1
There is no Magic Moving Average - You need only one
- #764
- Edited 2:11am Aug 4, 2019 1:51am | Edited 2:11am
- Joined Mar 2018 | Status: High Impact Member | 705 Posts
Pls, in which post can I find the money management strategy being referred to here?
Check this one & let me know which do you prefer and if you have questions further...
https://prnt.sc/om1iy2
The initial idea of Sepram going back like a month later, is he would place one order with initial SL then Target on TP3(1:3) then move SL to entry once price hits TP1. So, trade is breakeven once price goes to wrong direction. But if trade goes well and price hits TP2, SL will be moved to TP1. At this stage, price either goes to final target(TP3 or go back to TP1) This approach is really good for active traders and are in front of computers all the time but the problem is if the price hits one of the TP and we are not able to move the SL manually. Other than that, I don't see anything wrong anymore. Still a good risk reward ratio of 1:3.
My only proposed money management is hAve 3 separate orders with different entries, SL and TPs. But all of them will have the same price/pip distance. So that once TP1 gets hit, the 1st order will be closed in profit then 2nd order will be opened right away where the SL was placed on the entry level of the 1st order then the target is TP2, same thing will be the setup for the 3rd order. This has the same possible results on Sepram's approach but the only difference is you just set and forget... No more worrying if you need to move SL already or still not. So, you can go to bed with a peace of mind.
For the lot size usage, I leave the decision to you or to the trader because we all have different account size.
**But let me also explain the link I sent above**
Provided, you chose to have 3 separate orders with different SLs, TPs and Entries.. You will have 3 results if you choose different lot sizes.
No Increment - 1st to 3rd orders will be the same lot sizes only.
-the risk reward here is 1:3 but the good thing is once 1st TP gets hit, you don't have risk anymore if price goes against you. You will be at Breakeven.
Increment Once - 1st order will be 0.01, 2nd order will be 0.02 then 3rd will 0.03. (the increase is based on the amount of initial order) OR if your initial lot size is 0.50, then 2nd will be 1.0 then 3rd will be 1.50 lot size
-the risk reward here is 1:6 but you will lose your initial SL if price did not hit all TPs.
Increment Twice - 1st order will be 0.01, 2nd order will be 0.02 then 3rd will be 0.04 (the increase is always doubled starting from the initial order) OR if your initial lot size is 0.50, then 2nd will 1.0 then finally 3rd will be 2.0 lot size.
-the risk reward here is 1:7 but you will need to hit all 3 TPs to get a very good profit.
We're not here to be right, we're here to Profit Consistently!
- #772
- Aug 14, 2019 4:01pm Aug 14, 2019 4:01pm
- Joined Jun 2011 | Status: Swing trader using Market Cycles | 2,152 Posts
Technical vs Fundamental.
Money moves the market, not an indicator.
