Draw 'n Trade (DnT)

Can you get into your money management? Thank you.

Well...in fact it is a long topic but i will try to mention it as short as possible...

First , I include martingale money menagement strategy in my mentality.And as i wrote in the first post I have a mentality which accepts 7 failures after each other , but i shud also admit that i never saw the seventh step.Up to now i reached the 5th step for once...anyway...

First Step : x (0,01 for 2500$ ; 0,02 for 5000$ ; .....)
Second Step :2x (0,02 for 2500$ ; 0,04 for 5000$ ; .....)
Third Step :4x (0,04 for 2500$ ; 0,08 for 5000$ ; .....)
Fourth Step :8x (0,08 for 2500$ ; 0,16 for 5000$ ; .....)
Fifthh Step :16x (0,16 for 2500$ ; 0,32 for 5000$ ; .....)
Sixth Step :32x (0,32 for 2500$ ; 0,64 for 5000$ ; .....)
Seventh Step :64x (0,64 for 2500$ ; 1,28 for 5000$ ; .....)
Eighth step :128x (1,28 for 2500$ ; 2,56 for 5000$ ; .....)

All these calculations are made assuming that i have an account with the levarage of 1/500 (its my levarage in my broker company).You can calculate ur own plan according to the opportunities u are given by ur broken company..Now i will calculate things supposing that i have 2500$ with a 1/500 levarage . I risk approximately 40-60 pips per order and lets accept it as 50...

1) 50 x 0,01 = 5$ loss
2) 50 x 0,02 = 10$ loss
3) 50 x 0,04 = 20$ loss
4) 50 x 0,08 = 40$ loss
5) 50 x 0,16 = 80$ loss
6) 50 x 0,32 = 160$ loss
7) 50 x 0,64 = 320$ loss

As u see above i lost (-350) pips with a value of (-635$)

In order to apply the 8th step (1,28) i need at least 1500$ left in my account...so [1500+635 = 2135] 2135$ is needed at least to appply martinbgale according to my money menagement rules...and lets say 2500$...

If u ask how i decided that 8steps scenario will be enough....the answer is "only by experience"...if i had very big capitals i wud re-arrange the rules in accordance to 10times failure....but for now i have never seen the 8th step...mostly i reached the 5th step with GBPJPY once...

The account which u see in the trade explorer is a demo account with 100.000$ , so there is nothing to worry about , so :

x for me = 0,16


i hope i was clear enough....regards..

commentable

hi SELYM

I remain on the market until it touches my tsl

for example e-j ... I might be looking for short entries in smaller TF but now I have no time to do

but just gave me a good idea ... leave pending orders ... I will have to consider that option... thanks

The pair has today broken an important support which helped the price to bounce up to higher level TWICE ... This means that the broken support level's strength is doubled when compared to avarage support/ levels...anyway...price just broke the support zone and came back (small retracement)...and gave us to SELL again....

GBPUSD SELL : 1,5636 SL : 1,5690 TP : 1,5450 (0,32)
BUY STOP : 1,5690 SL : 1,5613 TP : 1,5950 (0,64)

Time will show..

This pair has been waiting right below a H4 resistence for the last a few hours and gives us a good opportunity to placce our SELL order and the BUY STOP order right above the resistence...Also the same situation exists in EURJPY and NZDJPY too..

And i also will add a daily chart with pitchforks on it...they really work !

Time will show

Good work. I rate it excellent.

Can you change your chart background green to white?

update of post 57 which was posted monday i think anyway is going fine thou i took this trade on weekly time frame eying 300 pips










Rememberatient-greed=success

AJ ... Is overbought ... I expected a retracment but the candles are not yet sell signal

saludos.

Xfiles....thank u for the rating.And I ll think about the white background I thought the color "green" was sexy..isnt it ? Thats why i use it all the time

Tiwa , i am also long in EURJPY...but the downwards movement EURUSD makes things weird...as i know they are kinda correlated , so a strong downtrend in EURUSD might make it dangerous to BUY EURJPY...I add a screenshot of my mine , as u can see the price has broken a reistence level...and honestly that resistence was not strong enough to be aq clue for long...but honestly i just try my chance

Porforio....i am also short in AUDJPY...in H4 timeframe there is something which looks like double-top which is a good setup for short (i think)....so i already joined the downwards movement here...150-200 pisp will be enough for me...

GBPUSD was the main pair which surprised me this week...i was expecting it to sank like titanic.But something happened and it bounced up...i really dont know wat the reason is for this uptrend...

Time will show...

hi friend

do not be surprised what you are doing g-u .... is moving inside a triangle

Porforio...do you really use such big time frames ? You really must have a great talent for "waiting" when u have order in such big timeframes I never wud be able to wait the result of monthly positions ...but thank you for the triangle..i had never seen that pair from that aspect..

Today i ll share two daily chartts...one of them is CADCHF which is likely to form double-top and the other one is GBPUSD which just bounced up from the %50 level of the fibonacci...As you all know GBPUSD is famous for its respect against this %50 level of fibonacci...and like always it just used that level as a support to bounce up....and the target of this movement whud be %138 fibo level which also will convince us that the monthly triangle is broken (u can see the monthly triangle in the previous chart uploaded by Proforio)....As a little fish in this big forex ocean i ll be targeting only 100 - 150 pips...

The other one is CADCHF which made an unexpected upwards movement in the last a few weeks and reached the previous top level...so for sure the price will encounter some SELLERS at this level..noone knows who will have the victory...but we can make 100-200 pips here too...So if u have enough margin this pair shud be focussed too...

Time will show...

hi selym

unfortunately I have not time lately to see graphics

when I have time enters into m1 or m5 or m15

These three pairs recently have all broken their support levels and announced the bearish victory...And bears built up their castles and got ready for a possible bullish attack , and maybe they were not expecting it to be this fast and now bulls are attacking bears' catsles in these three pairs.As the traders we shud be on the side of the stronger one...bears for now !! So we shud place our SELL orders right inside the bears' castle ...and also we shudnt forget the possibility of the breakout (victory of the bulls) and we shud also place a pending BUY STOP order right above the danger zone...

Bears' Castles :

XAUUSD : 1677-1649
EURUSD : 1,3128-1,3070
NZDUSD : 0,8301-0,8180 (I know its big)

Forex market is not a result of coincidence and chaos...it is just the result of geometric details and mathematical harmony !

Geometry rules again....all of the support and resistence levels of the upwards sloping channel have the same angle...tomorrow 1621 support zone will be the first place the price will visit...if it is broken then 1570 will not be a dream !

It seems that its a good time to see this pair...the green circle in the picture is the target at 2800-2850....time will shhow..

EURUSD...You can see the updated support and resistence lines in the bearish channel.Although the market made a fast bullish movement , it was not enough to change the general trend which is quite bearish...When i drew new support and resistences i noticed that the angle of the bearish movement is even increasing...So today the price kinda reached its target (3210-3200)...and maybe that target will be fulfilled on monday and then the downtrend will continue its way...So i already placed my SELL order...

Apart from EURUSD ; AUDUSD , NZDUSD , XAGUSD , XAUUSD which are relatviley correlated with EURUSD are also preeparing for a new downtrend...They all broke important support levels and after a little journey towards deeper levels they came back to the support levels (now resistence) which they all broke.....we can interprete this situation as "relaxing"...The similar situation in all of these pairs strengthens my prediction about a fast downwards movement on monday or on tuesday....

But wat if those pairs do not fall down ...and wat if they just break the resistence ? Then the answer is "we shud be well-prepared for the bullish trend" ....So I ll add othe daily chart of the pairs which i talked about above...its ur turn to decide whether to believe in chaos and confusion , or to believe in measurement and harmony !

This week we did not earn as much as i expected due to my lack of discipline...i just closed the orders even without waiting for them to reach the target...It was my biggest mistake.But in overall we didnt have any loss this week...

Have a nice weekend..

Here is the graph of the profit in the account..

hello selym

The truth is I don't admire martingale management system for trading. I know this will look very good if you have a very very large ammount of money / equity.

I used to do this on demo , BUT ...... live trading with martingale .... is a lot of different stories especially when you get emotion in your live account.

I hope that I can share this with you in this forum. So that we could learn together and improve our ways of trading. I don't know if this fit with forex , since I oftenly trade in asian futures. http://www.forexfactory.com/images/icons/icon7.gif
I agree that management should be strict and discipline.
I always put stop loss for 65 - 100 poins. BEP Stop for +65 poins.
When the profit is run for 110 poins .... then I will double.

This is for example:

sell 1 lot for HSI on 21100 , sl 21200
move to bep stop when HSI on 21035 ... so no risk trade now
when HSI on 20990 .. I will sell one more .. , sl is 21045 for all

so when HSI is 20980 .... my trade is 1 lot sell on 21100 , sl 21045
and 1 lot sell on 20990 , sl is 21045
so what ever happen .... i have no risk for trade.

I say this could be a contrarian with your management. This could be a reverse of martingale. I play my profit. Otherwise ... I see this is the only way to make Risk:Reward gettinng bigger.

What do you think ?

I feel safer with this kind of management in live trading. Right now I am still developing this system , and hopefully not getting burned like any before.

Hopefully you don't mind if sometimes I post my futures chart here , so maybe we can improve each other.

thanks

-jwl