The ideas that I trade by:

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trueblueTEX
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Postby trueblueTEX » Mon Jan 28, 2013 12:23 am

MightyOne wrote:....
If you do not use a 'balanced' RET tool then constantly reversing your tool is a nightmare on small charts esp. if your Fib tool does not measure between ## and 00 while you are sizing the box.

Take a look at what happens when you buy on ## VS buying on a RET:

Image


I know I'm gonna get spanked for this :lol:

but,

00 is your Position (ie "mental stop loss") correct?

and I plan to risk no more than 4.5% on a trade

then the distance from 00 to ## (on the above chart as it is drawn) is my space? and the 4 units bought over that space is 4.5% of my account (BP?)

If I were flat and decided to buy 8 units instead of 4 then my Position would end up being NOT where the 00 line is but where the 00 line is that is under the 8, ie at the bottom of the retrace at 29954.
AND that 8 units over that space would be 4.5% of my account, correct?

I am constructing this in my mind as I write. Even if this is all correct, I am sure that after I ponder over this pic some more I will still have many more questions.

Ok, I've changed this numerous times, now, I'm gonna hit Submit.

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newark18
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Postby newark18 » Mon Jan 28, 2013 12:45 am

Greetings everyone. It's been a long time. Looks like most of the same faces are still here.

I have been lurking the past few days after going missing for a long while. I took a detour from my FX trading in part because I have found energy futures trading to suit me a little better. But I didn't want to give up on FX trading. So I am back to hopefully finish what I started and maybe venture out into options as well (MO can be so persuasive).
Failure is an opportunity to learn.

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trueblueTEX
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Postby trueblueTEX » Mon Jan 28, 2013 1:23 am

newark18 wrote:Greetings everyone. It's been a long time. Looks like most of the same faces are still here.

I have been lurking the past few days after going missing for a long while. I took a detour from my FX trading in part because I have found energy futures trading to suit me a little better. But I didn't want to give up on FX trading. So I am back to hopefully finish what I started and maybe venture out into options as well (MO can be so persuasive).


Hey newark! I have ordered the materials MO has suggested here on options and I plan to look into it as well. But first I want to get some success in FX.

Glad this place didn't dry up during our hiatuses!

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newark18
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Postby newark18 » Mon Jan 28, 2013 2:31 am

Ahh back to the good ole days...copying MO's teachings and trying to decipher his code.
Failure is an opportunity to learn.

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trueblueTEX
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Postby trueblueTEX » Mon Jan 28, 2013 2:33 am

newark18 wrote:Ahh back to the good ole days...copying MO's teachings and trying to decipher his code.

Yes, grasshoppa

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MightyOne
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Postby MightyOne » Mon Jan 28, 2013 3:07 am

trueblueTEX wrote:
MightyOne wrote:....
If you do not use a 'balanced' RET tool then constantly reversing your tool is a nightmare on small charts esp. if your Fib tool does not measure between ## and 00 while you are sizing the box.

Take a look at what happens when you buy on ## VS buying on a RET:

Image


I know I'm gonna get spanked for this :lol:

but,

00 is your Position (ie "mental stop loss") correct?

and I plan to risk no more than 4.5% on a trade

then the distance from 00 to ## (on the above chart as it is drawn) is my space? and the 4 units bought over that space is 4.5% of my account (BP?)

If I were flat and decided to buy 8 units instead of 4 then my Position would end up being NOT where the 00 line is but where the 00 line is that is under the 8, ie at the bottom of the retrace at 29954.
AND that 8 units over that space would be 4.5% of my account, correct?

I am constructing this in my mind as I write. Even if this is all correct, I am sure that after I ponder over this pic some more I will still have many more questions.

Ok, I've changed this numerous times, now, I'm gonna hit Submit.


You are correct.

If you buy 12 units on the 12 unit line then your risk is exactly the same as if you purchased 04 units on the 04 unit line; the amount you are risking must fit into a space that is 3x smaller so your position must be 3x larger.

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Postby Captain Pugwash » Mon Jan 28, 2013 8:17 pm

trueblueTEX wrote:
00 is your Position (ie "mental stop loss") correct?



Ahoy Blue

I would say your 00 Position is a hard stop shipmate - for you would have killed all your space if that line is blown through.

You must NEVER allow more than 40% of your space to be killed on any one trade (preferably much less)

I would put my "mental" stop behind some convenient D+ S/D S/R whatever

This is to prevent you getting wicked out (only a close on a H4 candle crossing your mental stop would require action)

Protect your space - and it will reward you :)
Last edited by Captain Pugwash on Mon Jan 28, 2013 10:11 pm, edited 1 time in total.
"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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trueblueTEX
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Postby trueblueTEX » Mon Jan 28, 2013 9:06 pm

Thank, you, Cap'n. That makes sense.

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Postby nimo350 » Tue Jan 29, 2013 12:56 am

nt
Last edited by nimo350 on Thu Feb 06, 2014 12:28 pm, edited 1 time in total.

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Postby nimo350 » Tue Jan 29, 2013 1:50 am

nt
Last edited by nimo350 on Thu Feb 06, 2014 12:27 pm, edited 1 time in total.

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