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Money Management is everything

  • #41
  • Oct 14, 2012 3:19pm Oct 14, 2012 3:19pm
I have noticed your account is growing and you did sure earn a lot from market. Good job !

Your latest trade status:
Winning Trades:668
Losing Trades:96
Even Trades:14
Max Consec Wins: 132
Max Consec Losses: 16

Look like you have done all the trades correctly. May i know more about how you exit your position? Not sure if you are based on specific time. And i noticed you hold the position overnight.

And how you long and short, means direction? Just glance the chart? What time frame do you refer for?

Thanks.
  • #42
  • Oct 15, 2012 12:17pm Oct 15, 2012 12:17pm
Quoting ~bull.bear~
I have noticed your account is growing and you did sure earn a lot from market. Good job !

Your latest trade status:
Winning Trades: 668
Losing Trades: 96
Even Trades: 14
Max Consec Wins: 132
Max Consec Losses: 16

Look like you have done all the trades correctly. May i know more about how you exit your position? Not sure if you are based on specific time. And i noticed you hold the position overnight.

And how you long and short, means direction? Just glance the chart? What time frame do you...
Hi there bull.bear.

Thanks very much for your interest and your post.

I can't believe that I had 132 consecutive wins. I must be luckier than I thought.

It's a bit of a coincidence that you should show up here.
I have been reading your own threads and have to report that they are very enjoyable (but almost impossible to follow).
I am sure that you know what I mean.

The answers to your questions are as follows:

1. I haven't "done all of the trades correctly" - I am well short of perfection.

2. You ask how I exit a position. Well - I don't have many trade
secrets ( no pun intended ) so I will tell you. I exit based on an
achieved target for an individual trade and sometimes based on an
achieved target for a basket of trades.

3. You note that I hold a position over night. Yes- even when it is dark
outside I can still see my computer screen.

4. I have no particular time frame for the charts that I look at.
Not that I look at charts much.

5. A very famous, very old, very grumpy trader often states
that he "don't need no stinking prices". The sad old wooden head
obviously doesn't understand the concept of double negatives.
Maybe he " don't need no CCI". Any way I digress.

I don't need no stinking prices and I don't need no stinking charts ..
....there you go a double "double negative" beat that.

6. How do I choose the direction of my trade long or short.
I use my own world class technical indicator ( the 2000 setting is vital).
  • #43
  • Oct 15, 2012 2:23pm Oct 15, 2012 2:23pm
Quoting Paddy9

6. How do I choose the direction of my trade long or short.
I use my own world class technical indicator ( the 2000 setting is vital).
So....i would like to hear more about your indicator. That must be a reason for your trading result, isn't it? You are not necessary to tell your recipes as i understand that, so do i.
  • #44
  • Oct 15, 2012 3:38pm Oct 15, 2012 3:38pm
Quoting ~bull.bear~
So....i would like to hear more about your indicator. That must be a reason for your trading result, isn't it? You are not necessary to tell your recipes as i understand that, so do i.


As Maggie Thatcher once famously said - " I am beginning to enjoy this."

Before answering your question, may I ask you a question ?

Why do you think that my indicator is responsible for my trading results ?
  • #45
  • Edited 4:02pm Oct 21, 2012 8:38am | Edited 4:02pm
I have no open trades so it's a good time to look at the performance to date.

Last week +365 pips.
This month + 453 pips.
This year + 4465 pips.
  • #46
  • Oct 21, 2012 4:54pm Oct 21, 2012 4:54pm
At the top of this page there is a tab that says "Trades".

I clicked on it and realised that it leads to pages on Forex Factory that show league tables for people who publish their Trade Explorers.

So I selected:

1. Live accounts
2. This year.

This produced a league table of 64 Trade Explorers. The trader in 64th place had a profit this year of 0.3%.

I could not make the page display any results after the 64th position.

I wondered if this means that Forex Factory only display your results in the league table if you are in profit.

We know that thousands of people log onto Forex Factory every day. Can it really be true that these thousands of people can only manage 64 profitable Trade Explorers between them?

Then I realised my mistake, obviously Forex Factory is packed with world class traders. I have read their threads - they sound so confident - and many of them imply that they are very successful traders.

Obviously :

1. Their trading results are none of our business .Quite right , I couldn't agree more.

or

2. They do not want the tax authorites chasing them for unpaid tax on their huge forex earnings. Wow! they really must be making loads of money - in which case I am insanely jealous.


On a totally different topic.......anyone who starts a thread asking if they should take out a loan to trade forex should be taken out and put up against the wall........

Only joking - no offence intended - I just want to campaign for common sense on this site for Walter Mittys. Surely you shouldn't ever trade with money that you don't have - and even then you shouldn't trade with money that you can't afford to lose.
  • #47
  • Oct 26, 2012 10:48am Oct 26, 2012 10:48am
I have now closed all of my open positions for this week.

It's been a steady week without any nasty surprises.

Pips today 308
Pips this week 225
Pips this month 678
Pips this year 4690

The title of my journal is " Money Management is Everything".

I know that you don't believe it - but thanks for dropping by.

I have traded for quite some time now, taking random entries, and I still have an unexploded live account.

I don't think that I have proved anything - and I don't think that I have changed anyones opinion on the subject.
  • #48
  • Oct 26, 2012 7:54pm Oct 26, 2012 7:54pm
fun thread. change of pace to the usual here. always looking to relate exits to other people, as they are obviously the most complicated aspect of trading.

curious...how are you determining your cut-off point? seems your trying to get out on the flip of your entry area, but do you have a % max cut spot? it seems your heat is about 10x your winners, which is quite extreme

also noticed some hedging...what is your determination in when to open one?
  • #49
  • Oct 26, 2012 11:35pm Oct 26, 2012 11:35pm
Quoting Paddy9
As Maggie Thatcher once famously said - " I am beginning to enjoy this."

Before answering your question, may I ask you a question ?

Why do you think that my indicator is responsible for my trading results ?

Hi! Delay to reply here as i am busy recently. Wow! Noticed you make more and more green pips now. Keep it up!

About the question above, i think if you consistent to use an indicator to generate trading signal, then you sure would get consistent outcome (For your indicator is able to detect high probability pattern/scenario since most your trades are win). And although indicator doesn't provide accurate signal, but with your MM technique, you sure get whatever your target is since losing few trades are not the issue (Reward to risk ratio is higher). This could be easy breakeven by some of the winning trades.

So another question here. May i know have you set stop loss price ? I don't think so (Just a guess). Then how you exit your trade if it is not achieve your target, losing how much to get out of market?

Thanks.
  • #50
  • Edited 7:29am Oct 27, 2012 7:17am | Edited 7:29am
Hi and nice thread

Quoting Paddy9
I have now closed all of my open positions for this week.

Pips today 308
The trade list shows 124 pips or so for that day, although it reads 308 somewhere else, why is that?

So you risk a tiny amount on each trade (100-200 pips can be 0.2%) enabling you to let trades go 100 or so pips in the red before closing. You take profit at 20 pips. Am sure they is more to it than that but don't think it is possible to turn a random game into a profitable one in the long run.
  • #51
  • Oct 28, 2012 9:05am Oct 28, 2012 9:05am
Quoting qwerty00


curious...how are you determining your cut-off point? seems your trying to get out on the flip of your entry area, but do you have a % max cut spot? it seems your heat is about 10x your winners, which is quite extreme

also noticed some hedging...what is your determination in when to open one?
Thanks for your interest.

1. I do have safety rules that protect me from an unacceptable loss.
2. I do not remember hedging, maybe I tossed a coin that resulted in a series of trades that effectively hedged another position. I wouldn't rule out hedging - however Oanda don't allow it.
3. The precise stop loss levels and take profit levels are not really that important. I am running an experiment to see if you can produce better results than an average trader by simply tossing a coin and managing the resultant trade. Every now and again I post the results - it's not boasting and it's not an attempt at becoming a trading guru.
  • #52
  • Oct 28, 2012 9:08am Oct 28, 2012 9:08am
Quoting ~bull.bear~
So another question here. May i know have you set stop loss price ? I don't think so (Just a guess). Then how you exit your trade if it is not achieve your target, losing how much to get out of market?
I refer the honourable gentleman to my answer to the previous question
  • #53
  • Oct 28, 2012 9:20am Oct 28, 2012 9:20am
Quoting Mr Woozel
Hi and nice thread



The trade list shows 124 pips or so for that day, although it reads 308 somewhere else, why is that?

So you risk a tiny amount on each trade (100-200 pips can be 0.2%) enabling you to let trades go 100 or so pips in the red before closing. You take profit at 20 pips. Am sure they is more to it than that but don't think it is possible to turn a random game into a profitable one in the long run.
1. My guess is that The Trade Explorer lists my trades for a day so that you can see the profit on closed trades. The Trade Explorer also looks at my equity /profit at the start of the day and compares that with my equity/profit during the day and also at the end of the day. So it could report 100 pips for the day at 9 a.m. and without me closing any trades it could show my pips for the day as 3 pips at noon.
2. Yes there is more to it than that.
  • #54
  • Oct 28, 2012 10:00am Oct 28, 2012 10:00am
Thanks for your interesting post.

Quoting Mr Woozel

don't think it is possible to turn a random game into a profitable one in the long run.

That's an interesting statement that I would like you to help me understand. Can I ask you some questions:

1. Have you ever tried taking random entries and managing the trades that you are given. If you have - would you share the results ? How do you know that it doesn't work if you haven't tried it ?

2. If you have tried it and it didn't work with your Money Management rules - why do you think that it can't work with other people's Money Management rules .

3 If you are not using random entries then presumably you are " doing your homework " and pin pointing trading opportunities with sniper like accuracy. How is that going ?

If you choose not to answer the above impertinent questions I will not be offended - I am like Spike Milligan - I am used to having my questions ignored:

Peter Sellers: "Knock knock"

Spike: " Who's there"

Peter Sellers: " If you don't open this door immediately I will break it down"

Spike: " Who gave you a name like that ? "
  • #55
  • Oct 28, 2012 4:21pm Oct 28, 2012 4:21pm
Quoting Paddy9
Thanks for your interest.

1. I do have safety rules that protect me from an unacceptable loss.
2. I do not remember hedging, maybe I tossed a coin that resulted in a series of trades that effectively hedged another position. I wouldn't rule out hedging - however Oanda don't allow it.
3. The precise stop loss levels and take profit levels are not really that important. I am running an experiment to see if you can produce better results than an average trader by simply tossing a coin and managing the resultant trade. Every now and again I post the...
fair enough. i use similar money management (minus the hedge) and was just looking to compare, as it doesn't seem commonly used. i.e. there is an emergency 'kill-all' level, but my exits have some room to get out at a better price.
regarding the hedge, i was talking about the correlation between pairs; being exposed in pairs like e/u and u/c at the same time.
fun little experiment however. i hope your mm rules are defined, though. otherwise everything will be incredibly discretionary and susceptible to your psyche on the day.
  • #56
  • Oct 28, 2012 5:17pm Oct 28, 2012 5:17pm
Quoting qwerty00
i use similar money management (minus the hedge)

Now that's interesting, do you also have a cutting edge, world class indicator ( 2000 setting ) or are you just taking pot luck ? http://www.forexfactory.com/images/icons/icon7.gif
  • #57
  • Oct 28, 2012 7:08pm Oct 28, 2012 7:08pm
Quoting Paddy9
Now that's interesting, do you also have a cutting edge, world class indicator ( 2000 setting ) or are you just taking pot luck ? http://www.forexfactory.com/images/icons/icon7.gif
haha - pre-defined area's of interest they tend to hold...but if wrong they tend to flip. using a coin at these area's would probably net the same result ironically. but random entries would destroy me as there is no consistent frame of reference. for example...doing this on an intraday level and against strong all-day momentum would be difficult, unless you recognize that and cut early. but then again i'm not really sure of your own management practices
  • #58
  • Oct 29, 2012 8:41am Oct 29, 2012 8:41am
Quoting Paddy9
Thanks for your interesting post.




That's an interesting statement that I would like you to help me understand. Can I ask you some questions:

1. Have you ever tried taking random entries and managing the trades that you are given. If you have - would you share the results ? How do you know that it doesn't work if you haven't tried it ?

2. If you have tried it and it didn't work with your Money Management rules - why do you think that it can't work with other people's Money Management rules .

3 If you are not using random entries then...
1 and 3) never tried it but assume my edge is only a little better than random. 8% return in 6 months (been 14%). Risk is approx 0.5% per trade.

like the Goons
  • #59
  • Oct 29, 2012 12:03pm Oct 29, 2012 12:03pm
Quoting Mr Woozel
1 and 3) never tried it but assume my edge is only a little better than random. 8% return in 6 months (been 14%). Risk is approx 0.5% per trade.

like the Goons
Many thanks for your reply - I 'm glad that you like the Goons.

You must have a very solid Money Management strategy if you have managed 8% in six months and you are only risking 0.5% per trade.

There will be a lot of Walter Mittys on Forex Factory who would kill for those numbers. http://www.forexfactory.com/images/icons/icon14.gif

If your account is live rather than demo and if it is more than one year old then you would be well inside the top 75 traders on Forex Factory who display a Trade Explorer .
  • #60
  • Oct 29, 2012 12:25pm Oct 29, 2012 12:25pm
Whilst diligently performing the weekly forensic vetting of my web browsing history my wife ( known to me as “Mission Control”) took a look at my thread on Forex Factory.

I proudly pointed my out my profit graph on the Trade Explorer . Rising so steeply as it does- it reminds me of an erection I said jokingly.

In between the sniggers I was left to understand that there must be be a mistake i.e. it must be some one elses profit graph she was looking at.

I am not sure if "Mission Control" was insulting my trading ability or my virility - I suppose in a worse case scenario it could be both.

Any way I kept quiet - I didn't want the management stopping my pocket money .
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