As simple as possible: 00 level trading

If another broker's server time is the only reason for changing, you can just put a horizontal line at the right time each day and use it as your daily open without switching to another broker.

P.S. Btw, Udine - great thread here. Thank you!
Wish a green happy trading to all!

Best regards,
Artem

Juan...

last week you posted a chart, and on the upper right corner you had an indicator that tracks your trades (amount/pips/...)

can you share it?

thanks.

it was simply to show that consistent profits will grow your account fast enough... besides even that kind of growth with 4.8 % instead of 5 %... even better

your basic thought is wrong !!

Read post 3215

Udine

Hi everyone,

I have been reading this thread for the last 10 days or so. I must thank Udine for sharing this system freely. I look forward to participate in this thread from now on .

Happy Trading everyone
FxPP

here you go..

Udine

First I want to clearify that I have nothing against your system Udine. I was simply saying with a fixed lot size the time you need to get rich takes much longer. A million years is just a way of speaking. Don't take it so literally.

Happy Trades

no problem, but then show an alternative MM

with my fixed rate MM, my lotsize increases with each winning trade and decreases with each losing trade..

Udine

Exactly.. there is no alternative and I was trying to make others aware to stick to the 2% rule.. who are maybe using a fixed lot size.. so I wanted to inform those who don't do what you are doing.

Stay Green and Happy Trades

Ok, after a day of testing there is a little more to this than I see - or perhaps I see too much and need to clear my brain of all the noise I have been fed in the last few years!
Great system and thanks for sharing Udine, hopefully I can start to make it profitable

you too

Udine

Thanks Udine...

ok

Juan... thank you too ...

gu

1.70100 dont trade sell

today first trade EU +5

EU TP
last trade before NY open. One to go.

well done guys

Udine

Never say "never"

What you said about holidays, loosing and BE days is true, but also don't forget about bonus trades from time to time. So, I guess, 2% per day is rather an average than a constant.

I do not know any trader, who start trading and never adjust the lot size, compared to actual balance/equity. Let's think you learned your lessons and double the account. Will you stay with the initial lot size? Or do you trust in your trading and increase...?

As Udine already mentioned, the lotsize changed with every winning/losing trade. One use a script, one use an indicator, one simply use www.earnforex.com/position-size-calculator.

However, its logic, that you need a variable lotsize to keep going with 2% risk each trade, no matter if you win or lose.

The 2% risk/trade (one may use lower/higher) are part of the system and part of the plan.

THIS WILL ADD 2% TO YOUR ACCOUNT FOR 2 WINNING TRADES OR TAKE 4% FOR LOSING TRADES

Looks like some traders could use a simple formula for calculating the correct lot size on each and every trade you ever care to make based on following Udine's Method:

First we want to make 2% per day based on making 10 pips profit.

That's 2 trades, 1% gain per trade (5 pips to TP) for a winner and 2% loss for a loser (10 pips to SL) and therefore 2 winning trades nets 2% gain and in this case you are done trading for the day except in the case where bonus trades at the start of the NY session are on the agenda.

To simply calculate what your lot size should be for each and every trade simply do the following (it doesn't matter if you win the trade or lose the trade because on each trade you ever make it is the same formula that is applied.

Formula: Available equity ($ amount no need to consider cents so just round it to the nearest dollar unless you are after accuracy) divided by 5000

For each trade if you want to make 1% gain (risk @ 2%) then use

Available equity / 5000 (it's as simple as that - in the case of compounding)

It depends on what risk and gain you want to take on each and every trade.

Example trade for $1000 (or euros or rubles or what have you)

Trade #1 and #2
$1000 in equity

Note: you will need to account for brokerage etc.

Trade #1 - Lot size = $1000/5000 = 0.20 lots.

If Trade #1 wins you make 0.20 lots * $10/lot * 5 pips = $10 (1% gain on your equity)

Trade #2 - Lot size = $1010/5000 = 0.202 lots = 0.20 lots (your broker may only allow 2 decimal places in your lot size)

If Trade #2 wins you make 0.20 lots * $10/lot * 5 pips = $10 (1% gain on your equity)

Total gain is $10 + $10 = $20 (this is 2% gain on your equity and you are done for the day trading....except for bonus trades)

NB. It really depends how you plan on calculating each and every one of your positions and it gets a little tricky if you wanted to place multiple orders at the 1 time - but with Udine's system that won't be necessary ...WILL IT!? because with his system you only want a 2% gain so 2 winning trades and that's it!

Let's take a look at an another example:

Available equity in trading account is $10,000

Trade #1 - Lot size = $10000/5000 = 2.0 lots.

If Trade #1 wins you make 2.0 lots * $10/lot * 5 pips = $100 (1% gain on your equity)

Trade #2 - Lot size = $10,010/5000 = 2.002 lots = 2.0 lots (your broker may only allow 2 decimal places in your lot size)

If Trade #2 wins you make 2 lots * $10/lot * 5 pips = $100 (1% gain on your equity)

Total gain is $100 + $100 = $200 (which is a 2% gain to your equity).

This simple method will compound your account (up or down depending on win/loss rate)

Of course to be fair no-one wins every trade!

So if you lose a trade then you again calculate the next trades lot size based on the current account equity.

The first few trades will not appear to make much of an impact however let this run over a few short weeks to a month and see what happens!

As Albert Einstein said "the power of compounding is the most powerful force in the universe"

Note: This is just a simple example for those who needed some insight however many traders will already have this approach well and truly sorted out. Usually with the application of software that works it all out for you as soon as you submit an order.

Hope this was useful to some of you. Just remember Equity / 5000 to get your lot size!

ps. I did not include the loss calculations (only reason was to try and keep this post a bit shorter however it is applied using the same simple formula forwards or in reverse)


Masterrmind..........