A fresh start! Doji's Trading Journal

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PebbleTrader
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Postby PebbleTrader » Wed Nov 28, 2012 12:33 am

"why take a 20 pip stop every time?"

From my understanding and experience it is never in my best interest to use a predetermined stop of XX amount in pips.

It is better to size it per the instrument traded and per the volatility at the moment.

In addition the usage of space for manipulating the outcome to my favor.


Because I do not know what the future will bring, I make sure I have a fortress in place to defend my position from constant attack.

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Postby dojirock » Wed Nov 28, 2012 1:50 am

Pebble Trader,

My 20 pip stop is a safety stop for sudden movements in the market. I have specific signs I use to enter. When those signs appear against me I exit, either in profit or a smaller than 20 loss. When I get those signs again I re enter. I dont give back profits. Now that being said I get a sign on a daily chart for a short......I will still have a predetermined I/T line to close my trade and plenty of space as my cushion to trade from. If I want to take a trade with a predetermined stop within my daily predetermined trade..I will knowing im may be going for 10 pips...i will cut space to up lot size and take my 10 pips and then replace my space.

Hope it makes sense.... I may be missing some of Mo's space concept...but for this moment..this is a big step up for my returns via Money Management.

doji
"A small loss is just as satisfying as a large gain" -MO
"Sometimes we need to stop learning and start thinking...."
"Once you stack, you'll never go back!"

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Postby dojirock » Wed Nov 28, 2012 1:54 am

I guess I missed part of your question too.....

As of this week, my stop is variable per what I need for my trade. As my space grows I can move up time frames and cover more area, and make it difficult for them to get my money.
"A small loss is just as satisfying as a large gain" -MO

"Sometimes we need to stop learning and start thinking...."

"Once you stack, you'll never go back!"

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Postby Jalarupa » Wed Nov 28, 2012 5:12 am

dojirock wrote:Now the exciting change for me...

Had I used the same trade data, changing my Money Management plan, this is how it turns out.

Same starting balance.
Same risk of 4 percent, $93.45
Same daily pip gain.

Change in mental thought...why take a 20 pip stop every time?, get some space so I can change my thought process to this. With a 100 pips of space, I can now lose 5 times in a row at a max stop loss of 20 in a row before wiping out my space. Not going to happen.


This great doji!

...Placing your gains straight into space... this inflates your leverage causing you to grow your account at a very powerful compounding rate...

I'm a bit of a Excel junky myself and would appreciate a copy of yours.

I have done a similar Excel that has one fundamental difference... It takes my allotted risk IE 2% over the account size and then assigns a leverage amount... Perhaps my thinking is a little flawed in this regard and I would look to see how the numbers collate when I apply your logic to the equation.

Thx :P
"our deepest fear is not that we are inadequate... our deepest fear is that we are powerful beyond measure... It is our light, not our darkness that most frightens us..."

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Postby MightyOne » Wed Nov 28, 2012 6:23 am

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"You want to learn from experience, but you want to learn from other people's experience when you can" -Warren Buffet

"He that can have patience can have what he will" -Benjamin Franklin

"Keep it as simple as possible but not simpler" -Albert Einstein

"If you know why you bought (x) in the first place, you'll automatically have a better idea of when to say goodbye to it" -Peter Lynch

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Postby MightyOne » Wed Nov 28, 2012 6:55 am

I am going to make a blanket statement, if you don't mind, and say that scalping 100% of the time is the wrong thing to do.

Instead you could allocate your space like this:

11%: scalping (really small SL)
22%: scalping (small SL)
66%: position trading
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100% = x% loss.

Keep trading until you reach your target % (say 12.5%+)

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Postby withnail » Wed Nov 28, 2012 7:47 am

A post from Aliassmith you might find interesting. http://kreslik.com/forums/viewtopic.php?p=47713#47713
Cheers,
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1. Big loss, 2. Small Loss, 3. Big Win, 4. Small Win --- just prevent 1.

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Postby bettlebox » Wed Nov 28, 2012 10:05 am

EU trade this morning nothing to write home about.

There are two forces acting upon us: Suffering pushes us forward from behind and pleasures entice us and pull us forward.

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Postby Captain Pugwash » Wed Nov 28, 2012 2:17 pm

i believe you ar so close Bettlebox

For what its worth - This is how i see things.


The way i see it the supply that broke the pointy place, did not origanate at the pointy place itself - but above it

the second bit of supply was much better as it really did break through

Set your pending order and wait

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(edit - put the name wrong :-)
"MOJO 1)Self-confidence, Self-assuredness. As in basis for belief in ones self in a situation. Esp/In context of contest or display of skill such as going into battle. 2)Ability to bounce back from a debilitating trauma and negative attitude YEH BABY

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Postby bettlebox » Wed Nov 28, 2012 4:31 pm

Hi Pug

yea thats how i saw it , i used a 15min rat trade as my entry off the supply zone.My favourite method. Problem with the rat trade is sometimes you get a bad price. Like today.

Its definitely area of my trading i need to pay attention to. That can be next research going back over my trade journal and analys 5min rat trades on retracement back to supply/demand zones. See if they are more effective.

Or first break of the low/high on 5mins after hitting the orderzone.

Thanks Pug you got me thinking now

BB



Captain Pugwash wrote:i believe you ar so close Bettlebox

For what its worth - This is how i see things.


The way i see it the supply that broke the pointy place, did not origanate at the pointy place itself - but above it

the second bit of supply was much better as it really did break through

Set your pending order and wait

Image

(edit - put the name wrong :-)
There are two forces acting upon us: Suffering pushes us forward from behind and pleasures entice us and pull us forward.

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