You have to remember every time you put a trade on you are risking your own hard earned money. I try to look at it like this;
When looking at a potential set-up I ask myself the question, does this trade [I]deserve[/I] my participation? You really should wait until the odds are so heavily stacked in your favour it is almost unfair!
And this part you have to believe, these kind of set-ups do come along month after month after month. Don’t let the market [I]fool you[/I] into giving back your winnings before the next great set-up comes along.
Well this is highly highly subjective an probably worth a couple of pages of debate! However for newer traders I would say 2-3%.
Once you’ve got the hang of it, and I [I]really mean[/I] the hang of it then you can possibly get a bit creative
EDIT: Sorry just re-read your question but is actually to different questions as % of risk is different from r:r
% of risk is how much of your account you are willing to expose to each trade. That being the answer I gave you.
R:R is all about how much will you risk as opposed to what you profit would likely be.
say a 40 point stop and an 80 point target as profit to exit the trade is a 2:1 r/r. I personally pay no attention to r/r. I’m more interested in entering high probability trades.
I’m not them, but since I read the whole thread and, in my opinion, understood this system pretty well (ofcourse I still need to practice and get experience), I can say that R:R isn’t that important if u are trading this strategy aka PA and taking only the A+ trades, because most of the time u gonna win it (the price will go in your desired direction, altho nothing is 100%) [B]using correct money and trade management[/B].
About the risk %, it shouldn’t be more than 2-3% of your capital if u don’t want to gamble.
hi,
what i understand from this and other pa thread’s is to aim for a 3R
about the risk % i would go for a fixed amount where you feel comfortable with to lose! imho
Why am I saying [I]R:R is not that important[/I], because there gonna be many times, when u can’t get it 2:1, 3:1 or more, the A+ setup will be screaming to trade it, but u will pass it cuz of the R:R u have set. Just look for the A+ ones and make the correct money and trade management. It’s all about managing your A+ trade after u have entered it, that’s why Johnathon doesn’t want to go deeper in it and post on this forum about how to do it as this wouldn’t be fair to his members.
This is my very first babypips post, however must admit ive been reading this blog along with NIKKITAfX for quite some time. I think i have an small idea of what this method entails however I havent began practicing the method on a demo account. For two weeks I have been looking at graphs but havent been able to spot anything. Im sure others have but maybe its because I am so unsure that I stay out of the trades. Im not sure if that will help either. So I figured id ask opinions when i “think” something is stirring up. Here is one of them.
This is GBP/NZD on the D time frame. It seems that price was rejected at resistance however the bearish bar is not an engulfing bar. Would this classify as a two bar reversal from a swing high?
The first thing i thought when looking at this pair on the D time frame was “Is this an upward trend or a retracement from a bigger downward trend?”. I used the weekly to help guide me and thats where i got that analysis that maybe its a retracement waiting to shoot down. However because of my lack of trading experience, i cant help to wonder. Any opinions on whether this BUEB at a support level should be ignored.
All of my trades are coming off of the Daily Time Frame (Following the suggestion of one time frame at a time)
One more thing. AUD/JPY and CAD/JPY look very similiar to the NZD/JPY in both the weekly and the daily timeframes . However when looking at the daily, it just didnt look like these two had any room to move. Any opinions on that thought?
I’m really surprised no-one has mentioned the BEEB that occurred on the 4 Hour GBP/CAD. This happened right in the middle of my sleep time but if I was up I would definitely have taken it.
Who knows how it will turn out but these are the sort of pullbacks and large PA signals that I like to trade.
It is a good example of how when price makes it’s way back to an important zone marked on the daily you can then drill down to a lower TF like the 4 hour to see if you can get into the trade.
I have taken it, but on the daily TF (I read it as 2BR), I missed it on 4H as well.
I haven’t been triggered yet, as the price is going the opposite direction, but we’ll see what will happen over night.
Bryce, you mentioned observing a daily chart, but spotted PA on 4H, does it often happen?
Does that mean you would manage the trade on 4H chart instead on 1D where initially intended?
