10.4 A Complete System

[zentauro67]

In the worst outcome, we could trade the old way, 240, Stoch 5,3,3 AO and pivots. To avoid DD there are many possibilites: a slow macd, wait for retrace trendlines being broken, etc.

Info page is another history. It should be very sad to lose such a great tool.

[spillini]

Hey guys and Gals. Gonna add one more sell to go with my trades this week. Gonna sell SGD/JPY here at 79.91. Looks good.

Jim

[Pipstubborn]

A lot of people see DD as the worst thing in trading.

The way I look at it is that the trading is like an athlete. To make a high or far jump, a athlete needs to take some distance back, and then after a sprint make the jump for the medal.

In trading, the DD is the distance, and the trend is the track where the price makes the sprint to claim the medal at the TP.

So DD is actually a necessary part of trading.

It's like a slingshot.

I notice a pattern..... Monday to first half of Wednesday, small profits. Second half of Wednesday to Friday, big profits.

[nicoacademia]

In the worst outcome, we could trade the old way, 240, Stoch 5,3,3 AO and pivots. To avoid DD there are many possibilites: a slow macd, wait for retrace trendlines being broken, etc.

Info page is another history. It should be very sad to lose such a great tool.

i'm sorry what's wrong with the RSI2?

there will be DD unless you're the market-mover.

they can take it up and down again and again until they are satisfied.

but where they can't refuse is the overall trend.

it is naive and novice thinking to think you can pick the top/bottom with no DD.

trend. there's congestion/range trend. and expansion trend.

[nicoacademia]

After entering 4 pairs Sunday night:

EUR/GBP Long
AUD/JPY Short
EUR/CAD Long
EUR/AUD Long

I was drawn down quite a bit last night. Stuck to my Guns and I am now up 10%. Limits were hit on EUR/CAD & EUR/AUD at 1.3524 and 1.3541 respectively.

Still open on Aud/Jpy with T/P @ 95.56 AND eur/gbp @ 85.70 LOOKING FOR THAT 20% FOR THE WEEK.

BTW: Got stops pulled up so I can only go to +5% for the week....Im not stupid...LOL

Jim

You have to look at the calendar with regards to AUDJPY to know how the currency will ebb n flow.
they used yesterday to sell strength.
well today the key AUD data is cleared.
you should get your profit release in the coming sessions.

[TraderDesk]

Floating Draw-Down is a value I watch carefully. My Risk Management ruleset disallows large percentage amounts as I need every penny of capital to make money for every open position I set forth.

Anything above 10% on a real account I start to close the shakiest positions that I have. It doesn't matter if I am told by the best of the best that the trade will eventually go into profit or by my local tarot reader that the cards are in my favor. I close positions to keep floating draw down below 10%.

If my daily equity draw-down is more than 3% I do not open any more positions, period. I must wait till the next day to look at what I can set up. This is very important to me as I can get frustrated, caught up in price action, family issues, etc so it gives me a time out to clear my head and look at the market with a fresh perspective. This works for me.

Both types of draw-downs are important and actually crucial to me for being profitable long-term...

[nicoacademia]

Floating Draw-Down is a value I watch carefully. My Risk Management ruleset disallows large percentage amounts as I need every penny of capital to make money for every open position I set forth.

Anything above 10% on a real account I start to close the shakiest positions that I have. It doesn't matter if I am told by the best of the best that the trade will eventually go into profit or by my local tarot reader that the cards are in my favor. I close positions to keep floating draw down below 10%.

If my daily equity draw-down is more than 3% I do not open any more positions, period. I must wait till the next day to look at what I can set up. This is very important to me as I can get frustrated, caught up in price action, family issues, etc so it gives me a time out to clear my head and look at the market with a fresh perspective. This works for me.

Both types of draw-downs are important and actually crucial to me for being profitable long-term...

yup.
i totally believe setting yourself up to survive must be the bedrock.
daily loss limits and position limits are excruciatingly crucial.
it provides the *BREAK*
that we all need when we hit our own losing streaks/perception failure streaks/etc.

as to the actual amount of floating DD that i guess only the trader himself can adjust.
the pairs amount / number of open positions.
the pair volatility.
where you are in the trend and price range/price scale.
upcoming calendar events.
size of candles already displayed.
whether the market has shown its hand.
a front running type trade or a reactionary trade.
i think there are too many variables.

its like every gardeners garden has its own weeds/bugs/weather/plantspecies etc.

but at the end of the day. the garden must still be around tomorrow.

[MrLong]

Drawdown is a by product of this system, best way to reduce drawdown is not to over expose yourself to a specific currency, AUDJPY, CADJPY, CHFJPY, EURJPY, GBPJPY, NZDJPY, USDJPY are all the same trades X 7.

I would only take 2 of those trades at anyone time.

It's tough right now, the forex market is not moving.

[nicoacademia]

It's tough right now, the forex market is not moving.

what do you mean its not moving?

the asian pairs have hit blistering pace! having cleared the AUD gdp data and Abe's speech-non-speech.
audjpy/nzdjpy
audusd/nzdusd
usdjpy/gbpjpy/eurjpy

130605 moving.png

just to name a few.

more western pairs like:
gbpusd are set up and would have already triggered the long.

[rosst]

Floating Draw-Down is a value I watch carefully. My Risk Management ruleset disallows large percentage amounts as I need every penny of capital to make money for every open position I set forth.

Anything above 10% on a real account I start to close the shakiest positions that I have. It doesn't matter if I am told by the best of the best that the trade will eventually go into profit or by my local tarot reader that the cards are in my favor. I close positions to keep floating draw down below 10%.

If my daily equity draw-down is more than 3% I do not open any more positions, period. I must wait till the next day to look at what I can set up. This is very important to me as I can get frustrated, caught up in price action, family issues, etc so it gives me a time out to clear my head and look at the market with a fresh perspective. This works for me.

Both types of draw-downs are important and actually crucial to me for being profitable long-term...

yup.
i totally believe setting yourself up to survive must be the bedrock.
daily loss limits and position limits are excruciatingly crucial.
it provides the *BREAK*
that we all need when we hit our own losing streaks/perception failure streaks/etc.

as to the actual amount of floating DD that i guess only the trader himself can adjust.
the pairs amount / number of open positions.
the pair volatility.
where you are in the trend and price range/price scale.
upcoming calendar events.
size of candles already displayed.
whether the market has shown its hand.
a front running type trade or a reactionary trade.
i think there are too many variables.

its like every gardeners garden has its own weeds/bugs/weather/plantspecies etc.

but at the end of the day. the garden must still be around tomorrow.

“Learn to take losses. The most important thing in making money is not letting your losses get out of hand.”

- Marty Schwartz