Nice work ICT. I know you are very respected in the BP community and I have watched your youtube videos.
If I had more time and didn’t work 80 hrs per week, I would be learning and trading your master techniques. I like your style of delivery, very real! You say it how it is, and being from New York we respect people who say it how it is 
The only reason I follow a copytrade program is because I don’t have anytime to trade, yet… I hope I can trade full time in the future.
ICT I included the link with my picture, would you mind providing the link of the picture you posted? Very intriguing. Again, nice work, but the dollars will tell you that better than I every could haha
Hey Steve…
I posted this in jest, please don’t take any offense… I meant it to break the tension this thread has taken on. I get asked to show mine all the time and it’s not a matter of Trophy winning or measuring up… I just don’t want to share my accounts. I am not opposed to it… in fact I have intentions of doing something with this application… just not at the moment.
I screen captured a fella’s contest results on myfxbook website and it was a Demo account like one would imagine. I do not trade with results this insane… nor would anyone with live funds for that matter!
This is a good thread topic… hopefully it is not derailed and finds it’s mark.
Good Luck with it! :57:
No offense taken at all.
Initially I was very excited about the topic, because I felt managing the risk is the most important part of trading, while building into nice winners. After watching your “How to capture explosive profits” on Youtube, I realized the most important part of managing risk is getting in at the perfect moment, and if I miss it simply re-draw fibs for the optimal entry 
Thanks ICT!
The thread almost came off it’s tracks today but I still welcome all posts that will inspire managing risk better. And, for those who feel comfortable with it, stats.
I’ve been studying risk management and different formulas for it. I’ve read that alot of times you have losing streaks and winning streaks. So one thing I took from ICT is halving your capital exposure every losing trade until you make it back. Something I’ve been thinking about is increasing risk when I have consecutive wins to capitalize on those streaks.
A Focus on making the losses less significant, and the wins more significant. That to me sounds like an excellent way to manage risk!
ATM my goal is to build a portfolio of non-correlated trading systems.
Using a portfolio of non-correlated systems will help even out the “boom” and “bust” cycle and thus smoothen my equity curve.
Since I will be using many systems, I can my reduce the risk per trade significantly. I often hear traders recommend 2% risk per trade. If I have a portfolio of 10 systems, I can instead risk 0.2% per trade for the same effect. However, the lower risk % means my drawdown will be far less if any of those trades loses.
Additionally, multiple systems = high frequency of trade signals. High frequency + compounding = $$$$.
In the end, I hope to produce a smooth AND steep equity curve.
I try to do this too, just to get a higher number of trades. The problem is, even though I use completely different systems, they always tend to buy and sell in the same direction at the same time. I have to lower the risk significantly to compensate.
I am not criticizing. If it works for you keep doing it!
Just that mathematically it is not optimal to halve your risk after you lose.(you are cheating yourself) Same as doubling your risk after you lose.
You should have the same chance of winning after a loss as you have of winning after a win.
If there is strong evidence (a pattern) of winning and losing streaks it should be fixed in your system, not in your money management.
I think money management is more important and preservation of capitol. The Turtles had a very low accuracy system but they’re risk management was so good they made millions. Also I’m a fairly new trader. And not arguing just giving opinions an ways to look at things :-D.
I would agree with this. Who says that because you are on a losing streak the next trade will have a higher chance of being a loss, and same with a winning streak. I try to think of each trade is independent of the previous trades.
That would probably be better psychologically every trade is ur first trade
100% Agreed.
I abandoned this method soon after trying it.
No disrespect to those that use it, but halving risk after a loss doesn’t work for me.
Halving your risk per trade makes it easier to take the next trade for newbies like myself. One of the main things we have to overcome early on in our interactions with the markets is our psychology and halving risk does help with this psychology. But one thing this risk management model assumes is that you enter periods of winning streaks followed by periods of losing streaks. If your losses and winners are much more scattered and don’t come in straight lines…then this model hurts your profitability.
With a risk to reward of 2:1 you need to win just 40% of your trades to be profitable… but if you halve risk per trade after every loss then you are most likely going to need to win over 60% of your trades to be profitable. Always Pros and Cons to every model… do your research and choose the best one that suits your psychology.
I have noticed that losses (and winners) tend to occur in clusters. Rather than halve your position size, other alternatives include:
Scaling out of your losers. Say my stop loss is. 50 pips instead of lettin my whole lot run to that 50 pipe I scale out after I lose 20 and 35 that way I dont take a full loss and it might retrace also. Just something else I’ve been thinking about.
stop trying to find reasons for taking a break after a loss, or even worse cutting your risk in half. I can fully understand why this may work on a mental level for new traders who are fresh to managing their own emotions. But this will not help you trading in terms of profitability. Take each signal as and when it comes, as long as it is of course VALID. skipping a few trades just because you have a feeling that this trade will be a loss is complete and utter garbage, this is on a equal level to gambling, hoping that you wont get caught out. If you are a smart trader and you have done intensive research and testing you will have a high degree of confidence in your trades. You will not need to have to take a break as you will know that you have an edge. If you feel you have to stop after a few losses it is only because you are mentally screwed and have uncertainty, uncertainty which is backed up by a lack of trading experience.
Jezz, Dude, Whats the deal today,? Your speaking brilliance.
If you stop working the strat, it messes up your CURRENT flow…
What I mean is, if you average a loss, sayyyyy every 10 trades, once you start skipping your signals, it throws everything out of whack…
How do you know the next trade looks good, but you have a feeling its not? If you can see this happening before hand, its a no brainer to not trade it. Did you discover the trade wasnt good by the strat, or by gut feeling?
You HAVE to play ALL your signals, just as your plan tells you to, and with the same, exact approach as your last. If you change this, you HAVE to change the strat, because your doubting it, and when you start doubting it, your doomed to fail sooner then later…
I’m not suggesting that people skip trades after a loss for purely psychological reasons. From my own backtesting, trades are [I]statistically [/I]more likely to lose after a loss. It depends on what system you use, of course.
Generalizing too much…it depends on the method and the person. You wont get anywhere telling people that your way is best. If it’s not best for them they’ll argue to the death or worse, listen to you against their own judgement.