The ideas that I trade by:

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Re: The ideas that I trade by:

Postby paweldobkowski » Tue Sep 04, 2018 10:36 am

Mira wrote:Resizing the trade to manage risk vs volatility is sick BTW.
I can’t find an easy way to do it :?

Yeah. That is an issue.

Although I'm not sure what You mean by saying that there's no easy way to do it. It could mean two things:
1) you don't know when the contraction/ expansion will happen - so the volatility becomes somehow not defined.
2) (more of my past problem) you know the volatility, you have a way to define it but it's hard to dynamically adjust Your stop loss to a certain percentage or amount of money.

So I guess I'll address both. But let's be real here for a second - I come here from time to time and I don't read everything. I know that You guys go deep with this s**t so my answers might be nothing new.

1) Let's say You play a certain setup. Any setup. Let's say it's a whipsaw. You wait for the market to create a cluster. You wait for it to be fake broken one way, turn back and margin call bunch of fckn dreamers. What You would do is probably set a stop loss above or below the fake break. So in my opinion the bigger the stop loss you need to use the greater the volatility. So it all kinda sets itself up. You know what I mean? If you play SUP/ RES zones. If the market is quiet the zone will be smaller = smaller stop = smaller potential gain. I'm talking intraday trading btw. It's the only thing I really know.

2) If the above isn't Your problem but Your problem is the quick adjusting of the position depending on the volatility that You somehow defined here's an idea. Years ago I teamed up with a trader/ programmer. Great guy. I was trying to scalp so as You can imagine fast sizing became an issue. We dodged the problem and we came up with this idea: You look at the chart. The market is trading. And You wait for Your setup. At the moment at which You see Your s**t going down You take horizontal line and You drop it on the chart - above or below the current price. If You drop it above You open a short position, if You drop it below You open long position AT MARKET. The horizontal line becomes Your stop loss and the space between the line and the current market price is obviously your risk and we would define that as 1% of the account or the fixed amount of money. So risk was always the same but the position would change. Unfortunately I don't have the EA anymore as I don't use Meta Trader for some time now. But I think You could easily get it coded for a small price.

But if none of the above concerns You. I'm fckd :wink:
Seriously tho let me know what did You mean by saying that there's no easy way.
im gluten free intolerant

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