Introduction: This illustration explains the minimum Risk-To-Reward ratio needed based on your average win-rate while using a fixed % risk amount. "Risk-To-Reward ratio": The ratio of what you stand to lose compared to win. "Fixed % Risk": A static % amount of your total account balance at risk per trade. "Fixed Dollar Risk": A static $ amount at risk per...
If you like my ideas and the work I do, please check out the links in the signature and give me a like ;). As I tend to get a lot of questions about this topic, most traders don’t seem to understand basic risk management in trading! From my experience capital protection and risk management are probably the most important part of any trader's skillset. So that is...
Today we are comparing fixed equity percentage vs. fixed dollar amount to show how fixed % has an edge. The chart above should mostly be self-explanatory. The only real note here is that while the difference can be slight in the short term, and while static dollar amount does have an advantage in some instances, over the long term the data suggests the % based...
In this example I'm gonna show you how important is the entry point. With same levels for stop-loss and take profit, one position will give you the opportunity to earn 3 times more than the other. It doesn't mather if the position is a loss or a win, I just want to visualy show you the importance of the entry.
Every trader has got himself into a loosing trade. This is simply the part of this game. You will never be able to predict every move correctly. The biggest thing that separates a profitable trader from an unprofitable trader is actually not better technical analysis or more experience. The biggest factors in my opinion are trade management and risk management....
The two year has remained relatively flat since this week's open. However it did gap up significantly. Why is the 30 year falling (see linked article) while the two year remains consistent? Bonds of different maturities care about different things. In particular, the shorter end of the spectrum cares less about the long term effects of inflation and the...
This section is on seasonality and follows the prior section on carry trading conditions. I strongly recommend reading the prior parts for full value. This is (pt. 5) in chronological order. And yes, this will be on the test. ----------------------- You probably have someone in the immediate or extended family that considers herself (let's be honest) an...
As I promised, I publish the post about risk management. There are different types of risk management, but I will share one of the best in my opinion. When you trade futures you have no control over what is happening in the market, the only thing you can counteract is your stop orders and it depends on the volume of your position. Nothing more depends on you....
In this example I am showing you how important is RIsk Management in your trading system. You could be the most talented trader in the world with a natural eye for investment opportunities, and still blow your account with one bad call without proper risk management. No matter how good you are, or how experienced you are, you’re still going to incur losses. Even...
The most important part of trading is risk management. A correctly calibrated risk management system helps a great deal in reducing emotions and increasing returns . There are two elements that allow a trader to control the risk of his entry: the maximum risked amount of equity per entry and the stop loss. In the example above, we are assuming that we are about...
Vui lòng xem video, do mic bị hư nên không có tiếng, nhưng video đã rõ cách cấu hình, lưu lại template. Lưu ý số 3 là tỉ lệ RR=2, không được như bên MT4/MT5.
We've all been there.... - An alert on your phone draws your attention, "GBP USD up x%" - A news story comes out; in this case "Brexit Breakthrough" and before you know it the markets are going nuts. - You scramble on to the charts to take a look at the action and Holy Moly things are going UPPPPP!!! Naturally your eyes ignore all of the indicators on the chart,...
This is a way to safely trade highly leveraged products employing primary and secondary stop-losses.
Disclaimer: For new people, or just the dumb people (I heard there were alot of those in crypto), these are AVERAGE TRUE RANGE numbers. Those numbers do not represent the most or even average you can lose in a day but the trading range in an average day. Days can vary widely... Just look at the NatGas chart, or Bitcoin that has some days in a 2.5% range and then...
How do I calculate/manage risk? Managing your risk is absolutely essential as profitable trader. When you enter a trade there are only five outcomes: 1) Big win; 2) Small win; 3) Break even; 4) Small loss; 5) Big loss. As long as you can cut off the "BIG LOSS", no matter how bad you trade, its still likely that you are a profitable trader. Most people's...
Heyaaaa As promised, here's the video tutorial showing in silence/muted how to use the new indicator published today Risk-Reward-InfoPanel/ I'll try from next week to buy a microphone and you'll all hear how nice is my french accent.... I can imagine the complains I'll receive saying no one understood anything. Will be fun for sure Anyway, please let me know...