- #7,741
- Mar 6, 2012 12:46pm Mar 6, 2012 12:46pm
- Joined Nov 2009 | Status: Following X to get the effect | 1,302 Posts
I'm on 50:1 leverage (which I think is fairly common) and I know that a trade would have to move a very large number of pips into profit to create enough margin to cover another trade.
I'm sure there is a calculation to work this out, but I'm damned if I know what it is!
PB
if you have $100.000 contracts per 1 Lot take
1.3123(EURUSD) * $100.000 / 50 (Leverage) = $2624.6
so a 1 Lot Order has to go 262.4 Pips then your open profit will give you enough margin for a new 1 Lot order.
Example IBFX AU account ($10.000/lot contract) with 1:400 Leverage
1.3123 * $10.000 / 400 = $32.80.
With this the open order must only go 33 Pips into profit for a new margin order.
- #7,745
- Mar 6, 2012 2:00pm Mar 6, 2012 2:00pm
- Joined Mar 2011 | Status: Trader | 1,886 Posts
Hi Olivia.
I noticed on your charts that you do not have any pivot point support or resistance lines. Do you use the support and resistance lines at all or only the major piviot point only?
Thanks,
Mike
- #7,747
- Mar 6, 2012 2:14pm Mar 6, 2012 2:14pm
Calculation with your margin example would be:
if you have $100.000 contracts per 1 Lot take
1.3123(EURUSD) * $100.000 / 50 (Leverage) = $2624.6
so a 1 Lot Order has to go 262.4 Pips then your open profit will give you enough margin for a new 1 Lot order.
Example IBFX AU account ($10.000/lot contract) with 1:400 Leverage
1.3123 * $10.000 / 400 = $32.80.
With this the open order must only go 33 Pips into profit for a new margin order.
- #7,748
- Mar 6, 2012 2:32pm Mar 6, 2012 2:32pm
- Joined Mar 2011 | Status: Trader | 1,886 Posts
As far as MM goes, I trade a maximum of 3 positions at the same time, only because I don't like to watch more than that at the same time. I put the same lot size on all of them $1 for every $1,000 of equity, I don't like to vary my lot size because sod's law dictates it will be the lesser one that goes further and wins and the bigger ones will lose The risk I am comfortable with is 5% per trade, if that happens to be 3 of them all at the same time it doesn't bother me, thats the risk I take. However saying that I would never let a 5min TF trade go 50 pips against me, and if it was a trade on that tf that needed a 50 pip stop loss I would simply leave it and wait for a better trade, but if it did go against me because of a fluke price shift then so-be-it. My average stop loss on the M5 though is around 20 pips.
I don't trade one currency looking at the others, I take each on its own merits and I don't add to trades.
So saying that, the 286 pips gained yesterday was roughly 32% because eur/jpy pays more than eur/usd on a gbp based account and today's 274 pips was slightly less. I compound daily because I always start the day by working out my new lot size.
How I look at it is, whether there are 3 trades in at the same time or 1 at a time doesn't really matter, its the trade itself that counts and I wouldn't pass on what I thought was a good trade because I have another one in already.
The risk I am comfortable with is 5% per trade, if that happens to be 3 of them all at the same time it doesn't bother me, thats the risk I take. However saying that I would never let a 5min TF trade go 50 pips against me, and if it was a trade on that tf that needed a 50 pip stop loss I would simply leave it and wait for a better trade, but if it did go against me because of a fluke price shift then so-be-it. My average stop loss on the M5 though is around 20 pips.I don't trade one currency looking at the others, I take each on its own merits and I don't add to trades.
So saying that, the 286 pips gained yesterday was roughly 32% because eur/jpy pays more than eur/usd on a gbp based account and today's 274 pips was slightly less. I compound daily because I always start the day by working out my new lot size.
How I look at it is, whether there are 3 trades in at the same time or 1 at a time doesn't really matter, its the trade itself that counts and I wouldn't pass on what I thought was a good trade because I have another one in already.
- #7,749
- Mar 6, 2012 2:33pm Mar 6, 2012 2:33pm
- Joined Mar 2011 | Status: Trader | 1,886 Posts
Welcome to the thread snarlyjack Pleased to meet you, I'm sure you're going to love it.
Pleased to meet you, I'm sure you're going to love it.Evaluator,
Nice meeting you, I'am enjoying your system! It's been
a heavy read but I finally made it through the whole thing.
It's an excellent system, I'am converting from my old system
to your system. I believe once I learn how to trade it
the potential will be much greater. Thanks for posting it!
Question: Would you please post your channel indicator,
"The down channel indicator". The indicator seems to be
very good at finding our place in where were at in the
market.
Also, nice meeting everyone! You guy's & gal's have done
an...
- #7,751
- Mar 6, 2012 2:51pm Mar 6, 2012 2:51pm
- Joined Mar 2011 | Status: Pip Boy Wonder | 1,378 Posts
As far as MM goes, I trade a maximum of 3 positions at the same time, only because I don't like to watch more than that at the same time. I put the same lot size on all of them $1 for every $1,000 of equity, I don't like to vary my lot size because sod's law dictates it will be the lesser one that goes further and wins and the bigger ones will lose
Like I said before this system really gets us out early when price goes against us meaning unless theres a news spike there's no reason that we should get hit with a 50 pip loss if we follow our exit strategy.
accept the risk and have confidence in your trades.. I'm sure we will all profit from this great method!
- #7,752
- Mar 6, 2012 2:53pm Mar 6, 2012 2:53pm
- Joined Jan 2011 | Status: ,,,,, ....,,,,,, | 6,008 Posts
As far as MM goes, I trade a maximum of 3 positions at the same time, only because I don't like to watch more than that at the same time. I put the same lot size on all of them $1 for every $1,000 of equity, I don't like to vary my lot size because sod's law dictates it will be the lesser one that goes further and wins and the bigger ones will lose
.... laughing all the way to the bank
- #7,754
- Mar 6, 2012 3:28pm Mar 6, 2012 3:28pm
The post you have quoted has a dashed green line, that is the daily pivot. On the 5mn chart I use the daily pivots, DPP, R1,2,3 and S1,2,3 etc., the hourly chart I have the weekly and monthly pivots, support and resistance. I don't use mid pivots at all because I would never place a trade
- #7,757
- Mar 6, 2012 4:45pm Mar 6, 2012 4:45pm
As far as MM goes, I trade a maximum of 3 positions at the same time, only because I don't like to watch more than that at the same time. I put the same lot size on all of them $1 for every $1,000 of equity, I don't like to vary my lot size because sod's law dictates it will be the lesser one that goes further and wins and the bigger ones will lose
Thanks,
PB
