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Is there anyone willing to share their Money Management strategy?

ForexRefuge (ForexRefuge)
Sep 17 2010 at 22:43
92 posts
cool😎

Success in Forex Trading is a marathon and not a sprint.
peptraderfx (peptraderfx)
Jan 18 2011 at 20:35
87 posts
Follow forexgundownyen search site and sytem on fxcm's top 1% trader

The Turtle always wins the race!
flyingfx
Feb 07 2011 at 06:35
6 posts
My system should not work if you read the books but does.
Enter long in 1 account and short in the other. Set Limit orders w 3% of funds, 0,3% profit. No stops. Fade in after 200 pips or more loss. If no exit in sight TP on any trades in profit whenever it looks like the rebound is over. With whatever profit made on that, close a corresponding proportion of the most in debt trade. The aim is never to take a loss and to hedge out nasty losses. Contrary to what the anti hedgers will tell you, you can make money both long and short on the same currency and even on the same day. For every dollar loss you take that's 2 dollars you need to make a dollar, i.e difficult becomes bl oody difficult . My recent losses were due to iphone/human errors and buying instead of selling etc too early in morning. Right now I'm working with uncorrelated currencies to avoid all trades hitting the wall simultaneously, kind of working but each currency takes a bit of getting used to in terms of volatility, daily ranges etc. Make sure you can take a 2 or 3 000 pip hit without MC by having sufficient funds. Think on long timescales of years or months, not days or hours.

WorldTrader
Feb 07 2011 at 06:42
54 posts

flyingfx posted:
    My system should not work if you read the books but does.
Enter long in 1 account and short in the other. Set Limit orders w 3% of funds, 0,3% profit. No stops. Fade in after 200 pips or more loss. If no exit in sight TP on any trades in profit whenever it looks like the rebound is over. With whatever profit made on that, close a corresponding proportion of the most in debt trade. The aim is never to take a loss and to hedge out nasty losses. Contrary to what the anti hedgers will tell you, you can make money both long and short on the same currency and even on the same day. For every dollar loss you take that's 2 dollars you need to make a dollar, i.e difficult becomes bl oody difficult . My recent losses were due to iphone/human errors and buying instead of selling etc too early in morning. Right now I'm working with uncorrelated currencies to avoid all trades hitting the wall simultaneously, kind of working but each currency takes a bit of getting used to in terms of volatility, daily ranges etc. Make sure you can take a 2 or 3 000 pip hit without MC by having sufficient funds. Think on long timescales of years or months, not days or hours.



ok

zzzero
Feb 09 2011 at 00:21
1367 posts
my take on money management is that if i just keep cramming it down the crapper...

i figure it's gotta plug up the toilet sooner or later.

<img src=''>

who wants to know
compounder
Feb 15 2011 at 05:30
10 posts
1. Everyone please do yourself a favor and stop setting some imaginary profit goals such as I have to make this and this much $$$ or %%% persecond-hour-day-week-year-whatever. Its pointless no one knows what the conditions will be in the next 5 minutes and you already know how much you will make in a year, at best its very funny.

2. All you can do is analyze the market based on what is happening NOW and make the best of it using an approach that suits your personality best, that includes your tolerances for SL and TP.


Chris
Krysztau
Feb 15 2011 at 11:07
68 posts
how true...
But in other hand if 100% a month is at least what you need to make a living, you need some target.. :P

bluewater (bluewater)
Feb 15 2011 at 20:07
5 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


What Steve is saying,, low/risk high gain ie) 2 to1 3to1 4to1 trades risk to reword .
I will take any risk/investment,,, with a 3 to 1 +,,,,, risk to reword and if you pic your trades thats what you get..:)

STJ

When In Doubt Stay Out !
CompassAM (CompassAM)
Apr 06 2011 at 13:42
10 posts
Elkart posted:
    Read this. It's an excellent example of MM.

https://www.winnersedgetrading.com/nytime-money-management/


'This may sound a little complex but it’s really quite logical. If the strategy starts losing, then it tends to lose several in a row. If this starts happening, we back off quickly, by reducing risk by 1% for each loss. If we’re back into winning trades, we gradually increase our risk level up to 4%, which is still reasonably conservative considering we only get to that if we have 4 or more winning trades in a row.'


It means that you KNOW that your strategy will loose in a row, but you don't know the future, you're just guessing.

If you lower your position size during losing trades that's asymmetrical leverage that leads to LOWER but EXTENDED drawdowns.

"There is only one side to the stock market and it is not the bull side or the bear side but the right side!" J.L.
Chris
Krysztau
Apr 06 2011 at 16:35
68 posts
Well,
If you expect to have row of losers I think it would be the best to lower your size down to zero, have a sleep, and go back trading next week maybe..? ;)

Honestly, I used to feel fear after row of winners that it can't go this good forever and surely enough I was taking bad trades after that...

It's called psychology :)

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