MM - whatever works?
Sep 07, 2010 at 12:17
1,058 zobrazení
5 Replies
forex_trader_8466
Členem od Mar 10, 2010
68 příspěvků
Sep 07, 2010 at 12:17
Hi,
I started y demo trading few months ago
https://www.myfxbook.com/members/Krysztau/intuitive-trader/35885
As you can see I use quite large positions on my account [actually I open three positions at once to set multiple close].
In return I got trades that loose up to 5% as a regular one [one day I lost 15%, but it was an accident, but t shows, where my stops were at that time].
Recently I started to think, should I lower my risk by decreasing lot size, or rather take it as demo, that proves my MM is correct.
There is common rule of 1% risk, but personaly I think it's not a must. I rather think it's a kind of reminder to not to risk 30%.
What do you think guys? Have you for example forwardtested method just to trade it with smaller risk on real account? Or would you rather keep same exposure after demo-testing?
I started y demo trading few months ago
https://www.myfxbook.com/members/Krysztau/intuitive-trader/35885
As you can see I use quite large positions on my account [actually I open three positions at once to set multiple close].
In return I got trades that loose up to 5% as a regular one [one day I lost 15%, but it was an accident, but t shows, where my stops were at that time].
Recently I started to think, should I lower my risk by decreasing lot size, or rather take it as demo, that proves my MM is correct.
There is common rule of 1% risk, but personaly I think it's not a must. I rather think it's a kind of reminder to not to risk 30%.
What do you think guys? Have you for example forwardtested method just to trade it with smaller risk on real account? Or would you rather keep same exposure after demo-testing?
Členem od Oct 28, 2009
1435 příspěvků
Sep 07, 2010 at 12:25
Ideally you should trade your demo account with the exact same risk you would use in a live account.
You should also use the same balance you plan to trade live.
Psychology is one of the key elements to trading and so getting used to the sums being won and lost is a big part of it.
You should also use the same balance you plan to trade live.
Psychology is one of the key elements to trading and so getting used to the sums being won and lost is a big part of it.
11:15, restate my assumptions: 1. Mathematics is the language of nature. 2. Everything around us can be represented and understood through numbers. 3. If you graph these numbers, patterns emerge. Therefore: There are patterns everywhere in nature.
Členem od Sep 08, 2010
46 příspěvků
Sep 13, 2010 at 16:07
stevetrade posted:That's why I like to display my profit in pips instead of dollars when trading manually - works great B-)
Ideally you should trade your demo account with the exact same risk you would use in a live account.
You should also use the same balance you plan to trade live.
Psychology is one of the key elements to trading and so getting used to the sums being won and lost is a big part of it.
A hard thing about business is minding your own.
forex_trader_8466
Členem od Mar 10, 2010
68 příspěvků
Sep 15, 2010 at 08:33
Actually the problem with your approach Steve is that when I will start trading live my demo will already exceed initial amount... ;)
Anyway recently based on my psychology studies I realised for myself I should trade small enough sizes to make all thing boring...
Anyway recently based on my psychology studies I realised for myself I should trade small enough sizes to make all thing boring...
forex_trader_43716
Členem od Aug 06, 2011
345 příspěvků
Aug 07, 2011 at 08:18
Nothing boring amount accumulating capital; plenty boring with sitting on the sidelines with no capital.
Členem od Aug 01, 2010
104 příspěvků
Aug 07, 2011 at 21:12
Krysztau posted:Hi Krysztau,
Hi,
I started y demo trading few months ago
https://www.myfxbook.com/members/Krysztau/intuitive-trader/35885
As you can see I use quite large positions on my account [actually I open three positions at once to set multiple close].
In return I got trades that loose up to 5% as a regular one [one day I lost 15%, but it was an accident, but t shows, where my stops were at that time].
Recently I started to think, should I lower my risk by decreasing lot size, or rather take it as demo, that proves my MM is correct.
There is common rule of 1% risk, but personaly I think it's not a must. I rather think it's a kind of reminder to not to risk 30%.
What do you think guys? Have you for example forwardtested method just to trade it with smaller risk on real account? Or would you rather keep same exposure after demo-testing?
I do recomend you two books that can help you and others with MM.
- Beat the Forex Dealer: An insider's look into trading today's foreign exchange market (Wiley Trading) by Agustin Silvani (Nov 24, 2008)
&
- The Handbook of Portfolio Mathematics: Formulas for Optimal Allocation & Leverage by Ralph Vince (More advanced)
Best regards and good profits.
Tradingboy
I Trade You Profit. Forex is suitable for smart and patient people...
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