When you plant an apple seed, you know not which direction the branches will take nor are you aware of the worms which will disappoint but you know that, with proper care, you will receive benefit; such is trading.
http://i42.tinypic.com/mw5s3r.gif This picture looks so nice after understanding space and then moving that space and putting it behind swings.
Do you have multiple positions on multiple timeframes open at a given time or do you focus on a certain timeframe? I am curious about this trading up concept; teach me oh cryptic one.
From the link I think I understand space and how you adjust your position to sit behind the swings. I think from that chart you do it do your position is behind the bigger sliver/grey chart so there is less chance of it being hit? I don’t quit understand the numbers because they are different to how I have to do it with OANDA and their variable sizes so I need to make a spreadsheet to work things out and to put it in terms of base currency a well.
One thing that would really help me, as I don’t mind admitting I’m stupid, maybe it will help others too, if you don’t mind and have the time would it be possible to run through putting a position on in real-time so we can see how the chart looks at the right hand side as it happens and at each stage. How you get the first part on intrigues me for instance - do you look to the left for a previous market turning point?
TIA
Hello SwordOFManagement,
my purpose was to ask if my entries are correct, but after reading reading the new posts , i get your point. we need to have space and plan, entries are secondary.
Best regards.
-guandi
“Correct” :28: what does that even mean?
Surely by “correct” you mean “how do I know the future” & if this is the case then nothing is “correct”
I’ll tell you what I do know guandi:
a) price will move a hundred or hundreds of pips from one long(er) term extreme or the other
b) if price is closing higher then it is probably not going lower
c) the greater the distance to be traversed the more experienced need be the traveler
Ideas are what guide me guandi, not candles.
These are the types of traders:
a) Technical <—Professional gamblers.
b) Fundamental <—Hats off to these guys, I can’t do it.
c) Techni-fundamentalist <—Most BabyPips educated traders
d) Techni-mentalist (psychology oriented) <—Sword is here.
mentalist: (mentalism) (philosophy) a doctrine that mind is the true reality and that objects (price bars) exist only as aspects of the mind’s awareness.
Now that you understand me you can stop calling me cryptic (it is irritating).
Trading up is about working your way into a long term idea from a group of smaller ideas.
Cracking your psyche, j/k. Haven’t read of anyone who understood you first go around. CrypticOne is catchy wakawakawaka. Seek the one who who talks of cryptic things and who speaks of space, the candles are only showing you what you put onto the candles. If you can see profit you can see loss, if you can see loss you can see profit. Just look for ‘something’ and whether price is above or below it, now put yourself where you would want to be and enter the battlefield with space as your sword and shield.
Round 1: FIGHT:61:
You are already beginning to know without knowing & to see without seeing :39:
Hello SwordOFManagement
Correct meaning the entry is a high probability entry based on TS not predicting.
Thank you for your ideas.
- guandi
Sword of Management,
After alot of reading about daily and weekly extremes and space, I have some questions. But would you rathar I post on KR or start another thread, due to this one is Trendsetter? I will wait on the extreme questions… and just post this one chart for now. If I am starting to understand space, entries and exits dont matter… Account at 90.00 risking 2.5 percent… after a number of trades I invest my profit of 100 pips, *.10 per pip + my initial risk of 2.25 which was 22.5 pips. Gives me 12.25 / 40 pips is what I want for space for my next trade, which leads me to a .30 per pip trade with 40 pips of space? I drew a 40 pip box on the chart but I dont know where to put it…from the current price, current active trade or new average when I add the .03 lots to my next entry? Am I getting closer…to me it means where my next entry is, which would give me a max of .30 per pip * 40 space box…= my original 2.5 percent risk. I dont have to let it wipe out all my space also, correct?
-dojirock
Calculations appear to be correct.
So now your using 3x the lot size but risking the same 2.5% of base account value.
Profit potential explodes (especially after another “win” or 2) and risk remains the same.
So if you used the Standard Trading Protocal of risking 2.5% per trade… your next trade lot value would be right at .10 a pip and risk would be $2.50 (more $ than your last trade) but profit potential would be ONLY 1/3 of the above.
Just doesn’t make sense to me. Why risk large amount for so little reward???
Sure glad the Sword guy didn’t Quit on US!!!
Procharge,
Thankyou for the confirmation, I feel like i took a step forward. Ok, how many trades should I take to best utilize this. The scenario above was made up of 8 trades at the same lot level. Now that Im over the 100.00 mark i can still only do upto 3x the lot size for now? But as it grows that will increase…I follow the calculations for the risk/reward , the latter being alot more than the risk.
What im still doing is taking trades and closing them and rolloing over the profits. I cant figure out where and how to use the SPACE part of this and how it will or can benefit. I dont question whether it can, I just dont understand it yet. I use a 20 to 30 pip hardstop and have finally gotten off the 5 min scalps. Im currently on 15 and 30 min charts and am working on understanding the daily and weekly extremes, and if im correct in my analysis am short trading away from the daily extreme on a/u? It seemed to give me a great streak today. Can you explain how you see the space aspect of it to see if another way of explaining it will help. Im sensing it is used to stay in trades on higher time frames without completely closeing them, but adding and taking away lots, thus managing space, increasing or decreasing? How does that help? I will get this…
One last thing, there is nothing im doing wrong on the calcs for lot size?
-dojrock
Just to clarrify … $90 acc … “0.10 per pip” you’re saying 10 cents per pip right?
And what do you guys do when you reach max lot size?
Thanks, new to this stuff
correct… micro account…
-dojirock
Psdpips, Im still trying to grasp this concept of space, but if im not mistaken, when your at your max lots, the rest goes to space? If there comes a time when you need more space you reduce your lot size, even if in a middle of a trade…example…closing .01 of my .03 open will give me more space for the remaining .02 lots.
But lets get verification on this…
-dojirock
Once your to max lot size with space required you have a CHOICE of either to increase space OR move some over to the Equity side of ledger, meaning it will no longer be at risk. This is how your trading RISK free by the 3rd to 5th trade in a sequence most times. E=L+R
MORE RISK IS MORE RISK
MORE PROFIT IS MORE PROFIT
$100 gained risking nothing is worth more than $100 gained risking every thing!
Some times less is more… M.O.
Bredin Posted on kreslik:
Age: 38
Joined: 16 Feb 2009
Posts: 990
Posted: Wed Feb 08, 2012 3:30 pm Post subject: (No subject)
Pros been doing a pretty good job so far
The goal with trading with space is to trade at your accounts maximum lotsize. Safely.
ie a 500 account at 100:1 leverage give you 0.5 lots (roughly).
If you have 2% risk (ie 10) risked over a 10 pip stop is only 1/pip or 0.1 lots… youd need to risk 10% to reach maximum lotsize with a 10 pip stop. Its just not safe.
I’ll now mention explicitly the concept of the account ledger, which is related to Space.
Most traders think of the account only as equity, and risk a portion of that. This means that, in actuality, their entire account is at risk, albeit in thin slices. They limit their risk in this way, which also limits their lotsize.
So in this concept (not new, hinted at in many posts) ones account is separated into two pieces, by this formula:
E = L + R
Equity = Leverage + Risk
in our quick example
500 = 490 + 10
and yields the maximum lotsize of the account (ie 0.49)
now the cool bit
when you have a win you add it to the R side of the ledger
so if I continue the example of $10 risk 10 pip stop = 0.1 lots
a trade is made for +15 the ledger becomes
490/25
and the next trade can be made at 0.25 lots
another trade is made for +25, the ledger becomes
490/50
lotsize is now 0.5, which is the account maximum…
another trade made for +50
490/100
now you can move money from R to L
540/50
and now you have no risk at all… your equity is safe.
Now I can be much more agressive than before, without getting stressed.
this should illustrate one power of this…
the next is that Space doesnt use a stop. It uses an I/T, and you never allow your risk to be destroyed in one go.
There is an element of delayed gratification that leads to much greater rewards than any other method Ive come across.
Not to mention contracting space on the way to bigger targets, enlarging your lotsize, and all those other cool space trick
G.
Welcome to the era of “Guns and Maskies” Trading!
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Insanity Industries
Thanks Procharge,
Man, all the reading I do I still miss some of these post! That one was a great one.
-dojirock
Sorry OP, I posting my questions here, let me know if its inappropriate.
Fascinating stuff prochargedmopar.
I’m still working on a few scenarios.
So E=L+R
590=540+50
So in this case there are two good things here, actually three …
-
original risk of $10 is safe, moved to ledger
-
Trading at max lot
-
extra gained $ is safe too because you have moved money over to the ledger
Is this the jist of this MM?
So because ledger is bigger you can even trade at a higher lot size right? in the example above 0.54
Thanks, this is nice stuff 