The story of Yirbu

[IgazI]

Difficult day today. Tried to reverse in the Frankfurt session back into Asia but pa kept coming back at me.
Took some hits before price reached the bottom of Asia.
First trade failed to go higher but the 2nd printed a double bottom and I was able to hop on.
Decided to exit the trade because I had to leave and I could see I could escape at be.
I hate it when I put so much work into something and it leaves me with nothing.

Well....tomorrow is another day and maybe I can ride that 120+ pips candle all the way down again.


EURUSDM1.jpg

Just wait until you learn how to 'stack'

[Yirbu]

Difficult day today. Tried to reverse in the Frankfurt session back into Asia but pa kept coming back at me.
Took some hits before price reached the bottom of Asia.
First trade failed to go higher but the 2nd printed a double bottom and I was able to hop on.
Decided to exit the trade because I had to leave and I could see I could escape at be.
I hate it when I put so much work into something and it leaves me with nothing.

Well....tomorrow is another day and maybe I can ride that 120+ pips candle all the way down again.


EURUSDM1.jpg

Just wait until you learn how to 'stack'

Hope I get there fast.

[Yirbu]

It was -10°C/23°F for the first time this year.
Because of the wind it feels even colder.
I always knew I was born in the wrong country.

[aliassmith]

It was -10°C/23°F for the first time this year.
Because of the wind it feels even colder.
I always knew I was born in the wrong country.

34F degrees here in Ohio

[Yirbu]

It was -10°C/23°F for the first time this year.
Because of the wind it feels even colder.
I always knew I was born in the wrong country.

34F degrees here in Ohio

Sooooo...moving to Ohio is off the table

[IgazI]

Hope I get there fast.

There are many ways to do it, but here are the basics of how it works:

- risk is based on your full unit size, and that might be 2 pips at a size of 6.

- each stop, where your risk is included, is an 'attempt' at snowballing profits.

- when you begin your attempt, your lot size is 1/3 and your stop size is 3x (6 pips):
this enables you to get off the ground without being snuffed out in the beginning.

- once you accumulate a bank of OPM, say +27 pips, you are going to switch to using only OPM:
you are going to move to a size of 1/2 and reduce your space to (2/3)x27 or 18 pips.
when you are sitting with a bank of 36 pips, at 1/2 size, then you might move to full size and reduce your space to (1/2)x36 or 18 pips.

- If you are at full size and your bank declines to 5 pips then you can go back to 1/2 size and that will increase your bank to 10 pips;
from there you can continue to bank pips and wait for your opportunity to trade at full size again.

Each loss is either -2 pips at full size or -OPM.

You will easily make back all of your losses when you reach your full unit size.

To go to the moon you simply start the process again with 4 lots being 1/3 size.

The reason why I laughed in the above post is that giving back all of the money is pretty common. . .
but when that one snowball starts picking up speed it is a lot of fun

[kiwiarian]

Hope I get there fast.

There are many ways to do it, but here are the basics of how it works:

- risk is based on your full unit size, and that might be 2 pips at a size of 6.

- each stop, where your risk is included, is an 'attempt' at snowballing profits.

- when you begin your attempt, your lot size is 1/3 and your stop size is 3x (6 pips):
this enables you to get off the ground without being snuffed out in the beginning.

- once you accumulate a bank of OPM, say +27 pips, you are going to switch to using only OPM:
you are going to move to a size of 1/2 and reduce your space to (2/3)x27 or 18 pips.
when you are sitting with a bank of 36 pips, at 1/2 size, then you might move to full size and reduce your space to (1/2)x36 or 18 pips.

- If you are at full size and your bank declines to 5 pips then you can go back to 1/2 size and that will increase your bank to 10 pips;
from there you can continue to bank pips and wait for your opportunity to trade at full size again.

Each loss is either -2 pips at full size or -OPM.

You will easily make back all of your losses when you reach your full unit size.

To go to the moon you simply start the process again with 4 lots being 1/3 size.

The reason why I laughed in the above post is that giving back all of the money is pretty common. . .
but when that one snowball starts picking up speed it is a lot of fun

Hi, Question,

- once you accumulate a bank of OPM, say +27 pips, you are going to switch to using only OPM:
you are going to move to a size of 1/2 and reduce your space to (2/3)x27 or 18 pips.

Once you place the 2nd order at the 27 pips target, order #1 gets its SL moved to 18pip (which is still in profit), does order #2 also have the same SL of 18pips as well?

[IgazI]

Hi, Question,

Once you place the 2nd order at the 27 pips target, order #1 gets its SL moved to 18pip (which is still in profit), does order #2 also have the same SL of 18pips as well?

Each attempt is one continuous trade that ends when OPM goes to zero and you lose your initial risk. . .
think of each attempt as its own business; it doesn't end when you count the money, it ends when you close up shop.

If 2 pips at a size of 6 is $120 then one loss is equal to -OPM and -$120.
If you remove risk then the business ends at -OPM.

You start at a size of 2, risking $120 over 6 pips.

You take whatever profit you can, adding it to your bank of profit (OPM), and continue to risk 6 pips on each trade.

When your bank of profit is sufficiently large, maybe 27 pips, then you adjust your lot size prior to the next trade:
2 lots is 1/3 size, 3 lots is 1/2 size, 6 lots is full size. . .increase your size, adjust your bank to the new size: (2/3)x27 = new bank.

While you are risking OPM your stop size can be anything you want. . .
it is 6 pips because 6 is the largest possible stop size when trading at 1/3 size.

[Yirbu]

Hope I get there fast.

There are many ways to do it, but here are the basics of how it works:

- risk is based on your full unit size, and that might be 2 pips at a size of 6.

- each stop, where your risk is included, is an 'attempt' at snowballing profits.

- when you begin your attempt, your lot size is 1/3 and your stop size is 3x (6 pips):
this enables you to get off the ground without being snuffed out in the beginning.

- once you accumulate a bank of OPM, say +27 pips, you are going to switch to using only OPM:
you are going to move to a size of 1/2 and reduce your space to (2/3)x27 or 18 pips.
when you are sitting with a bank of 36 pips, at 1/2 size, then you might move to full size and reduce your space to (1/2)x36 or 18 pips.

- If you are at full size and your bank declines to 5 pips then you can go back to 1/2 size and that will increase your bank to 10 pips;
from there you can continue to bank pips and wait for your opportunity to trade at full size again.

Each loss is either -2 pips at full size or -OPM.

You will easily make back all of your losses when you reach your full unit size.

To go to the moon you simply start the process again with 4 lots being 1/3 size.

The reason why I laughed in the above post is that giving back all of the money is pretty common. . .
but when that one snowball starts picking up speed it is a lot of fun

I'm afraid I don't fully understand it.
What I think I understand is that in the first part you "collect" space using 1/3 of your regular position size and you use a larger SL. So the total risk on that trade is still the same but the chance your SL gets hit is smaller.

When you have collected a bank of OPM you are increasing your size and as a consequence your SL distance diminishes because you trade with the same risk in $

And this is what I don't understand:

- once you accumulate a bank of OPM, say +27 pips, you are going to switch to using only OPM:
you are going to move to a size of 1/2 and reduce your space to (2/3)x27 or 18 pips.
when you are sitting with a bank of 36 pips, at 1/2 size, then you might move to full size and reduce your space to (1/2)x36 or 18 pips.

Moving to a size of 1/2 (related to your original size?) That would be 3 lots in this example.
Where does the (2/3) come from? And why 2/3?
Is it because you are dividing the 27pips into parts to trade with?

Next; why reduce your space to 1/2?

Because I just don't understand I thought I would just try it.

Today I am going to risk $100 per trade with a 4 pips SL
This means 2.5 lots for each trade. This would also be full size. (100%)
So in my first trades I have used 33% of my full size and traded with 0,83 lots and moved my SL away to 12 pips.

Trade 1: +17
Trade 2: +4
Trade 3: +5
(It's not every day it starts like this )

So now I have banked 25pips, I am going to use these 25 pips as my new trading space.
I'll also increase my size to 1/2 size of the original size = 1.25 lots per trade and my SL becomes.... 8pips ????

My first trade at half size was a loss:
Trade 4: -3

Now I still have enough room so my next trades will all be at half size again until I have lost my OPM or grown it so I can switch to full size.

[IgazI]

I'm afraid I don't fully understand it.
What I think I understand is that in the first part you "collect" space using 1/3 of your regular position size and you use a larger SL. So the total risk on that trade is still the same but the chance your SL gets hit is smaller.

Correct.

When you have collected a bank of OPM you are increasing your size and as a consequence your SL distance diminishes because you trade with the same risk in $

When you are using OPM, when you have removed risk and you are only risking OPM, your stop size can be anything up to all of your banked profits:

Increasing your position size only reduces the number of pips it takes to reach a dollar value: eg,

$2 x 27 pips = $54
$3 x 18 pips = $54
$6 x 09 pips = $54

So when you move from 1/3 size to 1/2, from 2 to 3 lots, your new bank is 2/3 of your previous bank. . .
and when you move from 1/2 to 1, from 3 lots to 6 lots, your new bank is 1/2 of your previous bank.

If you lose your OPM then you've gone out of business and have to start a new one. . .with your own money. . .
so keep that in mind when selecting how much of it to risk on the next trade.

Because I just don't understand I thought I would just try it.

Today I am going to risk $100 per trade with a 4 pips SL
This means 2.5 lots for each trade. This would also be full size. (100%)
So in my first trades I have used 33% of my full size and traded with 0,83 lots and moved my SL away to 12 pips.

Trade 1: +17
Trade 2: +4
Trade 3: +5
(It's not every day it starts like this )

So now I have banked 25pips, I am going to use these 25 pips as my new trading space.
I'll also increase my size to 1/2 size of the original size = 1.25 lots per trade and my SL becomes.... 8pips ????

My first trade at half size was a loss:
Trade 4: -3

Now I still have enough room so my next trades will all be at half size again until I have lost my OPM or grown it so I can switch to full size.

You have banked 26 pips.

Moving to 1/2 size is (2/3)x26 or a bank of 17.3 pips.

Your risk is anything up to 17.3 pips. . .you can continue to risk 4 pips until the 17.3 pips are depleted.

A 'loss', in your example, is -OMP and -4 pips:

We do not count having less money as a loss, we treat it as a 'paused' trade:

You had 17.3, you paused it after giving back 4, you are up 13.3 pips. press play!

After you remove risk then -OPM would cause you to start a new trade at 1/3 size.