Hi everybody.
Last two months I was thinking about system based only on a good money managment and good RRR. Without any tools.
My pair is Cable because is volatile what is important for this system.
Every day in certain hour (7:30, GMT+1) I open a trade in direction of last day. My SL is -20 pips from open and TP 100 pips. I move SL to BE after 40 pips.
The main part of this system is money managment. When the RRR is 5:1 I can have 5 losing trades in row only 6th trade I will open trade with more lots. Here is the chart of position sizing.
Trades Lots
1. 1
2. 1
3. 1
4. 1
5. 1
6. 1,5
7. 1,5
8. 2
9. 2,5
10. 3
11. 3,5
12. 4
13. 5
14. 6
15. 7
16. 8,5
17. 10
18. 12
19. 14,5
20. 17,5
21. 21
22. 25
With these position sizing I can cover all previous loses.
Since 28.7.06 (which is 171 trading days) in my backtesting were maximum 12 losing days in row and next day covered all loses. Circle is finished after good trade (TP 100 pips hit).
Risk is never biger than 1% of account on begining of circle.
The percentage of good trade is around 19%. So with every 5 losing trades is one good trade.
I am testing it live now with my micro account. Today was fifth losing trade in row so tomorrow I am opening with 1,5 lot. Will see what this system can do.
Any comments welcome.
Many pips to all
Peter
Last two months I was thinking about system based only on a good money managment and good RRR. Without any tools.
My pair is Cable because is volatile what is important for this system.
Every day in certain hour (7:30, GMT+1) I open a trade in direction of last day. My SL is -20 pips from open and TP 100 pips. I move SL to BE after 40 pips.
The main part of this system is money managment. When the RRR is 5:1 I can have 5 losing trades in row only 6th trade I will open trade with more lots. Here is the chart of position sizing.
Trades Lots
1. 1
2. 1
3. 1
4. 1
5. 1
6. 1,5
7. 1,5
8. 2
9. 2,5
10. 3
11. 3,5
12. 4
13. 5
14. 6
15. 7
16. 8,5
17. 10
18. 12
19. 14,5
20. 17,5
21. 21
22. 25
With these position sizing I can cover all previous loses.
Since 28.7.06 (which is 171 trading days) in my backtesting were maximum 12 losing days in row and next day covered all loses. Circle is finished after good trade (TP 100 pips hit).
Risk is never biger than 1% of account on begining of circle.
The percentage of good trade is around 19%. So with every 5 losing trades is one good trade.
I am testing it live now with my micro account. Today was fifth losing trade in row so tomorrow I am opening with 1,5 lot. Will see what this system can do.
Any comments welcome.
Many pips to all
Peter