Mira wrote:thepark wrote:Hi Mira
Trust that you are well. I want to critique on this MM, compare what its lacking to EIGHTS and if you like, teach me in a simplified way.
So I set my trade size to risk 1.666% of my account. I will risk 30 pips for 2:1 RR. Here you go back out the lot size.
I start with say a lot size of 1 lot and when I win I will increase the lot size like this
Number of lines gained/number of previous lines* (starting lot size)
lets say each line is 15 pips then its 14/10* 1(lets say its 1 lot) =1.4 so your next trade you use 1.4 lots
each time you win you can multiply your previous lot size by 1.4 and when you lose you can do 8/10*lot size. Is this stacking?
The problem is if you keep winning and losing and winning and losing you actually lose more money then if you didnt reset your lot size each time. if you just kept losing 1.666% every time.
How do I change this MM to be like EIGHTS.
Hi Thepark!
I think that the real intent of EIGHTS is to keep you in the game when you are losing and trying to make more when you are winning.. it's more than numbers, it's
a state of mind
Let's say you have a 1:2 RR and that you're risking 1% of your account (account = 100$)
1) +2% = 102$
2) -1% = 100.9$
3) +2% = 102.9$
4) -1% = 101.8$
Now with lines, you have 10 lines (10% of your account aka 10$) and you risk 1 line per trade and target 2.
1) (12/10)1= 1.2 = 102$
2) (9/10)1.2= 1.08 = 100.8$
3) (12/10)1.08= 1.3 = 103$
4) (9/10)1.3= 1.17 = 101.1$
In a situation of BE you're making/losing the same money.
Now let's say that you make 3 wins
5) +2% = 103.83$
6) +2% = 105.9$
7) +2% = 108$
with lines
5) (12/10)1.17= 1.4 = 104$
6) (12/10)1.4= 1.68 = 106.8$
7) (12/10)1.68= 2 = 110$
You're up of two dollars now, it's a +20% than a "classic MM".
Now let's say that you are losing 3 trades:
8 ) -1% = 106.9$
9) -1% = 105.83$
10) -1% = 104.77$
with lines
8 ) (9/10)2 = 1.8
9) (9/10)1.8 = 1.62
10) (9/10)1.62 = 1.45
Now try to add a winning trade, with EIGHTS you are making more, and we are just talking about basic "strategies"!
Trying to not destroy your risk box (that is the only real loss) is the Metagame, all the trades between the total loss and your target are just fluctuations, a path as MO says.
When you have some OPM in your pocket you can try to be more aggressive (with lines):
here I'm boosting my RB reducing the number of lines from 10 to 6, risk is still 1 line and 2 is the target-> (10/6)2 = 3.3
8 ) (8/6)3.3= 4.4
9) (8/6)4.4= 5.8
10) (8/6)5.8= 7.7
Do you want your 10 lines back? -> (6/10)7.7 = 4.62
Your account is 136.2$ now