Libertarians take on trading

[Mira]

Well this really brings back nightmares

First question I have, so the attached chart you marked up is the chart you are trading? In my post I was trading the D1, so I just want to be sure were talking about the same thing.

So you can start (your risk) on the MN if you feel so inclined and start to walk it down from there? You start high and as you gain OPM you can "walk it down" is that what you mean by that?

Also, what da fudge are the red Balls showing me. I'm married so I only know blue balls.

1. select a price level
2. attach two lines of risk

That is all that I am saying...

$200 divided into 8 lines of $25, 2 lines is 50 dollars spread over x * multiplier depending on the chart that you are trading.

If your lines are 10 pips wide and your price level is 1.5000 then your stop is at 1.5020
By 'walk it down' I simply mean that you move you price level down to 1.4090 and your stop to 1.5010

So how easy that is?

1. If you have 8 lines and you gain 3 then your line value moves up from $25 to (11/8)25

2. If you have 8 lines and you lose 3 lines then you have 5 lines of $25
If you want to recover 1 line then your line value is (5/6)25 and you have 6 lines of $20.833 or as close as you can get to that.
If after reducing your line value to $20.833 you gain 1 line then your new line value is (7/6)20.8333 or 6 lines of $24.305

If you manage your money well then you should go the whole year without losing what you initially put into the risk-box.

Therefore reducing the lines of the RB is like turning On the Turbo? It would be cool to study something for reversal strategies
I mean without gambling (too much)

Thanks MO!

[MightyOne]

Therefore reducing the lines of the RB is like turning On the Turbo? It would be cool to study something for reversal strategies
I mean without gambling (too much)

Thanks MO!

You can go very far with basic math

for_Mira.png (96 KiB) Viewed 2554 times

[Libertarian]

Dumb question, all of this looks great and super fancy and a million other things. But your trading short. Isn't the whole point to get in at the extreme of the LT chart? My bias at this point on the chart was to get long (of course my bias was wrong). Should I be scalping and just kind of luck into a trade (with maybe a better than average inclination to hold towards my bias)? I'm realizing I need to become a scalper.

'Space' as it was previously explained was too difficult to understand: no one knew how to properly size a risk box or adjust its size to make the most out of their trades.

Today we still use a risk box (total risk) but we divide it into 8 segments the width of which is determined by the average hourly movement of the pair and the chart period that you are trading:
H1: 38.2% of average = x: H4: x * 2, Daily: x * 4, Weekly: x * 8, Monthly: x * 16

Take a minute to understand how trading the H4 chart would change the attached chart where 1 segment of risk is 76.4% of the average range; your stop is now twice as far away from the entry level and your maximum short entry area ("or here") would be another line lower so there would be no need for '*'.
The greater the average range that a segment consumes the larger the chart that one must be trading because it takes larger ranges to pass through each space.

The picture should say 38.2%, not .382%
for_libby.png

If you put $200 in the box then what is your risk? Trick question! The risk is the box, but for our mental health we just say that our risk is what we put into the box at the very beginning.

Since the box is divided into 8 segments ('lines'), each line gained will increase your trade size by 12.5% (9/8):
$200 + $25, new risk per line (9/8)25 or as close as you can get to $28.125, 8 x $28.125 = a $225 box.

+4 lines is then (12/8)$28.125, etc.

What happens if you lose 2.5 lines? If you only wanted to risk 2 then you have 5.5 of 6 lines (8 - 2) so you adjust
your line value to (5.5/6)28.125 or $25.781 and now you have 6 lines.
If you gained 4 lines then you could be aggressive and divide the money into 6 segments:
6 + 4 lines = 10, (10/6)25.781 = 6 lines of $42.968

You are down to .75 lines and you need 2.5 lines to get back to business, do you reach in your pocket for another $200? Hellz to the no!
(.75/2.5)42.968 = 2.5 lines of $12.89; it is a smaller size than you started with but a few good wins and you'll be back in the races.

Don't worry about c-ck swinging, the swing will come:
focus on your money and what you need to do, not what other people are doing.

Code: Select all

What would happen if your first objective of the day was to absorb 2 lines?:

Day 00: $25/line ($200 in the box)
Day 01: $31 ($250)
Day 02: $39 ($312)
Day 03: $48 ($390)
Day 04: $61 ($488)
Day 05: $76 ($610)
Day 06: $95 ($762)
Day 07: $119 ($953)
Day 08: $149 ($1192)
Day 09: $186 ($1490)
Day 10: $232 ($1862)
Day 11: $291 ($2328)
Day 12: $363 ($2910)
Day 13: $454 ($3637)
Day 14: $568 ($4547)
Day 15: $710 ($5684)
Day 16: $888 ($7105)
Day 17: $1110 ($8881)
Day 18: $1387 ($11102)
Day 19: $1734 ($13877)
Day 20: $2168 ($17347)
And that is just stacking the first trade of the day!
Who knows how many lines you made on trades 2+

The question that should come to mind is "what about margin?"

$2168/line is only $19.63/pip on the monthly chart compared to $314/pip on the hourly chart.
Each time you move to a larger chart you halve your position size and double the width of the lines to make the same amount of money
over larger bar ranges.

Now as the money trickles in on the monthly chart you are going to find that you have enough money to drop down to the weekly chart and then the daily chart and so on and the speed at which you make 'x' doubles all the way down to the hourly.


[MightyOne]

Dumb question, all of this looks great and super fancy and a million other things. But your trading short. Isn't the whole point to get in at the extreme of the LT chart? My bias at this point on the chart was to get long (of course my bias was wrong). Should I be scalping and just kind of luck into a trade (with maybe a better than average inclination to hold towards my bias)? I'm realizing I need to become a scalper.

Jala said it best:
#1 don't get hit with a big stick
#2 hit it with a big stick

CHFZARM30.png (64.72 KiB) Viewed 2481 times

[Mira]

Dumb question, all of this looks great and super fancy and a million other things. But your trading short. Isn't the whole point to get in at the extreme of the LT chart? My bias at this point on the chart was to get long (of course my bias was wrong). Should I be scalping and just kind of luck into a trade (with maybe a better than average inclination to hold towards my bias)? I'm realizing I need to become a scalper.

Jala said it best:
#1 don't get hit with a big stick
#2 hit it with a big stick

CHFZARM30.png

DMN!

What a pair

[Libertarian]

Sheesh, i wish they were all this textbook. Clearer than a gaping *censored - swear word*. My problem and what we have discovered this week. Is how not to stay stagnant on the smaller charts, you need to be active on them as well and at the same time not miss the big move if you are actually right about where the wicks will be. That's my task. Now, I just need to figure out how to be a scalper. Luckily there are some good resources around here for how to do that.

Duh

CZ.PNG (116.43 KiB) Viewed 2450 times

One thing I don't know is what an "adjusted" price level is. But I'm sure I'll get there, have less than a years worth of your thread to go.

Dumb question, all of this looks great and super fancy and a million other things. But your trading short. Isn't the whole point to get in at the extreme of the LT chart? My bias at this point on the chart was to get long (of course my bias was wrong). Should I be scalping and just kind of luck into a trade (with maybe a better than average inclination to hold towards my bias)? I'm realizing I need to become a scalper.

Jala said it best:
#1 don't get hit with a big stick
#2 hit it with a big stick

CHFZARM30.png

[MightyOne]

DMN!

What a pair

There is more to life than EURUSD

ZAR and TRY are my two favorite currencies; the price moves are out of this world.

[MightyOne]

...
One thing I don't know is what an "adjusted" price level is. But I'm sure I'll get there, have less than a years worth of your thread to go.
...

Small charts is where you stack size.

Large charts is where you hold size.

waa.png (55.21 KiB) Viewed 2438 times

[elkin.fernandez]

i just have my AHA moment!!

I SEE so clear what MO is trying to SHOW.

God bless U MO

[Mira]

...
One thing I don't know is what an "adjusted" price level is. But I'm sure I'll get there, have less than a years worth of your thread to go.
...

Small charts is where you stack size.

Large charts is where you hold size.

waa.png

Thanks MO!

Sometimes I look for 'adjustments' on timeframes a way smaller than the price level and I lose myself, i need to work on it