Money Management, Please help.
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Thread: Money Management, Please help.

  1. #1
    I'm utilizing the oanda trader (demo) with 100k as the starting balence. I want to make sure the money direction is being worked by me correctly although I have my system.

    Im hoping to only use 6 percent of my balence on every trade. With stop losses of course.

    My question is for the Oanda Pro's in here.

    Each trade Im carrying the components and multilying by 6 percent.
    Example 2,000,000 units * 6% = 120,000 units.

    This Appears to Be working. Am I on the right track with this? Or is there another method to get my 6 percent calculation.

  2. #2
    Thanks for your nice Article, may be it will help more

  3. #3
    Quote Originally Posted by ;
    This tripped me up to the first several months of my period from the markets. Without having to do real math, I've got an easy way. I move from a 3k balance. As soon as I set a commerce in for EURUSD for example: Long @ 1.1165o Stop @ 1.1135o Subtract the gap (65-35 = 30 pips) Take the unit dimensions (0.10 = $1/pip) Times that from the pips (30 pips) along with your SL is $30 buffer, that can be 1% of a 3k account, that is how I handle risk. Hope that helps!
    There is a math .

  4. #4
    I use an EA to get this done. I select buy/sell at market or Buy/Sell stop/limit.

    I input the risk% and then drag the lines to my preferred receptive price (unless I buy/sell at market of course on which case I can not transfer that) my TP and SL to where I need them onto the chart.

    The EA then computes my lot dimensions automatically for my preferred riak%.

    It's practically the most valuable tool I ever found in Forex TBH.

    The EA also reveals my Risk Reward ratio.

    Rich

  5. #5
    The Fibonacci Tool may also be used to ascertain different Risk to Reward ratios.

    For Example, I use the MT4 platform that doesn't show me where my stop loss should be placed if I am looking for a fix RR of 3, or 2 Etc..

  6. #6
    The Fear of risking too much wich 6% its NOT (lol) came out of the fact that the average trader doesnt know wtf its likely to happen when the transaction its put!! They dont know why they put at the first place, they dont know how to handle it after its running, WHY are they using those targets or risk reward ratio etc.,. OF COURSE they are going to play because they NEVER KNOW WHEN THEY ARE GOING TO WIN!!

    Thats why they recomend risk 2 or 1% maximum

    locate a repetable state and EXPLOIT IT!! Thats your job as a trader!!! Find a favorable state when you have a greater than random % of wining, place a transaction, handle it and close in profit; play to win or you WILL lose!!!

    EDIT: I normally use 20/30% per transaction. . too much? Gaming?? Its not when you have a specfici set of conditions which, when its painted on the chart, it provides me a precision and win rate!! Consider this: would you still risk 1% should you know for sure that right now (for example) you place a trade and there is a 90% likelihood that it will move in your path?? Or you may put money Remember the odds. .

    And this whole week for me there where just 3 transactions, and thats with 12 charts available around half asian sesion and complete london/new york session. . All winners. . 50 hours this week (aprox) = 3 transactions... think about that; precision = repetable state = EXPLOIT IT!! Stop with this 1 or 2% garbage, learn to trade, you're doing this for the money!!

  7. #7
    Quote Originally Posted by ;
    The Fibonacci Tool can also be used to ascertain different Risk to Reward ratios. For Example, I use the MT4 platform that doesn't show me in which my stop loss ought to be put if I am seeking a fix RR of 3, or 2 Etc..
    Well; you can use tend line flat line to find out the support and resistant levels! As you know (maybe), support and resistant levels are too much helpful.

  8. #8
    I suggest MT4 doesn't have the function at which you can place your stop loss based on a set reward to risk ratio.

    As an Example, To make it easy for itself, if I enter a gold short at 1320 with the take profit at 1300 (see below picture ) and that I wanted a Reward-Risk of 2, I only have to draw on the fib from entry to the take profit and I will know where to set the stop loss since the fib im with has the different RRs setup.

    Personally I dont use a fixed stop loss, each trade is different so the stop loss will be aswell, sometimes over a high or a trickle etc etc

  9. #9
    Quote Originally Posted by ;
    The Fear of risking too much wich 6 percent its NOT (lol) came from the fact that the ordinary trader doesnt understand wtf its going to occur when the transaction its put!! They dont understand the reason why they put in the first position, they dont understand how to manage it once its running, WHY are they using these targets or risk reward ratio etc.. OF COURSE they are going to play defensively because they NEVER KNOW WHEN THEY ARE GOING TO WIN!! Thats the reason why they recomend risk 1 or 2% max Find a repetable state and EXPLOIT IT!! Thats your ONLY job as a trader!!! ...
    Havo what do you mean by a repeatable state, I've spent almost 4000 screen hours within the past year and 4 weeks but am unable to find a pattern that repeats it self consistently. I use all of the technicals that were taught by youtube, infant pips but im not sure if im doing it properly.

    Im not looking for your strategy but do know that you're a profitable trader out of the number of replys by yourself in other threads. Can you possibly place me of at the ideal direction? I.e what should be looking for, is nude charts the thing to do?

  10. #10
    Quote Originally Posted by ;
    The Fear of risking too much wich 6 percent its NOT (lol) came in the fact that the ordinary trader doesnt know wtf its going to occur when the transaction its placed!! They dont know why they placed in the first placethey dont know how to handle it after its running, WHY are they utilizing those targets or risk reward ratio etc.. OF COURSE they are going to play defensively because they NEVER KNOW WHEN THEY ARE GOING TO WIN!! Thats why they recomend risk 1 or 2% maximum Find a repetable condition and EXPLOIT IT!! Thats your job for a trader!!! ...
    I think you are providing the wrong advices for rookies. I never see a real trader risking 20-30percent of equity or balance even with 98% winning rate. If you believe that you are so damn sure you can just as well risk 90% of your balance . This form of thinking isn't sustainable. I've heard these words many times out of individuals. . None of them has a real account over 1K and vanished weeks . You may not be or can be one of these. At the end of the day that you sit in front of a screen all day to catch that movement so does that 2% guy too. So the main point is that cannot be trader if you don't handle your risk properly.

    Assuming you risk 20-30%. And just how much do you gain? 5%? , 10%? , 50%? . If you say you are getting 30 to 100% yield per trade then we would know you are taking a reasonable RR ratio no one would say anything about that. But then you have to be so damn rich by today. If you say you are gaining lot less. . 2-3 or 5% per transaction then you really need to have a 99% accurate setups to endure.

    Happy trading. .

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