The ideas that I trade by:

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thepark
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Re: The ideas that I trade by:

Postby thepark » Thu Apr 28, 2016 2:47 pm

I don't understand the significance of MACRO pips either. You trade a smaller $/pip by dividing the $/macro-pip by say, 16 and but you are in reality going for pips*16 and calling it a macro pip.

Why do you need to go through all this if you're comfortable trading and risking the real number of pips on the chart? doesnt it make more sense to set a stop based on what is going on on the charts and setting stops behind wicks, extremes etc and of course keeping in mind risk and reward?

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MightyOne
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Re: The ideas that I trade by:

Postby MightyOne » Thu Apr 28, 2016 5:15 pm

Jalarupa wrote:
...
Edit So I placed the Buy Stop with a TP at my Stop Loss of my Sell Limit and SL of 11 Macro's away...

I know I'm wrong... would love to know the correct way to go about this...



This is called macro SCALPING for a reason.

If we are not risking less than we would if trading for micro pips then what are we even doing?

1) Select an option based on your average stop loss; if 3 lines then select 1% over 3:
(.01 / 6)3000 = $5.00 <--- 5% over 30
(.01 / 5)3000 = $6.00 <---5% over 25
(.01 / 4)3000 = $7.50 <--- 5% over 20
(.01 / 3)3000 = $10.00 <--- 5% over 15
(.01 / 2)3000 = $15.00 <--- 5% over 10
(.01 / 1.5)3000 = $20.00 <---5% over 7.5 lines.

Macro Level & Stop Loss in Lines:
01) 6 to 8
02) 5 to 6
03) 4 to 5
04) 4 to 5
06) 3 to 4
08) 3 to 4
12) 2 to 3
16) 2 to 3
24) 1.5 to 2
32) 1.5 to 2


3) Space the lines based on the weekly median range and the number of lines that you are targeting:

You can expect the current weekly range to fall within 62.5 to 137.5% of the median range
If the median is 230 pips then that gives you a weekly price range of 143.75 to 316.25 pips.

If you decide to trade 14s then there are 16 lines available or a range of 10 to 22 lines.
If you decide to risk 1% over 2 pips then you would divide $15 by 14 and risk 1.07/pip,
$15 per line.


Scaling out/in is simply a mid trade widening or narrowing of the spacing of the lines, it is just a speed dial.

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Re: The ideas that I trade by:

Postby MightyOne » Thu Apr 28, 2016 5:32 pm

thepark wrote:I don't understand the significance of MACRO pips either. You trade a smaller $/pip by dividing the $/macro-pip by say, 16 and but you are in reality going for pips*16 and calling it a macro pip.

Why do you need to go through all this if you're comfortable trading and risking the real number of pips on the chart? doesnt it make more sense to set a stop based on what is going on on the charts and setting stops behind wicks, extremes etc and of course keeping in mind risk and reward?


How do franchises succeed? They explicitly define every task so that it is done perfectly and can be duplicated.

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Re: The ideas that I trade by:

Postby aliassmith » Thu Apr 28, 2016 5:48 pm

MightyOne wrote:
thepark wrote:I don't understand the significance of MACRO pips either. You trade a smaller $/pip by dividing the $/macro-pip by say, 16 and but you are in reality going for pips*16 and calling it a macro pip.

Why do you need to go through all this if you're comfortable trading and risking the real number of pips on the chart? doesnt it make more sense to set a stop based on what is going on on the charts and setting stops behind wicks, extremes etc and of course keeping in mind risk and reward?


How do franchises succeed? They explicitly define every task so that it is done perfectly and can be duplicated.


That is great MO is selling Space franchises. =D>
Trade Your Way as Long as It Makes Money!

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Re: The ideas that I trade by:

Postby Jalarupa » Thu Apr 28, 2016 7:25 pm

Jalarupa wrote:
...
Edit So I placed the Buy Stop with a TP at my Stop Loss of my Sell Limit and SL of 11 Macro's away...

I know I'm wrong... would love to know the correct way to go about this...



Thank you MO for taking the time to instruct me

This is called macro SCALPING for a reason.

If we are not risking less than we would if trading for micro pips then what are we even doing?

1) Select an option based on your average stop loss; if 3 lines then select 1% over 3:
(.01 / 6)3000 = $5.00 <--- 5% over 30
(.01 / 5)3000 = $6.00 <---5% over 25
(.01 / 4)3000 = $7.50 <--- 5% over 20
(.01 / 3)3000 = $10.00 <--- 5% over 15
(.01 / 2)3000 = $15.00 <--- 5% over 10
(.01 / 1.5)3000 = $20.00 <---5% over 7.5 lines.

Am I risking 5% on each trade at a full stop of 3 Lines? - cause that is what I am getting out of the equation...

Macro Level & Stop Loss in Lines:
01) 6 to 8
02) 5 to 6
03) 4 to 5
04) 4 to 5
06) 3 to 4
08) 3 to 4
12) 2 to 3
16) 2 to 3
24) 1.5 to 2
32) 1.5 to 2

Is the above the same as saying Lines / Risk Amount?

3) Space the lines based on the weekly median range and the number of lines that you are targeting:

You can expect the current weekly range to fall within 62.5 to 137.5% of the median range
If the median is 230 pips then that gives you a weekly price range of 143.75 to 316.25 pips.

If you decide to trade 14s then there are 16 lines available or a range of 10 to 22 lines.
If you decide to risk 1% over 2 pips (Macro Pips of 10 Micro Pips Each?) then you would divide $15 by 14 and risk 1.07/pip, So this is your initial lot size? .... or what is that and how do I get there? ... what am I risking to get what, I guess is what I am asking?
$15 per line.


Scaling out/in is simply a mid trade widening or narrowing of the spacing of the lines, it is just a speed dial.

Is there anyway to narrow the spacing lines (I'm sure the equation is already above just want to check) by entering another trade? or do I liquidate and reenter with a lower lot size based off of the equation? - Just trying to understand how admin intensive this method is?

Whatever happened to halving size to increase space?

I guess what I am asking for is a lesson in practical application... Using the Indicator ... and doing the math on the fly...

Thank you so much for your time... and if anyone else feels like they can help please PM me... I don't want to derail this thread

Thank you!


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Re: The ideas that I trade by:

Postby MightyOne » Fri Apr 29, 2016 4:40 am

Jalarupa wrote:
Thank you MO for taking the time to instruct me


Am I risking 5% on each trade at a full stop of 3 Lines? - cause that is what I am getting out of the equation...

(.01 / 3) is saying that you wish to risk 1% over 3 lines and that each pip is equal to .333%
If you risk 5 lines on average then you would use (.01 / 5)

.333% of 3000 is $10 so you are trading for $10 per line with a space of ONE pip between each line ($10 / ONE = $10/pip)

When you divide $10 by 16 then there is sixteen pips (or a "SIXTEEN Pip") between each line ($10 / SIXTEEN = $0.625/pip).

Every line marks .333% & .333% is what we call a macro pip.


Is there anyway to narrow the spacing lines (I'm sure the equation is already above just want to check) by entering another trade? or do I liquidate and reenter with a lower lot size based off of the equation? - Just trying to understand how admin intensive this method is?

Adjust your size to the new macro number & set your indicator entry price to the price of your last order.
If you gain 4 lines before the adjustment then it will take 4 lines to lose it, no matter what the new spacing is, because 1 pip of something is equal to 1 pip of something else.

Whatever happened to halving size to increase space?

Nothing.

I guess what I am asking for is a lesson in practical application... Using the Indicator ... and doing the math on the fly...

See above.

Thank you so much for your time... and if anyone else feels like they can help please PM me... I don't want to derail this thread

Thank you!




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Jalarupa
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Re: The ideas that I trade by:

Postby Jalarupa » Fri Apr 29, 2016 8:38 am

Okay wow MO thanks... After reading and testing... I have realized something PROFOUND...

I am an enormous DUMBASS! :lol:

So the Math that you so Kindly have laid out for me and painstakingly walked me through kindergarten style can easily be done by Synergy... (I know dumbass is right!)

Image

So I like this way of looking at the battlefield... I can grab a few Macro's and bank them... and then just decrease the amount of Pips in the Macro to increase my leverage and deploy those macro's (i'm still trying to figure out how best to do this... IE trading with held profit... But Your equations will come in handy and I'm sure I'll figure it out...) - I have a sneaky suspicion that it entails dragging the SL closer to current price but beyond extremes - To trail the stop so to speak...

So (thinking aloud here) if say I've BANKED 3 macro's and I started on three... I now have 6 but I may not need 6 so... If trading with 16pips/Macro I can drop it down to 8 pips/Macro and my position size is doubled if I keep a SL of 3 Macro's...

My only question/observation is IF i'm doing this, I'm still only risking 1% of my account... How would I reinvest gains?

Got a feeling I'm in for another dumbass moment... :roll:

But yes the Penny has dropped... Thank you for tolerating me!
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Reaching out to embrace whatever may come.

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Re: The ideas that I trade by:

Postby Braathen » Fri Apr 29, 2016 9:13 am

When you get your 5% your account will be bigger and your 1% will be a bigger number so you would be "reinvesting your gains".
I dunno if thats what you ment :P trade to a goal not through a goal
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Re: The ideas that I trade by:

Postby Jalarupa » Fri Apr 29, 2016 9:16 am

Okay that makes sense...

So when I grow my account by 5% in this case $150 of $3000 I then take that $150 and unleash hell... :)

Thank you for making it easy!
Edit - By stating the obvious... :oops:
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.

Trade management by <<FX SYNERGY>>
<<Bitcoin Trading>>

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Re: The ideas that I trade by:

Postby Braathen » Fri Apr 29, 2016 10:09 am

Thats not really what i ment haha

When you reach your goal.. in your case 5%.. you stop.. reset to a new micropip value and work your way up again to your goal of 5%.
More risk is just more risk.
You can only enter x amount of lots on your account so whether you worked your way to max$pip from 30 dollers of risk or from 150 dollers of risk.
Thats just my opinion ofc.. as long as its OPM do whatever you like :D
"Trading is the ability to see & to plan & to act; it is not crystal balls, precision entries, and ego stroking."
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