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PebbleTrader
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Postby PebbleTrader » Fri Mar 22, 2013 4:35 pm

And when in the smallest space window and 50%+ lot size area, and we are trying our damnedest to maximize our potential.

You guys have any other ideas?
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Postby PebbleTrader » Sat Mar 23, 2013 1:33 am

There is something else to consider, your initial size space, it will produce different graphs.

The vertical black line is 100 pips from the position, as you can see, adjusting your space from 30, 50 or 100 makes a big difference in your maximum potential with regard to price changes.

Within a 100 pip window:

Space of 30: 75/325 = 23% of max potential! (however, the largest size)(There is a pretty small window for maximizing size potential)
Space of 50: 66/200 = 33%
Space of 100: 50/100 = 50%

All three graphs are the equivalent position, remember, if space goes down, lot's goes up...

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Postby PebbleTrader » Sat Mar 23, 2013 2:35 am

Space Wars 201 :)
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Postby MightyOne » Sat Mar 23, 2013 4:50 pm

At max size, you have to first drop 00 to free the money and then you drop it again after you add to your size on ##.

assuming that $1000 has a max size of $5/pip, you drop 00 by 50 pips...
(50 * $5 = $250 or 25%)
...and then to the 80% RET after you add 12.5 lots on ##.
(50 / 62.5 = 0.80)
don't worry about the 1/2 lot, we'll get it in there on the next addition.

I've never tried an aggressive 'after max' strategy...:

-50.0: 62 lots
-40.4: 75 lots
-33.4: 87 lots
-28.8: 100 lots
--------------------
-50.0: 125 lots
-40.4: 150 lots
-33.4: 175 lots
-28.8: 200 lots
--------------------
-50.0: 250 lots
-40.4: 300 lots
-33.4: 350 lots
-28.8: 400 lots
Last edited by MightyOne on Sat Mar 23, 2013 5:30 pm, edited 1 time in total.

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Postby PebbleTrader » Sat Mar 23, 2013 5:27 pm

Say you start out overly cautious at 200 space and later decide to shed the extra space.

What the last graph shows is that with shedding more and more space, your ability to achieve max potential rapidly decays within the same price window of 100 pips from the position.

While it's still the best to do as it yields max lot's (assuming it's safe to shed the space), the most impact with shedding space happens within a very small window of opportunity.
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Postby PebbleTrader » Sat Mar 23, 2013 5:31 pm

Are we talking about the same thing?

"Keep dropping 00 by 50 pips to free up 12.5 lots or:
-50.0 pips: 62 lots
-40.4 pips: 75 lots
-33.4 pips: 87 lots
-28.8 pips: 100 lots"

Are you talking about shedding space, say it was 200 space initially, than you drop it by 50 to 150 space, than you drop it by another 40, to 110 space, than another 33, to 77 space, than 28, so we are left with only a space of 49?
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Postby MightyOne » Sat Mar 23, 2013 5:45 pm

You have to first drop 00 by x pips to free the money

AND

Reduce your Space by ANOTHER 20% WHEN you increase your size at the current price (##).

So yes, 200 Space becomes 120 if you increase your size by 25%.

Each pip now equals $6.20 so 40.4 pips = $250; the amount needed to increase your max size to $7.50 pips:

Reduce your Space by 40.4 pips AND THEN by 20%.

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Postby PebbleTrader » Sat Mar 23, 2013 7:35 pm

I'm with ya. At this point we are no longer concerned about "maximizing
space" see previous charts, or the in-between zone, we want to be
maximizing our lot's now and that happens within a smaller price level window
of opportunity.

In order to get within that smaller window (80 -> 79 = 100 pips) of
maximizing our lot's we lower the position and can even shed some space on
top of that if it's not needed to increase the size even more.

That way we are adding lot's within the flattest slope, maximizing lot's, giving
impact, and not in the area where the slope get's steeper and shifts to
maximizing space. We are trying to go in for the kill!

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Last edited by PebbleTrader on Sat Mar 23, 2013 10:44 pm, edited 2 times in total.
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Postby xXx » Sat Mar 23, 2013 8:16 pm

MO or PebbleTrader or anyone...
Could you present Space Wars in a form of a video :?:




:smt003

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PebbleTrader
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Postby PebbleTrader » Sat Mar 23, 2013 9:45 pm

Who could say NO to a cute kitty? :)

I'm not sure that a video would help.

Extreme Logic:

If you understand that 1 lot would be a large stop loss than you understand space.
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