Aliassmith Beats a "Dead Horse"

[aliassmith]

What did you mean by "get out of hand"

[dchappy]

The stat guy comes back and talks with Rich Uncle James.

After a few minutes Rich Uncle James turns to speak with you.

He said "Nice buddy, this data looks good. We ran it through some simulations and because you have hundreds of trades in this data we got some solid results"

He continues "I'll share my idea with you. I am willing to fund your business, but I am a conservative business man and very particular about my money. Here is the plan. I will fund you with $10,000 so you can prove your business model. Since we are partners you will also put up $400 of your own money .
Here is your guide lines:
You start with the $10,000 - with every increase of 10% I will double your funds up to $1,200,000
Profits will be took out at the end of every month and we will split it 50/50
You will have a max of 5:1 leverage
You will have a max relative drawdown of 4%- this means 4% lower than your high water mark in your account.
You will also have a -1.5% max stop loss risk per trade.

He said "Now that you know the idea, I want you to go home and think about if you can do it, or if you want to. I told you I am particular about my money, but I think we can make some cash together."

You head home and think about what was present to you.

to be continued

Now you are back at home thinking about what a penny pincher Rich Uncle James is..

I dont understand why he just doesn't give me the money and let me do my thing.

Well he is a smart man. He has people to lean on. Maybe he knows something I'm not seeing.

I know my trading has a positive expectation but if I risk 4% and lose 1 time I am out.

I cant risk 2 or 3 percent because I can only lose 1 time in a row.

I better run my stats through an equity simulation to get a better picture.

Uncle Scrooge must be out of his mind. To safely stay within his guidelines I will have to trade .4% risk per trade.

The simulation also told me at that risk I can expect between 5 and 10% return per month.

So 10% in two months could double my funds. In about a year I'll have $1.2million to manage.

At my return range per month on $1.2million I would split $60,000 to $120,000 per month with him.

I can take a lot of the profit and put it in a separate account and trade that one however I want.

Now a days there are rich uncles out there and in about 12 months you could make $20,000 a month maybe more, maybe less.

Easier than trying high risk account flipping in my opinion.

Step one have positive stats
Step two "proper " capitalization

This Dudes better off starting with $500 and telling his "Rich Uncle" to piss up a rope.
Gonna give a high % of it to the Government anyway so NO reason to have more fingers in the till than necessary.
What's the rush to millions anyway?

I've only trade twice with others $ (relatives or friends ).The down side were the calls at dinner time asking how it went .Or worse not trading a news day and them getting huffy ,because of the big move ..I couldn't take it ..sent them to Charles Schwabb....

[prochargedmopar]

What did you mean by "get out of hand"

Get to the point where 1% risk is not only unacceptable but also not required to reach any sane trading goals.

[Leoheart]

Now you are back at home thinking about what a penny pincher Rich Uncle James is..

I dont understand why he just doesn't give me the money and let me do my thing.

Well he is a smart man. He has people to lean on. Maybe he knows something I'm not seeing.

I know my trading has a positive expectation but if I risk 4% and lose 1 time I am out.

I cant risk 2 or 3 percent because I can only lose 1 time in a row.

I better run my stats through an equity simulation to get a better picture.

Uncle Scrooge must be out of his mind. To safely stay within his guidelines I will have to trade .4% risk per trade.

The simulation also told me at that risk I can expect between 5 and 10% return per month.

So 10% in two months could double my funds. In about a year I'll have $1.2million to manage.

At my return range per month on $1.2million I would split $60,000 to $120,000 per month with him.

I can take a lot of the profit and put it in a separate account and trade that one however I want.

Now a days there are rich uncles out there and in about 12 months you could make $20,000 a month maybe more, maybe less.

Easier than trying high risk account flipping in my opinion.

Step one have positive stats
Step two "proper " capitalization

This Dudes better off starting with $500 and telling his "Rich Uncle" to piss up a rope.
Gonna give a high % of it to the Government anyway so NO reason to have more fingers in the till than necessary.
What's the rush to millions anyway?

I've only trade twice with others $ (relatives or friends ).The down side were the calls at dinner time asking how it went .Or worse not trading a news day and them getting huffy ,because of the big move ..I couldn't take it ..sent them to Charles Schwabb....

I burst in laughter, how did they make out?

[aliassmith]

Now you are back at home thinking about what a penny pincher Rich Uncle James is..

I dont understand why he just doesn't give me the money and let me do my thing.

Well he is a smart man. He has people to lean on. Maybe he knows something I'm not seeing.

I know my trading has a positive expectation but if I risk 4% and lose 1 time I am out.

I cant risk 2 or 3 percent because I can only lose 1 time in a row.

I better run my stats through an equity simulation to get a better picture.

Uncle Scrooge must be out of his mind. To safely stay within his guidelines I will have to trade .4% risk per trade.

The simulation also told me at that risk I can expect between 5 and 10% return per month.

So 10% in two months could double my funds. In about a year I'll have $1.2million to manage.

At my return range per month on $1.2million I would split $60,000 to $120,000 per month with him.

I can take a lot of the profit and put it in a separate account and trade that one however I want.

Now a days there are rich uncles out there and in about 12 months you could make $20,000 a month maybe more, maybe less.

Easier than trying high risk account flipping in my opinion.

Step one have positive stats
Step two "proper " capitalization

This Dudes better off starting with $500 and telling his "Rich Uncle" to piss up a rope.
Gonna give a high % of it to the Government anyway so NO reason to have more fingers in the till than necessary.
What's the rush to millions anyway?

I've only trade twice with others $ (relatives or friends ).The down side were the calls at dinner time asking how it went .Or worse not trading a news day and them getting huffy ,because of the big move ..I couldn't take it ..sent them to Charles Schwabb....

I went down this path years ago. Friends and family are horrible to work with.

My story was more of a parable. Just saying there are Rich Uncles out there these days instead of trying to flip accounts.

[LeMercenaire]

This Dudes better off starting with $500 and telling his "Rich Uncle" to piss up a rope.
Gonna give a high % of it to the Government anyway so NO reason to have more fingers in the till than necessary.
What's the rush to millions anyway?

I've only trade twice with others $ (relatives or friends ).The down side were the calls at dinner time asking how it went .Or worse not trading a news day and them getting huffy ,because of the big move ..I couldn't take it ..sent them to Charles Schwabb....

I went down this path years ago. Friends and family are horrible to work with.

My story was more of a parable. Just saying there are Rich Uncles out there these days instead of trying to flip accounts.

Your story is actually pretty much how I staked my first move out on my own, though proportionally I also staked more of my own capital.

It was always conducted and set up in a purely professional way. I was under no illusion that this was in any way a friendly family deal. Business all the way.

[LeMercenaire]

Started the week off with what is technically a Sunday trade - something I'm struggling to remember the last time I did (traded a Sunday, that is).

I took this as a combo Dead Horse and Z-Line entry and really, what more could you ask for?!

Entry at 02:00 UK time.

I set-and-forgot it at 1:1 and it seems it made that easily. Closed in profit at 02:20.

Dead Horse goes for a moonlit stroll. EA 15-min.

EA-DeadHorseOvernightTrotEntry28thSept2020Crop.png (48.4 KiB) Viewed 2440 times

EA-DeadHorseOvernightTrot-Closed-28thSept2020Crop.png (45.55 KiB) Viewed 2440 times

[causation]

Hello,

Thank you to all who have been sharing their ideas here and in other threads on Kreslik. I must say I can always come here and learn something new and take it away and attempt to apply it to my own trading. I figured I should also not lurk so much and contribute to enhance my experience further.

I have a history of poor trade management and generally lack direction, a goal or exit. This has become all too obvious after some self reflection and from reading some of the great threads on here. I want to fix all that.

Would like to learn as much as I can and one day trade as well as you guys. I was also looking at EA today.
I am aiming for 3R whenever I see opportunity.

EURAUD M30-M1 2020-09-28_22-42-41.png (73.84 KiB) Viewed 2422 times

[LeMercenaire]

Hello,

Thank you to all who have been sharing their ideas here and in other threads on Kreslik. I must say I can always come here and learn something new and take it away and attempt to apply it to my own trading. I figured I should also not lurk so much and contribute to enhance my experience further.

I have a history of poor trade management and generally lack direction, a goal or exit. This has become all too obvious after some self reflection and from reading some of the great threads on here. I want to fix all that.

Would like to learn as much as I can and one day trade as well as you guys. I was also looking at EA today.
I am aiming for 3R whenever I see opportunity.

EURAUD M30-M1 2020-09-28_22-42-41.png

Welcome aboard. Good to have you here and appreciate you posting.

How about you tell us a little about the techniques you are using? Micro Supply + Demand?

[causation]

Welcome aboard. Good to have you here and appreciate you posting.

How about you tell us a little about the techniques you are using? Micro Supply + Demand?

Thank you for your reply.

Hmm, in a nutshell
-Define an area I want to watch price 'react'. i.e. The yellow line in my chart, I get alerted so I don't have to sit and stare. Generally this is what I've seen others call 'pointy' areas. Often its just simple S/R.

-Once alerted, I observe the price action (PA) on a touch of that defined area. I am also interested to see how price approached, and I do look through the lens of supply + demand, but on the smaller time frames, I am also just eyeballing the size of candles relative to the recent past.

-The type of reaction PA I am looking for are Engulfs / Pin Bars, one in the same depending on the timeframe.

-If there is space to get into a 3R trade I will drop down to a lower time frame to see what's going on there and will look for price patterns (ask myself questions "is it a rising wedge into an area of resistance that has broken south?" for example..), s/r, supply + demand, anywhere I can comfortable place a trade and have some degree of confidence the stop loss won't be immediately taken (this still happens regardless of my good intentions of course)

I applied these steps just now, and put on a set and forget trade on the EA at the same area of resistance.

EURAUD M30-M5 2020-09-29_0-23-42.png (56.65 KiB) Viewed 2388 times

You can see how long the pin bar is on this M30 chart. If I traded at the close of that candle on that time frame, I would have a 30 pip stop loss, and then would have to see if its possible to have a 90 pip take profit in line with my 3R goal. The probability just seems so low on average for that type of trade. But I want a piece of that PA so I drilled down to the M1/M5 and was driven by the possibility of price revisiting resistance and coming back down to the bottom of the range for my Take Profit. It doesn't always work out as neatly as this!

Had price touched the lower purple zone before it came up to my entry. I would have cancelled the order. Lots of nuance to reading the market and I am still learning everyday.