Profitable system. Now what? - page 2
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Thanks a lot for the money management answers guys. It's a slippery subject because sometimes it's difficult to quantify risk reward ratios. For instance, on any given trade I am risking around 4-6%, around 10 to 15 pips on average yet any given trade can produce 100 pips, with an average of around 40. So far I am comfortable with this. So my account is too small in terms of margin but my risk/reward is favorable.
Well, as little your drawdown is, you can trade with more lots increasing your profits. Inverse if your drawdown is bigger.
But that will depend on your risk tolerance, also.
10 to 15 pips is way too small for my trading style (no room for the pair to "breethe"), so I suppost you are trading 1M. or 5 Min. TF.
Yes, If your system allow to average 40 pips with SL of 15, you can have 1/3 of wining rate and still be profitable. But be aware that sometimes "shit happens", so you have to design the amount of your lots accoding the worst scenario.
Well, as little your drawdown is, you can trade with more lots increasing your profits. Inverse if your drawdown is bigger.
But that will depend on your risk tolerance, also.
10 to 15 pips is way too small for my trading style (no room for the pair to "breethe"), so I suppost you are trading 1M. or 5 Min. TF.
Yes, If your system allow to average 40 pips with SL of 15, you can have 1/3 of wining rate and still be profitable. But be aware that sometimes "shit happens", so you have to design the amount of your lots accoding the worst scenario.Thanks, Newbie, not so much of a newbie anyomore I see.
Yes, I trade 1 min time frame off of price action itself. That doesn't mean though that I'm not taking a long view of the currency pair.
I have no need for the price to breath at all. If it doesn't do what I expect it to do when I open the trade then I was wrong about the current dynamic of the Order Flow and the result will be random whether I give it a few more pips to chew on or not.
Yes, shit certainly does happen!
I will have reservation of not using any indicator nor templates
every currency pair, should have its own templates, for that pair and only valid for a period of time
-- usually , very few of them are universal
and you must test the templates yourself for at least half a week before trading for real
otherwise 95%, that most semi-newbies will have overall loss after a month or so
most readers here trust technical analysis too much, just like biblical people who blinded by bible too much - - come on , there is no internet or wireless terrestrial aerial in the biblical time
== if you have not read this thread , you should never trade too because you may still not fully understand why you loss even you may have some luck from time to time ==
4%+ risk is too much i think.
xx3xx, i agree, i think there should be a balance of indicators and price action.
Thanks, Newbie, not so much of a newbie anyomore I see.
I have no need for the price to breath at all. If it doesn't do what I expect it to do when I open the trade then I was wrong about the current dynamic of the Order Flow and the result will be random whether I give it a few more pips to chew on or not.
Yes, shit certainly does happen!Hooo CycleSurfer ! just give it to us man ! We will make a nice a EA you will see....
lol
Anyway, why do you open a thread for a system you will even did not share with us ! lol
There one thousand of post talking of MM over the forum, ten thousand for EA programming....no the real answer is you actually want to share your system, and the tentation is so biiiig !
So just share it, or even in private, we will see what can be done in term of AE, and MM and blabla....
Don't worry, looser will keep being loosers, people who want easy stuff will not even use your sys after 10 post, it is a natural behavior in the Forex community. The price/market/indicators blabla is not the problem, the problem is the traders !
So just share and we will participate actively....
im really interessted, too. i am at sup and res since few months but didnt came up with something ground breaking.. otherway i wouldnt be here i suggest
anyway nice to read a threat with that much knowledge in it
sometimes, it only work for 2 months or so
i think he has told us that
if everyone know, then it won't work -- there must be some dumb people , for the smart people to score good in a test
do not joy ride other people templates , it might not suit your style anyway
MM is the essence -- usually for daily trading
may we suggest -- if you found the randomness that could be Predictable in advance
krusty Krab as in the famous sponge bob animation -- the red hot crab got a secret formula(e)
buy an extra thick mattress and build a panic room office
MM
MM is also how you manage the RISK captial in each (transaction or day or week)
it means the amount of money that you are prepared to LOSS when enter the market
you should know your win / loss ratio (statistics of winning occasion) -- i.e. break even , say 1 lot each time
sl (pips) / TP (pips)
winning statistics have to be at least
20/10 -- > 66% (times that we have to win)
22/44 -- > 33%
05/08 -- >40%
the sl / tp are just ratio -- what SL / TP you prefer, you just have to do an approximation and match with the few sampels as above
most traders will risk less than 2 % of all available captial
say, an EA if the it could win only 75 times out of 100 times
if you risk 4% of all available capital for the first 25 trans and SAY (eg) if the first 25 of the transaction is losing, then you definitely need to put MORE MONEY, before you could carry out the remaining of the 100 transactions
i.e. it is better for this trader to set 1% to trade with
i.e. if you are WINNING most of the time, money management will mean to do some basic statistics on your result sheet -- as the above statistics -- to see whether your winning % is GOOD ENOUGH
or in other words, since you belief you have a winning strategy and your capital grow == you should still not risking too much in the next few transactions -- without doing a proper statistics on the statement ==of course, if you EXIT before SL -or- before TP ===> then the research does not show -- how you should do the statistics as in the above table
prudence and preserve some capital -- is the essence, in my opinion == and we assume your Q mean -- how much you should bet next time -- even you know your strategy mean profit next time
watching water-rich TV show wipe out , lots of mechanical devices to get the contestants out
kind of like forex somehow -- super profitable should not be what we aim for
WIPE-OUT the big shallow pool water show also just inspired me to
Think of a cool cheap way to cool down the House during SUMMERS
== underground level is COOLER than above ground
while the house will get heating plumbing anyway
so we could use the solar energy during day time
to produce electricity for the ice-making machine
therefore in the evening, while people at home, the underground water mixed with fresh ice
will pump through panel system TO COOL DOWN the house -- just need a half foot deep underground reservoir in the lawn area -- water that been used could be later pump to cool down the roof or attic area, then use for irrigation of the lawn or car wash
I want some database task or add a AJAX web page for a site or provide cool snap-shot of my charts before your ENTRY --to be done and get some extra USD payment for myself -- who do have some task to be completed for a genius IT person ??
I only prepare to lost $100 daily -- that is about correct
i totally agree with you.
but anyway there has to be a rule which hast to be universal and works in no matter what market condition.. the question is how to find it, and more important if you will ever find it
forex cant be traded successfully if you dont know what others are doing.. ( in orderflow / s/ls and so on)