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  • #21
  • Oct 30, 2008 4:24am Oct 30, 2008 4:24am
Hi Nomo:
I'm a little confused about your m.m rules. You mentioned previously you went for 20 pips. During the london session today, the EUR and the Cable boxes were approx. 120 pips each. This would be a R/R of 6:1, an insane ratio. What is the worst Risk/Reward that you would consider and do you always shoot for 20 pips. Thanks

Jim
  • #22
  • Oct 30, 2008 5:48am Oct 30, 2008 5:48am
Quoting tiago
i think you need to re-evaluate what MM means..........Phorex Phreak
and I think you need to stop making frugal comments.

no offense intended by the way.
  • #23
  • Oct 30, 2008 5:56am Oct 30, 2008 5:56am
Quoting bigjim1958
Hi Nomo:
I'm a little confused about your m.m rules. You mentioned previously you went for 20 pips. During the london session today, the EUR and the Cable boxes were approx. 120 pips each. This would be a R/R of 6:1, an insane ratio. What is the worst Risk/Reward that you would consider and do you always shoot for 20 pips. Thanks

Jim
Jim.

The 20 pips is just a way to demonstrate the box at least delivers consistency.

Read the part about common sense. How to adjust the load.

Also don't pay attention to the box ranges. That's a bad perception probably from another thread. I remember talking about what's happening inside the box but nothing to do with how wide/narrow the box is.

Clear your head off the 20 pips.

Hope it helps.
  • #24
  • Oct 30, 2008 6:58am Oct 30, 2008 6:58am
Hello, Nomo!
Maybe I miss something, but as if I remember You used 1:1 RR with Your breakout strat. Or is it for some other strat? Or the common sense tells You now, let this ride more, now let close this at 1:1?
Or what am I missing?
THX, NL
  • #25
  • Oct 30, 2008 7:25am Oct 30, 2008 7:25am
Quoting lacika
Hello, Nomo!
Maybe I miss something, but as if I remember You used 1:1 RR with Your breakout strat. Or is it for some other strat? Or the common sense tells You now, let this ride more, now let close this at 1:1?
Or what am I missing?
THX, NL
from the rules:

6)Place a Take Profit at least 1:1 risk /reward (assuming 20 pips stop loss/20 pips profit target)


Note that I use "at least" I am giving more room to go. Assuming 20/20.

Again, the idea of 20/20 1:1 is for people to see the box on consistency.
  • #26
  • Oct 30, 2008 11:01am Oct 30, 2008 11:01am
THX for the clarification.
NL
  • #27
  • Oct 30, 2008 11:19am Oct 30, 2008 11:19am
Quoting nomoretoxic
from the rules:

6)Place a Take Profit at least 1:1 risk /reward (assuming 20 pips stop loss/20 pips profit target)


Note that I use "at least" I am giving more room to go. Assuming 20/20.

Again, the idea of 20/20 1:1 is for people to see the box on consistency.
Hi Nomo: I realize we keep out S/L at 1% of balance per trade, changing out lot sizes to reach that amount. I'm confused about how you determine S/L. If you don't use the box, or the EA that draws the dashed line, what do you use? Do you go be feel, by how things look on the charts? If I understand you correctly, we need to determine S/L first, and then depending upon how many pips it is, we aim for either 1R:R or 2R:R. Sorry to be such a dolt, but I'd like to figure this out and maybe help someone else also. Thanks for all your patience.Jim'
  • #28
  • Oct 30, 2008 11:32am Oct 30, 2008 11:32am
Quoting bigjim1958
Hi Nomo: I realize we keep out S/L at 1% of balance per trade, changing out lot sizes to reach that amount. I'm confused about how you determine S/L. If you don't use the box, or the EA that draws the dashed line, what do you use? Do you go be feel, by how things look on the charts? If I understand you correctly, we need to determine S/L first, and then depending upon how many pips it is, we aim for either 1R:R or 2R:R. Sorry to be such a dolt, but I'd like to figure this out and maybe help someone else also. Thanks for all your patience.Jim'
no problem Jim..always happy to help.

If I don't go by the box or EA, just take the last swing high/low and place it in there.

Once you calculate the distance between stop loss and entry, you'll get the idea on how far away your target is. Then you make a decision.
  • #29
  • Oct 30, 2008 11:42am Oct 30, 2008 11:42am
Quoting nomoretoxic

If you make 2:1 – please stop trading.
.
.
.
B: You place a trade, looking for 2:1 with a 1% risk. 2:I is feasible, market moves on your side. Your target is hit, You close the charts and go do whatever

Why don’t go for a third round???

In my screw-ups, I did that third round many times. I don’t know, maybe is attached to the law of probabilities or something. But trust me on this one. If you did the math, you have 1% in your pocket. Do yourself a favor and don’t go for more.
While I appreciate the sharing on the boards, these statements simply don't make any sense. Quite frankly, it's dumb & dangerous - here's why:

If you trust in the process that you have chosen for picking your trades (and its profitable in the long term), then how often you do it does not matter at all. If you are profitable, there's no reason to stop at any given time (other than fatigue or something like that).

Let's take the example of a casino - this casino offers a slot machine that pays out 98% of your money (i.e. you will lose money in the long run) and another pays out 107% (i.e. you will win money in the long run).

I walk in and play the 98% machine with two pulls of the handle. On the second pull, I win $500 - fantastic! "I should become a pro at this!"

I walk in another day and play the 107% machine and lose both pulls. "Man, this machine sucks, steals all my money!"

Does that mean that I should come back and play the 98% machine every day? Of course not, I will only lose all of my money (albeit slowly with only two pulls each day). If you knew the true odds of the machines, you would spend all your waking hours at the 107% machine. Of course you'd have ups & downs, but over time you would be winning. And most importantly, there is no reason to stop playing. The more you play, the more you win (it's a percentage after all).

In other words, stopping after two trades is foolish if you are profitable and unprofitable. If you stop after two trade and your system is ultimately not profitable, then this strategy will only give you a false sense of security and that's a very dangerous thing. If you stop after two trades and you are profitable, then there is an opportunity cost you are "paying". Would you rather have 107% of $200 or $200,000? The more you put through a profitable system, the better off you are.
  • #30
  • Oct 30, 2008 12:52pm Oct 30, 2008 12:52pm
Quoting LongToBeFree
While I appreciate the sharing on the boards, these statements simply don't make any sense. Quite frankly, it's dumb & dangerous - here's why:

If you trust in the process that you have chosen for picking your trades (and its profitable in the long term), then how often you do it does not matter at all. If you are profitable, there's no reason to stop at any given time (other than fatigue or something like that).

Let's take the example of a casino - this casino offers a slot machine that pays out 98% of your money (i.e. you will lose money in the long run) and another pays out 107% (i.e. you will win money in the long run).

I walk in and play the 98% machine with two pulls of the handle. On the second pull, I win $500 - fantastic! \\\\\"I should become a pro at this!\\\\\"

I walk in another day and play the 107% machine and lose both pulls. \\\\\"Man, this machine sucks, steals all my money!\\\\\"

Does that mean that I should come back and play the 98% machine every day? Of course not, I will only lose all of my money (albeit slowly with only two pulls each day). If you knew the true odds of the machines, you would spend all your waking hours at the 107% machine. Of course you'd have ups & downs, but over time you would be winning. And most importantly, there is no reason to stop playing. The more you play, the more you win (it's a percentage after all).

In other words, stopping after two trades is foolish if you are profitable and unprofitable. If you stop after two trade and your system is ultimately not profitable, then this strategy will only give you a false sense of security and that's a very dangerous thing. If you stop after two trades and you are profitable, then there is an opportunity cost you are \\\\\"paying\\\\\". Would you rather have 107% of $200 or $200,000? The more you put through a profitable system, the better off you are.
Wow...frankly, I was about to give you a long reply, but now I realized that you're not taking the concept of implied volatility seriously. Actually, you're not considering at all volatility. Do you trade?

My advice, before you reply to any post is to read, analyze and understand the concept thoroughly before you engage into any disagreement. All I see in your post is a person who has no clue about the mechanics of the markets and how human behavior interacts via supply and demand.

There's a rookie session here at forex factory, you might find it useful, just in case.

This is not a game forum, as far as I know. Although gaming and trading has similarities, collective human behavior( as I mentioned before) pushing prices up and down, makes them far apart (among other differences).

As for dumb, I suggest for you to use a better choice of words next time. I found it disrespectful and way out of line.

Thank for your concerns.
  • #31
  • Oct 30, 2008 12:57pm Oct 30, 2008 12:57pm
You're missing the fundamental points:

1 - An unprofitable system will lose - period.
Only using it twice a day can give a false sense of security.

2 - A profitable system is a good thing, why would you stop after two trades?
Again, would you want 107% of $200 or $200,000?

Until those two can be addressed, I stand by my post and my sentiment of it being a dumb premise to stop after two trades - makes no sense.
  • #32
  • Oct 30, 2008 1:04pm Oct 30, 2008 1:04pm
Quoting LongToBeFree
You're missing the fundamental points:

1 - An unprofitable system will lose - period.
Only using it twice a day can give a false sense of security.



2 - A profitable system is a good thing, why would you stop after two trades?
Again, would you want 107% of $200 or $200,000?

Until those two can be addressed, I stand by my post and my sentiment of it being a dumb premise to stop after two trades - makes no sense.
Dear sir/Madam

I didn't open this thread to teach people the basics of trading.

Again, there's a rookie session in this forum you might find it useful.

Thanks.
  • #33
  • Oct 30, 2008 1:10pm Oct 30, 2008 1:10pm
I am sorry folks but I am not in a position to fight people with issues. I am here to help. I don’t even have to post here no more, I am happy and profitable…for many years.

Thank you all for the time spent. Sorry to cut it short.

I sincerely whish you all luck in trading.

Cheers.
  • #34
  • Oct 30, 2008 2:07pm Oct 30, 2008 2:07pm
Quoting LongToBeFree
You're missing the fundamental points:

1 - An unprofitable system will lose - period.
Only using it twice a day can give a false sense of security.

2 - A profitable system is a good thing, why would you stop after two trades?
Again, would you want 107% of $200 or $200,000?

Until those two can be addressed, I stand by my post and my sentiment of it being a dumb premise to stop after two trades - makes no sense.

I decided to answer this even though it’s just becoming useless with no benefit whatsoever to people really interested on getting help.


1 - An unprofitable system will lose - period.
Only using it twice a day can give a false sense of security.

We’re not talking about a system here, we’re talking about money management and how to keep your head above the water. There’s no sense of security involved, just discipline.

You’re so-called sense of security is something traders acquire overtime. This is not a “plug and play” stuff. As a matter of fact, nothing is “plug and play” on trading.


2 - A profitable system is a good thing, why would you stop after two trades?
Again, would you want 107% of $200 or $200,000?

You’re not taking in consideration how market behavior will affect your trades at any given point in the future. Therefore is not what the market will do, but how you manage your capital. Systems/strategies etc, are just guidelines. It’s just a part of the equation.

This is about capital management, not gambling.

You should also consider this 107% of 200 or $200,000. It’s a perfect example on how greediness could take over an account in no time. Now, using your “gambler words” you’re stating those figures with no bankroll-base in consideration. A big mistake. I assure you, if you think that way, I can foretell with all certainty your broker will get richer (if you’re in fact a trader, which I really doubt) and their banks will get fatter.

Stopping after two trades is a matter of discipline and understanding on the markets.
Again, I don’t have to go deep below that, as I assume you are NOT a trader. At least you must go through basic concepts which obviously you’re not taking in consideration. I believe I posted on “Trading Discussion” section, not in Rookie Section”

Right??


If you’re trying to get satisfaction trying to outsmart other people, I am so sorry but I am not your candidate. Anyway, you need to do better than that.

I am sorry to see this thread closed but I am not going to make it a parlor for senseless discussion.

I am still available on PM for all of you interested on a sane discussion.

Cheers.
  • #35
  • Last Post: Mar 8, 2009 10:27am Mar 8, 2009 10:27am
Quoting ChowClown
I find this one useful. Based on ADR(13).

ChowClown,

Yes it's useful. Thanks. What does time the input Open time means. The default value is 7. Should it not be 00:00 GMT? So should I change to 0?
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