How to be a MOnster

[Jalarupa]

EDITED

[MightyOne]

So I'm making money faster and losing money faster too (than a non-stacking strategy) if i don't switch to a bigger timeframe. Is it right?

And switching from 8 lines on H1 isn't:

- 4 lines H4
- 2 lines D1?

Thank you much!

Position size is the 'speed' at which money is gained or lost & we measure that speed by how many pips it takes to make a specific amount of money.

The number of pips that our money is spread out over is what we call our 'time frame' and we link this idea with a specific period to give us an idea of how long it should take to make a specific amount of money by observing how many lines price has sprawled out over a certain period of time.

You can make anywhere from 0 to 16 lines in an hour, 1 line on any chart, but as you increase your line width you reduce the number of lines that price can travel through over shorter periods of time (<16)

The greater the value of the lines the more you consider making your money at larger intervals because as you approach maximum line value, say $4000/line, every line might be worth 320 H1 lines at your initial position size; having time to eject from a trade is then more important than maximizing the number of lines that you make.

One H1 line = one H4 line = one Daily line = one Weekly line = one Monthly line = one line on AUDUSD = one line on USDZAR
$12.50 over x where x = (ATR).382
H4: " over x * 02
D1: " over x * 04
W1: " over x * 08
MN: " over x * 16

[Mira]

So I'm making money faster and losing money faster too (than a non-stacking strategy) if i don't switch to a bigger timeframe. Is it right?

And switching from 8 lines on H1 isn't:

- 4 lines H4
- 2 lines D1?

Thank you much!

Position size is the 'speed' at which money is gained or lost & we measure that speed by how many pips it takes to make a specific amount of money.

The number of pips that our money is spread out over is what we call our 'time frame' and we link this idea with a specific period to give us an idea of how long it should take to make a specific amount of money by observing how many lines price has sprawled out over a certain period of time.

You can make anywhere from 0 to 16 lines in an hour, 1 line on any chart, but as you increase your line width you reduce the number of lines that price can travel through over shorter periods of time (<16)

The greater the value of the lines the more you consider making your money at larger intervals because as you approach maximum line value, say $4000/line, every line might be worth 320 H1 lines at your initial position size; having time to eject from a trade is then more important than maximizing the number of lines that you make.

One H1 line = one H4 line = one Daily line = one Weekly line = one Monthly line = one line on AUDUSD = one line on USDZAR
$12.50 over x where x = (ATR).382
H4: " over x * 02
D1: " over x * 04
W1: " over x * 08
MN: " over x * 16

I was thinking that clicking one timeframe up is = at doubling space (lines width) and halving lot size ($/pip value) keeping the same number of lines.

1) Why did we start from 8 lines on H1 then 4 on the Daily?
Is it because of a double?

2) What is better?

a) having more lines
b) having high value lines

(I'm asking this because I made a try with numbers and there is a sort of "impact" when I lose a trade AFTER a winning one)


image upload

I'm sorry if I'm stressing you MO
But I'm trying to understand, because I Trust you when you say that space is more important than chart analysis, so I don't want to miss this part.

Thank you much for helping!

[MightyOne]

I was thinking that clicking one timeframe up is = at doubling space (lines width) and halving lot size ($/pip value) keeping the same number of lines.

1) Why did we start from 8 lines on H1 then 4 on the Daily?
Is it because of a double?

2) What is better?

a) having more lines
b) having high value lines

(I'm asking this because I made a try with numbers and there is a sort of "impact" when I lose a trade AFTER a winning one)

I'm sorry if I'm stressing you MO
But I'm trying to understand, because I Trust you when you say that space is more important than chart analysis, so I don't want to miss this part.

Thank you much for helping!

1) We didn't.
H1: 1 line = $12.50 over 5 pips (x)
H4: 1 line = $12.50 over 10 pips (x * 2)
D1: 1 line = $12.50 over 20 pips (x * 4)
and so on.

2) It is a balancing act between size and safety.
You could stack all of your OPM into a single line and take trades on the monthly chart but if it doesn't work out then you have to dig into your
pocket for another risk-box. If you make 1 line, move it over to the monthly chart, and then consider it to be an independent risk-box then I can
see nothing wrong with that.

I would rather have 8 lines of $500 than 40 lines of $12.50
if that answers you question.

One H1 line = one H4 line = one Daily line = one Weekly line = one Monthly line = one line on AUDUSD = one line on USDZAR
$12.50 over x where x = (ATR).382
H4: " over x * 02
D1: " over x * 04
W1: " over x * 08
MN: " over x * 16

[elkin.fernandez]

I don´t understand yet "lines" idea.

Maybe it is because, I have the same experience that Mira. Win one trade and loss next. LOL. How many time one has to stack?

How could I have a small distance between my SL and my entry in order to have a a great ratio using "lines idea"?

You suppose that:

I have a 4 lines of risk, how many lines i have to get minimun? 4?
I win this trade. Now, Do i have 4 lines to risk? I mean now i have 8 lines to risk?. Lets suppose that i risk 8 lines and i loss. Again I would be in the same place again?.

Thats my doubt.

I would like to use lines idea. But I dont get understand what I have to do after i get lines to increase my line value.

[Mira]

I don´t understand yet "lines" idea.

Maybe it is because, I have the same experience that Mira. Win one trade and loss next. LOL. How many time one has to stack?

How could I have a small distance between my SL and my entry in order to have a a great ratio using "lines idea"?

You suppose that:

I have a 4 lines of risk, how many lines i have to get minimun? 4?
I win this trade. Now, Do i have 4 lines to risk? I mean now i have 8 lines to risk?. Lets suppose that i risk 8 lines and i loss. Again I would be in the same place again?.

Thats my doubt.

I would like to use lines idea. But I dont get understand what I have to do after i get lines to increase my line value.

Hi Elkin!

The Truth is that it's simple.
You have N lines (10, i.e.) of x $ (5$, i.e.) and you put at risk a portion of that lines [MO says two lines = 20% of your pocket at risk].

Let's say that you make 2 lines:

("Actual" lines / "previous" lines) * lines value
(12/10) • 5 = 6$

It means that now you have 10 lines of 6$, risk is normalized.
You 'reset' your space when you reach your goal (15$/L? 30% of your account? 300$?), so you can start again with the number of lines you prefer and at the size you like/need.

The formula is the same for a losing trade, - 3 lines is:

(7/10) • 6 = 4.2$

It means that now you have 10 lines of 4.2$ or 8 lines of 5.25$ or 5 lines of 8.4$, if you want.

[Mira]

This is another experiment made with lines.
Here I tried to simulate some loss and lastly a recover.

It seems that trying to keep a value similar to the starting one (or bigger, obviously) is the best choice to recover faster, considering that it raises risk.

[I'm referring to the last trade (5a; 5b)]



upload image

[salezyakuku]

This is another experiment made with lines.
Here I tried to simulate some loss and lastly a recover.

It seems that trying to keep a value similar to the starting one (or bigger, obviously) is the best choice to recover faster, considering that it raises risk.

[I'm referring to the last trade (5a; 5b)]



upload image

Safer will be start with 5a and increase size to 5b after order is on profit. Increase size before entry after 4 losses in a row sound like revenge trade .

[Mira]

This is another experiment made with lines.
Here I tried to simulate some loss and lastly a recover.

It seems that trying to keep a value similar to the starting one (or bigger, obviously) is the best choice to recover faster, considering that it raises risk.

[I'm referring to the last trade (5a; 5b)]



upload image

Safer will be start with 5a and increase size to 5b after order is on profit. Increase size before entry after 4 losses in a row sound like revenge trade .

Revenge trade

You're right btw.. doubling when in profit is safer (even if it's not always that easy, price leaves me off most of the times ). Thanks!

I made that assumption because after a loss of 8 lines over 10, being able to keep playing hard is a gambler paradise.
At first sight it looks like recovering from losses is a slow process.. maybe it's true, but this money management is more than that
It goes with your success rate: it reduces your losses when you're losing and it increases your wins when you're winning.

[Mira]

Now that I have an idea of how lines work I can start studying something to manage my money in a better way!

Then if I could learn how to trade it would be even better.. sometimes I feel that if I draw a random line on a chart and trade it in direction of profit I'd do better than now