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Is there anyone willing to share their Money Management strategy?

stevetrade (stevetrade)
Jul 01 2010 at 17:52
1408 posts

pip2cash posted:
    Steve, are you sure do have low risk high gain in forex trading? If yes, please share with us.

Thanks in advance.

SIM


I'm not sure yet, but I'm quietly confident.

11:15, restate my assumptions: 1. Mathematics is the language of nature. 2. Everything around us can be represented and understood through numbers. 3. If you graph these numbers, patterns emerge. Therefore: There are patterns everywhere in nature.
OMGTrader (OMGTrader)
Jul 01 2010 at 20:19
9 posts
Wow thank you guys for the informati) Never thought that this thread will answered in less than 24hrs.

I'm just wondering, when you guys only risking between 1%-5% of your account, how much capital you need to invest in forex? I mean when you start with usd$100, well thats gonna take awhile to grow to a 'trade for a living account' isn't?

hmm~ isn't be nice when you can double your account in a month. I got this idea, maybe its my 'greed' talking not my logic brain - to double my account each month.

Deposit: $100

1. $200
2. $400
3. $800
4. $1,600
5. $3,200
6. $6,400 // I think this might be a good time to withdraw..
7. $12,800
8. $25,600
9. $51,200
10. $102,400

In the 10th month you account will be as fat as a hippo =) I know Winsor will say ' you're setting yourself up for failure', hehe.. But can this be achieve..? I would like to try this out. I've open a real account in pfgfx worth $100, i hope I don't burn my account along the quest =)

LJBfinancial (LJBfinancial)
Jul 01 2010 at 20:41
7 posts
Mmmm Interesting topic here :)

firstly I'd agree with Steve, you can have a high return, low risk strategy if you know your numbers and your 'edge'

By that i mean you know the probablities of your trade setups, Good reward to risk ratio, you know your win ratio and your average Loss/Gain.

and to answer your question genie, yes doubling your account in a month several months in a row is very much achievable however it is in no way at all sustainable, sustainability is one of the most important aspects of trading, it ensures a long and successful career as a trader.

Lee J Brown

ForexSeeker (ForexSeeker)
Jul 02 2010 at 06:26
814 posts

stevetrade posted:
    Why do you have to equate high gain with high risk?

Why not aim for low risk, high gain?


Well the general equation of Mathematic law already stated : Gain = System(Y) * Risk

System(Y) will be a wave of up and down which sometimes you win and sometimes you lose, an oscillator graph.

So we normally adjust the Risk parameter will result High risk produce high gain.

To get High Gain Low Risk you certainly need a System(Y) which probably manual is the best. Which is the core logic key direct factor to Risk, as already someone give an example that some trader can 2k earn 20k in a month and 20k earn 250k a year yet fail due to Risk MM control.

So what kind of common System(Y) you think of :

Probability factor of Low gain low risk System(Y) : +1, +0.2 ,+0.5, +0.7, +0.3, +1.1, -2, -0.1, -0.5, +0.5,

Probability factor of High gain high risk System(Y) : +2, -1, +1, +0.6 , -3, +1.5, +0.5, +4, -1, +2,

List of Low gain Low risk EA performance > 6 month :

Megadroid work on Alpari UK, 8+ month gain 177.58%.
https://www.myfxbook.com/members/AJR249/eamegadroid/6189
But many other Megadroid account fail compare to above sample of success.

BossEA , 6+ month gain 411.83%.
https://www.myfxbook.com/members/maverick34/maverick-bossea-traxxon/30760


List of High gain High risk EA performance > 6 month :

https://www.myfxbook.com/members/MIDAS/midas1/3877
Unfortunately history record are private, so no idea if it is a FX Genius.

My own KB5 system, 8 month ROI = 929.56%
Not using MM Risk compounding but a Fix Risk ratio and a fix balance every month.
https://www.myfxbook.com/portfolio/i-kill-you-later-2/28333


Information is Gold when come to organised.
stevetrade (stevetrade)
Jul 02 2010 at 07:10
1408 posts
Midas is a grid martingale system. You have to be lucky when you start it. I've tried it and it damn near wiped a £5000 account and even then it was not giving the kind of returns that this account got.

Even Midas themselves admit this account was a lucky break and lots of others they started have wiped.

This is not high risk - high gain.
It's gambling.



11:15, restate my assumptions: 1. Mathematics is the language of nature. 2. Everything around us can be represented and understood through numbers. 3. If you graph these numbers, patterns emerge. Therefore: There are patterns everywhere in nature.
odiaerospace (odiaerospace)
Jul 02 2010 at 08:39
22 posts
nice topic

Never Place A Trade Without Stoploss
winsor (winsor)
Jul 02 2010 at 16:44
303 posts
stevetrade posted:

This is not high risk - high gain.
It's gambling.




I agree with Steve - it is gambling! It is the same reason why most of us got into Forex trading i.e. hoping to turn our $100 into $5,000 per month. It is better to use the $100 buying lottery tickets. You will have a better change of getting your picture in the newspaper than with forex gambling.

kkavya
Jul 04 2010 at 18:35
1 posts
Best advice i can gave for money management is

' Let winners run and cut lossers short'

Fulltime247
Jul 04 2010 at 19:48
131 posts
Here's a great article I keep bookmarked about setting stops. The author has a very realistic approach to the market and the Money Management principles are very sound. He states...

ALL YOU NEED TO KNOW ABOUT TRADING

    * Price either goes up or down.
    * No one knows what will happen next.
    * Keep losses small and let winners run.
    * POSITION SIZE = RISK / STOP LOSS
    * The reason you entered has no bearing on the outcome of your trade.
    * You can control the size of your loss (skill) but you can't control the size of your win (luck).
    * You need to know when to pick up your chips and cash them in.

https://articles.mql4.com/813

It ain't easy being Cheesy!
Shr1k (Shr1k)
Jul 04 2010 at 21:43
11 posts
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