Doug,
Thank you for your long and thorough post!!
I've been struggling for a long time with a R:R 2:1, as per conventional wisdom. However, I could never get my % wins over 50%, to have a meaningful growth in my account.
Actually, the reason is simple. I would raise my TP targets constantly, trying to get more and more of the move. And in the end, many times the market would reverse on me and eat my profits, or even worse take me out with a loss.
I've tried your money management approach for the last few days and I've had quite a few wins in a row (6 so far), with consistent growth in my account. I use a TP of 10pips and a SL of 15 pips, so I aim for small consistent profits throughout the day. This allows me to enter some positions from my PDA at work , without having to track them like I used to. Just set and forget ...
You are right, the psychology is much different when your last 6 trades were winning. Not arrogant, but rather much more comfortable to take the trade once your system gives you a signal.
Thanks a million. Now I just need to print your equity curve and paste it on the wall in front of my monitor, with the aim of replicating it!
Thank you for your long and thorough post!!
I've been struggling for a long time with a R:R 2:1, as per conventional wisdom. However, I could never get my % wins over 50%, to have a meaningful growth in my account.
Actually, the reason is simple. I would raise my TP targets constantly, trying to get more and more of the move. And in the end, many times the market would reverse on me and eat my profits, or even worse take me out with a loss.
I've tried your money management approach for the last few days and I've had quite a few wins in a row (6 so far), with consistent growth in my account. I use a TP of 10pips and a SL of 15 pips, so I aim for small consistent profits throughout the day. This allows me to enter some positions from my PDA at work , without having to track them like I used to. Just set and forget ...
You are right, the psychology is much different when your last 6 trades were winning. Not arrogant, but rather much more comfortable to take the trade once your system gives you a signal.
Thanks a million. Now I just need to print your equity curve and paste it on the wall in front of my monitor, with the aim of replicating it!