Peter, thank you so much for this. I would never have figured this risk management methodology without you and it is greatly appreciated. I haven't started using it, but it seems to be an option, and one to look forward to. Cheers pal.
does this risk algorithm work if u trade multiple pairs?with multiple pairs there is a chance of getting two setups simultaneously using one trading system
very interesting walter. Am interested in joining the course that you mentioned. How do you provide signals for all the systems that you are using to us clients? Do you discuss it with us on a group only webinar?
Ibraheen y -- Twice daily videos are posted in the members area on Tue, Wed and Thur (1 video posted on Friday and Monday), the videos are posted during the Asian and European trading sessions, the setups for the trades usually take hours and hours (I trade higher time frame charts on the 8hr, 12hr, daily and 2-day charts) so it will be "easy" to see these happen in slow motion.... no scalping here :-)
so in these videos, do u explain where to put entry sl exit etc. i in uk n always asleep in asian session. would this b a problem?? Also r u mainly using limit n stop orders to enter the trades? what my concern is that i am unable to follow u as i have not traded yr system before. Also do u give us the lot size on the 1000 pounds n n compounding profits to place for next trade? do u give a broker that u use?
@@ibraheemy8820 the Asian video will be up around 10pm-12 midnight your time and the European video update is obviously during your daytime... the orders are largely buy stop and sell stop orders, I don't like to even enter them into my platform until your morning time, I just watch the asian charts to set up the entries during the London or NY sessions, so you can see my setups during the Asian video update which will be up early in your morning (or very late at night)
just watch it one more time to understand what he is talking about.. you risk %equity + sume of winnings $, and when drawdowns get you back to your initial asset, you only risk the normal % of it, if you have a positive expectancy system.. probabilities are too small to blow up your account
Oswaldo Katz, I think you misunderstand - 1 winner + 1 loser = the same loss as 1 loser, there's no martingale involved, but if there was, I am sure it would be much more popular....
@@justass6840 - not necessarily, because for a positive expectancy system (and if your initial risk is not too much) this returns more $ regardless of the streaks... of course more winning streaks will help, but it is not necessary. The probability (assuming independence of trades) of 2 wins in a row is the (Win Rate x Win Rate). It's best to look at an example, if your win rate is 50%, then 25% of your "2 trade sequences" will be a "win, win" sequence.... and if your winners return 2R, then you will end up with +8R after this "win, win" sequence. Obviously if you did not compound at the trade level, after two winners you would instead have +4R so this method returns literally double (but does even better with higher reward/risk systems). The drawback is that with the "win, lose" sequence using "normal" account-level compounding you end up +1R (+2R, then -1R) after the two trade sequence. So the drawdowns are slightly deeper but the equity peaks are MUCH higher. Test for yourself to see.
But still how its possible to profit with this without predetermined win streak? Because in case of win loss, or simply one loss, you end up -1R always, and in case of win streaks eventually you hit loss and then all your profits erased and you got -1R too I believe i misunderstood something and would be glad if you could reply. Thanks!
Peter, thank you so much for this. I would never have figured this risk management methodology without you and it is greatly appreciated. I haven't started using it, but it seems to be an option, and one to look forward to. Cheers pal.
Fascinating. Risk management is key.
tjgusta - you are so right
How do you determine when it’s time to stop putting in the winners to your risk? You need to stop at some point, or else it kept losing 1R.
If you work out the probabilities, you will probably easily find your "Uncle Point"
I also haveen been having these same questions in my mind. When do I stop because my win rate is quite high at 50%
@@NakedForexNow Thank you for this answer
does this risk algorithm work if u trade multiple pairs?with multiple pairs there is a chance of getting two setups simultaneously using one trading system
You can do it in any way you like
very interesting walter. Am interested in joining the course that you mentioned. How do you provide signals for all the systems that you are using to us clients? Do you discuss it with us on a group only webinar?
Ibraheen y -- Twice daily videos are posted in the members area on Tue, Wed and Thur (1 video posted on Friday and Monday), the videos are posted during the Asian and European trading sessions, the setups for the trades usually take hours and hours (I trade higher time frame charts on the 8hr, 12hr, daily and 2-day charts) so it will be "easy" to see these happen in slow motion.... no scalping here :-)
so in these videos, do u explain where to put entry sl exit etc. i in uk n always asleep in asian session. would this b a problem?? Also r u mainly using limit n stop orders to enter the trades? what my concern is that i am unable to follow u as i have not traded yr system before. Also do u give us the lot size on the 1000 pounds n n compounding profits to place for next trade? do u give a broker that u use?
@@ibraheemy8820 the Asian video will be up around 10pm-12 midnight your time and the European video update is obviously during your daytime... the orders are largely buy stop and sell stop orders, I don't like to even enter them into my platform until your morning time, I just watch the asian charts to set up the entries during the London or NY sessions, so you can see my setups during the Asian video update which will be up early in your morning (or very late at night)
It is called reverse martingale and it will blow your account eventually
just watch it one more time to understand what he is talking about.. you risk %equity + sume of winnings $, and when drawdowns get you back to your initial asset, you only risk the normal % of it, if you have a positive expectancy system.. probabilities are too small to blow up your account
I guess you basically trying to catch predetermined winning streaks
Oswaldo Katz, I think you misunderstand - 1 winner + 1 loser = the same loss as 1 loser, there's no martingale involved, but if there was, I am sure it would be much more popular....
@@justass6840 - not necessarily, because for a positive expectancy system (and if your initial risk is not too much) this returns more $ regardless of the streaks... of course more winning streaks will help, but it is not necessary. The probability (assuming independence of trades) of 2 wins in a row is the (Win Rate x Win Rate). It's best to look at an example, if your win rate is 50%, then 25% of your "2 trade sequences" will be a "win, win" sequence.... and if your winners return 2R, then you will end up with +8R after this "win, win" sequence. Obviously if you did not compound at the trade level, after two winners you would instead have +4R so this method returns literally double (but does even better with higher reward/risk systems). The drawback is that with the "win, lose" sequence using "normal" account-level compounding you end up +1R (+2R, then -1R) after the two trade sequence. So the drawdowns are slightly deeper but the equity peaks are MUCH higher. Test for yourself to see.
But still how its possible to profit with this without predetermined win streak? Because in case of win loss, or simply one loss, you end up -1R always, and in case of win streaks eventually you hit loss and then all your profits erased and you got -1R too
I believe i misunderstood something and would be glad if you could reply.
Thanks!