BUT! The statistics talks for itself...DO NOT stop trading now, because the winners are on its way! We have to stick to the system that works... and 1MD works, we have seen it! HOLD ON
UPDATE:
if anyone stayed with the system, you have a nice win on GU today... Unfortunately I wasn't at my computer:(
guys i have been looking at that fx childs play system and he has some interesting money management techniques that perhaps could be useful for 1 minute daily to reduce/take some profit on the fake breakouts.
ReplyDeleteSo depending on how much you risk per trade say 5% and your account balance is $1,000 so you will risk $50 per trade. This method is not really for those that can not be in front of the computer all the time but perhaps we can think of an idea to help those that can not be in front of the computer. Any way here is the theory. As stated above you are risking $50 so for simplicity say the stop loss is 50pips so you will trading 0.1 lots. Now when the the position moves 50% of the stop loss in profit so that is 25pips in profit from our opening position you would then close 70% of the trade. Then the let the remaining run to the normal take profit. If you do this then you would lock in $17.5 (25pips x 0.07lots) profit in worst case scenario it swings around and takes out your stop loss you would still be up $2.50 ($17.5 - remaining lots 0.03 x 50pips) which is better than loosing $50. I figure the breakout usually goes 50% of the take profit but more often or not hits around the 85% of the take profit level.
I guess for those that cant be in front of the computer you could open like 10 individual trades (obviously spreading the 5% risk across all trades) and set 7 of them with a 50% of the stop loss range.
let me know what you think.
Lee
Hi Lee,
ReplyDeleteit is a good idea, somebody with more time than me should do some backtest:) The solution is this:
open 2 buy/sell stop trades. one trade (0,7 lots) will have buy stop at the place it should have as per rules, but profit target at 50% of the width of the band. The SL as usual. The other trade (0,3) lots will have a buy stop at the same level as the first trade, SL as usual, profit target of this second order will be as the system says... I think this could work... BUT, I think overall, we will lower the profit trades of this system and it will mean overall loss... As I say, somebody can test it:)
well when i get a bit of free time i will run the backtest and see what the results are. Wont be for a few weeks though as i am flat out as well.
ReplyDeleteSo if someone could get to it before i do that would be awesome.
Cheers,
Lee
some good beginning of the month so far. up around 15 per cent. will see how it goes tomorrow!
ReplyDeletetaking 70 percent of profits thing... dont know to be honest.. our risk reward is not exactly favourable. backtesting will show the truth.
then again it might be difficult to take exactly 70 per cent of your profits if you trade on small account. wish there was a nano account, lol.
anybody trading fx childs play successfully here?
tonny