1.5k account with 0.01 lots size can’t even handle that large SL without exceeding 2% risk. Can’t imagine 0.12 lots the risk must be well over 10% unless you’ve got a nice entry?
CHFJPY just brushed away from my SL and it’ll probably take another week or 2 before it goes back to my entry point… only if the trend continues down. btw my entry sucked here the financial report that came out days after totally crushed it… Your method of having large SL is to get far away from the noise and news volatility and purely follow the technical analysis?
this about the overall baller strategy, not specifically about the 10K experiment with also different drivers than only the best trading.
i am convinced that a consistently substantially profitable strategy needs to have a long term perspective and use wide SL’s.
i also really believe this is a good strategy and works as you say it does.
but… for the sake of discussion, it also has a limiting factor: the focus on the next S/R level.
we all know that you can make the most money if a pair really moves a long time in one direction and you jump in early.
of course, you always have the questions like
what is going to be a “big long trend” > you never know for sure beforehand
so when do you enter what trend then? > e.g. same as now in baller’s strategy (but there are many other ways too)
when do you get out?
regarding the last point: that is the limiting factor i meant. S/R’s are only sometimes strong enough.
what if it goes through (whether or not after some bouncing)? yes you can get back in, but often the price has moved on already substantially. why not e.g. taking out your investment at S/R level and let the rest run if you think based on the chart at
that time that the move is really strong?
(for newer traders: you can recognize a strong trend at the “big moves without looking back” - if you see that, big chance it goes through S/R).
My risk is usually 10% a trade anyway so others might be up for more risk than the standard 1-2%.
Long term this looks like it pummeling down - the majority are long, when I say the majority, I mean, everyone and their dog, friends and landlord are all long.
If I saw this today, I’d be looking to go short.
News volatility is always just short term blips, the market is going where smart money needs it to go to get in.
Not sure if this is too much thinking. Continuous search for improvement brought us from trying to fly with plywood wings to stepping on the moon.
Here is an example of what I meant: AUDUSD weekly. Look how on the left the downward move starts and how it goes straight through six levels without hardly any retrenchment.
I would short now. It’ll take months’ to reach resistance unless we experience a new crash tomorrow. The large red candles on far left dated back in 2008 financial crisis I believe.
Yes and what do you think about entering with stop orders so if the price moves against me then I won’t be in the DD but trail stop order my entry? hehe
@The_Baller do you mind me asking how long and how deep your worst drawdowns tend to be? I am making poor quality entry decisions in the simulator it seems and get stuck nursing them for weeks on end, not knowing if it is a blip or a reversal.
I thought about hedging to deal with this, but maybe I just need practice making better trades.
The longest I’ve been in DD for a particular trade, probably around 3-4 weeks. Pips wise (people always put the emphasis on the pips, when it should be the $$$), it was around 500 pips, but in terms of $$$ it was £500.
I remember this one because I ended up just holding it for months and months until it closed for around £6K.
I’m not that great at entries myself, but haven’t had any major issues.
May be try going to a lower time frame, i.e. the daily to get a better entry.
Yes and it makes so much sense…What would be a a great rule for how long the distance of my stop order should be trailing behind the CMP? 1 weekly ATR, previous month low or open or what?
