Ooi… easy there fella.
You saying my skull is thicker than yours?
At least you got halfway, I got nothing lol.
Edit…Ok after Fury’s last post, its starting to make some sense
LOL ! Don’t get me started…
Haven’t even mentioned my bones… :D:D
Something’s bugging me.
If you take 0.6% risk on the first trade, then the 1:1 R:R profit is also 0.6%
Same for taking 2% risk; 1:1 R:R profit is 2%
You’d have to compare apples with apples.
TM: first loss 0.6%, second loss half of that = 0.3%, third and following losses 0.15%
SM: first loss 0.6%, second loss = 0.4225%, third loss = 0.297%
Darnit, need some sleep. To be continued.
The traditional method just has you cut risk in half, where as the space method just has you start over with the amount of pip space you need; they will not exactly line up. The premise is the same, risk will be reduced… Its just the space method has you use all of your winnings to make more winnings, the classic method only uses a small portion (2%).
[B]Space, the final frontier[/B]
no let’s be serious for a minute…
can we refer to ICT’s risk management style as “classic” rather than “traditional”?
group consensus?
There’s nothing classic or traditional about it, just 2 diff styles imho.
Fury, this is how I understand it. Let me know if I’m right.
R:R 30 pips to win 100
Betting 30% of [2% of Initial Balance]
If loss, your next bet is still 30% of [2% of Initial Balance]
If win, your next bet is 30% of [2% of Initial Balance + 100% of Balance exceeding Initial Balance]
The whole 100 pip SL is bonus in case you want to watch price action, allowing a 45 pip move against you and hoping it comes back. If it’s taken out as soon as it hits 30, then it’d be the same as putting a 30 pip SL.
So your risk is reduced exponentially, while your gains are increased exponentially. However, a string of losses will deplete your entire winning balance at any given time in your career. If my understanding is correct… 5 losses in a row will deplete 76% of your winnings.
Get rich quick but very dangerous. It’s worth experimenting with on a side account.
I definitely don’t know much about this “new” money management … but I do know that ‘ICT’s way’ DOES use your winnings to multiply your account quickly…EX- you with 10000 risking 2% …well then when you have winning positions and your equity builds to, lets say , 11000…and you risk 2 % on the new account balance…so it is in fact letting you compound your profits.
If that’s not whatto you meant then sorry. And I’m no expert on any money management system so I can’t comment much more =P
Transcript from [B]PTC Feedback 03-09-11[/B] appr. 22:18 into the video:
[I]Every time you go in the market, taken one (1) session. If you can build up the patience to wait for a clear setup in one session, that’s ELITE because you’ve controlled every aspect of YOU as the trader and you’re allowing yourself to get in sync with the market instead of imposing your will upon the market.
[B][U][I]PATIENCE AND CONTROL !!![/I][/U][/B]
This is NOT something you need to be doing every single day . That is ICT’s pattern and that’s the purpose of this thread: to instill that in us as developing traders to do. Give yourself the permission to not having to be in the market every day.[/I]
:41:
well this is one of the first times I have found this thread on the second page of newbie island.
Would just like to say anyone new finding this thread who honestly wants to learn how to trade FOREX look no further, this is a great place to start.
Good Luck & Good Trading.
For those square-eyed ICT video aficionados like myself, this is a perfect in-between to watch:
Hattip Hugh 
And here’s number 4:
great stuff.
But where’s no. 2 and 3?
Never mind, I know what you gonna say
She is very right. This is exactly why we can all learn ICT concepts and tools, and still get wildly different results.
You HAVE to be flexible. The real subtle danger is what is causing you to deviate from your gameplan? Are you recognizing a change in the “mindset” of the market… or are you simply giving in to your fears, or your greed?
IMO, it is this concept that makes live trading so much different than demo. On demo… that intuitive side of you is healthy and accessible to your decision-making process. But on a live account… when real money is on the table… fear begins to run your intuitive side. And all of a sudden, that intuition is no longer aiding your decision-making, it is in fact being controlled by fear & panic.
So with many many many hours of live trading experience… you eventually start to develop a sense of your own fears. You WANT that intuition in your trading… but First you must filter out ALL of the fear from the equation! What is left, should propel you ahead of the majority of your combatants
Very true.
All the more reason to not use an EA, they don’t come with built in intuition.
I think this is the toughest part of trading, being able to operate from a point of uncertainty, but not running away from it.
To me my worst enemy is not so much fear, I’ve learned to live with that, but rather its over confidence.
When I have two or 3 positive days in a row, then I tend to be over confident and make decisions without careful thought.
So I actually welcome that uncertainty because it forces me to dig down deeper, and hopefully get in touch with that
intuition.
This is why I love trading.
lol
No grasshopper involved here; only in case of hidden video’s 
Search for Denise Shull on YouTube and you’ll find Part 1 and 2, as well as other videos.
:41:
The perception of demo vs. live cannot be generalised, it’s different for everyone. That said, it is useful only in case you imagine a demo to be an exact proxy for a live account. That is also why you need to have the same capital that you would have in a live account, and as part of a trade plan I find it a good tool for capital conservation, e.g. when trying out new ideas / instruments etc. It has saved me a lot (both financial and emotional capital), in other words 
Has anyone noticed how the fib levels work so well, in past low´s and high´s…if we take a fib on the trinity level´s this week we can see the fib level´s working very well on past importante level´s (last 3 months high´s & low´s, session´s high´s and low´s…)
JOHN
Something in the new thread prompted me to look this up.
Wheat and chessboard problem - Wikipedia, the free encyclopedia
[I]While the story behind the problem changes from person to person, the fable usually follows the same idea:
When the creator of the game of chess showed his invention to the ruler of the country, the ruler was so pleased that he gave the inventor the right to name his prize for the invention. The man, who was very wise, asked the king this: that for the first square of the chess board, he would receive [B]one[/B] grain of wheat (in some tellings, rice), two for the second one, four on the third one, and so forth, doubling the amount each time. The ruler, arithmetically unaware, quickly accepted the inventor’s offer, even getting offended by his perceived notion that the inventor was asking for such a low price, and ordered the treasurer to count and hand over the wheat to the inventor. However, when the treasurer took more than a week to calculate the amount of wheat, the ruler asked him for a reason for his tardiness. The treasurer then gave him the result of the calculation, and explained that it would be impossible to give the inventor the reward. The ruler then, to get back at the inventor who tried to outsmart him, cut off the inventor’s head to discourage such trickery
[/I]
Interesting…
What if, while the treasurer is counting the grain, [[id]=AMBNS"]he multiplies the available amount over the years…](Federal Reserve Economic Data | FRED | St. Louis Fed[1) thereby debasing the value of the first grain relative to what was agreed upon in the first place… also note there was no time limit for the reward to be forked over…