'Vegas Wealth Builder Part II'

Quoting JSC77

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I agree about the stop loss issue. I know how to put my entries and I know how to exit, all with great confidence, but as long as I'm not sure I'm using an excellent stop loss strategy I can't go live. Obviously because this insecurity makes me emotionally more vulnerable and increases the odds of not following my stop loss rules. Never again I will fool around with real money, have paid enough "tuition fee" in the past As for now I have simply decided to test the above swing high/below swing low stop loss method... I'll just give it a chance and see how it affects my demo account. Maybe it IS the best method... Meanwhile I'll do a lot of research though, backtesting every meaningful stop loss strategy I can find.

Funny SAR is mentioned because I was backtesting with this indicator this weekend... unfortunately I can't find a good setting that is in harmony with VWB I would like to find other good stop loss strategies but I can't find much information about it... Yes there's a lot of information available about money management (the best stops related to account size) but not about the best possible stops related to price action.

What is the best possible stop loss strategy giving you enough space so you're not stopped out all the time, and still minimizing your drawdowns? Every pip counts, let's say if you do 100 trades/year and win 5 pips/trade because of a better stop loss strategy, in the end that's some good money!

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Quoting Lindsay

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WELL PUT, I'M A RELATIVE NEWBIE AND I WOULD LOVE SOME OLD HEADS TO TELL ME IF THEIR IS SUCH A STRATEGY THAT CAN PREVENT DRAW DOWNS THAT ARE UNACCEPTABLE OR MISSIMG OUT ON PIPS OR IS IT TOO DIFFICULT TO GIVE A ONE ANSWER FOR ALL TRADES OR A ONE ANSWER FOR EACH PAIR?

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Quoting Mike Jolley

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There's a lot of wisdom in those VWB docs, but they don't say much about money management.

Learning about MM is what has saved my ass from what would have been crippling losses otherwise. The main point is that the distance to the stop loss determines risk, and risk determines position size. Therefore, if you have a wide stop, you must have a small position. It doesn't matter whether you're doing a long or short trade.

So I try to set my stops behind some decent S/R, but I try not to put them more than 50 pips away, about 30 on average. Some people using the Vegas systems will set stops 100 pips or more away. I don't want that kind of drawdown. I'd rather do my best analysis, be wrong, lose a little money, and get back in at a later time.

However, I do recommend thinking hard about the stuff about "dancing around" with partial positions as described in the VWB docs. This is active daytrading technique applied to long term positions, and it's something I and everyone I know is having trouble with and wants to understand more fully.

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Quoting mrgreen

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I am real glad to see this item being discussed. I have been demoing a scale in strategy. I got the idea from Jesse Livermores strategy of putting out a small line in the begining and if it takes off then adding to it.

My full line is 2%. I initially begin with .5% @ a 30PIP initial stop. If this goes 20 pips I add 1% and move the .5% to BE and leave the 1% at 30 PIPS s/l. At the next 20 Pips I add the final .5% move the 1% to BE and the 1st .5% to = the 1%. everything to BE at 60 PIPS.

I have noticed that if the entry is going to work it will happen fairly quickly. If it stops out I have begun wrong and only lose a small amount.

I dont have enough data as of yet to say of this is a viable strategy or not.

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Quoting mrgreen

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I am real glad to see this item being discussed. I have been demoing a scale in strategy. I got the idea from Jesse Livermores strategy of putting out a small line in the begining and if it takes off then adding to it.

My full line is 2%. I initially begin with .5% @ a 30PIP initial stop. If this goes 20 pips I add 1% and move the .5% to BE and leave the 1% at 30 PIPS s/l. At the next 20 Pips I add the final .5% move the 1% to BE and the 1st .5% to = the 1%. everything to BE at 60 PIPS.

I have noticed that if the entry is going to work it will happen fairly quickly. If it stops out I have begun wrong and only lose a small amount.

I dont have enough data as of yet to say of this is a viable strategy or not.

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Quoting Lindsay

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I remember reading a little about Jesse Livermore and downloaded his book. I remember his strategy and I think it is a great idea to investigate. But we still have the biggest problem of a successful trade and that is once the trade is fully on and we are 100pips or more in front, where is the best place to have stops to let the trade run but still keep profits?

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Quoting vinn234

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Any one out there know whether entry on the 4 hour tunnel is on the cross of the sma. or the slope of the 8 sma .was reading the doc and got Brian freeze need help .

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Quoting erikcw

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What happened to the momentum in this thread?

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Quoting jotty

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hi today's GBP would be qualify as a VMB trade.

Did anyone get in?

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Quoting shYun

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Can somebody please explain in plain English how to apply fib # manually? I am using Oanda Platform and it has 5 fibonacci options ARC; Fan; Retracement; Time Zone; Speed Lines and I have no ideal how to set up those fib #(55, 89, 144, 233, and 377) on the chart when I open a position.

I am a newbie and just started learning forex mumbojumbo. Everyone is talking about Vegas Tunnel and I'm dying to try this legendary method but stuck with Fibonacci!!

Thank you so very very much for the help in advance.

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