The ideas that I trade by:

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Mr. Hyde
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Re: The ideas that I trade by:

Postby Mr. Hyde » Thu Dec 22, 2016 8:36 pm

MightyOne wrote:
Mira wrote:Thanks MO, i got it!
We are losing nothing (if losing is losing a x% of space) and we are gaining everything 8)

But can i do it with money only?
I mean:

+2$, +2$, [double, sl = -2$] + 4$, [double, sl = -4$] +8$

(In this case i'm cutting my space by a 50%)



1 = a risk that is a constant
2 = a reward that is a constant

Increasing the position size brings the reward to you:

[1]----------------------------------------------------------------[2]
[1]--------------------------------[2]
[1]----------------[2]
[1]--------[2]
[1]----[2]

There are pros and cons to every decision.

If you double your size then you lose space more quickly but whatever is left is greatly multiplied; if you
doubled twice and lost all but 5 pips then halving twice would result in 20 pips of wiggle room.

The risk is that if, for whatever reason, you must exit for an amount that is greater than your stop then you are going
to lose 20 pips for every 5.

If you double with a risk-box of 30 pips then you are left with a risk-box of 15, but if you were to only reduce your space by a quarter
then you would have 7.5 more pips to move around in; 10 total, at a size of 3, after (4/3)7.5

Best case scenario is that, after reducing your risk-box to 15, that you give back 10 and are left with (6/3)5 or 10 pips to move around in at a size of 3.

You are moving in the same direction whether you go 3, 4, 5, 6, 8, 10, 13, 22 or 3, 6, 12, 24 and you will end at the same cap.
There is a short-term benefit to aggression, but in the long run running and walking are pretty much the same.

It is easy to comprehend, you are basically placing and trailing a stop loss.
If you are running out of room then make more, revert to a smaller size.

The more you work with space the more you feel In control, the more you feel in control the more confident you become, &
the more confident you become the better the decisions that you will make.


Im curious does this MM style take into account slippage, bad fills or gaps. Those all suck normally but if " The risk is that if, for whatever reason, you must exit for an amount that is greater than your stop then you are going to lose 20 pips for every 5."

Also I wonder how many traders are actually taking the trade off after reducing the box to 15 after already losing 10. Im guessing not the 95% (the amount who blow there account out and quit in the 1st year).

Seems a lot like the turtles MM. 2% risked per position with the stop being ttraile and reducing amount risked per trade as the account declined.

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Mira
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Re: The ideas that I trade by:

Postby Mira » Thu Dec 22, 2016 10:13 pm

Amen! :idea:


Mr. Hyde wrote:
MightyOne wrote:
Mira wrote:Thanks MO, i got it!
We are losing nothing (if losing is losing a x% of space) and we are gaining everything 8)

But can i do it with money only?
I mean:

+2$, +2$, [double, sl = -2$] + 4$, [double, sl = -4$] +8$

(In this case i'm cutting my space by a 50%)



1 = a risk that is a constant
2 = a reward that is a constant

Increasing the position size brings the reward to you:

[1]----------------------------------------------------------------[2]
[1]--------------------------------[2]
[1]----------------[2]
[1]--------[2]
[1]----[2]

There are pros and cons to every decision.

If you double your size then you lose space more quickly but whatever is left is greatly multiplied; if you
doubled twice and lost all but 5 pips then halving twice would result in 20 pips of wiggle room.

The risk is that if, for whatever reason, you must exit for an amount that is greater than your stop then you are going
to lose 20 pips for every 5.

If you double with a risk-box of 30 pips then you are left with a risk-box of 15, but if you were to only reduce your space by a quarter
then you would have 7.5 more pips to move around in; 10 total, at a size of 3, after (4/3)7.5

Best case scenario is that, after reducing your risk-box to 15, that you give back 10 and are left with (6/3)5 or 10 pips to move around in at a size of 3.

You are moving in the same direction whether you go 3, 4, 5, 6, 8, 10, 13, 22 or 3, 6, 12, 24 and you will end at the same cap.
There is a short-term benefit to aggression, but in the long run running and walking are pretty much the same.

It is easy to comprehend, you are basically placing and trailing a stop loss.
If you are running out of room then make more, revert to a smaller size.

The more you work with space the more you feel In control, the more you feel in control the more confident you become, &
the more confident you become the better the decisions that you will make.


Im curious does this MM style take into account slippage, bad fills or gaps. Those all suck normally but if " The risk is that if, for whatever reason, you must exit for an amount that is greater than your stop then you are going to lose 20 pips for every 5."

Also I wonder how many traders are actually taking the trade off after reducing the box to 15 after already losing 10. Im guessing not the 95% (the amount who blow there account out and quit in the 1st year).

Seems a lot like the turtles MM. 2% risked per position with the stop being ttraile and reducing amount risked per trade as the account declined.
__________ THE :smt096 IS A LIE__________

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michal.kreslik
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Re: The ideas that I trade by:

Postby michal.kreslik » Fri Dec 23, 2016 12:44 am

MightyOne wrote:I'd post a picture but: "Sorry, the board attachment quota has been reached."
How stupid is that...


This should be fixed now. Please try again.

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MightyOne
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Re: The ideas that I trade by:

Postby MightyOne » Fri Dec 23, 2016 4:54 am

Mr. Hyde wrote:
Im curious does this MM style take into account slippage, bad fills or gaps. Those all suck normally but if " The risk is that if, for whatever reason, you must exit for an amount that is greater than your stop then you are going to lose 20 pips for every 5."

Also I wonder how many traders are actually taking the trade off after reducing the box to 15 after already losing 10. Im guessing not the 95% (the amount who blow there account out and quit in the 1st year).

Seems a lot like the turtles MM. 2% risked per position with the stop being ttraile and reducing amount risked per trade as the account declined.


The current progression of 1 + 1 + 1 + 1 + 1 + 1 + 2 + 2 + 3 + 4 + 5, starting at .1% per line and ending at 1 to 2.2% per line, is pretty safe.

Your risk is around (.1 * LINES@RISK)3 or about 1% risk per trade and your risk naturally falls due to moving your stop to the 75% ret when it should be 80 (4/5) or 83.3 (5/6), etc.

Let's say that you start by risking 4 lines:
1: .4% risk
2: .8% risk
3: 1.2% risk or (.1 * 4)3
3/4: 1.2% risk
4/5: 1.125%
5/6: 1.012%
6/8: 1.012%
8/10: .949%
10/13: .925% (but you're making 1.3% per line).
...

"How is my risk .925%, how am I not losing 1.3% per line?"
The answer is simple, "other peoples money".

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Postby MightyOne » Fri Dec 23, 2016 5:35 am

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TheRumpledOne
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Re: The ideas that I trade by:

Postby TheRumpledOne » Fri Dec 23, 2016 3:54 pm

MightyOne wrote:
"How is my risk .925%, how am I not losing 1.3% per line?"
The answer is simple, "other peoples money".


Once it is in your account, it is YOUR MONEY!

"The perfect is the enemy of the good — educate yourself so that you can make good decisions and don’t worry if somehow you don’t pick the top choice."

http://www.getrichslowly.org/blog/2007/ ... rect-them/
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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Re: The ideas that I trade by:

Postby MightyOne » Fri Dec 23, 2016 4:49 pm

TheRumpledOne wrote:
MightyOne wrote:
"How is my risk .925%, how am I not losing 1.3% per line?"
The answer is simple, "other peoples money".


Once it is in your account, it is YOUR MONEY!

...



Let's say that you have a lady friend and she wants to go shopping with her $10,000 limit VISA.
Does it matter how much of her spending is covered by "her money" vs "your money"?

Can she go broke spending your money? Of course not! Whatever she has saved is still in her bank account.

No one is arguing that the purchasing power (OPM) isn't all "hers", all that we are saying is that she should
respect "her money" 10,000 times more then she respects "your money".

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Mira
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Re: The ideas that I trade by:

Postby Mira » Fri Dec 23, 2016 5:40 pm

Oh and she will :lol:


MightyOne wrote:
TheRumpledOne wrote:
MightyOne wrote:
"How is my risk .925%, how am I not losing 1.3% per line?"
The answer is simple, "other peoples money".


Once it is in your account, it is YOUR MONEY!

...



Let's say that you have a lady friend and she wants to go shopping with her $10,000 limit VISA.
Does it matter how much of her spending is covered by "her money" vs "your money"?

Can she go broke spending your money? Of course not! Whatever she has saved is still in her bank account.

No one is arguing that the purchasing power (OPM) isn't all "hers", all that we are saying is that she should
respect "her money" 10,000 times more then she respects "your money".
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Mira
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Re: The ideas that I trade by:

Postby Mira » Fri Dec 23, 2016 8:51 pm

Edit: i got it! #-o now i see THE scheme.



----------

Risk lines and get lines.
Place and trail stops.
It's perfect

But
(I know this is off topic)

I don't know how to manage the big picture.
The bigger timeframe rules but price starts moving on the smaller one.. i'm confused :roll:
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Re: The ideas that I trade by:

Postby prochargedmopar » Sat Dec 24, 2016 1:37 am

TheRumpledOne wrote:
MightyOne wrote:
"How is my risk .925%, how am I not losing 1.3% per line?"
The answer is simple, "other peoples money".


Once it is in your account, it is YOUR MONEY!

"The perfect is the enemy of the good — educate yourself so that you can make good decisions and don’t worry if somehow you don’t pick the top choice."

http://www.getrichslowly.org/blog/2007/ ... rect-them/


As long as I continue to consider ALL the money in my account mine the longer I will continue to struggle with increased lot size and adding to losers.

Compartmentalizing $$ can be a good thing.
For one, my losses would cause me great laughter.

Happy holidays!!!
#1BODY in direction of profit #2INCREASE lot size Obsessively
My Losses cause me Great Laughter!
Trading Bible here> therumpledone/the-ideas-that-i-trade-by-t3256/page1670

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