The ideas that I trade by:

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aldomcfaldo
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Re: The ideas that I trade by:

Postby aldomcfaldo » Thu Mar 05, 2015 11:17 am

Peter!

It goes like this....

1,2,3 then 3,6,9 etc
or
2,4,6 then 6,12,18 etc

you basically double or add 50% of what you have on the table.

Hope that helps.

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Captain Pugwash
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Re: The ideas that I trade by:

Postby Captain Pugwash » Thu Mar 05, 2015 1:31 pm

or to put it another way

if you start with (say) 4 lots

4 -> then add 4 -> then add another 4 = so that would be 12 at the finish

take those 12 and start again

12 plus 12 plus 12 = so you would finish with 36 at the finish
"MOJO 1)Self-confidence, Self-assuredness. As in basis for belief in ones self in a situation. Esp/In context of contest or display of skill such as going into battle. 2)Ability to bounce back from a debilitating trauma and negative attitude YEH BABY

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Re: The ideas that I trade by:

Postby PeterBerregi » Fri Mar 06, 2015 12:33 am

aldomcfaldo wrote:Peter!

It goes like this....

1,2,3 then 3,6,9 etc
or
2,4,6 then 6,12,18 etc

you basically double or add 50% of what you have on the table.

Hope that helps.


Thanks for your reply aldomcfaldo but unfortch that doesn't clarify it for me.

Do you mean:

On your first trade you enter with 1 lot. Then on your second trade you then enter an additional 2 lots. This means the total number of lots in your two trades is 3 lots (1+2). Then in your third and final trade you enter 3 lots. Thus making the total number of lots 6 (1+2+3).

OR do you mean as Captain specifies in the next post:

Captain Pugwash wrote:or to put it another way

if you start with (say) 4 lots

4 -> then add 4 -> then add another 4 = so that would be 12 at the finish

take those 12 and start again

12 plus 12 plus 12 = so you would finish with 36 at the finish


Thanks guys for getting back to me. The more I think about it the more I think you are right Captain P. Definitely makes more sense when it comes to halving space on the second trade to maintain the same (or slightly lower) risk.

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Re: The ideas that I trade by:

Postby TygerKrane » Fri Mar 06, 2015 3:54 am

Yes, what Cap'n said.

Aldomcfaldo made a typo:
"You basically double AND THEN add 50% of what you have on the table."

But additionally, you have to normalize the risk throughout to protect yourself in case of an adverse move.

For example, if you calculate risk so that your first entry has a 32p SL, when you double your lots, your SL becomes half =16p (behind your new average price).
When you do your third entry (adding 50% lot size) technically speaking, you would multiply your SL pips by .666 .
16 × .666= 10.6p SL (behind your new average price).

But I think MightyOne had recommended that upon your third entry, you simply cut your risk in half again...a)the math is simpler, b) you will now be risking half the amount you had out there during your first & second entries. Think of it as a gift to yourself.
So upon a third entry; 16× .5 = 8p SL (behind the average price you get from this third entry).

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

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Re: The ideas that I trade by:

Postby Captain Pugwash » Fri Mar 06, 2015 7:27 am

Im pretty sure aldo does understand - he just writes it in a different format

this is one reason forums can be so bad for learning - our brain wiring is different - so we see different - so we tell different


Yes Tyger - the second add normalizes risk again so we have less on the table as it were - i thought it was a tad positive - i will check
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Re: The ideas that I trade by:

Postby aldomcfaldo » Fri Mar 06, 2015 9:58 pm

Yeah, tyger and cap'n explained it better than myself. Just know that adding or subtracting lots moves your stop closer to or further away from price.

Apologies for more confusion.

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Re: The ideas that I trade by:

Postby PeterBerregi » Mon Mar 09, 2015 12:40 am

Tyger, Captain and aldomc

Thanks guys for taking the time to explain and clarify it for me. All good now!

PB

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Re: The ideas that I trade by:

Postby Distinction » Mon Mar 09, 2015 12:22 pm

Hello,

i have come across this forum and thread for about 2 weeks. This is really interesting and awesome.
Space was really confusing at first but i think that i get it now. However theory is different from using it in reality.

I have a question and i hope someone can help me with it.
I understand that you go from daily extremes which makes perfect sense. My problem here is the increasing of your position.
The moment you double it and move your stop is the moment where you lose this let's call it extreme protection. Now you are really in the middle and any pullback will destroy you.
I tried to do this even in hindsight with FT2 where i marked the price move and even when i knew beforehand where price will go i got stopped after doubling.

And this is were my problem lies. I mean even if you are lucky and get a really good strong momentum move and you get out, how you can do this 2 or 3 times of this sequences is beyond me.
Am i wrong? Is there something missing?

With regards
Distinction

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MightyOne
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Re: The ideas that I trade by:

Postby MightyOne » Thu Mar 12, 2015 8:07 pm

Distinction wrote:Hello,

i have come across this forum and thread for about 2 weeks. This is really interesting and awesome.
Space was really confusing at first but i think that i get it now. However theory is different from using it in reality.

I have a question and i hope someone can help me with it.
I understand that you go from daily extremes which makes perfect sense. My problem here is the increasing of your position.
The moment you double it and move your stop is the moment where you lose this let's call it extreme protection. Now you are really in the middle and any pullback will destroy you.
I tried to do this even in hindsight with FT2 where i marked the price move and even when i knew beforehand where price will go i got stopped after doubling.

And this is were my problem lies. I mean even if you are lucky and get a really good strong momentum move and you get out, how you can do this 2 or 3 times of this sequences is beyond me.
Am i wrong? Is there something missing?

With regards
Distinction


There are two locations where you might rest your stop:
1. the 2+ day extreme
2. the BOx or daily breakout

If your total space is 50 pips and you enter 50 pips from your stop then you want to take a different line:

2 lots, +1 lot, + 3 lots, 6 lots total (enter, +50%, double).

If your total space is 50 pips and you enter 30 pips from your stop then the extreme of your space is actually 20 pips higher than your stop which makes it easier to follow this line:

2 lots, +2 lots, +2 lots, 6 lots total (enter, double, +50%)

Increasing your position size by 50% moves your stop to the 66.67% fib. line.

Once you enter your third order, be it +2 or +3 lots, you consider the last position as a scalp (like the British army rushing forward with bayonets to gain just a little more ground) & liquidate your entire position.

Now we do things the same as we did before only we start with 6 lots instead of 2:
1. position our space
2. 6 lots, +6 lots, +6 lots, 18 total or 6 lots, +3 lots, +9 lots, 18 total.
3. liquidate, come back with 18 lots.
4. when you hit your desired %gain then start over with 2 lots ('2 lots' as in your min. lot size according to your greatest account size).

Remember the '+' in 2+, you can also read it as BOx+...
you do not have to place your stop EXACTLY on a line.

Somewhere between the extreme & the BOx is a lower high...you can make a judgement call to place your stop there if that is the only way that you can reach the current PA with your space.

When you hold the extreme of a chart you hold the potential of a chart. You will notice that often times you are just focusing on building a position from an extreme when the hand of a larger chart pulls you off the battlefield and onto the back of its horse.

Keep in mind that if you risked 1% with 2 lots and you now have 36 lots that your risk is still 1% because you normalized your risk. Your last few pips of pace could be a 2 or even 3:1 return.

Not to make things more complicated, but you can, later, 'shed' lots to increase your space and either reposition to a large tf area of technical significance or simply take the added space off as profit.

Position
increase lot size
liquidate
over and over until a %gain...
it is really that simple & you can use whatever system you desire so
long as you enter within space.

PS: I don't know why I am here, I'm not back :lol: , MO again signing off ---------->

seacap
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Re: The ideas that I trade by:

Postby seacap » Fri Mar 13, 2015 1:31 pm

Distinction wrote:Hello,

The moment you double it and move your stop is the moment where you lose this let's call it extreme protection. Now you are really in the middle and any pullback will destroy you.
I tried to do this even in hindsight with FT2 where i marked the price move and even when i knew beforehand where price will go i got stopped after doubling.

And this is were my problem lies. I mean even if you are lucky and get a really good strong momentum move and you get out, how you can do this 2 or 3 times of this sequences is beyond me.
Am i wrong? Is there something missing?

With regards
Distinction


I have the same problem. Even more problems.
1. I struggle to find a good position. Even if I find one, the price may be too far away from it or takes out my stop.
2. When adding, i should halve my stop. After this I get stop out.

So to find a great postion and add 2 times to it and then liquidate at big % gain...this takes great skill...

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