As I said in my earlier post, the money management is the most important thing in trading... I will not write long theoretical stories here, there are tons of material on the internet (forexfactory, babypips - great site, informedtrades, and so on).
But the core is, that you don't need a 95% winning rate to make money. My winning rate right now after 152 trades is a little bit less than 60%... average win is 28,18, average loss is 29,78. If you multiply 28,18*0,6 minus 29,79*0,4, you get a positive number... and that is enough in a long run to make money:)
Second important thing is not to ruin your account. Usually, smart traders say, don't risk more than 5% of your account on a trade. I am not smart:) On one trading system, position trading (long term - days, weeks) I stick to the rule, so I never risk more than 5% of my accout. On the breakout system I risk 10% every trade though. It is not smart, it is VEEEERY risky and I DO NOT recommend it to anyone. I do it because I trust this system 100% and I know it works... When I grow my account to around 2000 USD I will probably lower the risk to 5%... I made and Excel sheet to count it for me as well as the risk reward ratio. Mostly people talk about how many pips they make a week or monthly... it really doesn't matter! What matters is if your account is growing. And if you trade 10 standard lots and make 20 pips, it is around 2000 USD. It is much more than 2000 pips on one microlot:)
I think that's about it...
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Please can you be more specified about your breakout system? It's purely mechanichal or need some discrection?
ReplyDeleteThank you.
Hello Tenax,
ReplyDeletethe system is set-and-go system. I set the trades at 10 a.m. first one and then at noon the second one and leave it till the next day. sometimes I look at them during the day but it is not necessary. It is not my system, I bought it very cheap, it is called 1 minute daily and you can click on the little ad in the right upper corner. Write me an email if you want to ask more...
HI Tomas, I am familiar with the 1minutedaily system, but I have been ry silly not to use it! Can you please tell me what is the second trade at 12 noon? I know on the G/U it is a \t 10 or 11 a.m., so what is the second one - is it GU? I did not use it because I did nto trust it for a while. I backtested it by doing accurate observation on a daily basis and with 10% risk per trade, it delivered 90000% over a year. Please write back. I look forward to your reply Diana email devoyche@gmail.com
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