# Winning

Hello Everyone.

I’m about to share with you a money management trading system. This does not alert you when to buy or sell but it does reduces your trading time to the bearest minimum. For Example ,

If you own a \$10,000 account, you should expect not higher than 20% drawdown on bad months, but Twice as much on good months.

If you own a \$100,000 account, you should expect not higher than 17% drawdown on bad months, but Twice as much on good months.

If you own a \$1,000,000,000 account, you should expect not higher than 11% drawdown on bad months, but Twice as much on good months.

I’ll illustrate here with a virtual account of \$10,000 what I mean.

PS. The basc idea is trade less often. For me, I trade 4 times in a month but execute 18 trades during those time.

Jite.

next trade will be executed next week monday, 20th Oct 2008.

Cheers.

Call me crazy but this sounds like a set-up for…

“now that you see how well my method works I can share it with you for just \$99.95”

No, No, No the magic figure is … \$97

:eek:

You all think so? I guess time will tell! there’s no point arguing over what is not my intention.
for everyone else who read the first post, all I practice is patience and my possible best not to overtrade because the 2 keyword “patience and overtrading” will bleed your account even if you have the best trading system in the world!.

peace:

here’s a way this type of trading works. (acct details on post#1)

You place 4 trades with sl 40 and tp 250 (each)
the pair I trade is eurjpy, gbpjpy, gbpusd, gbpchf

a pip on alpary platform on these pairs are from \$0.88 - \$0.90
Calculation Below:

\$0.88*40 = \$35.2 (for 40pips and 1mini traded on 1 pair)
\$35.2 * 4mini = -\$140.8(1pair

\$140.8*4pairs = -563.2 (loss for the week)

But Assuming all our trades hit tp!

\$0.88250 = \$220 (on 1 pair and 1mini)
\$220
4mini lots = \$880
\$880*4pairs = \$3520 profit for the week!

the good thing is all our trades might not hit tp but a single win covers more than 4 losses!.

So initially, the idea is playing money management odds on multiple trades, hoping that at least one will hit it’s t/p.

Yes playing money management odds on multiple trades, and also reducing our trade drastically to avoid overtrading (1 trade Per week on 4 different pairs) plus the term “Diversification”

I ask for you all to be patient, I don’t day trade due to the nature of my Personality. 3more days to new Orders!

P.S All that matters is the Pips!

Trading Starts in less than 10hrs… And the good thing is I added Wednesday’s to the MIX! So we have 2 trading days/Week! isn’t that great!

Standby

i just began testing a similar idea. thanks for keeping us updated, i’m excited to see how it plays out

thank you tlindle, i will continue posting all udates here based on the money managedment skill that gives us an edge.

I made an update on # of days to trade. This way of trading enforces stict Money Management but the good thing is we now have an extra day to keep us busy (weew, trading is truly a lonely Business). This new way of trading, our account does not exceed 8% drawdown in a month regardless of its size… (this requires strict discipline)!

remember our last calculation?
in a week, there’s a probability to earn \$3560 Profit based on our 10k capital; but with this new way of trading, there’s even a higher probability to earn \$4628 and still keeping drawown at 8% every month!..

calculation time… :)… I’ll post that on next post…

unfortunately, our trades did not work ou as planned, this bleeded our account with no higher than -460usd, for a first time loss this month! We now have a maximum DD of 3.83% but we’re still positive on our monthly earning! 13% Profit till date. Let’s watch how next week turns out to be. … thanks for reading through.

Why does the dollar amount change the percentage of each dollar you will risk? That doesn’t make sense at all.

of course it does if you’re a large trader or maybe an institutional trader.
large traders or investors cannot stand a loss of [B]-20% [/B] drawdown on account equity! So as amount grows, lot size reduces.

recently i updated the money management to allow a maximum of -9% drawdown regardless of the account equity!.

so whatever the amount is, our equity must not exceed a maximum drawdown of -9% if our month is negative.
Trading starts in few hours time… let’s see how london open goes…

He’s right, I risk 0.7% per trade since I have a large account. The bigger your account egts the less you risk.

Thank you NickB.

Our account has achieved a total of 33.7 since 13th of this month till date, we earned 19.97% today risking less than 4% of our equity!.

Our next trade should come up on wednesday or thursday! I need a one day break each week to stay far-- very FAR from the market!.. and possibly go outing…

Also, on our trades today, you should noticed i closed a trade at -\$78…
the reason for my action is, a minute later i discovered my reasons for entering the trade was wrong so i had no choice but to close at a small loss than wait until price hit my stops!..

Strategy is just 10% of your overal performance. SELF discipline is what makes you a success.

I should engage in riskier behavior when I have less to lose? If its not a good idea to risk a certain percentage of a large account, the same applies for a small one. Large and small account sizes are subjective, and thus not a measure for logical decision making.

Makes complete sense to me. I can stand to lose 1000 bucks, so I might take a riskier, yet overall profitable strategy to increase my bankroll quickly. If I am wrong, then well… I can easily replace that 1000 bucks and try again.

I can’t say the same with 100k.

But tell ya what. Once you get your account to 1 million. You just tell me if you’re risking the same amount or less.

Theory always paints a perfect picture.