The ideas that I trade by:

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MightyOne
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Postby MightyOne » Wed Nov 14, 2012 8:47 am

dojirock wrote:?????????? completely lost looking at that pic.....


The 4 lot line can equal the number of lots that you liquidated.

Each higher line is +25, 50, 100, 300, & 500% more lots than what you liquidated.

Example: If I liquidate 12 lots at the 4 lot line then I can short 24 lots at the 50% retracement: 1 - (12/24) ... or 20 lots at the 40 ret: 1 - (12/20)

By liquidating and waiting for a better price, you are trading the Space that you --> did not lose <--- on the retrace for more lots; by doing this your position stays where it is.

If you held 12 lots during the ret then your Position would move closer to the current price because you do not have a surplus of Space to trade.

Lastly, if you CAN double your position but do something less then your position is moved upwards (whatever is left of the surplus gets stacked up top).

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MightyOne
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Postby MightyOne » Wed Nov 14, 2012 8:53 am

Not sure if I am making sense...
today I am drinking Kraken RUM (sort of meady tasting)

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newscalper
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Postby newscalper » Wed Nov 14, 2012 9:22 am

MightyOne wrote:Almost :)

Because you went short 5 lots, your 'markets money' space should be 25% larger ---> (5/4) * GainedSpace.


So what you're actually saying there, in plain English, so that anyone can understand ;)

Is that the first box he's drawn should have extended between the top where he's put it and the bottom 4 lot position - i.e. all the space.
He's entered at a better price, the 5 lot position so gained space is 5/4 i.e. he's gained 25% more than if he'd entered at the 4 lot position.

Guys, it's really simple. It's just, in effect a reverse R:R accumulator, hehe. It's bound to have a high win rate because you're not trying to get more space in one move than you're risking. Is price more likely to move 20 pips in time N or 300 pips?

There's 2 things I struggle with understanding: the 'get out' or shed lots line. Having a line in the sand and liquidating I'm fine with. Shedding lots however, yes I understand that you move your position further away (swap lots for space) but then if you're just going to hold on price has to move much further in your favour to get back to a break even situation. It's no different to seeing a 50% reduction in your account and having to gain 100% to get to b/e in that situation.

Fixed fractional does the same thing i.e. when you lose some % you reduce your stake which means it's harder to get back to where you were.

What I've always done (and it definitely works in testing, it's other things I have problems with, like getting direction right!) is once at a certain size, keep using that size irrespective of if you've just had 1 or 2 losing trades. It's not Martingale but it's heading that way.

There's also one other thing that's always bugged me in the original space thread and it's this: 3/0 does not = 0. Anything divided by zero = infinity. But I think this is some kind of notation, not just maths.

Oh dear: too much coffee again :roll:

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newscalper
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Postby newscalper » Wed Nov 14, 2012 10:55 am

Image

Neo88
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Postby Neo88 » Wed Nov 14, 2012 1:04 pm

MightyOne wrote:Here is a picture that I shared on GT:

Image


There are more tricks in the bag, we'll get to them all ;)


I used to do this but now I prefer to liquidate only part of the position which I put back as price retrace ... but it happened to me where price go much deeper and I have to reduce my lot size considerably or liquidate all the position

I would really like to see the tricks you have, I come here to see charts like the above :)
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Neo88
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Postby Neo88 » Wed Nov 14, 2012 1:12 pm

To newscalper
3/0 means full liquidation ie. close your position
A man must believe in himself and his judgment if he expects to make a living at this game. - Jesse Livermore

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Postby newscalper » Wed Nov 14, 2012 3:20 pm

Thx Neo

arkan1976
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Postby arkan1976 » Thu Nov 15, 2012 3:27 pm

MightyOne wrote:Almost :)

Because you went short 5 lots, your 'markets money' space should be 25% larger ---> (5/4) * GainedSpace.


Great MO !! it´s true !
thankyou very much

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MightyOne
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Postby MightyOne » Fri Nov 16, 2012 7:17 am

newscalper wrote:Image


You are never going to trade 20 lots with 20 pips of space :lol:

When you cross the 20 lots per thousand mark it will be because you
added 25-100% to your position size.

Ok, never say never...
the only way that you would enter with 20 lots is if you were macro pipping with 250/500+ space.

12 lots per thousand or less is a good initial entry.

2/3 of the time I would add 25 or 50%

1/6 of the time I would double.

1/6 of the time I would triple.

& I would almost never quintuple because that is just crazy :lol:

When you take your mind off of winning/losing & just manage space then trading becomes a whole lot easier/less stressful.

arkan1976
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Postby arkan1976 » Fri Nov 16, 2012 2:01 pm

Hello Mo and all, this is a trade i take using the space.
I think that I understand the concept.
In this trade i wait the price reach a Dragonline D1, and wait a signal of retractment.
I´m testing, for that I only use a 0.75% of my account.
Is increible, risking only 0.75% I made 2.31%, hehehe.
Please Mo-, can you to evaluate the picture ?
Thanks.
Perhaps the second entry was very bad, any idea for that ?
Image

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