Aliassmith Psychology 101 and other stuff

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aliassmith
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Re: Making 4-Phase Aggressive Pushing System scalable

Postby aliassmith » Sun Nov 28, 2010 4:02 pm

TygerKrane wrote:
:idea: aliassmith :idea: wrote:... Phase 1 I buy into a game with $400 (4%). I get into a small stakes game
using 4:1 to 6.25:1 leverage and grind it out until I make $400 in profit.
What did I just do there? I took their money. So now I use their money
to take even more of their money.

Phase 2 I buy into a game with their $400 and get into a little higher stakes
game. My leverage will be 8:1 to 12.5:1 and I'll grind it out until I make $800 more.

Phase 3 I buy into a game with their $1200 for an even higher stakes
game. The leverage will be 16:1 to 25:1 and I grind it out until I make
$1600 more.

Phase 4 I buy into a game for their $2800 for an even higher stakes
game. The leverage will be 32:1 to 50:1 and I grind it out until I make
$3200 more.

The Poker Tournament is finished!

If you add it up I'll have took $6000 of their money and made it mine.
That is 60% return on my capital for a 4% risk. :)

Something to be clear about is you must start back at phase 1 when your
profit cushion is gone, you complete all the phases, or you are having a
hard time at the current phase and don't feel comfortable.

I above is an example and should be "tweaked" to fit individual styles of
trading.

If you are unclear about the More risk is More risk comment think about
this. I risk 4% of my capital which is about 80 to 100 pips to make 80 to
100 pips in phase 1. From phase 2 on I risk 0% of my capital to make the
additional 56%. :idea:

I swore I was done for the day, but what the heck, let's make it an even 10 posts for today :D

Based on your original post, perhaps a way to make your system scalable, or easier to calculate: (please pardon my restatement of your plan.) I'm thinking my restatement makes it easier for one to know where they are within your 4-Phase Aggressive Pushing System, irregard of whether they feel the need to change up their leverage dramatically, or if they rely on scaling into and out of positions as a part of their trading.

This is what it looks like to me; {percentage calculations based off of how much loot I'm[highlight=pink] putting up for risk at the beginning of each phase [/highlight]>this will be 'x'<} {At the beginning of Phase 1, 'x' equals 4% of your entire account balance.}

Phase 1: Starting with $400 of my own money (putting it up for risk), the Phase isn't over until I make $400. End of Phase 1 = x times 100% [when I earn x times 1]

Phase 2: My original $400 is in my pocket, out of reach. Now I use their $400 (Phase 1 profit, putting that up for risk.) Phase 2 isn't over until I make $800. End of Phase 2 = x times 200% [when I earn x times 2]

Phase 3: Up for risk is now $1200 (Phase 1 profit + Phase 2 profit.) Phase 3 isn't over until I make $1600. End of Phase 3 = x times 133% [when I earn x times 1.33]

Phase 4: Up for risk now is $2800 (Phase 1 profit + Phase 2 profit + Phase 3 profit.) Phase 4 isn't over until I make $3200. End of Phase 4 = x times @114.29% [when I earn x times 1.1429]

[highlight=tan]_____________________________________________________________________[/highlight]
[font=Comic Sans MS]So! an Example:[/font] $500 account balance at start of Phase 1, therefore, 4% = $20

Phase 1: Risk no more than $20 in losses (i.e. account drained down to $480.) End of Phase 1 = when I've earned $20 times 1 = $20

Phase 2: Up for risk is $20 (Phase 1 profit $20.) End of Phase 2 = when I've earned $20 times 2 = $40

Phase 3: Up for risk is $60 {Phase 1 $20 + Phase 2 $40.} End of Phase 3 = when I've earned $60 times 1.33 = $79.80

Phase 4: Up for risk is $139.80 {Phase 1 $20 + Phase 2 $40 + Phase 3 $79.80.} End of Phase 4 = when I've earned $139.80 times 1.1429 = $159.78

Total earnings from all 4 Phases = $299.58
($299.58/$500)*100 =@59.92% 8)
[highlight=tan]_____________________________________________________________________[/highlight]

[highlight=darkorange]To Recap==>[/highlight]
[highlight=lightblue]Start Phase 1 with 4% of entire account balance.
Phase 1 ends when = earning x times 1[/highlight]

[highlight=white]Start Phase 2 with (Phase 1 profit)
Phase 2 ends when = earning x times 2[/highlight]

[highlight=lightgray]Start Phase 3 with (Phase 1 profit + Phase 2 profit)
Phase 3 ends when = earning x times 1.33[/highlight]

[highlight=lightgreen]Start Phase 4 with (Phase 1 profit + Phase 2 profit + Phase 3 profit)
Phase 4 ends when = earning x times 1.1429[/highlight]


[font=Lucida Console]60% return on capital for 4% risk[/font]


WoW and yes!

The point of (my) whole post was to point out a way to use MightyOne's
add-in process from a scalper/daytrader perspective. The numbers can be
anything that "fit" your trading style. Could be 3 phases like I help my
friend develop.

You have to figure a way to gain advantage by cutting losses short and
pushing your wins. It has been said many times by traders before us
that that is the key to success, which is wonderful once you wrap your
mind around the concept.

So we need an edge(technique), the right money management(Push), and
self control (put fear and greed aside) to put it all together. :idea:
Trade Your Way as Long as It Makes Money!

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scratty
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Postby scratty » Mon Nov 29, 2010 7:47 am

Is this (see xls) what you are talking about? Just change starting Balance and Risk % to get the phase values...
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TygerKrane
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Postby TygerKrane » Mon Nov 29, 2010 12:30 pm

Yep, that's it Scratty.
I see in your formula that by simply 'adding' the initial risk amount to each phase, instead of multiplying by the numbers (rounded off percentages) I used, you get the precise 60% at the end of it all.

Cool, Thanks.
~Krane

**Krane catches Tyger** !>I'm here to chew bubble gum and make major pips...and I'm all out of bubble gum.<!

aliassmith
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Postby aliassmith » Sat Dec 18, 2010 8:13 pm

So on this cold winter day :roll:

I am going over hundreds of charts that I made for posting and for personal
use. Also I have been going over a truck load of MightyOne's and ES/PIP's
charts that I have collected.

A majority of the time it came down to knowing how to "play" this as best
as possible. :idea:
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cwn6161
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Postby cwn6161 » Sat Dec 18, 2010 8:16 pm

Fun! I've been going over MO's, es/pip's, and your posts as well. Things sink in a little more each day.

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prochargedmopar
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Postby prochargedmopar » Sat Dec 18, 2010 11:54 pm

You have to figure a way to gain advantage by cutting losses short and
pushing your wins.

if this is your entire goal when you enter, i'm finding fear of loss is far from the mind. Focus is totally on finding a place to ADD more.
Weird;
#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

ForexTiger
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Postby ForexTiger » Mon Dec 20, 2010 5:50 am

Sometimes it is difficult to implement the ideas I have read above. Nice thoughts anyway.

aliassmith
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Postby aliassmith » Thu Dec 23, 2010 3:47 pm

Been trying to get this down to 1.3025.
Hard to let it continue when there is 5 figures of profit
staring at me. :shock:
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spa
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Postby spa » Thu Dec 23, 2010 4:24 pm

inspired... it spiked and zeroed out the 1.3135 level

aliassmith
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Postby aliassmith » Thu Dec 23, 2010 7:27 pm

spa wrote:inspired... it spiked and zeroed out the 1.3135 level


Sure did, interesting how it happens like that :lol:
I am interested how my H4 candle turns out at this point to see if I bail.
Looking for a close below 1.3110 to stay in.

Trying these long(er) term trades to see if I can get good at them.
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