If you have a winning edge, it’s unlikely that you’ll be losing in every single trade. My available equity is almost always over 100% of my net balance. My winners hedge off the losers.
I still cringe a bit when I see the pips I leave on the table. But it doesn’t hurt anywhere near having a trade stop out only to go in my direction, or I close out a trade early in profit and it runs up a few hundred more pips.
Interesting take on risk management… Makes sense, this definitely leaves enough room for the market to do it’s thing…
Cant wait to learn how u make your entries & exits…
Good stuff so far MG99!! 
Hi MG! just curious, will there be any need to keep a trade journal for this method??
What do you mean?
You know like having a notebook and a pen besides your PC were you document your trades(reason for entry/exits etc.)
We are talking about 28 currency pair here, and we are buying/selling almost all of them at the same time…Personally, i scan my 15 currency pairs every night to find a trade set up, i usually take one trade at a time, so it’s easy for me to write down my taught on that one trade, but with 28 pairs being traded at once, is it still possible to keep a journal??
Do you still keep a trade journal??
I don’t keep a trade journal at all. Me reasons for entering and exiting tend to be fairly simple. Now that may be from just my experience of watching price action.
Next trade I take, I’ll probably outline the decisions for doing so.
When you have time, will you (could you please) be providing an general overview as to how you approach technical analysis, beforer actually applying your approach to specific trades.
It’ll be easier to do in a real trading scenarios. There’s no set criteria that I use. I monitor price action and it’s very fluid. Why I enter one trade may be very different than how I enter another.
What do you think is the most important in studying price action?
What would be the ideal leverge for trading this methodology considering the risk management outlined by mg ?
Watching for areas of support and resistance.
I trade with a 50:1 leverage.
With an account of $10k, how many pairs would I be trading?
Thanks.
With the risk management I utilize it doesn’t matter the amount of the account. You can have ten bucks or ten thousand bucks I still trade 28 pairs.
I don’t want to push, but to give a general feel as to the jist I’'m looking for, are you talking about S/D zones which are often used for S/R, do you use diagonal trend lines, or do you focus on signals from candles such as pin-bars, outside bars, inside bars, or possibly volume. I was thinking as a primer, it would be helpful to make sure that we are familiar with the tools you have so that once you talk about implementing, we are able to follow you better.
It’s really better to just show you. This weekend I’m going to pick the last trade I entered and provide my commentary on it. Even if it closes out by then as a loser, the logic will still pertain.
OK cool. I really appreciate the effort that you’re making with this thread, and am looking forward to participating, learning, and hopefully laughing once or twice. It was also very helpful to get a feel for your basic approach to trade risk.
@MG:
Why are you basing your portfolio on forex ONLY ?
I assume you know that trading securities from the same market (especially a so high-correlated one) keeps a high market risk upon your portfolio, and have a lower unique risk.
I like your trading mindset, but theory says that it would be more efficient when the portfolio would be diversified in more baskets.
Sorry if maybe i’m getting too theoretical for what you were planning for this thread, but as we are talking about optimal risky portfolio, I can’t keep it in :59:
For the purposes of this thread, this is solely based on Forex.
If you’re thinking about any sort of risk reward pyramid, this would be in the high risk/high speculation and should make up that segment of your overall portfolio that fits your risk profile.
Forex is almost in its own universe in traditional risk modeling. But if you’re going to fit it on the puzzle, as I’m generally conservative, it represents the smallest segment of my entire portfolio.
I got news for you. The market doesn’t care what your trading plan is. You can add up all the math you want and it won’t make a lick of difference. You don’t control the market and you never will.
Whether you aim for 20 pips a day, or limit yourself to five trades a week, you are only creating an atmosphere where you are limiting your potential.
Your goal should be one thing, and one thing only. And that is to maintain an edge in the market. For if you have an edge, the results will be self evident.
I don’t, and certainly the market, doesn’t care what your goal is. I care about what you did. For what you say you can do, what you add up in your excel sheet, what your calculator computes doesn’t mean a thing until the deal is done.
Your trading methodology will dictate what you get out of the market. You don’t have a say in it. So get over it.
My methodology on average reaps me a little over 60 pips a trade. So knowing that wouldn’t I want to swing the bat as many times as possible? I’m not going to say, okay, I’m just going to swing twice and that’s it. Makes no sense. I want to trade as often as I can given what my methodology will output.
So quit dreaming. Forget adding up the dollars that aren’t there. Focus on developing your edge. And when you have it, use it to exploit the market as often and as profitably as you can.