DAILY WICK ZONE TRADING

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TheRumpledOne
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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Wed Feb 24, 2016 5:05 pm

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IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Thu Feb 25, 2016 4:58 pm

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IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Re: DAILY WICK ZONE TRADING

Postby MightyOne » Thu Feb 25, 2016 8:31 pm

optymistic wrote:During the short entry @ 130.520 daily candle was red.
So going short this trade would have resulted in being stopped out. (-43pips)
But going long @ 130.958 the maximum profit would be +35 pips.

How is it possible to cover the SL???


If your initial size is equal to your max size then it would be pretty hard, but
if your initial size is an 8th of $maximum then -43p is a 5.3p $max loss.

When sitting with profit, reduce your size by half and see what else you can get;
if price spikes against you then your exit is the midpoint of the 2 exits, if price
goes on to move 60 more pips then you have added another 30 pips to your bank.

If you are trading 3 units, & price moves against you, & 25 pips remain in your risk-box then you might liquidate
and place the next trade with 2 units. Reducing your size from 3 to 2 will bring the pips in your risk-box back up
to 37.5p.
Likewise, if you are up pips & liquidate, then you can return with larger lot sizes & fewer pips in your risk-box
(than the total amount accumulated).
When you return with a larger lot size, your previous losses are also reduced; for instance, if your previous
loss was 43 pips at 3 units and your new trade size is 5 units then your previous loss is equal to 25.8 pips (and it keeps
shrinking as size is increased).
You would keep using OPM until you reached some %gain and then you would move up the ladder to a new
$minimum & $maximum size.

And that my friend is how you overcome losses.
It is not about the pips, it is about how many dollars you lose vs how many dollars you win.

If you have to make more than a full risk-box on every trade then you have probably lost before you have even started.

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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Fri Feb 26, 2016 5:26 pm

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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: DAILY WICK ZONE TRADING

Postby optymistic » Sun Feb 28, 2016 7:51 pm

MightyOne wrote:
optymistic wrote:During the short entry @ 130.520 daily candle was red.
So going short this trade would have resulted in being stopped out. (-43pips)
But going long @ 130.958 the maximum profit would be +35 pips.

How is it possible to cover the SL???


If your initial size is equal to your max size then it would be pretty hard, but
if your initial size is an 8th of $maximum then -43p is a 5.3p $max loss.

When sitting with profit, reduce your size by half and see what else you can get;
if price spikes against you then your exit is the midpoint of the 2 exits, if price
goes on to move 60 more pips then you have added another 30 pips to your bank.

If you are trading 3 units, & price moves against you, & 25 pips remain in your risk-box then you might liquidate
and place the next trade with 2 units. Reducing your size from 3 to 2 will bring the pips in your risk-box back up
to 37.5p.
Likewise, if you are up pips & liquidate, then you can return with larger lot sizes & fewer pips in your risk-box
(than the total amount accumulated).
When you return with a larger lot size, your previous losses are also reduced; for instance, if your previous
loss was 43 pips at 3 units and your new trade size is 5 units then your previous loss is equal to 25.8 pips (and it keeps
shrinking as size is increased).
You would keep using OPM until you reached some %gain and then you would move up the ladder to a new
$minimum & $maximum size.

And that my friend is how you overcome losses.
It is not about the pips, it is about how many dollars you lose vs how many dollars you win.

If you have to make more than a full risk-box on every trade then you have probably lost before you have even started.




Thanks MO for your answer.

So if you can let me know if I'm right or wrong in understanding this

It is much better to divide max size risk to smaller entries and if in profit add some extra instead of open a trade with a full size risk in one go...

Let's say:
first entry with 1/8 risk-box or more but less than a half risk-box and if in profit add some extra.
If price is going against me close it at the average price on BE.
And if price is going my way add some more again...
When in the trade with full risk-box close half position and let the rest run...

Is my thinking correct??

What OPM means???

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Re: DAILY WICK ZONE TRADING

Postby MightyOne » Mon Feb 29, 2016 12:06 am

optimistic wrote:Thanks MO for your answer.

So if you can let me know if I'm right or wrong in understanding this

It is much better to divide max size risk to smaller entries and if in profit add some extra instead of open a trade with a full size risk in one go...

Let's say:
first entry with 1/8 risk-box or more but less than a half risk-box and if in profit add some extra.
If price is going against me close it at the average price on BE.
And if price is going my way add some more again...
When in the trade with full risk-box close half position and let the rest run...

Is my thinking correct??

What OPM means???


"OPM", "Other People's Money", is a trick that people use to give themselves a mental edge until an objective is acquired.

If your plan is to trade at a $max of $2/pip with a $1000 account then you might consider $.50 entries.

Trading with a 10 pip stop:
If your first trades does something stupid, it gaps against you 40 pips, then you are out 2%.
If you lose 3 times in a row then you are out 1.5% & may consider two trades at $.20 with 12.5 pip stops for the final .5%

If you take 6 pips in profit then you can increase your size to $.80 and your risk is still .5%
If you take 16 pips on the next trade then you increase your size to your $max of $2/pip with a 10 pip stop...risk is still .5%

The important thing to remember is that RISK IS NOT PROFIT POTENTIAL, RISK IS DRAWDOWN POTENTIAL.

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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Mon Feb 29, 2016 5:37 pm

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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.

optymistic
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Re: DAILY WICK ZONE TRADING

Postby optymistic » Mon Feb 29, 2016 9:41 pm

MightyOne wrote:
optimistic wrote:Thanks MO for your answer.

So if you can let me know if I'm right or wrong in understanding this

It is much better to divide max size risk to smaller entries and if in profit add some extra instead of open a trade with a full size risk in one go...

Let's say:
first entry with 1/8 risk-box or more but less than a half risk-box and if in profit add some extra.
If price is going against me close it at the average price on BE.
And if price is going my way add some more again...
When in the trade with full risk-box close half position and let the rest run...

Is my thinking correct??

What OPM means???


"OPM", "Other People's Money", is a trick that people use to give themselves a mental edge until an objective is acquired.

If your plan is to trade at a $max of $2/pip with a $1000 account then you might consider $.50 entries.

Trading with a 10 pip stop:
If your first trades does something stupid, it gaps against you 40 pips, then you are out 2%.
If you lose 3 times in a row then you are out 1.5% & may consider two trades at $.20 with 12.5 pip stops for the final .5%

If you take 6 pips in profit then you can increase your size to $.80 and your risk is still .5%
If you take 16 pips on the next trade then you increase your size to your $max of $2/pip with a 10 pip stop...risk is still .5%

The important thing to remember is that RISK IS NOT PROFIT POTENTIAL, RISK IS DRAWDOWN POTENTIAL.



"...risk is still .5%" is that because this is the last part of my 2% I can lose??

Do I understand it properly??

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Re: DAILY WICK ZONE TRADING

Postby MightyOne » Tue Mar 01, 2016 5:55 am

"...risk is still .5%" is that because this is the last part of my 2% I can lose??

Do I understand it properly??


First you have to believe in OPM (no, we are not going to debate this!).

If you are risking $5, 10 pips, .5%, & you gain 6 pips, then you have 16 pips total.

$.50 x 16 = $8. $5 is yours & $3 is "theirs", you are risking $5 or your original .5%; we don't care about "their money", it is just "Space" to us.

If you increase your size from $.50 pips to $.80 pips then your risk-box is reduced from 16 to 10 pips.
(.5/.8)16 = 10 or (16/10).5 = .8
.8 x 10 = $8, your risk is the same even though your lot size is greater.

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Re: DAILY WICK ZONE TRADING

Postby TheRumpledOne » Wed Mar 02, 2016 5:49 pm

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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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Thank you for your support.


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