Hi Ishmael, I agree with you in keeping the risk low and constant however I don't go with 2% as it might be too low for me to trade practically... Also I agree with Gurudev in that I can not predict the market much less demand some reward from it... I would rather risk what I can as per my plan and manage the trade to the best of my knowledge. ... Regards, K
Namo Gurudev, So true.... and money management only makes it a slower death... and one day when you are fed up you risk big and.... Regards, K
Namo Gurudev, I am going through the Taylor thread and was wondering why people do not get him easily... What little I got from reading so far am I right in thinking that the basic of his trading was AMT .... this might be the reason why buy days are not always buy days.... Regards, K
If you think it may be of value to you, go ahead and test it out and see if it is reliable enough to satisfy your objectives.
But you can control risk and you can manage your trade. If 2 percent is too low of a risk tolerance, then you may want to consider whether putting on trades is a good idea. It is unlikely that an account would be blown out using 2 percent as the rule since that 2 percent becomes a smaller and smaller number if losses continue. Eventually you are at a point where a trade cannot be taken because the risk is too high. --but the account still has a balance.
Using a number greater than 2 percent severely hampers the reward achievement possibility since. 3 to 1 is less likely (making 9 percent on each trade if you just increased your risk to 3 percent). It also eats up too much equity when wrong. Good fortune to you
Whether it's 1% or 2% or 3% is irrelevant. Unless the strategy has a reasonably high winrate, this approach will fail, no matter what the books claim in theory.
Namo Gurudev, Finally I learnt a way to post the charts (although I can't find the post where you said it was easy on ET just copy paste - didn't work for me, I had to paste the screenshot on paint and save it on desktop. It would be easy if we can just copy paste the screenshots) Today's chart shot just after entry. I have a few questions if you can help me with which I will post with the next chart which shows my exit and my emotions... Regards, K
If you're trading the SLA, trendlines -- or any other type of line -- don't provide support. The SLA entry was just above 107 in the first RET after the break of the SL.