The ideas that I trade by:

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MightyOne
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Postby MightyOne » Sun Feb 05, 2017 8:47 pm

Pjort wrote:
Hello MO
Super thank you for you sharing all your knowlegde and experience... I have followed you and your active nice coleagues in this forum for several years now...

What does the {{ sign om your chart actually means??

Best from me,,, :D


Thanks Pjort

It points to a "significant" price move that has left a pattern.

When the end of the curly brace is higher than the price leg then it is pointing to two breakouts.

EURUSDH1.png
EURUSDH1.png (38.85 KiB) Viewed 3132 times

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aliassmith
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Re: Re:

Postby aliassmith » Sun Feb 05, 2017 9:31 pm

MightyOne wrote:
TheRumpledOne wrote:
I get your analogy, MO. Maybe dangerous wasn't the best choice of words for this discussion. But don't the statistics back up what I am saying about "house money"?

Think of it this way, you walk into a casino, put down ten $100 bills and you win. Now you have twenty $100 bills. You put the money into a bag, shake it up, reach in and pull out one $100 bill.

Is it HOUSE MONEY or YOUR MONEY that you are holding in your hand?

Do they stop you at the door as you are leaving and ask you WHERE DO YOU THINK YOU ARE GOING WITH THE HOUSE'S MONEY?


Not in those exact words :lol:

Your money is finite where as the house's money is infinite, that is the difference.

I am saying that OPM is a subgroup of YOUR MONEY, not that OPM belongs to anyone else.

Should gains be treated differently? That is a matter of opinion.


I look at it like this...

I come to the markets with $300,000. Now that is my stake and it would be difficult to get that $300k again outside the markets if I have to start again.

I use "safe" risk levels until I get money above what my stake is, which I refer to as OPM. OPM is my money, but I am more liberal with it.

The number 1 goal is to protect my stake so I can stay in the game.
The number 2 goal is to explode profits using OPM.
Trade Your Way as Long as It Makes Money!

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TheRumpledOne
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Re: Re:

Postby TheRumpledOne » Mon Feb 06, 2017 12:47 am

aliassmith wrote:
I look at it like this...

I come to the markets with $300,000. Now that is my stake and it would be difficult to get that $300k again outside the markets if I have to start again.

I use "safe" risk levels until I get money above what my stake is, which I refer to as OPM. OPM is my money, but I am more liberal with it.

The number 1 goal is to protect my stake so I can stay in the game.
The number 2 goal is to explode profits using OPM.


Did you read any of the material I posted about HOUSE MONEY? Just curious.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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aliassmith
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Re: Re:

Postby aliassmith » Mon Feb 06, 2017 1:35 am

TheRumpledOne wrote:
aliassmith wrote:
I look at it like this...

I come to the markets with $300,000. Now that is my stake and it would be difficult to get that $300k again outside the markets if I have to start again.

I use "safe" risk levels until I get money above what my stake is, which I refer to as OPM. OPM is my money, but I am more liberal with it.

The number 1 goal is to protect my stake so I can stay in the game.
The number 2 goal is to explode profits using OPM.


Did you read any of the material I posted about HOUSE MONEY? Just curious.


The short answer is yes.

Yes trading is a form of gambling. The currency market is a negative sum game after spreads and fees.

Trading in a casino is a negative expectancy game.

In a casino, the law of large numbers suggest that if enough plays are made the house always win, no matter the size of the wager.

In the currency market I can exploit a statistical edge which means I am a positive expectancy trader and exploiting OPM with an actual positive expectancy doesn't apply to the fouled mental math of gambling imo.

Lets say I am a good investor and I make 50% in a year. Now I have OPM. Should I continue to invest the same as I started with or should I increase my position size? Should I reinvest my dividend? Should I never increase my size?
Trade Your Way as Long as It Makes Money!

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TheRumpledOne
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Re: Re:

Postby TheRumpledOne » Mon Feb 06, 2017 3:21 am

aliassmith wrote:
TheRumpledOne wrote:
aliassmith wrote:
I look at it like this...

I come to the markets with $300,000. Now that is my stake and it would be difficult to get that $300k again outside the markets if I have to start again.

I use "safe" risk levels until I get money above what my stake is, which I refer to as OPM. OPM is my money, but I am more liberal with it.

The number 1 goal is to protect my stake so I can stay in the game.
The number 2 goal is to explode profits using OPM.


Did you read any of the material I posted about HOUSE MONEY? Just curious.


The short answer is yes.

Yes trading is a form of gambling. The currency market is a negative sum game after spreads and fees.

Trading in a casino is a negative expectancy game.

In a casino, the law of large numbers suggest that if enough plays are made the house always win, no matter the size of the wager.

In the currency market I can exploit a statistical edge which means I am a positive expectancy trader and exploiting OPM with an actual positive expectancy doesn't apply to the fouled mental math of gambling imo.

Lets say I am a good investor and I make 50% in a year. Now I have OPM. Should I continue to invest the same as I started with or should I increase my position size? Should I reinvest my dividend? Should I never increase my size?


Depends on what you want to accomplish.
Income?
If you made 50%, withdraw it. Do it again.

Growth?
Increase your position size by no more than 50%. 10% - 25% would be prudent.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

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aliassmith
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Re: Re:

Postby aliassmith » Mon Feb 06, 2017 6:43 am

TheRumpledOne wrote:
aliassmith wrote:
TheRumpledOne wrote:
Did you read any of the material I posted about HOUSE MONEY? Just curious.


The short answer is yes.

Yes trading is a form of gambling. The currency market is a negative sum game after spreads and fees.

Trading in a casino is a negative expectancy game.

In a casino, the law of large numbers suggest that if enough plays are made the house always win, no matter the size of the wager.

In the currency market I can exploit a statistical edge which means I am a positive expectancy trader and exploiting OPM with an actual positive expectancy doesn't apply to the fouled mental math of gambling imo.

Lets say I am a good investor and I make 50% in a year. Now I have OPM. Should I continue to invest the same as I started with or should I increase my position size? Should I reinvest my dividend? Should I never increase my size?


Depends on what you want to accomplish.
Income?
If you made 50%, withdraw it. Do it again.

Growth?
Increase your position size by no more than 50%. 10% - 25% would be prudent.


Your growth example is using OPM. No one said you have to get too crazy with it. Its as cautious or risky as you want.
Trade Your Way as Long as It Makes Money!

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MightyOne
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Postby MightyOne » Mon Feb 06, 2017 8:26 am

Assuming that you only trade 15 days out of the month, you only need to make 1.3% compounded daily.

It is easier to stay on track by risking just enough to reach your daily target than it is to risk say 3%, thinking that overshooting your target will keep you ahead of the game, as compound returns will not wait for you to recover from drawdown.

If you don't like to day trade then building a rocket ship (accumulation) and sending it on a one way mission is the 2nd best option.

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aliassmith
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Re:

Postby aliassmith » Mon Feb 06, 2017 10:05 am

MightyOne wrote:Assuming that you only trade 15 days out of the month, you only need to make 1.3% compounded daily.

It is easier to stay on track by risking just enough to reach your daily target than it is to risk say 3%, thinking that overshooting your target will keep you ahead of the game, as compound returns will not wait for you to recover from drawdown.

If you don't like to day trade then building a rocket ship (accumulation) and sending it on a one way mission is the 2nd best option.


Ya thats about 10 times your capital in a year and compounding is still OPM. :mrgreen:
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Pjort
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Re:

Postby Pjort » Mon Feb 06, 2017 10:10 am

MightyOne wrote:
Pjort wrote:
Hello MO
Super thank you for you sharing all your knowlegde and experience... I have followed you and your active nice coleagues in this forum for several years now...

What does the {{ sign om your chart actually means??

Best from me,,, :D


Thanks Pjort

It points to a "significant" price move that has left a pattern.

When the end of the curly brace is higher than the price leg then it is pointing to two breakouts.

EURUSDH1.png

Thanks - I see now...
Is the curly brace generated from a indicator or is it something you have drawn by hand?
Also the red dots with "1"and "2" Numbers and the red dotted circles??

The red circles areas seem to me like some accumulating areas with posibility for breakouts up or down!??

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TheRumpledOne
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Re: Re:

Postby TheRumpledOne » Mon Feb 06, 2017 2:21 pm

aliassmith wrote:
TheRumpledOne wrote:
aliassmith wrote:
The short answer is yes.

Yes trading is a form of gambling. The currency market is a negative sum game after spreads and fees.

Trading in a casino is a negative expectancy game.

In a casino, the law of large numbers suggest that if enough plays are made the house always win, no matter the size of the wager.

In the currency market I can exploit a statistical edge which means I am a positive expectancy trader and exploiting OPM with an actual positive expectancy doesn't apply to the fouled mental math of gambling imo.

Lets say I am a good investor and I make 50% in a year. Now I have OPM. Should I continue to invest the same as I started with or should I increase my position size? Should I reinvest my dividend? Should I never increase my size?


Depends on what you want to accomplish.
Income?
If you made 50%, withdraw it. Do it again.

Growth?
Increase your position size by no more than 50%. 10% - 25% would be prudent.


Your growth example is using OPM. No one said you have to get too crazy with it. Its as cautious or risky as you want.


Maybe we need an OPM HOUSE MONEY thread. My growth example is using MY MONEY. I refer to you the $100 bills in a bag post I made.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



Please do NOT PM me with trading or coding questions, post them in a thread.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.


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