{quote} Some lessons for newbie traders and also other traders reading his thread Nice introduction Emmanuel. Let take a few seconds to try and understand what you have posted. 3. Multiply entries at same price or MEME. "If we use multi-entries, we must space out the orders order distance) to gain the advantage of and to leverage on getting a better average entry price of all positions in one basket." Who made those rules? Only time when you will get a better price entry is when sell orders are placed higher then the first sell order or buy orders...
@Tekkies,
Trading TMS 5-Method with Multiple Entries Multiple Exits MEME is for advance TMS traders.
You need to have achieved at least a win rate of 55% and have reached consistent results in 3 years and can maintain that same consistency for 3 to 5 years. With MEME you can use the generate CashFlow as additional income.
You do not understand the meaning of AVERAGE ENTRY PRICE of a BASKET OF 5 TRADES. The rules are simple and easy to learn.
1) you must use Risk %of capital or $amount and Position Sizing for the basket of trades. with a maximum of 5 trades in one basket. you divide your Risk into 5 smaller portion and do position szing using an Initial Stop Loss 'R'.
2) each basket of trades has its own Cut Loss.
3) with average entry price, you do not add to losing trades, you do not look at individual trade position, you look at the basket average entry price of all open positions.
4) with a Cut Loss, you may have some losing basket when price reverse on your trade plan. But is most cases in raneging market conditions you have the option to breakeven some trades and also some basket much easier than Single Entry Single Exit trades. In your DE30 trades, you entret 3 position at the same price and your losses could have been 3 times when those trade hit their SL. Your 3 positions were in the same drawdown for many hours until price turn back in your favour. You have many hours of stress seeing your account in floating drawdown with 3 open positions with same entry price.
Below is how MEME would have worked out using that same trade entry level like your first trade entry. In this example below, only ME1 was open at that price level. Position ME2 was buy limit order at order distance 0.25 ADR from ME1. ME 2 was triggered and both ME1 and ME2 were manage with their average entry prices.
ME1 and ME were closed using Profit Locked feature following MEME trading rules. After ME1 and ME2 closed with profits, ME3 will start a news basket and manage the same way using MEME trading rules.
The best thing is stress free trading using MEME trading with TMS by using a trade manager and we only decide to BUY or to SELL, then initiate the first trade to start the basket going. After that, trading is semi- automated until the trader decides to stop/close all trades following the MEME trading rules and his/her trade plan.
Below Aug 17 GER30 M15 trades using MEME trade manager in MT4 strategy tester.
Compare the above to your 3 positions clsed in BE.
If anyone interested and trading GER30, I can setup a live trading account using a FXBlue account to show you how it can be done.
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
