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Thread: USD/CAD went wrong, tips on money mgmt

  1. #11
    Quote Originally Posted by ;
    my opinion this is that as stated, the border is a really difficult thing to grasp, even when found early on.... You dont really understand it till you UNDERSTAND IT.

    Now so far as the money management goes since that's your question.

    In my opinion the $ risk should be directly determined by the volatility in two major ways

    1) statistical historic volatility
    2) current volatility


    to offer you an instance, the Euro/usd

    2910 trading times (since beginning ) can be broken into quartiles and the mean

    minimum range of all time=0
    25%lt; of the time it...
    Thank you soo much. That is like what I was searching for more. Your insight in to volatility is to correct SL is of help. Enjoy it.

  2. #12
    Quote Originally Posted by ;
    funny you cite statistics and probabilities.

    Let us suppose the market is random, you have 1/2 probability of making money on any particular trade... let's say you take 3 transactions per night. What are the probabilities of you being profitable all three transactions?

    (1/2)^3 =12.5percent or 1/8 that implies the probabilities of you losing at least one transaction is 87.5percent or 25% of having 2/3 right as 0.5^2.

    What exactly does all of these mean well you have equally likely chance of being incorrect in all transactions 12.5% therefore then the one transaction you are profitable should pay

    1)trade...

  3. #13
    Quote Originally Posted by ;
    May I request you to elaborate on this. 90% chance of winning .... Not equivalent to profits.
    Long-term profits are always a function of the win-rate in addition to the risk-reward ratio.

  4. #14
    Quote Originally Posted by ;
    long-term profits are always a function of this win-rate as well as the risk-reward ratio.
    I have a feeling you might as well be talking a different language entirely!

  5. #15
    Quote Originally Posted by ;
    Thanks for this. I try not to trade EUR/USD becuase I am not sure if I know that the background of EUR.

    Please define clearer pairs.

    I try to steer clear of trading pairs with high spreads since my TP was just 30 Pips.
    Note: The term Improved pair I gave into usd/jpy aud/usd was earlier Helicopter Ben give his freakin dovish statement hours ago, today the condition quite different because those statement from Uncle Ben bring down fog into the clear route.

    What I mean clear pair: if in a pair one currency facet expectation and or economic condition becoming comparison with the other facet of currency pair. In contrast on jpy side and giving an example on canadian side, of cad/jpy the market the anticipation economic state of japanese is in the form. We got clearer route of bullish stress to cad/jpy, that way we could wait to buy the dip.

    So, it's all based on reality and how most people will behave, not simply based on mere illusion of chart. Technical visualization of chart of course important to target the precise entry, but without understanding the theme I would say we are not substantially different to a gambler.

    About intraday trader aiming 30 pips, I know many trader employing those sort of egy, but that I don't quite grasp why trader would just limit their TP into 30 pips. We're trading of course want the odds low our winning rate, right? One of the way is by not limiting our profit. For me personally I prefer not set my TP, although it's okay to set SL. With that egy I am increasing probability of survival to the black swan (see: losing attack ).

    When the pair goes to 700 pips per week would you just reduce your profit to 30 pips just? Or you prefer to ride it out whenever the desktop condition start to modify and diminishing your posture? If you watch a sharp surge in price would you revealing of your guts to input little percentage or with complete amount each dip by watching the condition start to turn in your favor? Consider it you will find the ideal answer for yourself for your future's sake.

  6. #16
    Quote Originally Posted by ;
    I've got a feeling you might as well be talking a different language entirely!
    It is called english.

  7. #17
    Quote Originally Posted by ;
    it's called english.
    For the OP it feels like it could not be!

  8. #18
    Risking a lot of could be lethal. A string of losses will probably do more harm than a string of profits will probably do great. That's how it is. 2 percent is statistically proven to be agressive. Don't forget you still want what some refer to as an edge. Otherwise you will not be saved by MM. You will bleed slower. Border and MM are not mutually exclusive.

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