Thread: Isnt 2% per trade massively flawed?

Dude, you are Myopic, in so tunnel visioned which you can not even see the road's faces as.

Hedging becomes TWO separate trades, and they need to be treated as TWO separate trades!

It is typical of a 3 articles wonder on FF child to suggest that they know stuff yet can't even put their example in Forex trading terms. We don't trade in current price = $8!

Get a grip KID. Before encouraging to 10, at least understand the lingo!

MY life is just one of I enter a buy on the Eur:USD 1.05889, YET I have a pending Stop at 1.05779. But happy times for me, price then rises, and I receive a free of risk trade in because my EA place a BE 1 stop loss at 1.05899 after prices reaches 5 pips profit.

However if shit happened, and if price dropped down thru my buy price, then the hedge trade entered at 1.05779 becomes my main focus. It has its own life, and is an trade.

But that's OK. It is easy to understand when to release this hedge aspect when my system tells me the NEXT entry sign....yadda farken yardda

Get a good method you KNOW.

And child, return to the share market where perhaps you have a chance.

Originally Posted by ;

quote Hello HungryHound, Thank you for highlighting. But, I would like to point out the fallacy in your response which I colored red. It is a misconception which serves to enrich your broker to your own with no benefit. To begin with, when the trade is placed by you, you have effectively locked in your loss. It HAS become a loss. Tell me what's the gap between the two: Case 1: Broker which allows you keep opposing commerce open in your system: Current price = 8 a. Bought 1 unit at $10, unrealized PL = -$2 b. Sold 1 unit per $8,...

Risking 2% of someone's account on each transaction is absolutely insane. On Jan 15 traders discovered the significance of a black swan occasion when the SNB made the surprise announcement that CHF would no longer be pegged to the euro. Traders lost billionsFXCM almost went bankrupt and had to find emergency financing (and it's a NYSE-traded firm!) . Forex brokers go all the time, leaving traders' deposits at risk. Even stock brokerage companies do - remember Lehman Brothers? Heed the course of history or you'll be doomed to repeat them.

The issue is black swan events happen more frequently than we're led to think. The crashes of 1987 and 2008, the SNB surprise, 9/11, and list goes on....
The once in a lifetime events happen more often than we think...

If you understand your goal,regardless to your understanding of trading then sit back and try to work on your goal .you dont go to a whore house to find a wife!!!!

Go to your gold in case your limitations on account size dictate these rational.

Originally Posted by ;

Dude, you are so Myopic, as in so tunnel visioned which you can't even see the faces of the road. Hedging becomes TWO separate trades, and they should be treated as TWO separate trades! It is typical of a 3 posts wonder on FF child to suggest that they know things yet can't even put their case in Forex trading provisions. We don't trade in current price = $8 ETC! Get a grip KID. At least learn the lingo before encouraging yourself to professor! MY life is just one of I enter a buy on the Eur:USD 1.05889, YET I've a pending Cease at 1.05779. But happy days...

Get a grip guy. It has been well publicized and exposed exactly what you do on a different forum. You exchange EURUSD reversals when the market is completely extended and reaches pivot/fib levels. If price crushes through, you start hedging, trying to release this hedge in your next entry sign. The challenge is that your entries arent accurate enough to stop your account from blowing . Whatever you do is talk shit on the forums, acting just like you are special and throwing your maths around trying to impress newbies. For all of the readers here, allow me aware you that these are his efforts to lure victims. Victims who still believe in the holy grail. Victims who don't know better. I have contacted a number of your'students' who needed to pay $2000 fees to be mentored with you. Not one of them happen to be shown some evidence of your profitability. However, if on your profile you state you have 33 students right now, then that is not bad revenue living in china, can it be... Get real. You're one of the biggest scammers still busy on this forum. I'm honestly surprised you are not banned yet. I hope no one else falls to your tips. I'm out

Only watched the front page where people were saying to just look at all the forthcoming blackswan events on the calendar and pencil them avoid them... did everyone forget Fukushima? Not everything is a swiss scheduled destruction of your account. When godzilla shrimps will probably be coming to devour your hard Can not predict earned pips. Oh wait, I know, you could maintain your weather channel feed tuned in at all times!

Originally Posted by ;

BUT MOSTLY, ONLY TRADE THE Eur:USD. The EU is THE liquid pair around. It may gap on Monday openings, but WTF are you currently in a trade for at an opening? News can skew prices but why are you currently trading news with no advantage? Etc etc etc.. NEVER maintain a commerce OR hedged over a weekend. NEVER be hedged going into a major news event like FOMC or NFP. Additional pairs is asking to be raped. quote

Hey ingphil, im one of the hedging believer and im still learning forex, You said no Hedged over weekend ches my attention. I wonder what is the reason behind it? Can it be due to the weekend difference on Monday when the market open? If I only risk 5 percent to get a trade and I trade more than 3 pairs. Will hedging during weekend be okay? (I have been doing so recently,the DD is just marginally greater during weekend ) .what do you do if you cant find the ideal sign to shut the hedged position? Do you accept before entering weekend, shutting both.


If one has been in the CHF commerce and hedged, would the acc be affected if the SNB event occurred back in Jan 15? I heard the spread was mad during that event.
many thx

The fact isthe 2% rule is to help keep you interested from the money potential and at the exact same time stop you from risking all of your account.

However disagree with trading the entire day with 2% a transaction.

Eg, if I win my first two transactions and im up 6 percent.

A clever trader must bank 3 percent and then split the other 3 percent by 2 or 3.

So the remainder of the day, your risk amount would be 1% or 1.5%, safeguarding your profits for your day per week.

Assuming a one-size-fits-all approach at risk amount across different technical systems is flawed. Should you take a long-term technical system and scale down all the parameters to make a short-term method, you finally have a completely new system with a different win-loss distribution and risk/reward. You want a new place size.

2% is kind of dogma. Why two? Why not 1 or 3? (I would've asked exactly the exact same for almost any number)

Who came up with this degree? Decades of experience? Ok, why not 2.45% or 1.78%?

I risk anywhere from 4 to 10 percent per trade. I'm familiar with this level and I never had more than 2 losses in a row. If I lose, I reduce the lot. If I lose again, I stop trading for a few days, return to the drawing board trying to figure out what went wrong. Then I am patiently waiting for the upcoming excellent entrance point, never trying to get back the amount I lost.

If you're taking excess risk, you're going to blow your account. Om the other hand, in case you aren't risking enough, you're going to stay bad (as correctly stated in the Zurich axioms).

If you are not worried, You Aren't risking enough