Aliassmith Beats a "Dead Horse"

free & uncensored discussion arena for TheRumpledOne

Moderator: moderators

aliassmith
rank: 1000+ posts
rank: 1000+ posts
Posts: 1667
Joined: Tue Jul 28, 2009 9:50 pm
Reputation: 21
Gender: Male

Re: Aliassmith Beats a "Dead Horse"

Postby aliassmith » Sun Apr 10, 2016 7:52 pm

aliassmith wrote:Problem Solving Time: Leverage Handicapped

Goal = $40,000
Weekly loss limit = $7,000
Max Lot size = 5

Pick the best strategy to accomplish the goal within 4 months.

Let's see that would be $10,000 a month and $2,500 a week.

$2,500/5 lots = 50 pip$ a week
$7,000/5 lots = 140 pip$ a week


Guess I wrote this as a leverage handicap project where it could be
a financially irresponsible play also. If you have $21,00ish in your account
you could do the same thing for a week. I would not advise risking 33% of
your account in a week.

I am thinking more like $200,000 account size.

Anyway the question remains using about 2.5:1 leverage is there a good strategy?
Trade Your Way as Long as It Makes Money!

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

aliassmith
rank: 1000+ posts
rank: 1000+ posts
Posts: 1667
Joined: Tue Jul 28, 2009 9:50 pm
Reputation: 21
Gender: Male

Re: Aliassmith Beats a "Dead Horse"

Postby aliassmith » Sun Apr 10, 2016 8:23 pm

aliassmith wrote:
aliassmith wrote:Problem Solving Time: Leverage Handicapped

Goal = $40,000
Weekly loss limit = $7,000
Max Lot size = 5

Pick the best strategy to accomplish the goal within 4 months.

Let's see that would be $10,000 a month and $2,500 a week.

$2,500/5 lots = 50 pip$ a week
$7,000/5 lots = 140 pip$ a week


First thought was to scalp it out with the full 5 lots. Seeing the spread has increased and the ranges have decreased, I thinking I'll pass.

Probably multiple pair large charts.


I know MO is doing his fractional space concept but, I think in Dollars/Lots/Pips, maybe its just me :mrgreen:

If I trade on daily or H4 chart I can do one trade a week @5lots and 140 pips stop loss. I doubt
putting it all in one trade is a good plan. [-X

Maybe a 2 + 2 + 1 adding? <<< reduces risk and still allows for big gains

Reduced leverage changes the game, I'll keep thinking about it.
Hopefully my continued posting doesn't interfere with my normal trading activities
or I'll have to cease posting.
Trade Your Way as Long as It Makes Money!

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5247
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 46
Gender: Male

Re: Aliassmith Beats a "Dead Horse"

Postby MightyOne » Mon Apr 11, 2016 12:51 pm

alias wrote:I know MO is doing his fractional space concept but, I think in Dollars/Lots/Pips, maybe its just me :mrgreen:

If I trade on daily or H4 chart I can do one trade a week @5lots and 140 pips stop loss. I doubt
putting it all in one trade is a good plan. [-X

Maybe a 2 + 2 + 1 adding? <<< reduces risk and still allows for big gains

Reduced leverage changes the game, I'll keep thinking about it.
Hopefully my continued posting doesn't interfere with my normal trading activities
or I'll have to cease posting.


I always tell people to do it differently if they see it differently.

Dollars, contracts, lines...
are you sure that we are not talking about the same thing?

A macro is just the spacing of the $50 per line wager:
A ONE is 10 pipettes = $50, a TWO is 20 pipettes = $50, a FOUR is 40 pipettes = $50, and so on.

140 pips is:
8.75 SIXTEENS, 17.5 EIGHTS, 35 FOURS, 70 TWOS, or 140 ONES, & each is $50 per line.

A mac of one size is a mac of any other size:
(8.75 x 16)3.125 = $437.50
(8.75 x 08)6.250 = $437.50
(8.75 x 04)12.50 = $437.50
437.50 x 16 = $7,000
You can jump back an forth between SIXTEENS, EIGHTS, and FOURS without calculation;
if you make a line then you know that you have a line to risk.

Just as we would risk so many pips within space we risk so many macs within our total space.

Macros would look like this: (multiple pairs):
Day 1: $3.125/pip x 12 SIXTEENS = +$600
RISK: 2 to 4 macs: -$100 to $200
Day 2: $6.250/pip x 12 EIGHTS = +$600
RISK: 3 to 5 macs: -$150 to $250
Day 3: $12.50/pip x 12 FOURS = +$600
RISK: 4 to 6 macs: -$200 to $300
Day 4: $12.50/pip x 12 FOURS = +$600
RISK: 4 to 6 macs: -$200 to $300
Day 5: $12.50/pip x 12 FOURS = +$600
RISK: 4 to 6 macs: -$200 to $300
-------------------------------------------------
Total: $3,000 (60 ONES).

NOTE: 12 macros is a daily target, not a per trade target.
I might get out half at 7 and then make 28 more for a total of 21 macs or $1,050.
The minimum is 12 because that is 4% and over 5.3 days it is 21.2%

Pips would look like this: (single pair):
RISK: 6 to 8 macs: -$300 to $400
Day 1: $50 x 12 ONES = +$600
Day 2: $50 x 12 ONES = +$600
Day 3: $50 x 12 ONES = +$600
Day 4: $50 x 12 ONES = +$600
Day 5: $50 x 12 ONES = +$600
-------------------------------------------------
Total: $3,000 (60 ONES).

MAX SIZE vs catastrophic loss:

-50 pips for ONES: -$2500 (4.16 days)
-50 pips for macs: -$625 (1.04 days)

-100 pips for ONES: -$5000 (8.33 days)
-100 pips for macs: -$1250 (2.08 days)

-250 pips for ONES: -$12500 (20.83 days, 1 month)
-250 pips for macs: -$3125 (5.20 days, 1 week)

aliassmith
rank: 1000+ posts
rank: 1000+ posts
Posts: 1667
Joined: Tue Jul 28, 2009 9:50 pm
Reputation: 21
Gender: Male

Re: Aliassmith Beats a "Dead Horse"

Postby aliassmith » Mon Apr 11, 2016 10:37 pm

MightyOne wrote:
alias wrote:I know MO is doing his fractional space concept but, I think in Dollars/Lots/Pips, maybe its just me :mrgreen:

If I trade on daily or H4 chart I can do one trade a week @5lots and 140 pips stop loss. I doubt
putting it all in one trade is a good plan. [-X

Maybe a 2 + 2 + 1 adding? <<< reduces risk and still allows for big gains

Reduced leverage changes the game, I'll keep thinking about it.
Hopefully my continued posting doesn't interfere with my normal trading activities
or I'll have to cease posting.


I always tell people to do it differently if they see it differently.

Dollars, contracts, lines...
are you sure that we are not talking about the same thing?

A macro is just the spacing of the $50 per line wager:
A ONE is 10 pipettes = $50, a TWO is 20 pipettes = $50, a FOUR is 40 pipettes = $50, and so on.

140 pips is:
8.75 SIXTEENS, 17.5 EIGHTS, 35 FOURS, 70 TWOS, or 140 ONES, & each is $50 per line.

A mac of one size is a mac of any other size:
(8.75 x 16)3.125 = $437.50
(8.75 x 08)6.250 = $437.50
(8.75 x 04)12.50 = $437.50
437.50 x 16 = $7,000
You can jump back an forth between SIXTEENS, EIGHTS, and FOURS without calculation;
if you make a line then you know that you have a line to risk.

Just as we would risk so many pips within space we risk so many macs within our total space.

Macros would look like this: (multiple pairs):
Day 1: $3.125/pip x 12 SIXTEENS = +$600
RISK: 2 to 4 macs: -$100 to $200
Day 2: $6.250/pip x 12 EIGHTS = +$600
RISK: 3 to 5 macs: -$150 to $250
Day 3: $12.50/pip x 12 FOURS = +$600
RISK: 4 to 6 macs: -$200 to $300
Day 4: $12.50/pip x 12 FOURS = +$600
RISK: 4 to 6 macs: -$200 to $300
Day 5: $12.50/pip x 12 FOURS = +$600
RISK: 4 to 6 macs: -$200 to $300
-------------------------------------------------
Total: $3,000 (60 ONES).

NOTE: 12 macros is a daily target, not a per trade target.
I might get out half at 7 and then make 28 more for a total of 21 macs or $1,050.
The minimum is 12 because that is 4% and over 5.3 days it is 21.2%

Pips would look like this: (single pair):
RISK: 6 to 8 macs: -$300 to $400
Day 1: $50 x 12 ONES = +$600
Day 2: $50 x 12 ONES = +$600
Day 3: $50 x 12 ONES = +$600
Day 4: $50 x 12 ONES = +$600
Day 5: $50 x 12 ONES = +$600
-------------------------------------------------
Total: $3,000 (60 ONES).

MAX SIZE vs catastrophic loss:

-50 pips for ONES: -$2500 (4.16 days)
-50 pips for macs: -$625 (1.04 days)

-100 pips for ONES: -$5000 (8.33 days)
-100 pips for macs: -$1250 (2.08 days)

-250 pips for ONES: -$12500 (20.83 days, 1 month)
-250 pips for macs: -$3125 (5.20 days, 1 week)


Full disclosure, that problem is more about adapting these ideas to stocks. Low leverage of about 2:1 overnite and 4:1 pattern day trader.

Your response definitely shows me there is a good chance of adaptation of these methodologies.

1Cent = 1pip and work my plan from there.

$50 per 1 Cent$ max
Instead of 5 lots 5000 shares

I'm exploring stocks because it looks like retail forex is getting squeezed. Dodd/Franks and I've seen some brokers drop forex. I just don't think it's wanted in the USA.
Trade Your Way as Long as It Makes Money!

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5247
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 46
Gender: Male

Re: Aliassmith Beats a "Dead Horse"

Postby MightyOne » Tue Apr 12, 2016 5:54 pm

aliassmith wrote:
Full disclosure, that problem is more about adapting these ideas to stocks. Low leverage of about 2:1 overnite and 4:1 pattern day trader.

Your response definitely shows me there is a good chance of adaptation of these methodologies.

1Cent = 1pip and work my plan from there.

$50 per 1 Cent$ max
Instead of 5 lots 5000 shares

I'm exploring stocks because it looks like retail forex is getting squeezed. Dodd/Franks and I've seen some brokers drop forex. I just don't think it's wanted in the USA.


I have no experience trading stocks so be sure to let me know how that works out for you.

I don't think that FXCM, Gain, or Oanda are going to drop Forex anytime soon...
Forex is not going anywhere, it is too big to fail.

It would be nice if we could trade CFDs with the rest of the world.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

aliassmith
rank: 1000+ posts
rank: 1000+ posts
Posts: 1667
Joined: Tue Jul 28, 2009 9:50 pm
Reputation: 21
Gender: Male

Re: Aliassmith Beats a "Dead Horse"

Postby aliassmith » Tue Apr 12, 2016 9:18 pm

MightyOne wrote:
aliassmith wrote:
Full disclosure, that problem is more about adapting these ideas to stocks. Low leverage of about 2:1 overnite and 4:1 pattern day trader.

Your response definitely shows me there is a good chance of adaptation of these methodologies.

1Cent = 1pip and work my plan from there.

$50 per 1 Cent$ max
Instead of 5 lots 5000 shares

I'm exploring stocks because it looks like retail forex is getting squeezed. Dodd/Franks and I've seen some brokers drop forex. I just don't think it's wanted in the USA.


I have no experience trading stocks so be sure to let me know how that works out for you.

I don't think that FXCM, Gain, or Oanda are going to drop Forex anytime soon...
Forex is not going anywhere, it is too big to fail.

It would be nice if we could trade CFDs with the rest of the world.


I have no doubt you could make money with stocks, a charts is a chart pretty much. You already trade a real market with furtures, so I don't see any advantage for you.

With stocks you have to be capitalized properly to have a chance. Unless you hit homeruns with penny stocks.
Trade Your Way as Long as It Makes Money!

aliassmith
rank: 1000+ posts
rank: 1000+ posts
Posts: 1667
Joined: Tue Jul 28, 2009 9:50 pm
Reputation: 21
Gender: Male

Re: Aliassmith Beats a "Dead Horse"

Postby aliassmith » Tue Apr 12, 2016 9:49 pm

As an example facebook had a range of 217 ticks today.
The spread was about 1 or 2 ticks.
26Million shares traded.
Trade Your Way as Long as It Makes Money!

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5247
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 46
Gender: Male

Re: Aliassmith Beats a "Dead Horse"

Postby MightyOne » Wed Apr 13, 2016 3:21 am

aliassmith wrote:As an example facebook had a range of 217 ticks today.
The spread was about 1 or 2 ticks.
26Million shares traded.


Give me a few days, I am sure that I can come up with something. :lol:

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5247
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 46
Gender: Male

Re: Aliassmith Beats a "Dead Horse"

Postby MightyOne » Wed Apr 13, 2016 1:48 pm

MightyOne wrote:
aliassmith wrote:As an example facebook had a range of 217 ticks today.
The spread was about 1 or 2 ticks.
26Million shares traded.


Give me a few days, I am sure that I can come up with something. :lol:


So far I am thinking about these sizes:

200 shares = $48 per $0.24
300 shares = $48 per $0.16
400 shares = $48 per $0.12
600 shares = $48 per $0.08

Looking at the FB chart, at freestockcharts.com, I see a few large gap moves. I would take that into account when selecting a size.

aliassmith
rank: 1000+ posts
rank: 1000+ posts
Posts: 1667
Joined: Tue Jul 28, 2009 9:50 pm
Reputation: 21
Gender: Male

Re: Aliassmith Beats a "Dead Horse"

Postby aliassmith » Wed Apr 13, 2016 2:06 pm

MightyOne wrote:
MightyOne wrote:
aliassmith wrote:As an example facebook had a range of 217 ticks today.
The spread was about 1 or 2 ticks.
26Million shares traded.


Give me a few days, I am sure that I can come up with something. :lol:


So far I am thinking about these sizes:

200 shares = $48 per $0.24
300 shares = $48 per $0.16
400 shares = $48 per $0.12
600 shares = $48 per $0.08

Looking at the FB chart, at freestockcharts.com, I see a few large gap moves. I would take that into account when selecting a size.


Gaps look to be common at the open
Trade Your Way as Long as It Makes Money!

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.


Return to “TheRumpledOne”