Hi Traders
I am starting a new journal about my high probability price action trading. One year ago I already started a journal/thread discussing my high probability price action trades. Since my last post there I did not post anymore. I really was not doing bad at all with trading but over many trades in my trading journal I was really shocked of what I found out about my money management. I have seen that if I would have aimed for 1:2 RR trades for a minimum I would have made a lot more money. Earlier I already traded with minimum RR of 1:2 but then I changed and focused on protecting capital and move stops quickly to BE. And I was profitable but it was not a decent return. So during this time I decided to change my money management and track my performance. Now I was achieving a better performance which was much less stressfull trading! Please note that it was not easy and I had to learn how A+ trades look like etc.
The difficult part about aiming for minimum RR trades is to not get emotional when you have losing strikes! Now why did I completely change it? In my opinion with 1:2 RR trades I have a mathematical edge! I only need to win 50% of the time to be profitable. With cherry picking my trades I will achieve my 50% win rate. Check out my posted trades in my last thread and see how I would have been more profitable with aiming 1:2 RR trades. The other thing is that there are people that tell you that a minimum RR is a myth. To be honest there is really no right or wrong! There are many ways to skin a cat! A lot of people also say to only trade with the trend. But think about it. How do you know that you are trading with the trend? Or how do you know that it will continue? Nobody knows! Now I am not saying that trading with the trend is bad at all. What I’m trying to say is that money management is the holy grail in forex. I know that over many trades my edge will play out and I will make money even if I lose 50% of my trades!!!
I don’t like to talk a lot now but rather will show how I will do in future with my trades. If I am not going to find success with this methodology that I created with my 3 years of trading experience, I will stop trading.
I only trade high probability A+ setups from Daily, 4 Hour and down to 1 Hour charts traded from Daily Horizontal Levels. The setups I take are pin bars, engulfing bars and 2 bar reversals.
All the Success,
Serafino
