The ideas that I trade by:

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MightyOne
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Re: The ideas that I trade by:

Postby MightyOne » Sun Sep 06, 2015 5:55 am

prochargedmopar wrote:
If I have a maximum risk space of 40 then that means I am trading @2:1 reward to risk with an 8 mp target.

Not gonna happen. Too many loses and no wiggle room when trading a daily chart only.

10 mp is minimum.
Lets recalculate for Macro pippers and real world traders and not hypothetical day traders.

I aint got time for that and 99 out of 100 aint got the skilz to do it. ;-)

H1 chart,? Bah humbug.


Well obviously it was not written for you :wink:

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Re:

Postby Pro Trader » Sun Sep 06, 2015 1:15 pm

MightyOne wrote:Do you understand how space works?

Space is like a piece of paper that is equal to your total risk.

In order to add size you must fold the paper to support more weight.

Price is like scissors & tape, when the paper is folded it either cuts more space or tapes on folded space.

At any time you can take some weight off of the paper and the total space will multiply, by unfolding, to support the new weight exactly.
If you have 4 units on folded paper & you take off 2 units then your paper doubles in size.
If you have 6 units, price cuts your paper down to 5mm, & you take off 4 units then your space unfolds to 15mm.

It is only when you have lost all of your 'paper' or you have no units to remove that your trade is dead.
The very thing you fear, adding size, is the only thing that can save you.

Image



PS: you have to put 'quote' & '/quote' in '[]' and then place your link between the 2 like this '[] LINK HERE []'


Hi MO

Looking at your recent posts where you show the "rules" I've been wondering how you manage losses. Say you go from 2 units to 4 units or more after adding and look to re-enter at another extreme, what if you get wiped out on that next trade?

From the image above it looks like you ensure that you don't lose more than 50% of your space on each trade which enables you to then double your space and reduce your lot size by half for the next trade to have another shot. Is that correct? It also looks like you monitor PA to see if price is closing higher/lower over/under something to give you an idea where to hold or fold. Is that how you do it?

If not could you share how one might avoid losing all the lots accumulated over series of trades?

Thanks

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Re: Re:

Postby prochargedmopar » Sun Sep 06, 2015 1:47 pm

Pro Trader wrote:[quo.

It is only when you have lost all of your 'paper' or you have no units to remove that your trade is dead.
The very thing you fear, adding size, is the only thing that can save you.


Image





Hi MO

Looking at your recent posts where you show the "rules" I've been wondering how you manage losses. Say you go from 2 units to 4 units or more after adding and look to re-enter at another extreme, what if you get wiped out on that next trade?

From the image above it looks like you ensure that you don't lose more than 50% of your space on each trade which enables you to then double your space and reduce your lot size by half for the next trade to have another shot. Is that correct? It also looks like you monitor PA to see if price is closing higher/lower over/under something to give you an idea where to hold or fold. Is that how you do it?

If not could you share how one might avoid losing all the lots accumulated over series of trades?

Thanks


Theoretically,

Our losses must cause us great laughter.
Until they do, nothing is possible.

When we have 25 - 250 trades to accomplish our next sequence what is the real difficulty with having a few trades go dead?

It seems to me you answered your own question.

The real question is what can I do
and
how can I accomplish the goal of X %.

Of which I have never done.
Why? failure to increase lot size.

JM Un-Pro-fessional Opinion.
#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

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Re: Re:

Postby Captain Pugwash » Sun Sep 06, 2015 2:45 pm

Pro Trader wrote:
MightyOne wrote:Do you understand how space works?

Space is like a piece of paper that is equal to your total risk.

In order to add size you must fold the paper to support more weight.

Price is like scissors & tape, when the paper is folded it either cuts more space or tapes on folded space.

At any time you can take some weight off of the paper and the total space will multiply, by unfolding, to support the new weight exactly.
If you have 4 units on folded paper & you take off 2 units then your paper doubles in size.
If you have 6 units, price cuts your paper down to 5mm, & you take off 4 units then your space unfolds to 15mm.

It is only when you have lost all of your 'paper' or you have no units to remove that your trade is dead.
The very thing you fear, adding size, is the only thing that can save you.

Image



PS: you have to put 'quote' & '/quote' in '[]' and then place your link between the 2 like this '[] LINK HERE []'


Hi MO

Looking at your recent posts where you show the "rules" I've been wondering how you manage losses. Say you go from 2 units to 4 units or more after adding and look to re-enter at another extreme, what if you get wiped out on that next trade?

From the image above it looks like you ensure that you don't lose more than 50% of your space on each trade which enables you to then double your space and reduce your lot size by half for the next trade to have another shot. Is that correct? It also looks like you monitor PA to see if price is closing higher/lower over/under something to give you an idea where to hold or fold. Is that how you do it?

If not could you share how one might avoid losing all the lots accumulated over series of trades?

Thanks


Hi J

This is what I am doing about that very question - is a solution for me and may not suit everyone

Seven Steps to Heaven Money Management - I accumulate - but the inevitable loss only takes me back one step. Cool Huh!

Long time old mate - how are things going for ya?
"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: Re:

Postby MightyOne » Sun Sep 06, 2015 5:58 pm

Pro Trader wrote:
Hi MO

Looking at your recent posts where you show the "rules" I've been wondering how you manage losses. Say you go from 2 units to 4 units or more after adding and look to re-enter at another extreme, what if you get wiped out on that next trade?

From the image above it looks like you ensure that you don't lose more than 50% of your space on each trade which enables you to then double your space and reduce your lot size by half for the next trade to have another shot. Is that correct? It also looks like you monitor PA to see if price is closing higher/lower over/under something to give you an idea where to hold or fold. Is that how you do it?

If not could you share how one might avoid losing all the lots accumulated over series of trades?

Thanks


There are no rules but there are "ideas" that guide our trading.

The image was only meant to show an aspect of space, it was not to say that that is how you should use it.

What happens if I blow up my space? Well sir, in that case, I would lose 0.08%; no matter how large my size gets, my risk is
normalized to 0.08% (or 0.8% or whatever your initial risk is) by reducing space.

But be of good cheer, if you can just secure 5 measly pips then your space will live forever; so long as you keep accumulating:

If you lose 35 of 40 pips at 2 units then you can still place another trade with 1 unit and 10 space.

If you start at 2 units, accumulate to 24 units, & then lose all but your last 5 pips then you have 2 units and 60 space or 20 more
pips than you started with! (24/2) * 5 = 60.
What if you wanted to start again with 40 space? (60/40) * 2 = 3, let's check it again: (24/3) * 5 = 40!

Ignore the multiple choice initial position sizing, just start with .02% of your account balance per pip according to the waypoint picture.

Ignore the fibonacci accumulation BS, just double your size or increase it by 50%; space is either cut in half or by a third, you can visualize that & see if it feels right to move your stop to that location according to the PA.

What if my pips are .80 instead of 1? ( 1/.8 ) * 40 = 50, you have more space but, with larger lot sizes, you can adjust it down to 40.

What if my pips at 1.2 instead of 1? (1/1.2) * 40 = 33.3, you have less space; hopefully you have at least 4 units so that you can adjust the space to a more favorable size, one in which you can easily secure 5 pips...
...something like (4/3) * 33.3 = 44.4 would be perfect

I look at H1, M30, & D1 and I will swap either the H1 or M30 for a compressed 5 minute chart.

When I place a stop on a chart, it is on the 5 minute but it is also on the H4, daily, weekly, etc; does the location of my
stop make sense to someone trading the H4 or daily chart? Keeping your stops with the big boys, that is what you should
be thinking about when trading small charts.
When you accumulate you move your stop closer to the current price; would you trail your stop to that location if you were
trading an H4 or a daily chart? Keeping your stops with the big boys, that is what you should be thinking about when trading
small charts :wink:

Act like you are going to trade a large chart, then don't #-o
Here is why:

Starting at 2 units it takes 3 doubles + an increase of 50% to get to 24 units.
At 24 units 22% is less than 88 pips away or within range of a single daily candle.

Had you previously nuked your space 6 times for -240 pips, that loss is only 20 pips at 24 units: (2/24) * 240 = 20,
that means that your target is less than 108 pips away (<88 + 20)!

As bad as you could possibly trade, your target is within reach of 1 or so candles on a daily chart.

Now imagine if you were protecting those last 5 pips & continually snapping back from the brink of space death to inevitably
hit your 21.2% target.
Now imagine that each time you reached a target it added a cushion of 22 losses...you would have to be an unimaginably bad
trader to not succeed!

So how do we do it? Money management, position sizing, patience, & luck.


SIDE NOTE:
There are people who try to make this confusing, they admit that my way is "simpler" but they still prefer to do it their "advanced" way :roll:
There are people who claim to speak for me, as if they understood my innermost thoughts, and they are willing to sell you this wisdom for a price..."their time"...fk those people, they are just thieves.

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Re: Re:

Postby aliassmith » Sun Sep 06, 2015 10:36 pm

MightyOne wrote:
Pro Trader wrote:
Hi MO

Looking at your recent posts where you show the "rules" I've been wondering how you manage losses. Say you go from 2 units to 4 units or more after adding and look to re-enter at another extreme, what if you get wiped out on that next trade?

From the image above it looks like you ensure that you don't lose more than 50% of your space on each trade which enables you to then double your space and reduce your lot size by half for the next trade to have another shot. Is that correct? It also looks like you monitor PA to see if price is closing higher/lower over/under something to give you an idea where to hold or fold. Is that how you do it?

If not could you share how one might avoid losing all the lots accumulated over series of trades?

Thanks


There are no rules but there are "ideas" that guide our trading.

The image was only meant to show an aspect of space, it was not to say that that is how you should use it.

What happens if I blow up my space? Well sir, in that case, I would lose 0.08%; no matter how large my size gets, my risk is
normalized to 0.08% (or 0.8% or whatever your initial risk is) by reducing space.

But be of good cheer, if you can just secure 5 measly pips then your space will live forever; so long as you keep accumulating:

If you lose 35 of 40 pips at 2 units then you can still place another trade with 1 unit and 10 space.

If you start at 2 units, accumulate to 24 units, & then lose all but your last 5 pips then you have 2 units and 60 space or 20 more
pips than you started with! (24/2) * 5 = 60.
What if you wanted to start again with 40 space? (60/40) * 2 = 3, let's check it again: (24/3) * 5 = 40!

Ignore the multiple choice initial position sizing, just start with .02% of your account balance per pip according to the waypoint picture.

Ignore the fibonacci accumulation BS, just double your size or increase it by 50%; space is either cut in half or by a third, you can visualize that & see if it feels right to move your stop to that location according to the PA.

What if my pips are .80 instead of 1? ( 1/.8 ) * 40 = 50, you have more space but, with larger lot sizes, you can adjust it down to 40.

What if my pips at 1.2 instead of 1? (1/1.2) * 40 = 33.3, you have less space; hopefully you have at least 4 units so that you can adjust the space to a more favorable size, one in which you can easily secure 5 pips...
...something like (4/3) * 33.3 = 44.4 would be perfect

I look at H1, M30, & D1 and I will swap either the H1 or M30 for a compressed 5 minute chart.

When I place a stop on a chart, it is on the 5 minute but it is also on the H4, daily, weekly, etc; does the location of my
stop make sense to someone trading the H4 or daily chart? Keeping your stops with the big boys, that is what you should
be thinking about when trading small charts.
When you accumulate you move your stop closer to the current price; would you trail your stop to that location if you were
trading an H4 or a daily chart? Keeping your stops with the big boys, that is what you should be thinking about when trading
small charts :wink:

Act like you are going to trade a large chart, then don't #-o
Here is why:

Starting at 2 units it takes 3 doubles + an increase of 50% to get to 24 units.
At 24 units 22% is less than 88 pips away or within range of a single daily candle.

Had you previously nuked your space 6 times for -240 pips, that loss is only 20 pips at 24 units: (2/24) * 240 = 20,
that means that your target is less than 108 pips away (<88 + 20)!

As bad as you could possibly trade, your target is within reach of 1 or so candles on a daily chart.

Now imagine if you were protecting those last 5 pips & continually snapping back from the brink of space death to inevitably
hit your 21.2% target.
Now imagine that each time you reached a target it added a cushion of 22 losses...you would have to be an unimaginably bad
trader to not succeed!

So how do we do it? Money management, position sizing, patience, & luck.


SIDE NOTE:
There are people who try to make this confusing, they admit that my way is "simpler" but they still prefer to do it their "advanced" way :roll:
There are people who claim to speak for me, as if they understood my innermost thoughts, and they are willing to sell you this wisdom for a price..."their time"...fk those people, they are just thieves.


Ya sometimes when you hang out with your buds drinking and
BSing, someone spills your beer! :x
Last edited by aliassmith on Mon Sep 07, 2015 12:18 am, edited 2 times in total.
Trade Your Way as Long as It Makes Money!

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Re: The ideas that I trade by:

Postby MightyOne » Sun Sep 06, 2015 11:11 pm

aliassmith wrote:Ya sometime when you hang out with your buds drinking and
BSing, someone spills your beer! :x


And then I laugh because I'm drinking out of a bottle of liquor :lol:

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Re: The ideas that I trade by:

Postby seedling » Mon Sep 07, 2015 2:09 am

Off topic. No Kreslik in China!!! Back to China in two months... Got some catching up to do..

Big thanks to Captain Pugwash as clarifyit works ;...)

Hope you are all well

All the best
"Intention transforms while attention creates." Deepak Chopra

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Re: Re:

Postby Pro Trader » Mon Sep 07, 2015 6:48 pm

Captain Pugwash wrote:
Pro Trader wrote:
MightyOne wrote:Do you understand how space works?

Space is like a piece of paper that is equal to your total risk.

In order to add size you must fold the paper to support more weight.

Price is like scissors & tape, when the paper is folded it either cuts more space or tapes on folded space.

At any time you can take some weight off of the paper and the total space will multiply, by unfolding, to support the new weight exactly.
If you have 4 units on folded paper & you take off 2 units then your paper doubles in size.
If you have 6 units, price cuts your paper down to 5mm, & you take off 4 units then your space unfolds to 15mm.

It is only when you have lost all of your 'paper' or you have no units to remove that your trade is dead.
The very thing you fear, adding size, is the only thing that can save you.

PS: you have to put 'quote' & '/quote' in '[]' and then place your link between the 2 like this '[] LINK HERE []'


Hi MO

Looking at your recent posts where you show the "rules" I've been wondering how you manage losses. Say you go from 2 units to 4 units or more after adding and look to re-enter at another extreme, what if you get wiped out on that next trade?

From the image above it looks like you ensure that you don't lose more than 50% of your space on each trade which enables you to then double your space and reduce your lot size by half for the next trade to have another shot. Is that correct? It also looks like you monitor PA to see if price is closing higher/lower over/under something to give you an idea where to hold or fold. Is that how you do it?

If not could you share how one might avoid losing all the lots accumulated over series of trades?

Thanks


Hi J

This is what I am doing about that very question - is a solution for me and may not suit everyone

Seven Steps to Heaven Money Management - I accumulate - but the inevitable loss only takes me back one step. Cool Huh!

Long time old mate - how are things going for ya?



Hey Cap

Thanks for sharing. Long time indeed. All well thanks. Hope things are well with you too.

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Re: Re:

Postby Pro Trader » Mon Sep 07, 2015 6:54 pm

MightyOne wrote:
Pro Trader wrote:
Hi MO

Looking at your recent posts where you show the "rules" I've been wondering how you manage losses. Say you go from 2 units to 4 units or more after adding and look to re-enter at another extreme, what if you get wiped out on that next trade?

From the image above it looks like you ensure that you don't lose more than 50% of your space on each trade which enables you to then double your space and reduce your lot size by half for the next trade to have another shot. Is that correct? It also looks like you monitor PA to see if price is closing higher/lower over/under something to give you an idea where to hold or fold. Is that how you do it?

If not could you share how one might avoid losing all the lots accumulated over series of trades?

Thanks


There are no rules but there are "ideas" that guide our trading.

The image was only meant to show an aspect of space, it was not to say that that is how you should use it.

What happens if I blow up my space? Well sir, in that case, I would lose 0.08%; no matter how large my size gets, my risk is
normalized to 0.08% (or 0.8% or whatever your initial risk is) by reducing space.

But be of good cheer, if you can just secure 5 measly pips then your space will live forever; so long as you keep accumulating:

If you lose 35 of 40 pips at 2 units then you can still place another trade with 1 unit and 10 space.

If you start at 2 units, accumulate to 24 units, & then lose all but your last 5 pips then you have 2 units and 60 space or 20 more
pips than you started with! (24/2) * 5 = 60.
What if you wanted to start again with 40 space? (60/40) * 2 = 3, let's check it again: (24/3) * 5 = 40!

Ignore the multiple choice initial position sizing, just start with .02% of your account balance per pip according to the waypoint picture.

Ignore the fibonacci accumulation BS, just double your size or increase it by 50%; space is either cut in half or by a third, you can visualize that & see if it feels right to move your stop to that location according to the PA.

What if my pips are .80 instead of 1? ( 1/.8 ) * 40 = 50, you have more space but, with larger lot sizes, you can adjust it down to 40.

What if my pips at 1.2 instead of 1? (1/1.2) * 40 = 33.3, you have less space; hopefully you have at least 4 units so that you can adjust the space to a more favorable size, one in which you can easily secure 5 pips...
...something like (4/3) * 33.3 = 44.4 would be perfect

I look at H1, M30, & D1 and I will swap either the H1 or M30 for a compressed 5 minute chart.

When I place a stop on a chart, it is on the 5 minute but it is also on the H4, daily, weekly, etc; does the location of my
stop make sense to someone trading the H4 or daily chart? Keeping your stops with the big boys, that is what you should
be thinking about when trading small charts.
When you accumulate you move your stop closer to the current price; would you trail your stop to that location if you were
trading an H4 or a daily chart? Keeping your stops with the big boys, that is what you should be thinking about when trading
small charts :wink:

Act like you are going to trade a large chart, then don't #-o
Here is why:

Starting at 2 units it takes 3 doubles + an increase of 50% to get to 24 units.
At 24 units 22% is less than 88 pips away or within range of a single daily candle.

Had you previously nuked your space 6 times for -240 pips, that loss is only 20 pips at 24 units: (2/24) * 240 = 20,
that means that your target is less than 108 pips away (<88 + 20)!

As bad as you could possibly trade, your target is within reach of 1 or so candles on a daily chart.

Now imagine if you were protecting those last 5 pips & continually snapping back from the brink of space death to inevitably
hit your 21.2% target.
Now imagine that each time you reached a target it added a cushion of 22 losses...you would have to be an unimaginably bad
trader to not succeed!

So how do we do it? Money management, position sizing, patience, & luck.


SIDE NOTE:
There are people who try to make this confusing, they admit that my way is "simpler" but they still prefer to do it their "advanced" way :roll:
There are people who claim to speak for me, as if they understood my innermost thoughts, and they are willing to sell you this wisdom for a price..."their time"...fk those people, they are just thieves.



Thanks MO

I'm going to give this space MM style a shot and see what happens.

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