This thread is a place for discuss a different way to money management. All opinions are well receive. I will update it slowly because my time is limited. I hope you see it interesting.
Who is trading some time in financial markets have an idea how manage floating losses. It dont exists a fixed way. Like strategies every trader have "his" way. Sometimes is one of common ways ( kind of SL, pivots, etc ) and other times a mix of some of them.
I will proposal my way. My way is slightly different. Really is the opposite anyone with experience will recommend to others. And its right as basis. But as all methodologies it can be explored in different ways. And not always must follow the common. Precisely forex is enough dynamic for can work almost everything.
I call my way "Stack". I'm using ( and improving ) last 4 years in my manual trading. Its not a set of rules. Its more an analysis about what balance is needed for can be profitable avoiding the fatal margin call. For check how works this in a bigger scale I post a TE in this thread. An auto system its running it with same rules explained below
Along the time I will explain the theory and later we will start with the deeper analysis.
It uses 3 basic ideas for work:
1) Price moves in waves
2) Price don't move indefendently in one direction
3) A constant profit with a moderate win ratio can compensate the loss congestion made for bad trades ( trades are clearly wrong and with little change to be recoverables )
And the way to get benefit of this is use the opened trades as a stack. My base is ( it can be different depending trader ):
1) Only one trade per pair can be opened
2) You can use any number of pairs. In my case I use 8 forex majors and their crosses ( 28 pairs )
3) Trades only can close if profit is +10 pips
4) All bad trades just are flying until they can be closed. This create the name. Its just a stack of bad trades
5) Non recoverable trades can be closed when ratio is X:1 ( you earned X times the loss will make that trade )
I will continue in next posts...
Who is trading some time in financial markets have an idea how manage floating losses. It dont exists a fixed way. Like strategies every trader have "his" way. Sometimes is one of common ways ( kind of SL, pivots, etc ) and other times a mix of some of them.
I will proposal my way. My way is slightly different. Really is the opposite anyone with experience will recommend to others. And its right as basis. But as all methodologies it can be explored in different ways. And not always must follow the common. Precisely forex is enough dynamic for can work almost everything.
I call my way "Stack". I'm using ( and improving ) last 4 years in my manual trading. Its not a set of rules. Its more an analysis about what balance is needed for can be profitable avoiding the fatal margin call. For check how works this in a bigger scale I post a TE in this thread. An auto system its running it with same rules explained below
Along the time I will explain the theory and later we will start with the deeper analysis.
It uses 3 basic ideas for work:
1) Price moves in waves
2) Price don't move indefendently in one direction
3) A constant profit with a moderate win ratio can compensate the loss congestion made for bad trades ( trades are clearly wrong and with little change to be recoverables )
And the way to get benefit of this is use the opened trades as a stack. My base is ( it can be different depending trader ):
1) Only one trade per pair can be opened
2) You can use any number of pairs. In my case I use 8 forex majors and their crosses ( 28 pairs )
3) Trades only can close if profit is +10 pips
4) All bad trades just are flying until they can be closed. This create the name. Its just a stack of bad trades
5) Non recoverable trades can be closed when ratio is X:1 ( you earned X times the loss will make that trade )
I will continue in next posts...
Try don't lose pants never...
