Discussion Primary

Interesting stuff here bud.

(im not asking how you trade, because unlike a lot on here I learn off my own back)

Very interesting approach toward extremely small position size` and high pip gain. Just curious to understand why it is you dont use stops because although your strike rate is superb, that equity curve isn't the prettiest....


Good trading either way!

I tried to use stops five years ago, but I found them inefficient way to manage risk. I noticed often that I had made ​​the right decision in the longer term, but in the shorter term randomness of currency trading triggered my stop loss orders. My Winning -ratio would be much lower if I had to be used stop loss orders.

Against overleveraging I have set some rules for my trading strategy and also trying to keep my position size small, therefore I not need stops and I can always set mental stop if i need to cut my unrealized losses (or deposit more funds or hedge some other pair).

My strategy:
No stops, trading multiple pairs (I choose my pairs and directions fundamental based and keep these directions long), using only 0,025 % (or max. 0,035 %) of leveraged NAV per trade, take profit is set to 35 pips in default (except EUR/HKD TP is set to 150 pips). I have also set some rules my money management: keep the margin percent above 10% [Margin Percent = (NAV)/(Position Value)*100]. Time spent: I use my time to this strategy approx. half hours per each weekday and on Sunday 1-hour, when I set limit orders to next week.

This video below clarifies my typical trading session:
https://www.youtube.com/watch?feature=player_embedded&v=DsPmXcIyWfo