To use chat, please login.
Back to contacts

Tips and tricks!

kieran (snapdragon1970)
Dec 11 2015 at 16:25
1945 posts
RSTrading posted:
@togr
That is a very debatable subject, but can be determined by your account size (not going to go in it - traders can google it).

What I meant was, make sure you are trading 0.1 lots if that is what you wanted not 1.0 by accident. It happened to me a couple of times. The terminal is set to use 'default' lots (own input) if terminal is reset, or for some unbeknownst reason it loses this setting and uses 'last used' .Maybe you entered a trade that you were very confident about and used a bigger lot size.


Trading the correct lot size depends on what you can stomach if it goes into a losing trade,your account size and your experience will tell you. What kind of trade it is,high risk~low risk etc.One is not going to trade micro lots with a 10k account.That is also a problem with platforms,their designed by computer geeks not traders,this adds to confusion for new traders,the platform I use first I have to select currency Im trading in ,change the lot size,click stop loss and select amount,click buy or sell ,then click confirm,there are no save settings.I first traded with plus500,so easy to trade on,great for beginners.Low lot sizes.

"They mistook leverage with genius".
Peter K (PetziK)
Dec 22 2015 at 11:04
3 posts
togr posted:
RSTrading posted:
Make sure your lot size is right when entering a trade..I have had some nasty (actually they turned out to be good, but could have been nasty) trades - and they were pending orders that triggered during my sleep.

@RSTrading
Rihan and what lot size is the right one? :)


the lotsize is being calculated on the basis of your risk management.

lets assume your capital is 1000 XXX (XXX = currency EUR or USD or whatever)
so, if your initial risk is 2% .... this would mean 2% of Capital = 20xxx of money
so, when entering a trade you should place a stop loss. you now need to calculate a lot size LOT.

1.) count the points/pips of the stoploss distance
2.) how big in money would your loss be if the price reached that stoploss? Exactly - it must not be higher than those 2% or 20xxx money
3.) so what you need to know is how much money is one pip / point. You can find out by viewing the website of your broker.
4.) so, the final way to calculate would look like this: Lotsize=NormalizeDouble(Cap*initialr/StopLo/tickvalue,2)
CAP = is your capital, initialr is the 2% initial risk (you need to write 0.02), StopLo = Stoploss distance (in ticks), tickvalue (find it at your broker)
you can also do the math in MS - Excel

good luck
Peter

Take the ATR, combine with Bollinger and EMA SMA and learn. Then the grail shall be yours!
HolyGrailPTY
Dec 22 2015 at 11:41
120 posts
PetziK posted:
togr posted:
RSTrading posted:
Make sure your lot size is right when entering a trade..I have had some nasty (actually they turned out to be good, but could have been nasty) trades - and they were pending orders that triggered during my sleep.

@RSTrading
Rihan and what lot size is the right one? :)


the lotsize is being calculated on the basis of your risk management.

lets assume your capital is 1000 XXX (XXX = currency EUR or USD or whatever)
so, if your initial risk is 2% .... this would mean 2% of Capital = 20xxx of money
so, when entering a trade you should place a stop loss. you now need to calculate a lot size LOT.

1.) count the points/pips of the stoploss distance
2.) how big in money would your loss be if the price reached that stoploss? Exactly - it must not be higher than those 2% or 20xxx money
3.) so what you need to know is how much money is one pip / point. You can find out by viewing the website of your broker.
4.) so, the final way to calculate would look like this: Lotsize=NormalizeDouble(Cap*initialr/StopLo/tickvalue,2)
CAP = is your capital, initialr is the 2% initial risk (you need to write 0.02), StopLo = Stoploss distance (in ticks), tickvalue (find it at your broker)
you can also do the math in MS - Excel

good luck
Peter

 Very good explanation my friend. One thing you failed to mention is the use of leverage. The thing is finding the right balance of leverage to use will dictate in many ways how long your account will actually last. Here is how:
 Say you have a 1000 usd account and you open the recommended 2% position. Which of course is 20 usd. The reality is if you use to low of leverage, then those 20usd won't be worth nothing worth writing home about as to earn 2% on two low leverage may very well require a profit of 1000 pips.
 To high of a leverage and it may only take 10 pips for you to be in red 2%
 So the question should be this.
1) How accurate is your system?
2)How many pips on avg do you float in a loss before you tp is hit?

  By answering those who questions, you then would be able to pick a leverage which best suits the system you are using.

kieran (snapdragon1970)
Dec 22 2015 at 20:22
1945 posts
Thanks for your input guys,FXCM has research on the above topics,but its not independent research.


"They mistook leverage with genius".
Peter K (PetziK)
Dec 23 2015 at 07:35
3 posts
ad leverage. I think the leverage is being implemented / shown in the 'tickvalue' - if you go with 1:100 EUR/USD one tick will be 1 USD per one Lot.
So if you change leverage you will need to adapt the tickvalue or add a factor - like 2x for 1:200

Take the ATR, combine with Bollinger and EMA SMA and learn. Then the grail shall be yours!
kieran (snapdragon1970)
Dec 27 2015 at 15:50
1945 posts
More to the point ,what are we doing with those losing trades,are we holding them way to long!Not letting those winners run!

"They mistook leverage with genius".
kieran (snapdragon1970)
Dec 28 2015 at 15:21
1945 posts
Here's a web site that might be useful its called Chasingreturns,it measures your trading ability and its free for a short period, or contact Ann Hunt.

"They mistook leverage with genius".
kricka
Dec 29 2015 at 02:14
92 posts
Hi guys, there has been some talks about lot, volume sizing and risk management and how to actually calculate it. There is a site who is explaining this in a very good way. RMMRobot.com Also there are robots to download if you would like to try them out.

" Lock in the profit and minimize the draw down "
kieran (snapdragon1970)
Dec 29 2015 at 13:46
1945 posts
@kricka thanks,I will take a look,I'm actually reading a book called Machine Learning.

"They mistook leverage with genius".
kieran (snapdragon1970)
Jan 12 2016 at 17:42
1945 posts
snapdragon1970 posted:
Hi everyone!

some tips for new traders,I hope it helps to improve your trading and to be more professional.

this stuff is free online you just have to know what is right!

2:1 or 3:1 risk reward
Max 2% of your total capital on one trade
wait for spike downs or spike ups
watch out for support and resistance levels,these are targeted by the big boys!easy pickings.
don't trade before data releases
technical trading is only a guide,not set in stone.
remember that the market learns quickly of any mispricing
You might find this link useful.
https://www4.dailyfx.com/forex/education/trading_tips/daily_trading_lesson/2011/12/08/What_is_the_Number_One_Mistake_Forex_Traders_Make.html


be lucky!
    

"They mistook leverage with genius".
Please login to comment .