Money management plan - Your way to the millions

While most traders focus on trading strategy and systems, some didn't focus on money growing strategy, so I post today my effort on money management plan to reach the million in easy and clear way.

The plan is based on levels and each level is based on making 400 pips with max lose 100 pips at the begin of each level to jump to the next level.

So if trader have a good trading strategy with small expected lose on trade and reward good profits he be able to use this money plan.

I will post in this thread my trading system in the future and updates on the money management plan.

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Profit case:

You will need 400 Pips to double your money and to move from level to the next.


Lose case & risks:

Losing 100 Pips bull you back to the half of the previous level
Losing 200 Pips bull you back to the begin of the previous level.


Trading Strategy:

This money plan to be trader with any strategy with small stop lose and good winning ratio.

Best Wishes,
Alaa Maanawi

Incredible. Thanks for sharing this. I will be applying it to my trading this upcoming year. I think this is fantastic.

Thank you for starting this thread I will be following it with great interest

best regards
Koyco

Thanks for positive replies, im trying in last months to come out with what perfect to trade in secure way and next days I will start to share my trading system that work the best with this money plan.

I do my best for both manual system and EA and both will be posted here.

Excellent .xls

Thank you!

hahahaha i dont agree to your lot size. its rather to big. its undersatndable at the begining, since the ccount size is huge. i will advise you to look into reducing the lot size to lets say 5 to 10% as the money reaches a thousand, this way u could reach your 100k in the first year and then look to have a 300% return in the second year. if u could turn it to a million bucks in 3 three years you are fantastic. your analysis seems to much unless you are telling me that u have this already if not u are only having fanatsy.targeting 400 to 500 pips a month is more than ok and this shd guide you to making ur millions.i have a better analysis i will share if you so wish

please share !

I agree to the lot size. I think its way to big...i did something similar a few month ago, and i only increased lot size on every 1000 i made. To start wit 0.2
and increase by 0.1 or 0.2 every G.

happy new year to all

Shukran

at my first post I said the key behind this money plan is not to lose more than 100 PIPS in the begin of each level or step, then its all go fine after this.

I said also i will add here trading strategies that gain big profits with so tyt loses to enter it.

I'm looking for carmen indi and strategy at one of 3 strategies to be used and I will try also all of these strategies to be on EAs and will posted under this thread once im sure they running on the rules that i seek.

Yup, nobody plans to lose more than 100pips.

The only problem is that each trade risks just about 26% of your account. 4 losses will wipe out your account. Remember that a 5% trade is considered aggressive.

Someone once said (and I apologize that I don't know who) if you have a 75% win ratio that still means you can lose 25 times in a row.

Figures I had a link that showed how to trade $1000 to a million in one year averaging about 27 pips a day (Again one of those perfect "If-you-never-took-a-loss" hypothetical calculations.). But it seems that the link is gone.

I'll post it if I find it.

Remember the key to money management is making sure that you have money to manage!

Cheers!

maanaw

I like your idea here with MM its never really talked about much and yet is simply the most important entry and exit tactics fail to overcome mistakes in MM but MM can create a hugely profitable system from really bad entry and exit tactics.

Here is something to consider.. fix lot position sizing... makes a huge difference to your efficiency as a trader.. I encourage new traders to have great efficiency with their MM through the learning process.. something that helps our traders is this idea of fixed lot position sizing.. This is having set plateaus for fixed losses and gains while trading.. ill post a idea of fixed lot position sizing here.

a trader has a idea of how to trade the market.. this idea uses pin bars at swing highs and swing lows of the market to buy and sell the trader notices that risk rewards of 1:1.5 hit quite frequently without breaking the low of the pinbar. The trader wants to trade the pinbar but doesnt know the magnitude of the edge that the pinbars provide.

The trader in an effort to learn the magnitude of the pinbars dives into trading the setup but has a limited account size. he is told that he should risk a % of high account per trade .. since this trader is a tester he tests the edge needed to produce profits with this strat... the trader runs the test at 50% win rate at 1:1 and notices something odd. most traders consider 1:1 r:r at 50% win rate to be breakeven trading... but the numbers dont reflect this... what is reflected is a slowly accruing loss. this is what the trader saw...

beginning balance: 1000
win rate 50%
50% on a loss
50% on a win

1000*.50=500*1.5=750*.5=375*1.5=562*.5=281*1.5=421
bal * loss=bal*win=bal*loss=bal*win=bal*loss=bal*win = new balance

youll notice he won.... 3 times
and youll notice he lost .... 3 times
and youll notice his r:r was 1:1
and youll notice his win rate was 50%
BUT youll also notice he only has 42.1% of his account left after 6 trades when he should be breakeven.....

the trader scratches his head and says well thats not gonna work how can i really make this BE at 50% without skewing my R;R and lowering my probabilities to hit my targets...?

smart trader....

he says hey... i know ill use fixed losses and gains not a % of my account.. he goes back to the drawing board and notices that with fixed losses and win amounts he is a breakeven trader... this is what his new test showed..

beginning balance: 1000
win rate 50%
$500 on a loss not a %
$500 on a win

in the same win loss order...

1000-500=500+500=1000-500=500+500=1000-500=500+500=1000
bal+loss=bal+win=bal+loss=bal+win=bal+loss=bal+win = new balance

he notices that he saved 580 dollars not using a % based R;R system and is actually be at 50% with fixed.. he says to himself well i know from my back testing that these pins hit 1:2 r:r 42.75% of the time.. and he reruns the numbers... and notices 2 things

at 42.75% at 1:2 risk reward you are net - after 100 trades with a % based position sizing
at 42.75% at 1:2 risk reward you are net + after 100 trades with a % based position sizing system. he then posts his idea on forexfactory....

hey guys look what I think i uncovered may be causing my losses... 95% of the trading community calls him a noob and using fixed position sizing will never achieve trading greatness because it will limit the upside on his account.. the trade feels confused and goes with the FF crowd and says well i guess ill use % based position sizing... 30 days later his account is blown and he is another war casualty due to the urge of people to make 1000% of there money in 6 months - 1 year and achieve millions with 4 dollars.

Ill let you guys draw your own conclusions...

Hi Domino,

thank you for sharing your knowledge in here, I agree with you and Agree with my self too, I know to run this thread add responsibility on me of helping others and providing quality info and to be something for traders to follow so i keep doing my best to provide this help for me and others who follow up with this thread.

as you see in my MM you can start it with any small account or part of account like 40 or 100 or 300 USD, so if me or someone else want to risk or take chance then follow the MM rules that I posted and the trading strategy that will be posted under this thread which i find it will be the best to match this MM plan.

I will change the MM plan only to match the trading system so every thing together work perfect.

Very good analysis Domino. I've got a similar trading plan.
Thanks again

Good stuff! the excel sheets wont show ZOMG to the MOON! profits but it will show a profit good luck nectarios ....

hey manaaw

how is this working out for you.

I have done today morning of the strategy that match this money management plan and even do much more and here is strategy sharp results include the spreads from today open until now!

CHF/JPY

-10
+8
+108
-------------

GBP/JPY

+10
+140

--------------
EUR/JPY

-8
+12
+150

--------------

EUR/GBP
+11

---------------

GBP/USD
+23

---------------
EUR/USD
-5
-6
-4
+73

need to test it the whole week on life account before launch it out

that is damn awesome just in 8 hours got more than 400 pips
after 2 or 3 weeks to have the first million

some explanation on the strategy and how its easy!!!!!!!!!!!!!!!! Just follow the arrows !!!!!!!!!!
I going to even avoid the highlighted lags, im almost half way finish with the lags and faulty signals!

Hi maanawi!

Intersting system !

Could you please tell what arrows, what system is that ?

Thank you

I will post the system at the forum once I make it much better, I just finished with it today morning!
the arrows based on moving averages cross, macd, rsi and stochastic you will only have to trade the arrows nothing else and there is no reprint 100%

attached picture for 1H same clean signals on mtfs
but there a very little of lags some times and im working on to make of this system a perfect thing.

nicely done! i'll look forward to test your system.
Is that both 1H ?