{quote} There is a saying that you catch more flies with honey than with vinegar.........
Sometimes when to many newbie flies flock to the honey - it turns to vinegar
H.
"The future is already written in the past"
- #52,624
- Jul 4, 2013 11:10am Jul 4, 2013 11:10am
{quote} Sure you can, if you are competent. You risk a certain amount per trade, right? I am asking, what is the amount, percentage wise, should a Sonicer be risking when building a position. Have seen the words "small seeds". Believe or not, that can be quantified on a percentage basis. What percentage of an account qualifies as a "small seed'? That is an objective question, and deserving of an objective answer. Now if you come and say it is subjective, then i will leave you alone.
When you use a normal or classic trade, you have 3 fixed variables:
- Entry point
- Stop Loss
- Take Profit
So, you can easily calculate your maximum loss because it is equal to:
Loss = (SL- EP) * dollar per pip || (EP-SL) * dollar per pip [depending if you entered long or short]
But using this method, we don't know what will be the EP, because it's the average of our entries and we don't know were will be our entries or how many entries will we have at the end. That is why we highly recommend to trade very very very soft, because we MUST have enough room to handle future drawdowns.
So, let's say we trade 4 pairs using this method. Let's say we trade with 0,01$ per pip and we have a bankroll of 500$. That would mean we have a total of (500/0.01) 50.000 'pips bankroll'. Now let's say we have 20 orders per pair and we are losing 200 pips from our avg entry point to the current price (which is very weird) in each of them (even more weird).
200*20 = 4000 * 4 = 16.000 pips
Of course, you are right when you say "what will you do if you reach that worst case scenario"? Normal question. I have to admit that I have no answer for that because I never faced that situation. But I guess that I would study the price, the volume, the nearly supply/demand areas (or support/resistance, as you want) and I would put my SL above/below the next resistance/support.
I won't deny that PVSRA has room to be improved, specially in this aspect. I think nobody said PVSRA has no room to improve, and if he said that, he's wrong. But as I tried to explain you, it's kinda hard to have fixed rules in a dynamic system, but we will do it sooner or later, hopefully with your help
For now, I'm just an 'asslicker' (like someone said before) who is winning money and trying to improve my trading skill and to improve PVSRA. I am an 'assliker' (which is not an insult for me) because I like to learn, and I discussed with TAH so many times, but he proved me over and over again that he was right and I was wrong. So I decided to study, learn, and of course, to share.
As you can see, my account is public (this is not my main account, but I trade PVSRA using this one). That means you or anyone can see all my trades, all my mistakes and all my achievements. I see many people here posting their trades when they did good, but they never post their mistakes because they have too much ego to do it. I don't care. I'm not a worse trader if I make a mistake. However, if I can share that mistake, other guy could avoid it.
I understand this system, entries or whatever you wanna name it is different and it seems a gambler system, but it's not. People has too many chains and they are too afraid to separate from that chains. I'm pretty sure that the first guy who used RSI or MACD for example, was flamed. To understand and to enjoy this trading style you have to be released from your chains and of course, to trade very very soft.
Best, Tymedu.
To fail is just an opportunity to learn
way 
H.
good way
- #52,628
- Jul 4, 2013 11:37am Jul 4, 2013 11:37am
- Joined Mar 2012 | Status: turning probability into profit | 1,550 Posts
Hunting High and Low
- #52,634
- Jul 4, 2013 12:02pm Jul 4, 2013 12:02pm
- Joined Mar 2012 | Status: turning probability into profit | 1,550 Posts
Hunting High and Low
- #52,636
- Jul 4, 2013 12:06pm Jul 4, 2013 12:06pm
{quote} I do not do trading with YEN, the pips run very fast
It´s just a pair like any other - just get familiar with a pair, how it moves etc - it does the same thing all over again,
and you will do just fine
Take a look at my EJ screenshot and trades taken - why would I enter there ? Because I knowthese are the cheapest entry points from experience watching this pair.
Regards,
H.
"The future is already written in the past"
