This is going to be the place I record down multiple money management practices that I apply to my live trading account. I have a working trading system (which will not be part of the discussion here) and the reason why I am interested in having this journal is to see which money management works best with my current trading system.
Just for the sake of completeness of this experiment, I scalp.
For instance, I read that Divergence (another poster here in FF) trades and withdraws regularly with his account balance will return to $5000 (if I recall it correctly). Other traders, on the other hand, have this "1%" or few % per trade practice (which I found it disturbingly annoying and not practical). Another vast majority determine it by risk to reward ratio.
While I do use stop losses, I don't determine my losses by the size of my account. What I am trying to experiment here is this :-
I am going to start by trading my normal lots. Once I manage to pocket some pips, I will then increase /double my lot for the upcoming trades but on the strict condition that when the stop losses hit, I will still be in profit or break even.
For example,
1st trade :I have pocketed +20pips , bringing in nett profit of $2,000.
2nd trade : I have then identify it requires a stop loss of 5 pips, I will set my stop loss at $1,500, leaving me with $500 if SL ever hit.
3rd trade (if 2nd trade TP hit) : $2,000 + $6,000 (TP 20pips). I will have $8,000 of profit by now. So I will again identify the SL I need and increase my lots for next trade.
3rd trade (if 2nd trade SL hit) : $500. Trade normally until certain threshold is achieved.
4th, 5th....rinse and repeat.
But as I have said previously, this is purely for my experimental and record purposes. No TE will be attached as I am not here to teach anyone or share anything. So, don't expect to understand every post.
Let's see how it rolls.
Just for the sake of completeness of this experiment, I scalp.
For instance, I read that Divergence (another poster here in FF) trades and withdraws regularly with his account balance will return to $5000 (if I recall it correctly). Other traders, on the other hand, have this "1%" or few % per trade practice (which I found it disturbingly annoying and not practical). Another vast majority determine it by risk to reward ratio.
While I do use stop losses, I don't determine my losses by the size of my account. What I am trying to experiment here is this :-
I am going to start by trading my normal lots. Once I manage to pocket some pips, I will then increase /double my lot for the upcoming trades but on the strict condition that when the stop losses hit, I will still be in profit or break even.
For example,
1st trade :I have pocketed +20pips , bringing in nett profit of $2,000.
2nd trade : I have then identify it requires a stop loss of 5 pips, I will set my stop loss at $1,500, leaving me with $500 if SL ever hit.
3rd trade (if 2nd trade TP hit) : $2,000 + $6,000 (TP 20pips). I will have $8,000 of profit by now. So I will again identify the SL I need and increase my lots for next trade.
3rd trade (if 2nd trade SL hit) : $500. Trade normally until certain threshold is achieved.
4th, 5th....rinse and repeat.
But as I have said previously, this is purely for my experimental and record purposes. No TE will be attached as I am not here to teach anyone or share anything. So, don't expect to understand every post.
Let's see how it rolls.
