Thank you IronHeart. Much better than my spreadsheet version.
Really good work!
No problem guys, Iāll whip out a 20 minute version as well.
But first I need to eat! So expect it later on today!
Woo Hoo! Iām very happy to hear that. Tymen was in the chat room today. He called a nice counter trend move that went for 50 pips. I didnāt take it as I had already made my pips in the morning and I wasnāt taking any chances on a quick reversal today. Wish I had taken it though, could have had a record day.
Once the risk is out of your trade and you have a few lots on, one of two things will happen, the trade will continue to run and youāll make even more pips, or it stops out and you walk away with your first chunk of profit you took off the top. You should NEVER give any of that first chunk back.
It takes practice, but I can guarantee you there are lots of traders that would be pleased as punch with taking 65 pips today. If you have any questions please ask. Happy Trading
I believe if anyone is having trouble with the 5 lot system, you can take my written description and the graphic that is here and go over and over it until it is a crystal clear picture in the head. If you print out a large chart of a really nice long trend run, you can paper practice by looking where you would put your entry, and how you would move your stops and put more lots on. I had been trading this for years and never wrote it down until I started this thread. What seemed so natural for me in trading turned out hard to put in words. The graphics really help. Thanks, Guys.
My way of trading is to create a trade plan and if the market follows that plan all I have to do is select my entry. If the entry doesnāt develop then Iāve lost nothing. If the entry develops I take it if I feel good about it. Before entering a trade, you still have an option. Of course, I find that usually when I pass up on a good BB DNA entry, I regret it because itās such a high percentage entry system. Anyway, once Iām in a trade, my I.Q. drops to about 10% of normal. Iād be better off flipping a coin to make decisions. Thatās why I created the 5 lot system Itās totally mechanical. I canāt screw up a good trade if I follow it. I wonāt win every trade, but losses are minimal and really donāt even bother me compared to the wins.
So if you havenāt figured this system out, please spend as much time and ask as many questions as need be to get it down cold. It wouldnāt hurt if you set up a demo just to practice this 5 lot system taking random trades as fast as you can and following them to the end, however long or short that may be. Youāll probably lose, but the point is to just get the system down. After you do this lots and lots of times, it gets really easy.
Ironheart nice chart.
The only thing I donāt understand is on the first lot. Why close that lot?
why not just change it to a Trailing Stop 15 pips behind?
Hi Graviton and all,
just beginning to read this trade after listen about it on the chat, maybe this indicator can help for see 4 charts on 2 windows.
I will read the thread now 
cheers
Greg
edit: canāt upload the indicator, itās name : m_candle.mq4, you can find it easily or I will wait for 50 posts for upload this.
Does that mean you donāt recommend going back into a trade if you got stopped out on a retracement but then you see the trend is still continuing?
That is my question as well? If you have a Trailing Stop the 30 pips is already locked in anyway, so you may as well let it run?
Is there going to be another thread regarding the trade system Galvion talked about this morning in chat? I came in on the tail end of it and missed what he was discussing.
If you have a 15 pip trailing stop set than you wonāt lock in 30 pips UNTIL that lot generates 45 pips profit.
Thereās absolutely no guarantee that PA will go that far for you to be able to lock in 30 pips profit - and until that point, you will be risking more than 15 pips.
Ironheart, cracking chart, tanks for that makes it nice and easy to follow.
Graviton, any chance of some had and fast rules that can be glanced at RE which pairs get which size R:R (15:30, 20:40 etc) in relation to the markets that are open and the volatility of the market?
I jumped on the EURUSD 30 mins too early today (was using the M30). If Iād waited for the H1 to show a squeeze entry would have made profit, as it was I got stopped out by the 2nd extreme candle. Twas interesting to see it run.
As to why the first lot gets closed, itās an interesting question. Take the guaranteed 30 pips profit, or try for more with the knowledge that should it reverse on you you will still have 15 pips, which is a 1:1 R:R, as long as youāve since set the 2nd lot to BE. However, as the first lot hits 30 pips you will have also entered a 3rd lot. This 3rd lot will then reverse too, hitting its SL. This means that -
lot 1 = 15 pips profit
lot 2 = BE
lot 3 = -15 pips
So the total would be BE.
Not using a trailing stop would be -
lot 1 = 30 pips profit
lot 2 = BE
lot 3 = - 15 pips profit
This would then net you that 15 pips profit of 1:1 R:Rā¦
graviton has said how important it is not to lose 50% or more of any profits you have made with that 1st lot. I guess it comes down to what type of trade you think this will be - a runner or a staller?
Iām tirec, hope that made sense and was correctā¦
Cord
Sorry, but you donāt make the TS at 15 pips, you are making it at 30 pips meaning it will start from 30 up instead of closing the trade. You would end up in your example the same (15pips) or more since you are trailing.
No, that would be a different trade. Sure you can take a different trade in the same pair. Really, the only way to give back the first chunk of profit in the same trade is if you were to move your stops to stay in the trade when the system says you should exit. Moving stops against the direction of the trade to stay in a trade is a huge NO NO in this system. Never do it.
Really, there are only two ways to mess this up. One is moving stops to stay in a trade, putting risk back in the trade that you worked so hard to get out and the other is overtrading. You need to follow the position sizing I recommended at the beginning of this thread. The reason is, some day you will have a bad week or two. The temptation will be to increase your position size to make it all back. That is the opposite of what good money management calls for. Good money management says you never risk more than 1% of trading capital on a trade. So as your capital drops during a bad week, you should reduce your trade size, not increase it. You must use good money management at all times.
The other way to mess this up is to take ever more questionable trades until your win/loss ratio plummets. You should track your win loss ratio and if you see it dropping, you need to think about the trades you are taking and tighten up your criteria for taking a trade to raise your win/loss ratio to back where it should be. Happy trading.
Hey Graviton, If you get really bored sometime and are looking for a way to kill some time would you write a few more analysis of pairs as you did at the beginning of this thread? Maybe this weekend? Itās been very helpful to me to see how you come to decide on good/bad trade possibilities.
I believe you are right! I just wrote it down the way I had traded it all these years, but if you move your stop to lock in the profit on the first lot and let it continue to run with the other four, you make EVEN MORE PIPS! Oh My Gosh, itās a flood of pips. Pips falling from the sky. Iām tripping over pips. Pips are in my cereal in the morning. Pips are in my chair when I want to sit down. What ever am I going to do?
Thanks to all who saw this and pointed it out.
Thatās a good idea. After the market closes, Friday at 3 PM my time, weāll start pair analysis for the coming week. Anyone who wants to help is welcome. Letās split them up to make it easier this time. Iāll need about 5 helpers and weāll each take two apiece, then weāll all review, and summarize. Sound like a plan? Who is in?
Sure, count me in!
Count me in:):)
Oh! Is this one of those times when I made that silly mistake? You know, the one where I thought I was wrong, but I was really right?
count me inā¦