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  • #181
  • Aug 21, 2010 9:20pm Aug 21, 2010 9:20pm
Quoting Chicky
Depends what is one's definition of "An Account". If it refers to all of your working capital then 2% is a bit too high for a trader who's win/loss ratio is no better than 60/40. Forty straight losses would drastically reduce operating capacity.

My normal risk apettite is 1% of amount set aside for a month's trading (i.e. amount I am willing to lose in a month). But everyone has a diffirent system and risk management mechanism, follow your own calculations.
Ok I understand that. For me, and for now preserve my account is the first objective, because I'm in my first year of trading fx. Your thread is really good, I like it a lot.
  • #182
  • Aug 21, 2010 11:07pm Aug 21, 2010 11:07pm
Quoting Chicky
My first post after a break of many months. Still cannot trade but may resume trading in the next few weeks, if not days.

Oh my goodness gracious gosh! It's Chicky! Thank Gods you are alive and well I hope? Many have missed you and wondered whether you were ok....


do stop by and say howdy over at the E/U thread, which is pretty much the same as it ever was
"If The Fool persists in his Folly he will become wise." - William Blake
  • #183
  • Aug 21, 2010 11:34pm Aug 21, 2010 11:34pm
Quoting The Fool
Oh my goodness gracious gosh! It's Chicky! Thank Gods you are alive and well I hope? Many have missed you and wondered whether you were ok....


do stop by and say howdy over at the E/U thread, which is pretty much the same as it ever was
Hi TF, I am doing Ok. Now only two fingers that need some improvement. Your prayers and well wishes worked.

Intermittently reading EURUSD but not participating. Still not allowed to trade. Last few weeks were very good, developed some healthy habits, enjoy walking in the swimming pool as part of a therapy. That helped - developed a trading system based on Total Immersion Swimming!!!
The Thief of Wall Street
  • #184
  • Aug 22, 2010 2:54am Aug 22, 2010 2:54am
Quoting Chicky
Depends what is one's definition of "An Account". If it refers to all of your working capital then 2% is a bit too high for a trader who's win/loss ratio is no better than 60/40. Forty straight losses would drastically reduce operating capacity.
You should emphasise that this is just your opinion. Risking 2% on less than 60/40 is mathematically acceptable. It's also not reasonable to suggest 40 straight losses as an argument against risking 2%.
  • #185
  • Aug 22, 2010 4:19am Aug 22, 2010 4:19am
Quoting The Fool
Oh my goodness gracious gosh! It's Chicky!
Are you sure?

Quoting Chicky
ps. Kindly read my any subsequent posts as one posted by a 12-year old, because my son may try to fool around with my membership here.
  • #186
  • Aug 22, 2010 7:25am Aug 22, 2010 7:25am
Chicky, we've all been there, start off well, then lose a few, knocks the confidence then get gambly to get that back then margin call, take a break, demo then slap a small amount of cash back in and spin the wheel.

Re starting up again myself after a 6month break, good times
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #187
  • Aug 22, 2010 6:39pm Aug 22, 2010 6:39pm
Quoting Mr J
You should emphasise that this is just your opinion. Risking 2% on less than 60/40 is mathematically acceptable. It's also not reasonable to suggest 40 straight losses as an argument against risking 2%.
Indeed this is my opinion. Many things need to be considered before deciding a risk %.

Risking more than 1% a trade is unacceptable if a trader's win/loss ratio is no better than 60/40 (sixty being the winners). 40 straight losses are not uncommon. It does not make a difference whether it is my opinion or someone else's, it is logical.
The Thief of Wall Street
  • #188
  • Aug 22, 2010 6:59pm Aug 22, 2010 6:59pm
Quoting Turveyd
Chicky, we've all been there, start off well, then lose a few, knocks the confidence then get gambly to get that back then margin call, take a break, demo then slap a small amount of cash back in and spin the wheel.

Re starting up again myself after a 6month break, good times
Turveyd, my friend

This is the game. One cannot steal a lion's cub without entering into her den. Losses and total losses are part of this game but quitting is the only other option.
The Thief of Wall Street
  • #189
  • Aug 22, 2010 7:03pm Aug 22, 2010 7:03pm
Quoting Chicky
Indeed this is my opinion. Many things need to be considered before deciding a risk %.

Risking more than 1% a trade is unacceptable if a trader's win/loss ratio is no better than 60/40 (sixty being the winners). 40 straight losses are not uncommon. It does not make a difference whether it is my opinion or someone else's, it is logical.
Well, if you have 40 losses one after the other, there is something wrong in your trading.
I think this is the point he was referring to.
  • #190
  • Edited 7:30pm Aug 22, 2010 7:12pm | Edited 7:30pm
Quoting tunera
Well, if you have 40 losses one after the other, there is something wrong in your trading.
I think this is the point he was referring to.
There are many things wrong with my trading. Maybe this is one of them. But this is the nature of trading. Whoever denies this will not last. One not loses when things go right, but when things start going wrong. Extraordinary number of straight losses is one of such things. One should be prepared for that. This is my point.

ps. 2% risk is way too much for 60/40 win/loss expectancy if one is constantly trading. I believe 60/40 is a reasonably good ratio.
The Thief of Wall Street
  • #191
  • Aug 22, 2010 7:44pm Aug 22, 2010 7:44pm
Chicky,

Good luck with the restart. I'm sure it will be successful. An open mind is the key to success. This market is a living breathing monster.

It is insane to think that a system developed today will be good next month. If it was possible to use the same system complete with the original parameter we would all have a personalized EA running for us while we go out and have fun.

Go with what works, meanwhile find the new parameters that will keep your system alive in the future.

I wish that some other posters had half the clue the old members have. We have a whole new breed of dictators that are convinced they have found the best way to trade and that anyone not trading using their style is an idiot.

Once again, it’s nice to hear your humble words; a real breath of fresh air.
  • #192
  • Aug 22, 2010 8:35pm Aug 22, 2010 8:35pm
Quoting bablo
Chicky,

Good luck with the restart. I'm sure it will be successful. An open mind is the key to success. This market is a living breathing monster.

It is insane to think that a system developed today will be good next month. If it was possible to use the same system complete with the original parameter we would all have a personalized EA running for us while we go out and have fun.

[color=black][font=Verdana]Go with what works, meanwhile find the new parameters...
Hi Bablo,

Cannot trade at the moment for a different reason.

Many are good but no system guarantees steady profits. This makes money management an integral part of any system.

A few experienced traders I know put more emphasis on money management part of their trading. They know a trading system can fail at times like any other business venture, but they are not stupid in managing their funds. A lesson that can only be learned in its due course and time.
The Thief of Wall Street
  • #193
  • Aug 22, 2010 8:49pm Aug 22, 2010 8:49pm
Quoting FXSurfer
Are you sure?



Shhhhhhhhhhhhhhhhhhh
The Thief of Wall Street
  • #194
  • Aug 22, 2010 8:54pm Aug 22, 2010 8:54pm
Quoting Chicky
Hi Bablo,

Cannot trade at the moment for a different reason.

Many are good but no system guarantees steady profits. This makes money management an integral part of any system.

A few experienced traders I know put more emphasis on money management part of their trading. They know a trading system can fail at times like any other business venture, but they are not stupid in managing their funds. A lesson that can only be learned in its due course and time.
Well put. MM is key.

Take care.
  • #195
  • Aug 22, 2010 9:13pm Aug 22, 2010 9:13pm
Quoting bablo
Chicky,

Good luck with the restart. I'm sure it will be successful. An open mind is the key to success. This market is a living breathing monster.

It is insane to think that a system developed today will be good next month. If it was possible to use the same system complete with the original parameter we would all have a personalized EA running for us while we go out and have fun.

[color=black][font=Verdana]Go with what works, meanwhile find the new...
Sorry, i was not looking to be rude at all.
Wish the best!
  • #196
  • Aug 22, 2010 9:21pm Aug 22, 2010 9:21pm
Quoting Chicky
There are many things wrong with my trading. Maybe this is one of them. But this is the nature of trading. Whoever denies this will not last. One not loses when things go right, but when things start going wrong. Extraordinary number of straight losses is one of such things. One should be prepared for that. This is my point.

ps. 2% risk is way too much for 60/40 win/loss expectancy if one is constantly trading. I believe 60/40 is a reasonably good ratio.
well said Chief. 2% risk is too much.
  • #197
  • Aug 23, 2010 7:40am Aug 23, 2010 7:40am
Quoting Chicky
There are many things wrong with my trading. Maybe this is one of them. But this is the nature of trading. Whoever denies this will not last. One not loses when things go right, but when things start going wrong. Extraordinary number of straight losses is one of such things. One should be prepared for that. This is my point.

ps. 2% risk is way too much for 60/40 win/loss expectancy if one is constantly trading. I believe 60/40 is a reasonably good ratio.
Just to complete the idea, I think % of win isn't the complete story, the r/r is the other part. If your winners are ie 2:1 even a worst % of win makes you profitable. Like always, just my opinion
  • #198
  • Edited 8:42am Aug 23, 2010 8:23am | Edited 8:42am
2 % is way too much ???

Come on guys, you are way too funny. Admit you read about this 2% crap all over this forum and now accept it as an god blessed truth without even making your own researches.

Go over the internet and find this good article by Ed Seykota on "portfolio heat". First it's a gem...second it might help you turn the page on this globally accepted and globally crappy holy 2% maximum risk for a trade.

Test the optimal heat of your system...

Define your financial objectives and size your position accordingly...

One more thing:

If you trade with a 10k account and your uncle point is -50%...then leave 5k in your account and trade it like you stole it...take the rest back to your bank account and stop pretending you're risking it in the market.

My 2 cents.
It's all about your stomach lining...
  • #199
  • Aug 23, 2010 9:02am Aug 23, 2010 9:02am
Quoting patmarch
2 % is way too much ???...
Be careful when espressing your opinion patmarch, you can be tagged as a "dictator" :S
  • #200
  • Aug 23, 2010 10:08am Aug 23, 2010 10:08am
Quoting tunera
Be careful when espressing your opinion patmarch, you can be tagged as a "dictator" :S

Call me Pinochet if you will

I think that this 2% risk is nothing more than a lazy minded uninformed way to put in a nutshell the complex part of trading that is position sizing...and once accepted by the majority becomes the comfortable cornerstone of a fear munger squad that praise the good of not risking enough and/or the evil of risking too much without defining anything. If people don't want to go through the process of calculating their optimal risk parameters...then yes, 2% should do the job...but keep in mind that if you actually do the calculation, you might find out that 2% is in fact really too much for your system. That you should go for 0,5%...now that's a stinger !

Before applying this 2% to your trading, make sure it's optimal for your situation. Who knows, maybe you could go for 5%/trade and still be below you optimal risk. Imagine the returns your missing if you stick to this 2% risk without knowing why...or imagine the huge risk you're taking if you should be at 0,5%...

This is a very serious topic and every traders should care enough about their business to at least analyze their situation and match the optimal risk parameters to their systems.

Putting 2% on everything is much more a matter of faith than a matter of business.

My two last cents...
It's all about your stomach lining...
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