘head-and-shoulders’ pattern (determined by subtracting the height of the pattern from the neckline)."
  • "Bottom line: Shorts look set to have the upperhand as a fresh month gets underway as long as the euro remains capped by resistance. On weakness, we’ll be watching how the euro responds to a drop into support levels."

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The chart was made on D1 timeframe with Ichimoku market condition setup (MT5) from this post (free to download for indicators and template) as well as the following indicator from CodeBase:

EURUSD Technical Analysis - Page 8
EURUSD Technical Analysis - Page 8
  • TechnoMeter
  • newdigital-world.com
The Euro posted the largest daily gain in two months against the US Dollar, clearing the swing high set in early August and hinting the rising trend launched in mid-April is resuming. The move higher follows the currency pair’s completion of a bullish Flag chart pattern, as expected. From here, a daily close above the 38.2% Fibonacci expansion...
 

S&P 500 - bullish breakout (based on the article)

Daily price is far above Ichimoku cloud in the bullish area of the chart: the price is breaking ascending triangle pattern for the daily breakout with 2,511 resistance level for the bullish trend to be continuing.


  • "The S&P 500 and NASDAQ Composite both hit new all-time highs on Friday and the Dow 30 was less than 15 points away (0.07% below). Two major reasons the stock markets have done so well is due to increased earnings and positive growth forecasts combined with the continued low interest rate environment."
  • "President Trump’s tax proposal are estimated to add between $6 to $10 to the S&P 500’s earnings which if passed would either decrease the PE multiple (since one thought is that at least part of the markets increase is based on a tax package passing) or help the market move higher."

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Chart was made on MT5 with BrainTrading system (MT5) from this thread (free to download) as well as the following indicators from CodeBase:

 

Dollar Index - ranging bearish; 90.98/94.05 are the keys (based on the article)


Weekly price is located very far below from Ichimoku cloud in the primary bearish area of the chart: the price is on ranging within 90.98 bearish continuation support level and 94.05 resistance level for the secondary rally to be started.

  • "For much of 2015 and 2016, the U.S. Dollar Index traded in a range between the 93 support and 100 resistance. The post-U.S. presidential election breakout proved to be short-lived, and the Dollar Index has fallen back to its old support level at 93 (and even broke below it recently). The index is now at a critical juncture because how it acts at this level will determine its next major move. If the index is able to break back above 93 in a convincing manner, then it has a fighting chance of staging a bounce off of this level. If the index is not able to stage a successful breakout, however, then further weakness becomes more likely."
  • "The U.S. dollar's weakness since the start of the year has corresponded with strength in the euro, which recently broke out of its two-and-a-half-year-old trading range. This breakout creates a bullish bias in the euro and a bearish bias in the dollar as long as it remains intact. If the euro manages to correct back to the 1.1500 support level and break below, that would be a bearish signal for the euro and a bullish signal for the dollar."

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Chart was made on MT5 with Brainwashing system/AscTrend system (MT5) from this thread (free to download) together with following indicators:

Same system for MT4:

  1. Brainwashing. Trades: manually and using EAs (MT4)
  2. Brainwashing EAs - the thread (MT4)
  3. Brainwashing: system setup for trading manually and for EAs (MT4) - the thread 
  4. Brainwashing: system development (MT4) - the thread
 

McDonald's - ranging bullish; 161.71 is the key (based on the article)

Weekly price is far above Ichimoku cloud in the bullish area of the chart: the price is ranging within narrow s/r levels for the bullish trend to be continuing or to the secondary correction to be started.
Ascending triangle pattern was formed by the price to be crossed to above for the bullish trend continuation.


  • "McDonald’s is back on Wall Street in 2017, beating every major franchise company big time, including mighty Starbucks."
  • "While this was the case back in the old good days when McDonald’s was the pioneer in the emerging fast food market, it is no longer the case in today’s mature fast food market, crowded with competitors that have gained appeal among the younger generations."

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The chart was made on D1 timeframe with Ichimoku market condition setup (MT5) from this post (free to download for indicators and template) as well as the following indicator from CodeBase:

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