Hello out there
Im not able to sleep and thought to just try to give my thoughts about MM and Performance to everyone who is interessted in it.
I like to help traders with problems related to MM and their performance. Im not a trading guru at all but this should just be a platform to give help and receive input for your own trading.
I just like to go back to the basics. The only reason why you should be trading is because you want to make money. What does it mean to make money in trading? It just means that the trader is able to increase the amount of money on his account. It may sound stupid but i didnt understand whats behind this for a long time.
Before thinking of all the details involved in trading you should know what making money is. You are making money not only when your account is bigger than at a previous time in the past. It means that your amount of money is increasing on a consistant way over a long time period.
continued...
Performance & MM Mentoring
Moderator: moderators
Performance & MM Mentoring
Lose professionally!
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I like to look at the account development as a line of performance on a historical basis. This represents the booked in amount of money in your trading account (analog equity curve in mt4 DetailedStatement) over time/trades.
When im trading i always look at my performance/equity line. This is the most important feedback for the trader if his work is sucessfull or not. It is also a great opportunity to find problems in psychological or mechanical areas.
When im trading i always look at my performance/equity line. This is the most important feedback for the trader if his work is sucessfull or not. It is also a great opportunity to find problems in psychological or mechanical areas.
Lose professionally!
Step1:Find your edge
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The first thing is to find an "edge". Something that increases the propability of winning over time. Without this edge you are lost. I think there is a lot of great input in other topics on kreslik about this and not what i want to dig into too much.
My message here is that it will be hard to make money without it and you should try to find it the cheapest way possible. Just try things out and increase your equity curve constantly with the smallest possible lot-size. Only when your curve is showing new highs on regular base you found your edge. Dont even think about MM and other Performance stimulators bevore you can tell that you are confident with your edge...
==============
The first thing is to find an "edge". Something that increases the propability of winning over time. Without this edge you are lost. I think there is a lot of great input in other topics on kreslik about this and not what i want to dig into too much.
My message here is that it will be hard to make money without it and you should try to find it the cheapest way possible. Just try things out and increase your equity curve constantly with the smallest possible lot-size. Only when your curve is showing new highs on regular base you found your edge. Dont even think about MM and other Performance stimulators bevore you can tell that you are confident with your edge...
Lose professionally!
Step2: Add standard MM
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By standard i mean the usual approach you all know by risking not more than a predefined percentage of your equity on every trade. I suggest the 1%- Rule is a very good one to start after you found your edge and profed it. Now you continue just doing the same you did with the edge finding (smallest lot-size) just changeing to the 1% Risk/trade mode.
Go on trading like that and see how it develops over a reasonable amount of time that you think is enough to test it. Where you able to make constantly new highs on equity curve? If yes, congratulation you are very close to what i think is the most important stem to become a big trader...
================
By standard i mean the usual approach you all know by risking not more than a predefined percentage of your equity on every trade. I suggest the 1%- Rule is a very good one to start after you found your edge and profed it. Now you continue just doing the same you did with the edge finding (smallest lot-size) just changeing to the 1% Risk/trade mode.
Go on trading like that and see how it develops over a reasonable amount of time that you think is enough to test it. Where you able to make constantly new highs on equity curve? If yes, congratulation you are very close to what i think is the most important stem to become a big trader...
Lose professionally!
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Thank you for your support.
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Step3: Performance tuning
==================
For now i just wana say that here we try to get the max out of makete with reasonable risk. But honestly i think with the standard MM and the 1% risk mode it takes too much time to increase the equity by what makes it worth the time you are spending on trading...
The tuning is archived by increasing the risk depending on the winning amount of money in the last predefinde period (for ex. a day) but only (thats important!) when it is on a equity high of your curve. This way you should be able to get out much more than with the standard MM.
Rule: Increasing risk >1% of equity only on equity highs!
The basic rule about the tuning method
==================
For now i just wana say that here we try to get the max out of makete with reasonable risk. But honestly i think with the standard MM and the 1% risk mode it takes too much time to increase the equity by what makes it worth the time you are spending on trading...
The tuning is archived by increasing the risk depending on the winning amount of money in the last predefinde period (for ex. a day) but only (thats important!) when it is on a equity high of your curve. This way you should be able to get out much more than with the standard MM.
Rule: Increasing risk >1% of equity only on equity highs!
The basic rule about the tuning method
Lose professionally!
Help needed!
Hi traders out there. I need help from the pros.
First the good things:
1. Im still in business
2. Im still positive
The bad things:
1. I didnt followed my rules (trading and MM related)
2. My drawdowns of my equity curve are too big.
How can i improve the equity curve? Thanks for your advises...
First the good things:
1. Im still in business
2. Im still positive
The bad things:
1. I didnt followed my rules (trading and MM related)
2. My drawdowns of my equity curve are too big.
How can i improve the equity curve? Thanks for your advises...
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