Real Trading

GOLD

Waiting for long set up

Managing the Trades and Partial TP/ Loss


We have to think about it, the amount you are willing to lose, risk control or the size of the already opened position, they all revolve in one circle and lead to each other.

Lets assume you have 5 mini lots opened, and you risk 2% of your capital which is $10k, then you are risking $200, which accounts for a stop loss of 40 pips.
Now, your management to the open position might not be the same as another trader.

For example, I might be breaking down the 5 mini lots with different stop losses for every 2 lots, with the last lot having the largest stop loss and I still don't risk more than $200.

Take this, if the trade goes against me 20 pips, I will close 2 losing lots, thus realizing a $40 loss and having an un-realized loss of $60.
If the trade moves against me another 20 pips, I will close another 2 losing lots, and realize another $80 loss since those 2 lots actually went against me 40 pips, but now, I am having an un-realized loss of $40 on just 1 remaining lot, and so far, I realized a $120 loss out of my $200.

Should the market move against the remaining lot by another 40 pips, it should be closed for a realized loss of $80, making the overall loss for the whole trade as $200.

Here it goes:
Long 5 mini lots at 1.2000 (just a made up numbers for example)
Closed 2 mini lots at 1.1980 (Total loss of $40)
Closed 2 mini lots at 1.1960 (Total loss of $80)
Closed 1 mini lots at 1.1920 (Total loss of $80)
Total loss for the trade = $200

You are managing the opened position, but you are once again sticking with your max loss per trade, which is $200.

The advantage here is that you gave the market room to prove that you are completely wrong, instead of closing all 5 lots after a 40 pips move against you, you totally got out of the market after an 80 pips move against you, yet your lost what you can afford to lose in the first place.

What I want to say here is that it's just we are talking about the basics which everyone can apply, and Tharp is talking about an approach which fully depend on the trader to decide upon.

Pre-trade MM doesn't have a large number of variations.
I mean it's simple, you define your risk per trade, and through it, you define your lot size and calculate the stop loss, or you already know your stop loss, and calculate your lot size accordingly.

Post-Trade MM implies art and is very related to the trading strategy you are using.
If you are using a volatile strategy and expecting the market to move against you by a wide margin in 70% of your trades, you might consider having different stops for your lots.

If you are using a stable strategy which does not have large drawdowns, then equal stop loss is perfect, and in between, there are many variations

Hope it gives you clear answer to your PM. Thus benefiting you and others answering the question in public.

Thanks

Some point that cross my brain on probabilities......
Probabilities change over time.

If you are opening a long position that have a 70% probability to go in your favour, and yet it goes the other direction, the probability is changing against you.

For example, the 70% probability of going up to a certain point won't remain the same if the pair moved 30 pips in the other direction, let's say it will drop to a 60% one.

So still there is a chance, if you close your position completely, and the market decides to take the 60% probability and goes up, you completely lost the battle as you are already out of the market.

Yes, by closing every successive lot for a loss and keeping the rest of your position open, you are decreasing the gains you are going to get if the trade goes your direction,
BUT, you are giving room for market volatility, giving room for pullbacks, and also giving room for yourself.

Who knows, maybe the market goes in your favour and the probability of continuation upwards is decreasing, so you close your position at either breakeven or at a profit.

Most importantly, whatever you are doing, you must stick with the max loss you are willing to lose per the trade.

It's a trade off man, and you have to give up something to get the other, depends on the trader.

Hope benefit you on the after thought.

Pat, you mean short right? At bearish OB ?

YES, you're correct....

The plan is, we go LONG first to the OB, then take SHORT from there.

Sorry for the confusion. I like to short cut my explanation.....

Yes, you have to be in it to win it, so stay in it ...I've read posts'that said they've blown their banks after a 100 pip move on GU, 100 pip move on GU is nothing, don't be greedy BIG BANK small lots and a lot of patience ..."a steady drip fills the pot"

A steady drip fills the pot, be more than happy if we delivered that every day of the month....

GOLD

Simple set up and trades for GOLD

Target achieved. Wait for next set up

GOLD

Zoom in the last move.

In reality, we cannot catch the whole moved. It is important to catch a good moves.
In this we got 91 pips moves, but managed to scoop 57 pips of the meat, with low risk trade.

Structure has shown strong up moved to H4 OB level.

Make trading simpler, that's the only way to make money everyday.

Peace & Trade Well

Is this a so called "QM model" and We could short there? thanks Pat

GU

waiting for set up

NO

EU

This QM is in waiting for rejection

EU

QM = Print Money.

Simplest form of Chart Analysis.

Audjpy

long 94 RN
tp 98

falling knife? No fractels

Today´s session +1% on USDCAD a fast trade

full session https://sharevision.com/video/elq5Va

GU

Short

IMO 1.245/5 area bro is the place for look for ob for a mini retracement

gray zone Is Fvg

GU

Position added @ H4 SRF