bredin wrote:Hi everyone, It been a while since ive posted anything here.
I am in the process of creating a YouTube channel to show a bunch of trading stuff. Space, trading processes, some theorycrafting, even a series taken from a signal service.
Planned are book reviews, complete trade sequences, and a ton of other stuff.
Im hoping it can be a good resource for the guys here.
Insanity Industries YouTube ChannelCheers
G.
A forum is no place to learn how to trade, the ideas that are simple for you take way too long to explain
and even then there are nuances that you leave out, that you would explain if you were just talking, because
it would just cost you that much more time to explain...and by "you" I mean me.
I watched a few of your videos & things are explained well, and I did enjoy them, but I hope that the use of hundreds of
pips of initial space was just an example.
In my opinion, this is more efficient:
1) Take your target (+$500) and divide it by the daily ATR (100) to figure out how much your "big pips" are worth ($5)
2) Figure out your risk as a fraction of the target.
My default risk is 1/14 of the target, or smaller, with a maximum risk of 1.5%.
$500 / 14 = $35.71
3) divide your "big pips" by the total amount that you plan on increasing your minimum size:
EXAMPLE ONE:
1) 5u + 4u + 3u + 2u = 14/5 or 2.8
2) $5 / 2.8 = 1.78/pip
3) $35.71 / 1.78 = 20 Space
Not enough space? Start at $1.10 & 32.2 Space then increase to $1.78 (currentSpace * .6179).
Space is flexible, no worries.
EXAMPLE TWO:
1) 1u + 1u + 2u + 4u = 8/1 or 8.
2) $5 / 8 = .62/pip
3) $35.71 / .62 = 57 Space.
I size trades to reach targets within the daily range, but as I approach my 14th loss the target is moved outside of the
daily and into the weekly ranges.
Should I lose 14 times (or whatever the fraction is) the loss is considered "catastrophic" (-target, -$500) and I move backwards
a "waypoint" and target a lower number ($475) with a smaller initial size.
Should I reach my target, the new target is larger ($525) and so is the initial size.
Thoughts?
I am always open to discussion.