2009.09.10 DRAIN THE BANKS - LIKE A RAT

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nickohorny
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Postby nickohorny » Wed Oct 26, 2011 1:22 pm

Hi TRO, can I check if I have correct money MGMT in place and am doing the maths correctly please for my next trade:

I have a $3,000 demo account balance. I worked out my position size to be 6 mini-lots.. based on the formula RISK/STOP-LOSS (60/10 = 6)

Would this be correct to take a trade with now?
Thanks

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TheRumpledOne
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Postby TheRumpledOne » Wed Oct 26, 2011 1:35 pm

Image

=============================================

1) Price within 20 pips of the daily low (ClLo < 20): This is OPPORTUNITY

============================================


PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
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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TheRumpledOne
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Postby TheRumpledOne » Wed Oct 26, 2011 1:42 pm

nickohorny wrote:Hi TRO, can I check if I have correct money MGMT in place and am doing the maths correctly please for my next trade:

I have a $3,000 demo account balance. I worked out my position size to be 6 mini-lots.. based on the formula RISK/STOP-LOSS (60/10 = 6)

Would this be correct to take a trade with now?
Thanks


$60 = 5% * $3,000

Do you want to risk 5% each time you trade?
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.

nickohorny
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Postby nickohorny » Wed Oct 26, 2011 1:52 pm

erm no.. 2%

Hang on how have I calculated that wrong,

2% of 3000 = 60, so $60 risk per trade right?
60/10 =6

what hope do I have I can't even work out the simple maths involved!!!! :shock:

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TheRumpledOne
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Postby TheRumpledOne » Wed Oct 26, 2011 2:36 pm

Image



=============================================
GREEN RAT REVERSAL TRADE

1) price within 20 pips of the daily low - that is OPPORTUNITY

2) red candle closes

3) green candle closes - note the high price of the green candle.

4) enter long at the green candle's high price

5) STOP LOSS IS 10 PIPS

6) Take whatever profit you can.

7) If the rules do not mention it, then it is of no concern.


"The technique is so simple that just several lessons (or a few pages of explanations) cover it all. Now what? Now the student has to practice, practice and practice again to understand what he had been taught. The teacher DOES know much more than the student, but his understanding can't be "passed", "transferred" or taught in any way -- not even by reading books."

============================================


PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
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TheRumpledOne
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Postby TheRumpledOne » Wed Oct 26, 2011 2:41 pm

nickohorny wrote:erm no.. 2%

Hang on how have I calculated that wrong,

2% of 3000 = 60, so $60 risk per trade right?
60/10 =6

what hope do I have I can't even work out the simple maths involved!!!! :shock:


I was testing you...LOL!

As a trader, you must learn to rely on yourself for the answer.

See, you didn't need me... LOL!
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.

nickohorny
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Postby nickohorny » Wed Oct 26, 2011 3:07 pm

TheRumpledOne wrote:
nickohorny wrote:erm no.. 2%

Hang on how have I calculated that wrong,

2% of 3000 = 60, so $60 risk per trade right?
60/10 =6

what hope do I have I can't even work out the simple maths involved!!!! :shock:


I was testing you...LOL!

As a trader, you must learn to rely on yourself for the answer.

See, you didn't need me... LOL!


Well thank god for that, I thought I was going mad haha!
I've done ok today actually, just entered long on GBPUSD @ 1.59148 and made a short few pips :D

kent-12345
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Postby kent-12345 » Wed Oct 26, 2011 5:23 pm

Hey Tro I think I'm starting to get this rat thingy, heres my take.

I traded today 3 trades first trade +3, second trade +3, and third +5.

not bad, I used the exit play book to know when to exit the moves and used a 10 pip stop. Does this whole thing work on the premise let winners run and cut losers quickly, becasue I can see where some people get upset having a 10 pip stop and only going for 3 or 5 pips a trade. I'm guessing that most trades would be 3 to 10 pips depending on how the market reacts, but you'll also have some that retrace off the bottom or top by 20 to 30 pips or more. Thats were you can cover the 10 pip stop and make a profit + your smaller wins. I'm also guessing that we'll have to do this over a few trades to see the profit play out, thats why most don't get it casue there looking for instant gratifacation and one losing trade upsets them and they stop trading. Tro let me know If i'm thinking in the right terms I really wanna get this, I'm also guessing that it's how you manage yourself and the winning trades that will make the difference. Thanks.

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TheRumpledOne
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Postby TheRumpledOne » Wed Oct 26, 2011 8:23 pm

This works on the statistics that show the daily wicks are usually larger than 20 pips.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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TheRumpledOne
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Postby TheRumpledOne » Thu Oct 27, 2011 12:12 pm

Image

<-------------------------------------------------------------------->

1) Price within 20 pips of the daily low (ClLo < 20) - that is OPPORTUNITY

<-------------------------------------------------------------------->

PLEASE DO NOT PM ME WITH QUESTIONS ABOUT TRADING, INDICATORS, CODING, ETC... Post your questions in the forum. Thank you.
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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