what i mean is,
you see a pretty good trade. you take it. it goes against you 100 pips. liquidate it.
keep using the system on other currencies.
48 hours later, you notice the exact same currency, ran for another 300 pips. rules meet again. it looks good. you get in again. it goes against you. down another 100. liquidate it.
keep using the system on other currencies.
72 hours later, you notice on the exact same currency, it ran for another 300 pips. rules look good to take another re-tracement trade. you get in. you might or might not win.
in the above example, you are just treating the same event with a very objective mindframe. you may or may not go in with bigger lots on the 3rd time. that depends on trading skill i guess. but the main point is, don't let one scenario consume you. so what if you end up winning +30 pips on this runner through a 2.5 week span? it cost you a major DD (this is still fine). the true problem exists in the fact that the costs of this DD, is a perpetual smaller trading lot size on all the other trades within this system.
if you have to worry about a -1000 pip DD, at any stage using this system, your always going to be trading smaller lots on all your other trades within this system. but if there is a winning edge on everything else, is the cost to benefit ratio really worth it?
HOWEVER, i finished reading the entire nanningbob 5.0 thread. our saviour mr. bob in nanning, actually did mention NOT to take this 2.4.2 idea to it's end. he only does it when he feels he has good reason to. he let's a lot of them die and just take the lost. and he also mentioned that on his secondary trades, he goes up to 2 full lots when it's bouncing off the support of a previous ea1 or ea2 entry.
what i am suggesting is absolutely nothing new. therefore, all i can really say is...... we all owe bob. in my previous post in this thread, about a 58% win rate, zero 2.4.2 and 55 trades a month on half lots, i am pretty sure it will work. don't forget, bob is a teacher in china. he left his country to do this. by nature, he MUST be charitable, that's why we have this system. because he posted it.
if you are a poor ass like me, who couldn't care less about charitability, and only wants bottom line, cold cash, so he can quit his god damn telephone operator full time day job, then i think it can be done, thanks to bob's base of a trading methodology that absolutely works.
if it works well, even for new users, making all types of mistakes, can you imagine how it works for those familiar with it? the edge must be great.
you see a pretty good trade. you take it. it goes against you 100 pips. liquidate it.
keep using the system on other currencies.
48 hours later, you notice the exact same currency, ran for another 300 pips. rules meet again. it looks good. you get in again. it goes against you. down another 100. liquidate it.
keep using the system on other currencies.
72 hours later, you notice on the exact same currency, it ran for another 300 pips. rules look good to take another re-tracement trade. you get in. you might or might not win.
in the above example, you are just treating the same event with a very objective mindframe. you may or may not go in with bigger lots on the 3rd time. that depends on trading skill i guess. but the main point is, don't let one scenario consume you. so what if you end up winning +30 pips on this runner through a 2.5 week span? it cost you a major DD (this is still fine). the true problem exists in the fact that the costs of this DD, is a perpetual smaller trading lot size on all the other trades within this system.
if you have to worry about a -1000 pip DD, at any stage using this system, your always going to be trading smaller lots on all your other trades within this system. but if there is a winning edge on everything else, is the cost to benefit ratio really worth it?
HOWEVER, i finished reading the entire nanningbob 5.0 thread. our saviour mr. bob in nanning, actually did mention NOT to take this 2.4.2 idea to it's end. he only does it when he feels he has good reason to. he let's a lot of them die and just take the lost. and he also mentioned that on his secondary trades, he goes up to 2 full lots when it's bouncing off the support of a previous ea1 or ea2 entry.
what i am suggesting is absolutely nothing new. therefore, all i can really say is...... we all owe bob. in my previous post in this thread, about a 58% win rate, zero 2.4.2 and 55 trades a month on half lots, i am pretty sure it will work. don't forget, bob is a teacher in china. he left his country to do this. by nature, he MUST be charitable, that's why we have this system. because he posted it.
if you are a poor ass like me, who couldn't care less about charitability, and only wants bottom line, cold cash, so he can quit his god damn telephone operator full time day job, then i think it can be done, thanks to bob's base of a trading methodology that absolutely works.
if it works well, even for new users, making all types of mistakes, can you imagine how it works for those familiar with it? the edge must be great.
DislikedChi,
Your post gives food for thought and makes a lot of sense. When you say, go easy on the 242, you're referring to the guys not trading with a SL right? There won't be any need for the 242 if we use a SL.Ignored
to close everything before the WE.
