The ideas that I trade by:

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MightyOne
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Re: The ideas that I trade by:

Postby MightyOne » Fri Feb 26, 2016 8:12 pm

thepark wrote:Hi MO

Trying to understand your money management technique as mine is egregiously bad but having a difficult time understanding:evil: :evil: Possible for a run through of this table from the basics?

So the above table you presented works as follows:
a) You enter a trade with a set percentage loss based on a set minimum size and a set pip box and you can lose 14 times with this percentage loss.
b) If you manage to make 21.53% you jump to the next box size??
c) What happens after you double your position, if it hits your trailing stop at midpoint the size of the loss depends on where you entered, even though you think of your initial stop loss as the entry. How is that loss going to the same for each of the 14 losses?



I am currently trading the GBPJPY, targeting the weekly crash zone. I set my stop loss at 5% of my account and I back out my entry size based on my entry distance to the 2 day extreme and 5% loss. When I start winning then I start adding to my lot size. The size of my win and loss are both around 5%. This means that if I win one week and lose the next week I make nothing. All I am trading is "body in the direction of profit, wick in the direction of loss" and I am correct a lot of the time direction wise (made 86% last year, and 55% the previous year), but I just can't make a lot of money dollar wise...


a) For the purpose of adding size your total risk-box is in play, but this does not mean that you simply set a stop and let price fall 40 pips.
The main idea of Space is surviving long enough to take down big %gains.
After a loss you reduce size and add pips to your risk-box so that you can survive without digging in your pockets for more change.
If your risk-box starts to fill up with pips then you increase size and take pips out of the box to NORMALIZE RISK and achieve the objective more
quickly.

b) When you make it to +21.153% then the risk-box is still 41 pips. The size of the risk-box changes based on what the $min should be vs what the $min is;
if the "unreal" dollar size is $3.67/pip then you might only have the ability to place a trade for $3 or $4/pip. If $4 then your risk-box is (3.67 / 4)41 or 37.6 pips. If $3.60 then 41.8 space & if $3.70 then 40.6 space.

c) No matter how many times you double your position size risk is the same because it is normalized each time by cutting the space in half.
$1 over 100 = $100
$2 over 50 = $100
$4 over 25 = $100
$8 over 12.5 = $100
But you should be making pips so it will not fall to a single pip of space #-o
This does not mean that you have to make pips to add size.

The only real danger is losing pips past your stop loss as each "big pip" is worth 8 "small pips".
But, as I said before, you are not simply going to let price fall all the way back to your stop loss without reducing
size to preserve space.

As for the rest...

MightyOne wrote:More risk is more risk & more profit is more profit!

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Re: The ideas that I trade by:

Postby thepark » Sat Feb 27, 2016 5:41 pm

MightyOne wrote:
thepark wrote:Hi MO

Trying to understand your money management technique as mine is egregiously bad but having a difficult time understanding:evil: :evil: Possible for a run through of this table from the basics?

So the above table you presented works as follows:
a) You enter a trade with a set percentage loss based on a set minimum size and a set pip box and you can lose 14 times with this percentage loss.
b) If you manage to make 21.53% you jump to the next box size??
c) What happens after you double your position, if it hits your trailing stop at midpoint the size of the loss depends on where you entered, even though you think of your initial stop loss as the entry. How is that loss going to the same for each of the 14 losses?



I am currently trading the GBPJPY, targeting the weekly crash zone. I set my stop loss at 5% of my account and I back out my entry size based on my entry distance to the 2 day extreme and 5% loss. When I start winning then I start adding to my lot size. The size of my win and loss are both around 5%. This means that if I win one week and lose the next week I make nothing. All I am trading is "body in the direction of profit, wick in the direction of loss" and I am correct a lot of the time direction wise (made 86% last year, and 55% the previous year), but I just can't make a lot of money dollar wise...


a) For the purpose of adding size your total risk-box is in play, but this does not mean that you simply set a stop and let price fall 40 pips.
The main idea of Space is surviving long enough to take down big %gains.
After a loss you reduce size and add pips to your risk-box so that you can survive without digging in your pockets for more change.
If your risk-box starts to fill up with pips then you increase size and take pips out of the box to NORMALIZE RISK and achieve the objective more
quickly.

b) When you make it to +21.153% then the risk-box is still 41 pips. The size of the risk-box changes based on what the $min should be vs what the $min is;
if the "unreal" dollar size is $3.67/pip then you might only have the ability to place a trade for $3 or $4/pip. If $4 then your risk-box is (3.67 / 4)41 or 37.6 pips. If $3.60 then 41.8 space & if $3.70 then 40.6 space.

c) No matter how many times you double your position size risk is the same because it is normalized each time by cutting the space in half.
$1 over 100 = $100
$2 over 50 = $100
$4 over 25 = $100
$8 over 12.5 = $100
But you should be making pips so it will not fall to a single pip of space #-o
This does not mean that you have to make pips to add size.

The only real danger is losing pips past your stop loss as each "big pip" is worth 8 "small pips".
But, as I said before, you are not simply going to let price fall all the way back to your stop loss without reducing
size to preserve space.

As for the rest...

MightyOne wrote:More risk is more risk & more profit is more profit!


Thanks MO. Sorry I have a lot of questions.

a) I see, so the the risk box is a function of the pips and size. Reduce size when you lose, so you can keep using that same box until you hit a big win.
b) Why is 21.15% significant? And when you hit that waypoint, how much should you increase your new $min (dollar/pip value), is there a preferred progression? If your box is still only 40 pips and you increase your dollar per pip value significantly, wouldn't the 41 pip box be reduced to nothing?
c) So everytime you double, your stop loss is reduced to half and never let price fall all the way back to your stop loss. Would you shed lots here, move your average price and stop loss back?
d) I want to get an idea of how aggressive you are in your sizing...I see you talking about adding 0s in one year..but the idea seems so farfetched to me. For example I shorted GBPJPY this week for 6%.
70000 units at 159.732
added 30000 at 159.279
exited both at 157.35

btw I bought that Advanced Commodity Trading Techniques Ken Roberts Course. Went through the first VHS, I can only hear the sound theres no actual video hahah.

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Re: The ideas that I trade by:

Postby MightyOne » Sat Feb 27, 2016 6:17 pm

thepark wrote:Thanks MO. Sorry I have a lot of questions.

a) I see, so the the risk box is a function of the pips and size. Reduce size when you lose, so you can keep using that same box until you hit a big win.
b) Why is 21.15% significant? And when you hit that waypoint, how much should you increase your new $min (dollar/pip value), is there a preferred progression? If your box is still only 40 pips and you increase your dollar per pip value significantly, wouldn't the 41 pip box be reduced to nothing?
c) So everytime you double, your stop loss is reduced to half and never let price fall all the way back to your stop loss. Would you shed lots here, move your average price and stop loss back?
d) I want to get an idea of how aggressive you are in your sizing...I see you talking about adding 0s in one year..but the idea seems so farfetched to me. For example I shorted GBPJPY this week for 6%.
70000 units at 159.732
added 30000 at 159.279
exited both at 157.35

btw I bought that Advanced Commodity Trading Techniques Ken Roberts Course. Went through the first VHS, I can only hear the sound theres no actual video hahah.


a) Yes.
b1) If you target 21.153% twelve times then you will have your zero. If you can reach 1 target then you can reach 12.
Don't focus on increasing your account to the astronomical number, focus on the path to the result.
b2)I use the numbers that I posted above. So with $1000 your $min would be $.367/pip and your $max would be $2.937/pip.
Once you reach an account size of $1,211.53 then your $min is $.444, your $max is $3.559, & your risk-box is still 41 pips...
(.444 * 41) / 1211.53 = 1.502% risk. I focus on the waypoint, as if it were the actual account size, and use it as a springboard
to target the next.
c) Do not focus on losing half of your space! Think of it as a pseudo trailing stop. Price starts moving in the direction of profit
and you like the look of your midpoint as a new stop location so you double your size; that is all that there is to it, no stress.
d) There are 12 steps and 12 months and the numbers are geared to reach a waypoint in 5.3 days; giving you 4x more time to
reach each goal.

ACTT: The Ted Warren seminar is what inspired me to think of technical analysis in new ways. I remember looking at his charts
and thinking that his lines were oddly drawn & that if he could be artistic then why can't I? :lol:
I threw the Ken Roberts portion in the trash. I love the man, he inspired me to have confidence in myself & I did use his methods
to average 400%/yr for the first four years, but Ted Warren is so much better.

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Re: The ideas that I trade by:

Postby MightyOne » Sat Feb 27, 2016 7:31 pm

Another idea that is critical to the success of reaching a waypoint is the idea of trading

"to goals not through goals"

I know that you think that if you can blow through your target by 17% then why not do it.

You keep those larger lot sizes for those last 20 pips, you get a retracement, your size is already
at $maximum, and now you have to make the retracement (20 pips?) + 20 pips.
Had you reduced your size by a third the goal would have been 30 pips away & then 50 pips, &
finally the goal would be 33.3 pips as you add the third back in.

You saved 6.7 "big pips", that is the same is saving 53.6 "small pips".
On top of that your target is only 3.3 pips further out instead of 20
and you did not have to increase your size above the $max.

You see, as you reach the high end of your leverage you start to lose the ability to reduce the size
of your losses by adding size.

There are a number of mistakes, that seem minor, that will inhibit you from reaching a waypoint at all.

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Re: The ideas that I trade by:

Postby MightyOne » Sat Feb 27, 2016 8:51 pm

Braathen wrote:You dont have to reduce your unit size if you lose space.
If from a 1000$ you make it to step 1 risking 1.5% you can lose 14 times in a row before you are back at 1000$.
If you sit down and trade live and lose 14 times in a row you will learn something :D win win.

If you find yourself in between steps there are plenty of ways to get yourself back to step X quickly.
I would love to hear MO's idea on that btw.
I personally like to just find what % i need to get back and trade from $min to reach it.
Sometimes i am a bit ballsy and just trade like i was still in the previous trade.


Lots of fun to be had and when you fail.. learn from it :D


If you want to be really cautious then after two losses you can use the last waypoint with a target
that is 2/3 normal size (48 pips).

Using this:
Regression after Gain:
(% to waypoint / set pip target)Currentwaypoint = $/pip

If your account fell from $1,211.53 to $1,175.12 then you have lost about 3%
(.03 / 48)1,000 = $max of .625/pip.
After about 4.8 more losses your target will increase from 48 to 72 "big pips".
Once you are back up to $1,211.53 then your $min is $.444 and your $max is $3.559.

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Re: The ideas that I trade by:

Postby Jalarupa » Sun Feb 28, 2016 4:10 pm

Thanks for the math lesson MO, I'm going to excel the s**t out of this! penny starting to drop, intuition makes sense... Thanks huge help laying it out like that
Feed my will to feel this moment urging me to cross the line.
Reaching out to embrace the random.
Reaching out to embrace whatever may come.

I trade using <<FX SYNERGY>>

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Re: The ideas that I trade by:

Postby MightyOne » Mon Feb 29, 2016 1:29 am

A tick-chart BUY-ZONE option? CHECK!

Tick Chart BZ.png
Tick Chart BZ.png (13.41 KiB) Viewed 816 times


EDIT: I'm working out some kinks in the code :wink:

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Re: The ideas that I trade by:

Postby MightyOne » Mon Feb 29, 2016 3:00 am

Alright, I am satisfied...for now. :)

BZ_MODIFIED_CODE.png
BZ_MODIFIED_CODE.png (35.22 KiB) Viewed 782 times

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Re: The ideas that I trade by:

Postby MightyOne » Mon Feb 29, 2016 8:20 pm

I am currently working on a timer for the random price Buy-zone.

If you want a new open every 1 day, 2 hours, and 3 minutes, from a random (or non-random) price, then it will do that.

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Re: The ideas that I trade by:

Postby prochargedmopar » Mon Feb 29, 2016 10:39 pm

MightyOne wrote:I am currently working on a timer for the random price Buy-zone.

If you want a new open every 1 day, 2 hours, and 3 minutes, from a random (or non-random) price, then it will do that.


I will randomly sit down at my charts and call it the open.

Bout 40x a day should do.
=P~
#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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