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TheRumpledOne
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Postby TheRumpledOne » Sat Apr 25, 2009 5:21 am

Hi PinkPanthers:

If you are not successful, you don't stay in this game for long. I have been around for years.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

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Postby TheRumpledOne » Sat Apr 25, 2009 5:27 am

3 units each have a SL of 9 pips at the same price.

Each unit is responsible for 3 pips in risk.

When you liquidate 1 unit at a target then your risk is reduced by 3 pips.

If your SL is 9 pips and your take profit is at 0.5, 1, and 1.5 to 1 then you take profit at 4.5p, 9p, & 13.5p.

When you TP at 4.5p your risk drops by 3 pips plus 4.5 / 3 or 4.5 pips bringing your total risk to 4.5 pips.

Your accuracy in reaching your first target (reducing risk) is what drives your ratio beyond 1 to 1.

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

3 units each have a SL of 9 pips at the same price.

Each unit is responsible for 3 pips in risk.

THIS STILL IS NOT CLEAR TO ME.

EITHER THE SL IS 3 OR 9... WHICH IS IT?

IF I ENTER 3 UNITS THEN IF PRICE REVERSES TO SL BEFORE REACHING TP1, DO I LOSE 9 PIPS OR 27?
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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Postby MightyOne » Sat Apr 25, 2009 5:59 am

TheRumpledOne wrote:3 units each have a SL of 9 pips at the same price.

Each unit is responsible for 3 pips in risk.

When you liquidate 1 unit at a target then your risk is reduced by 3 pips.

If your SL is 9 pips and your take profit is at 0.5, 1, and 1.5 to 1 then you take profit at 4.5p, 9p, & 13.5p.

When you TP at 4.5p your risk drops by 3 pips plus 4.5 / 3 or 4.5 pips bringing your total risk to 4.5 pips.

Your accuracy in reaching your first target (reducing risk) is what drives your ratio beyond 1 to 1.

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

3 units each have a SL of 9 pips at the same price.

Each unit is responsible for 3 pips in risk.

THIS STILL IS NOT CLEAR TO ME.

EITHER THE SL IS 3 OR 9... WHICH IS IT?

IF I ENTER 3 UNITS THEN IF PRICE REVERSES TO SL BEFORE REACHING TP1, DO I LOSE 9 PIPS OR 27?


Call it a single unit divisible by 3 if it makes it more easy to comprehend...

If the SL is 9 pips and you exit 1/3 of 1 unit then the SL has a
value of 6 pips risk even though the SL is still at 9 pips.

If the SL is 1% risk and you exit 1/3 of 1% then the SL has a
value of 0.66% even though the SL is still at 9 pips.

A 9 pip SL is reduced by 3 pips risk if you exit 1/3 of your position.

A 1% risk SL is reduced by 0.33% risk if you exit 1/3 of your position.

If you exit 1/3 of your position at +3 pips then the 3 pip gain has a value of 1 pip.

If exiting 1/3 reduces your risk by 3 pips and you take 1 pip worth of profit then your total risk is reduced by 4 pips.

I am not sure how else I can word this...

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Postby TheRumpledOne » Sat Apr 25, 2009 4:52 pm

MO:

You have email.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby razorboy » Sat Apr 25, 2009 6:11 pm

I think the switching between pips and amount of account at risk is the confusing issue here.


Your aggregate stop loss for the entire is an amount in pips equal to your value at risk. You then further divide it by the number of positions you plan to put on for the trade.

So if you have 3 positions on, the profit on each individual position is really only 1/3rd of your intended goal, so if you take a 3 pip gain on your first position, you have really only made 1 pip of your intended goal.

Alternatively, you can think about it in this way.

Say you plan a trade - you think price is going to bounce for 100 pips and along the way you are going to put on 3 positions along the way ( 0p, 50pips into the trade and 70 pips in). At the end of the day, how much have you made - have you made have you made 180 pips or have you made - (1/3 *100 + 1/3* 50 + 1/3*30) = 30+16.5+10 = 56.5 pips - all depends how you build your positions and look at them - if you weight your gains in terms of positions size, you have only made 56.5 pips - you only had 30 pips where your total position was at risk

If I take a loss of 100 pips with a third of a position on - In total risk terms, I have only lost 30 pips

I think this is what MO is getting at - either that or i just decreased the signal to noise ratio.....:)

MightyOne wrote:
TheRumpledOne wrote:3 units each have a SL of 9 pips at the same price.

Each unit is responsible for 3 pips in risk.

When you liquidate 1 unit at a target then your risk is reduced by 3 pips.

If your SL is 9 pips and your take profit is at 0.5, 1, and 1.5 to 1 then you take profit at 4.5p, 9p, & 13.5p.

When you TP at 4.5p your risk drops by 3 pips plus 4.5 / 3 or 4.5 pips bringing your total risk to 4.5 pips.

Your accuracy in reaching your first target (reducing risk) is what drives your ratio beyond 1 to 1.

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

3 units each have a SL of 9 pips at the same price.

Each unit is responsible for 3 pips in risk.

THIS STILL IS NOT CLEAR TO ME.

EITHER THE SL IS 3 OR 9... WHICH IS IT?

IF I ENTER 3 UNITS THEN IF PRICE REVERSES TO SL BEFORE REACHING TP1, DO I LOSE 9 PIPS OR 27?


Call it a single unit divisible by 3 if it makes it more easy to comprehend...

If the SL is 9 pips and you exit 1/3 of 1 unit then the SL has a
value of 6 pips risk even though the SL is still at 9 pips.

If the SL is 1% risk and you exit 1/3 of 1% then the SL has a
value of 0.66% even though the SL is still at 9 pips.

A 9 pip SL is reduced by 3 pips risk if you exit 1/3 of your position.

A 1% risk SL is reduced by 0.33% risk if you exit 1/3 of your position.

If you exit 1/3 of your position at +3 pips then the 3 pip gain has a value of 1 pip.

If exiting 1/3 reduces your risk by 3 pips and you take 1 pip worth of profit then your total risk is reduced by 4 pips.

I am not sure how else I can word this...

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I'm new here

Postby ak » Sat Apr 25, 2009 7:25 pm

Hi Tro and Others
I read over 1000 posts on BP, then I find out you are now here. I'm new to fx trading. I have read waaay too many ebooks.... and have tons of info. but am notprofitable.

So I came across your thread, and you keep it simple. I use windows vista and that presents a problem. I can't load any of your indicators, so I must draw manual "horizontal lines".

Do I draw the lines of the High, Open, Close/3 at the Open (for me NY), or do I draw s/r lines on each candle of the H1? Then when the Daily and H1 are the same color I trade when price crosses either s/r?

Also, do I draw Fibs on each trade?

Thanks Dragon and Sweetpips for posting the link on BP so I could find you guys again!

ak

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Postby MightyOne » Sat Apr 25, 2009 7:35 pm

So somebody does understand what I am trying to say :lol:


razorboy wrote:I think the switching between pips and amount of account at risk is the confusing issue here.


Your aggregate stop loss for the entire is an amount in pips equal to your value at risk. You then further divide it by the number of positions you plan to put on for the trade.

So if you have 3 positions on, the profit on each individual position is really only 1/3rd of your intended goal, so if you take a 3 pip gain on your first position, you have really only made 1 pip of your intended goal.

Alternatively, you can think about it in this way.

Say you plan a trade - you think price is going to bounce for 100 pips and along the way you are going to put on 3 positions along the way ( 0p, 50pips into the trade and 70 pips in). At the end of the day, how much have you made - have you made have you made 180 pips or have you made - (1/3 *100 + 1/3* 50 + 1/3*30) = 30+16.5+10 = 56.5 pips - all depends how you build your positions and look at them - if you weight your gains in terms of positions size, you have only made 56.5 pips - you only had 30 pips where your total position was at risk

If I take a loss of 100 pips with a third of a position on - In total risk terms, I have only lost 30 pips

I think this is what MO is getting at - either that or i just decreased the signal to noise ratio.....:)

MightyOne wrote:
TheRumpledOne wrote:3 units each have a SL of 9 pips at the same price.

Each unit is responsible for 3 pips in risk.

When you liquidate 1 unit at a target then your risk is reduced by 3 pips.

If your SL is 9 pips and your take profit is at 0.5, 1, and 1.5 to 1 then you take profit at 4.5p, 9p, & 13.5p.

When you TP at 4.5p your risk drops by 3 pips plus 4.5 / 3 or 4.5 pips bringing your total risk to 4.5 pips.

Your accuracy in reaching your first target (reducing risk) is what drives your ratio beyond 1 to 1.

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

3 units each have a SL of 9 pips at the same price.

Each unit is responsible for 3 pips in risk.

THIS STILL IS NOT CLEAR TO ME.

EITHER THE SL IS 3 OR 9... WHICH IS IT?

IF I ENTER 3 UNITS THEN IF PRICE REVERSES TO SL BEFORE REACHING TP1, DO I LOSE 9 PIPS OR 27?


Call it a single unit divisible by 3 if it makes it more easy to comprehend...

If the SL is 9 pips and you exit 1/3 of 1 unit then the SL has a
value of 6 pips risk even though the SL is still at 9 pips.

If the SL is 1% risk and you exit 1/3 of 1% then the SL has a
value of 0.66% even though the SL is still at 9 pips.

A 9 pip SL is reduced by 3 pips risk if you exit 1/3 of your position.

A 1% risk SL is reduced by 0.33% risk if you exit 1/3 of your position.

If you exit 1/3 of your position at +3 pips then the 3 pip gain has a value of 1 pip.

If exiting 1/3 reduces your risk by 3 pips and you take 1 pip worth of profit then your total risk is reduced by 4 pips.

I am not sure how else I can word this...

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Postby razorboy » Sat Apr 25, 2009 9:04 pm

maybe you should have a little talk about lenny dykstra about position management - he's 92 and 0 on his picks, but losing his house.

apparently he doesnt cut his losses........ ever..........

http://www.businessinsider.com/thestree ... tra-2009-4


MightyOne wrote:So somebody does understand what I am trying to say :lol:


razorboy wrote:I think the switching between pips and amount of account at risk is the confusing issue here.


Your aggregate stop loss for the entire is an amount in pips equal to your value at risk. You then further divide it by the number of positions you plan to put on for the trade.

So if you have 3 positions on, the profit on each individual position is really only 1/3rd of your intended goal, so if you take a 3 pip gain on your first position, you have really only made 1 pip of your intended goal.

Alternatively, you can think about it in this way.

Say you plan a trade - you think price is going to bounce for 100 pips and along the way you are going to put on 3 positions along the way ( 0p, 50pips into the trade and 70 pips in). At the end of the day, how much have you made - have you made have you made 180 pips or have you made - (1/3 *100 + 1/3* 50 + 1/3*30) = 30+16.5+10 = 56.5 pips - all depends how you build your positions and look at them - if you weight your gains in terms of positions size, you have only made 56.5 pips - you only had 30 pips where your total position was at risk

If I take a loss of 100 pips with a third of a position on - In total risk terms, I have only lost 30 pips

I think this is what MO is getting at - either that or i just decreased the signal to noise ratio.....:)

MightyOne wrote:
TheRumpledOne wrote:3 units each have a SL of 9 pips at the same price.

Each unit is responsible for 3 pips in risk.

When you liquidate 1 unit at a target then your risk is reduced by 3 pips.

If your SL is 9 pips and your take profit is at 0.5, 1, and 1.5 to 1 then you take profit at 4.5p, 9p, & 13.5p.

When you TP at 4.5p your risk drops by 3 pips plus 4.5 / 3 or 4.5 pips bringing your total risk to 4.5 pips.

Your accuracy in reaching your first target (reducing risk) is what drives your ratio beyond 1 to 1.

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

3 units each have a SL of 9 pips at the same price.

Each unit is responsible for 3 pips in risk.

THIS STILL IS NOT CLEAR TO ME.

EITHER THE SL IS 3 OR 9... WHICH IS IT?

IF I ENTER 3 UNITS THEN IF PRICE REVERSES TO SL BEFORE REACHING TP1, DO I LOSE 9 PIPS OR 27?


Call it a single unit divisible by 3 if it makes it more easy to comprehend...

If the SL is 9 pips and you exit 1/3 of 1 unit then the SL has a
value of 6 pips risk even though the SL is still at 9 pips.

If the SL is 1% risk and you exit 1/3 of 1% then the SL has a
value of 0.66% even though the SL is still at 9 pips.

A 9 pip SL is reduced by 3 pips risk if you exit 1/3 of your position.

A 1% risk SL is reduced by 0.33% risk if you exit 1/3 of your position.

If you exit 1/3 of your position at +3 pips then the 3 pip gain has a value of 1 pip.

If exiting 1/3 reduces your risk by 3 pips and you take 1 pip worth of profit then your total risk is reduced by 4 pips.

I am not sure how else I can word this...
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TheRumpledOne
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Re: I'm new here

Postby TheRumpledOne » Sat Apr 25, 2009 9:40 pm

ak wrote:Hi Tro and Others
I read over 1000 posts on BP, then I find out you are now here. I'm new to fx trading. I have read waaay too many ebooks.... and have tons of info. but am notprofitable.

So I came across your thread, and you keep it simple. I use windows vista and that presents a problem. I can't load any of your indicators, so I must draw manual "horizontal lines".

Do I draw the lines of the High, Open, Close/3 at the Open (for me NY), or do I draw s/r lines on each candle of the H1? Then when the Daily and H1 are the same color I trade when price crosses either s/r?

Also, do I draw Fibs on each trade?

Thanks Dragon and Sweetpips for posting the link on BP so I could find you guys again!

ak



Vista is a Pain in the (_*_)

When you open MT4, instead of double clicking on the shortcut icon, right click on it then click on open in admin mode.

Then you should be able to download/update with no problem.
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 » Sat Apr 25, 2009 9:42 pm

MightyOne wrote:So somebody does understand what I am trying to say :lol:


razorboy wrote:I think the switching between pips and amount of account at risk is the confusing issue here.


Your aggregate stop loss for the entire is an amount in pips equal to your value at risk. You then further divide it by the number of positions you plan to put on for the trade.

So if you have 3 positions on, the profit on each individual position is really only 1/3rd of your intended goal, so if you take a 3 pip gain on your first position, you have really only made 1 pip of your intended goal.

Alternatively, you can think about it in this way.

Say you plan a trade - you think price is going to bounce for 100 pips and along the way you are going to put on 3 positions along the way ( 0p, 50pips into the trade and 70 pips in). At the end of the day, how much have you made - have you made have you made 180 pips or have you made - (1/3 *100 + 1/3* 50 + 1/3*30) = 30+16.5+10 = 56.5 pips - all depends how you build your positions and look at them - if you weight your gains in terms of positions size, you have only made 56.5 pips - you only had 30 pips where your total position was at risk

If I take a loss of 100 pips with a third of a position on - In total risk terms, I have only lost 30 pips

I think this is what MO is getting at - either that or i just decreased the signal to noise ratio.....:)

MightyOne wrote:
TheRumpledOne wrote:3 units each have a SL of 9 pips at the same price.

Each unit is responsible for 3 pips in risk.

When you liquidate 1 unit at a target then your risk is reduced by 3 pips.

If your SL is 9 pips and your take profit is at 0.5, 1, and 1.5 to 1 then you take profit at 4.5p, 9p, & 13.5p.

When you TP at 4.5p your risk drops by 3 pips plus 4.5 / 3 or 4.5 pips bringing your total risk to 4.5 pips.

Your accuracy in reaching your first target (reducing risk) is what drives your ratio beyond 1 to 1.

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

3 units each have a SL of 9 pips at the same price.

Each unit is responsible for 3 pips in risk.

THIS STILL IS NOT CLEAR TO ME.

EITHER THE SL IS 3 OR 9... WHICH IS IT?

IF I ENTER 3 UNITS THEN IF PRICE REVERSES TO SL BEFORE REACHING TP1, DO I LOSE 9 PIPS OR 27?


Call it a single unit divisible by 3 if it makes it more easy to comprehend...

If the SL is 9 pips and you exit 1/3 of 1 unit then the SL has a
value of 6 pips risk even though the SL is still at 9 pips.

If the SL is 1% risk and you exit 1/3 of 1% then the SL has a
value of 0.66% even though the SL is still at 9 pips.

A 9 pip SL is reduced by 3 pips risk if you exit 1/3 of your position.

A 1% risk SL is reduced by 0.33% risk if you exit 1/3 of your position.

If you exit 1/3 of your position at +3 pips then the 3 pip gain has a value of 1 pip.

If exiting 1/3 reduces your risk by 3 pips and you take 1 pip worth of profit then your total risk is reduced by 4 pips.

I am not sure how else I can word this...



But they agree it's confusing!!
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.

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


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