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Trading Made Simple(r)

  • #1,841
  • Jul 22, 2019 11:04am Jul 22, 2019 11:04am
Quoting krismitt
Of the GBP Pairs, I took this Continuation Trade at previous candle close, since I am leaning on NZD strength. {image} Trade well.
Hello Please how can i get the currency strength indicator in your chart.
Thanks,
Best regards.
  • #1,842
  • Edited 11:35am Jul 22, 2019 11:05am | Edited 11:35am
Quoting paroucia
Hi I'm short GBPAUD and GBPNZD also long NZDCAD and NZDUSD. all of them in loss it doesn't look good!
Losses are going to happen - pay them no mind and don't let them rattle you. Keep them to no more than 1R and you will be fine in the long run. Just think of losses as business expenses. No business has a 100% return...there are always bills to be paid out of the revenue. If you have at least 2R wins and only win 40% of your trades you will still be a profitable trader.

Out of 100 trades:
40 wins X $2 = $80
60 losses x $1 = $60
$80-$60=$20

We just don't know the order of the wins and losses. Think of it this way. Imagine a jar with 100 marbles in it. 40 marbles are green to represent 2R winning trades and 60 marbles are red to represent 1R losing trades. Now you are going to shake that jar up, close your eyes and start pulling out marbles. Do you know which ones are going to be red or green? No. But when you pull the last marble out you are going to have 40 green and 60 red. You also know that you are going to have a greater chance of a loss as there are more red marbles so you shouldn't be surprised at all if a marble is a red one. You need to look at the big picture - a large number of trades. Now, just imagine if your win rate was 60%. Hello $$ If you understand and embrace this idea you will let the losses roll right off your back and you will trade with confidence. Just make sure your risking a prudent amount so you don't blow up your account when you encounter a string of bad luck!
Emotion - it steals your money.
  • #1,843
  • Jul 22, 2019 11:51am Jul 22, 2019 11:51am
Quoting TheSpoof
{quote} Losses are going to happen - pay them no mind and don't let them rattle you. Keep them to no more than 1R and you will be fine in the long run. Just think of losses as business expenses. No business has a 100% return...there are always bills to be paid out of the revenue. If you have at least 2R wins and only win 40% of your trades you will still be a profitable trader. Out of 100 trades: 40 wins X $2 = $80 60 losses x $1 = $60 $80-$60=$20 We just don't know the order of the wins and losses. Think of it this way. Imagine a jar with 100 marbles...
Hi Dear Mclain
thanks for your information. i keep them in my mind : )
what makes me happy is that I've opened 4 positions that i still believe i should opened them. it's market that decided to go other way. however they are still open and haven't hit SL. let's see what will happen.

Green Pips
  • #1,844
  • Jul 22, 2019 12:17pm Jul 22, 2019 12:17pm
Quoting TheSpoof
{quote} Losses are going to happen - pay them no mind and don't let them rattle you. Keep them to no more than 1R and you will be fine in the long run. Just think of losses as business expenses. No business has a 100% return...there are always bills to be paid out of the revenue. If you have at least 2R wins and only win 40% of your trades you will still be a profitable trader. Out of 100 trades: 40 wins X $2 = $80 60 losses x $1 = $60 $80-$60=$20 We just don't know the order of the wins and losses. Think of it this way. Imagine a jar with 100 marbles...
Hi guys and thank you for sharing!
This works if you have still the same SL & TP for each pair / trade right?
Trade Safe !
  • #1,845
  • Jul 22, 2019 12:32pm Jul 22, 2019 12:32pm
Quoting Goodgame42
{quote} Hi guys and thank you for sharing! This works if you have still the same SL & TP for each pair / trade right?
No its the 1:2 risk/reward ratio that makes it all work.
  • #1,846
  • Jul 22, 2019 12:37pm Jul 22, 2019 12:37pm
Quoting 40PipsAlan
{quote} No its the 1:2 risk/reward ratio that makes it all work.
If you don't have fixed SL & TP, the calculation has no sense.
Consider that you have 1 loss with 1R = 30pips and 1 win with 2R = 20pips => Even if you had 50% of win trade, you have -10pips loss...
Trade Safe !
  • #1,847
  • Jul 22, 2019 12:49pm Jul 22, 2019 12:49pm
Quoting Goodgame42
{quote} If you don't have fixed SL & TP, the calculation has no sense. Consider that you have 1 loss with 1R = 30pips and 1 win with 2R = 20pips => Even if you had 50% of win trade, you have -10pips loss...
Exactly how I always look at it. You can have a fixed pip stop loss and take profit or fixed percentage stop loss and take profit, but if you vary then it matters what the average R:R is over x amount of trades.
Success means going from failure to failure without loss of enthusiasm
  • #1,848
  • Jul 22, 2019 12:51pm Jul 22, 2019 12:51pm
Quoting Goodgame42
{quote} If you don't have fixed SL & TP, the calculation has no sense. Consider that you have 1 loss with 1R = 30pips and 1 win with 2R = 20pips => Even if you had 50% of win trade, you have -10pips loss...
got me thinking now. Surely the SL cant be the same for all pairs?
It must be assuming that only one pair is being traded.
  • #1,849
  • Jul 22, 2019 12:57pm Jul 22, 2019 12:57pm
Quoting 40PipsAlan
{quote} got me thinking now. Surely the SL cant be the same for all pairs?
You can have the same percentage risk for all pairs say for example 5% risk divided into the pips you need it to cover, still 5% risk however many pips you are setting, just the amount of money per pip varies.
Success means going from failure to failure without loss of enthusiasm
  • #1,850
  • Jul 22, 2019 1:05pm Jul 22, 2019 1:05pm
Quoting lisat
{quote}You can have the same percentage risk for all pairs say for example 5% risk divided into the pips you need it to cover, still 5% risk however many pips you are setting, just the amount of money per pip varies.
makes sense now. The %risk per trade is the same each time.
  • #1,851
  • Jul 22, 2019 1:14pm Jul 22, 2019 1:14pm
Guys it works when you allways Risk a fixed % of your account size.

On this Link you can calculate how many Lots you should trade for the variable Pipsize of your SL.

https://www.myfxbook.com/de/forex-ca.../position-size
  • #1,852
  • Edited 1:37pm Jul 22, 2019 1:14pm | Edited 1:37pm
I don't care for pips. What does a pip matter? Pips don't pay the bills. Matters not to me. I don't trade for pips I trade for dollars - hard, usable, understandable money. I have a set risk of let's say $100. So 1R = $100. The location of my stop can be based on the high/low of the signal candle, the high/low of the entry candle or sometimes a little further out depending on the size of the candle and recent price action (all riskier than RH recommends). My R value never changes - it's always set to less than or equal to $100 (including commission) and no matter the pair I trade my risk will be $100 on every trade. I don't care how many pips that is. Why would I? My stops are set based on market structure such that if price comes back against me it means my position was likely wrong or I got stopped out on an errant price spike because my stops are tight. Who knows how many pips that may be

My take profit is then set for $200 (plus a bit for commission) or 2 times my risk. My stop is then trailed to reduce the risk of the trade and to lock in some profit should the trade fail to reach my 2R target and come back against me. Easy peasy. Consider ditching the notion of thinking in pips and percents - it's ambiguous. Silliness as far as I am concerned. This just makes loads of sense to me: https://www.learntotradethemarket.co...ng-performance
Emotion - it steals your money.
  • #1,853
  • Jul 22, 2019 1:36pm Jul 22, 2019 1:36pm
Quoting TheSpoof
I don't care for pips. What does a pip matter? Pips don't pay the bills. Matters not to me. I don't trade for pips I trade for dollars - hard, usable, understandable money. I have a set risk of let's say $100. So 1R = $100. The location of my stop can be based on the high/low of the signal candle, the high/low of the entry candle or sometimes a little further out depending on the size of the candle and recent price action (all riskier than RH recommends). My R value never changes - it's always set to less than or equal to $100 (including commission)...
Exactly what we were saying really, as long as the amount of risk is fixed 1:2 R:R will work, varying it all won't.

What will you do though as your account size increases, will you increase from $100 to more? Percentages work in exactly the same way.
Success means going from failure to failure without loss of enthusiasm
  • #1,854
  • Edited 2:02pm Jul 22, 2019 1:41pm | Edited 2:02pm
Quoting lisat
{quote}Exactly what we were saying really, as long as the amount of risk is fixed 1:2 R:R will work, varying it all won't. What will you do though as your account size increases, will you increase from $100 to more? Percentages work in exactly the same way.
I may increase it if I feel like it, but I am trading to pay the bills. Not all the money I have available for trading is in my account. I just need enough to cover my margin to take adequate position sizes in order to make enough money to live on. I don't necessarily trade forex to compound the account. I have a global dividend portfolio that I invest in for that purpose.

Percentages don't necessarily work in the same way as a fixed dollar amount. You will always be trading a smaller lot size after a loss. When I lose a trade I lose let's say $100 but when I win a 2R trade I am up net $100. A fixed dollar risk recovers losses more quickly than a percentage based risk. I am of the opinion that trading a percentage simply slows down your losses because you trade a smaller lot size after every loss which means you are now fighting the battle with less ammunition. If your goal is to attempt to compound the account then OK I suppose, but it doesn't really work out in reality very well. Whatever, to each their own. I trade what makes sense to me maybe it will make sense to someone else and help them.
Emotion - it steals your money.
  • #1,855
  • Jul 22, 2019 1:43pm Jul 22, 2019 1:43pm
Quoting TheSpoof
{quote} I may increase it if I feel like it, but I am trading to pay the bills. Not all the money I have available for trading is in my account. I just need enough to cover my margin to take adequate position sizes in order to make enough money to live on. I don't necessarily trade forex to compound the account. I have a global dividend portfolio that I invest in for that purpose.
Then you have found exactly what works for you, and that is how it should be.
Success means going from failure to failure without loss of enthusiasm
  • #1,856
  • Edited 2:02pm Jul 22, 2019 1:50pm | Edited 2:02pm
Quoting lisat
{quote} Then you have found exactly what works for you, and that is how it should be.
Sure, but what I am also trying to convey is that perhaps, just perhaps conventional forex trading wisdom isn't so wise after all given that there are so few profitable traders Something is obviously not working...maybe a shift in perspective is needed instead of replaying the same old dogma. I have read so many posts about traders being utterly confused by pips, pip value, position size, fixed pips stops, etc. I've seen guys make 500 pips on a trade that equated to peanuts in actual money. There is a simpler and more usable way and that is to trade a fixed dollar amount on every trade and every pair regardless of the pips. It is a better metric to gauge one's trading performance. A trader can increase the dollar amount risked at logical account balance changes if they so choose to attempt compound the account.
Emotion - it steals your money.
  • #1,857
  • Jul 22, 2019 1:53pm Jul 22, 2019 1:53pm
Quoting TheSpoof
{quote} Losses are going to happen - pay them no mind and don't let them rattle you. Keep them to no more than 1R and you will be fine in the long run. Just think of losses as business expenses.
It make me feel better when I think of them as shoplifters...LOL.
Always a Student, Never a Master - Emulate What Works
  • #1,858
  • Jul 22, 2019 2:00pm Jul 22, 2019 2:00pm
Quoting RobinHood
{quote} It make me feel better when I think of them as shoplifters...LOL.
LOL that's better
Emotion - it steals your money.
  • #1,859
  • Jul 22, 2019 5:02pm Jul 22, 2019 5:02pm
Quoting civac
{quote} Hello Please how can i get the currency strength indicator in your chart. Thanks, Best regards.
Here goes...
Attached File(s)
File Type: mq4 Currency Strength Giraia 28 pairs TRO MODIFIED.mq4   22 KB | 541 downloads

Cheers.
  • #1,860
  • Jul 22, 2019 7:20pm Jul 22, 2019 7:20pm
Quoting carmelina
Can anyone tell me where I can download the indicator to manage my trades? Love your transparency everyone. My biggest enemy is discipline in trading. I have to really work on that and cut my losses.
if your
biggest enemy is discipline in trading

then this may help you.

my favourite is #7.
Attached File(s)
File Type: pdf Doug Zalessky 25 points Mantra.pdf   122 KB | 946 downloads
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
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