Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Recommended Posts

Hello,

 

I use PositionSizer.com add-on for order entry and I love it but I need a program for analysis of position sizing. Like one that will help me find out the best bet size. I have done a little research and found Sator but no others.

 

Has anyone used Stator? If so what do you think?

 

Has anyone head of any other Position Sizing analysis software?

 

Thanks,

 

The Pip Thief

Share this post


Link to post
Share on other sites

Here is some money management! Risked 99 Pounds this morning and got back around 2300 in less than 3 hours. I showed this with a sim account because I do not know how to erase account with my screen capture.

 

I did not scale in on this trade because I got nervous, but there was a great opportunity to scale in on the second ABC as you will see in the graphic. I was able to take a position for $250,000 with only risking 99 GBP and an 8 point stop. PositionSizer did all the conversion for me - I am not going to go into that here because it is done automatically. I personally only risk 1% because I get too nervous with 2% and as you can see you can still make great money with 1%.

 

The Pip Thief

5aa70f7b0b394_1.png.5d707d60f9c9d44b0bdc2cc24e6f03ea.png

Share this post


Link to post
Share on other sites

Two more ABC patterns this morning! I missed them both:crap:. But I did get in on the second trade that you will see. I am using a target on this one because it is counter trend and I will be moving my stop up when the ATR moves above break even.

 

I am half way there wish me luck!

 

The Pip Thief

5aa70f7c4d202_ABCONDECEMBER82009.png.fab921ba320b842cc69acf12a948f622.png

5aa70f7c52540_TradeONDECEMBER82009.png.3a77a8f0eb0b8ddaed02f26c18da2df5.png

Share this post


Link to post
Share on other sites

Thanks for your response. I want to do what if analysis and simulations of R-multiples to overcome my fear of using more that one percent risk. I want to see the best R-multiple based on my trades. Should I be using more than one percent or more statistically based on my win rate of 43% with 9% break even trades.

 

I am happy using 1% risk but I think I could push it a little more. I think those that use 2% are crazy! But are they? Can I prove based on my system that I can up my risk? If I do, what will the simulation tell me about max draw downs. Bye the way. I broke even on the trade I took. Check out the pick.

 

This is what I am looking for in a Analysis/Simulation program and I do not want to give an arm and a tooth for it if you know what I mean. :2c:

 

The Pip Thief.

 

Thanks

5aa70f7c71349_breakeven.png.f9a7f689787c42e0f95f3e9519f563c9.png

Share this post


Link to post
Share on other sites

You could try a MonteCarlo simulation as this will give an idea of your risk of ruin based on percent risk, reward factor and strike rate. I wrote and article on this which has a downloadable Excel spreadsheet that may help and I will pm you the link.

 

 

 

Paul

Share this post


Link to post
Share on other sites

Here is another example of proper position sizing with a different system. This is an inside low range bar system. If ATR is for red for short. That means we look for short trades. Now if a bar with a low range appears which are color pink we look to see if it is inside the previous bar. If yes and the low is broken then we enter short and follow the ATR stop. If the bars high is broken then the signal is canceled.

 

Check out the photo to understand more. One thing to remember is that the smaller your bar, the smaller your stop, which in turn gives you much more profit on a smaller move.

 

I have to state the disadvantage. You will get stopped out more but I find it well worth it when you get in for 9 pips and the market falls 150 pips. With a win rate in the 40 % range you can still make money.

 

If you were to have gotten in on this trade you would be out with a 7% profit in less than an hour.

 

Look at the pink inside bar just before the entry bar. Not taken because the ATR was blue and the inside bar broke to the short side.

 

Again it is the money management side of the business that makes all the difference. I was able show how to size right up to your intended % risk. This is important to keep all losses the same since it is the only thing we can quantify in trading.

 

Put another way. You just paid for your next 7 losses.

 

The second photo is a 2 minute chart. Just ask yourself how you would have trade this set-up and if your position sizing would have resulted in the same 13R win in 2 hours. 99 pound risked and 1300 reward. This is trading. Now you just paid for 13 next losses. Maybe you can start to risk 2% for the next couple of trades.

 

The Pip Thief

5aa70f7d06685_insidebar2.png.9b2c104e75670e1f2782e8e4ea82aa66.png

5aa70f7d0d771_insidebar3.png.9bdbbd2b6ce10ea5d82f9fc90dce341a.png

Share this post


Link to post
Share on other sites

More inside bar trades with low range. The first is a loss for 1R and second makes it all back and then some. Check out the pics. If you are using proper position sizing with this kind of set up then the risk reward can be nice and since you are following with a trailing stop your risk is free quite nicely in timely manner. In the second pic your risk was cleared in 2 minutes.

 

It is all about risk management. You need to protect what is yours in order to be alive for the big ones. These are what really grow your account. The plus 20R trades. They are rare but do happen. 6-10R can happen quite often if you can get in with a 10 pip stop. Then the market only needs to move 60 points and you are up 6R. In this case you only need to win 18 out of 100 to break even. 28 out 100 and you are up 60%.

 

I showed at the bottom the pip value in GBP. Having your risk in your base currency is vital to success. There is a 60% difference in how much you can buy between the pound and dollar. That is a big error. Instead of risking 1% you are actually risk 1.6% or .4% depending on the conversion.

 

The Pip Thief

5aa70f7e40b99_tradestoppedout.png.69d111fce216c0d7a0796b06e80906b7.png

5aa70f7e487f5_12-10-2009insidebar.png.b6db5e6674211f7a633c46a2b71e53e1.png

Share this post


Link to post
Share on other sites

Do not chase trades. This is so much easier when you use PositionSizer. I think most people do not understand Position Sizing. They think it is for risk management. Yes it is for risk management, but mainly it is to allow you to buy much more with the same amount of $ Risk.

 

When you start to see this you will become more patient and not chase trades. WHY? Because you will see that getting in at a latter time can actually make you more money.

 

Check out the Photos and Calm down and do not chase trades. Just use Position Size to your advantage! The first Pic would make 241 at target and the second 402 GBP.

 

This trade is actually winning.

 

The Pip Thief

5aa70f81680a7_12-14-2009NotagoodTrade.thumb.png.7c1068783bcd82fb5c325be198319eff.png

5aa70f817016d_12-14-2009betterTrade.thumb.png.58c199d9f9317faf073f47cc16219a67.png

Share this post


Link to post
Share on other sites

Small stop big reward. I lost 2 before this for 1% each. If this one hits then it paid for these two and up 5%.

 

The risk was cleared on this trade several minutes after getting into the position.

 

Look at photo.

 

The Pip Thief

5aa70f8351ca4_12-16-2009GBP1minuteTrade.thumb.png.5045a377f3648959eaf284e450db7b82.png

Share this post


Link to post
Share on other sites

Added 66000 to my position. Notice how my average price is still lower then where my trailing stop is. This is important because you never want to turn a winning position into a loser. Lets see if this one hits. Now using a 2 minute chart for the to manage the trade.

 

The Pip Thief

Share this post


Link to post
Share on other sites

Hello Sleepy,

 

I was a little sleepy there so it took me some time to reply. No I have had some personal issues to deal with and did not log on for some time now.

 

I went and checked them out. I am undecided between Stator and MSA.

 

If I could hear some feedback from users on both of them I would greatly appreciate the help.

 

TY

 

The Pip Thief.

Share this post


Link to post
Share on other sites

Hello Sleepy,

 

I was a little sleepy there so it took me some time to reply. No I have had some personal issues to deal with and did not log on for some time now.

 

I went and checked them out. I am undecided between Stator and MSA.

 

If I could hear some feedback from users on both of them I would greatly appreciate the help.

 

TY:)

 

The Pip Thief.

Share this post


Link to post
Share on other sites
You could try a MonteCarlo simulation as this will give an idea of your risk of ruin based on percent risk, reward factor and strike rate. I wrote and article on this which has a downloadable Excel spreadsheet that may help and I will pm you the link.

Paul

 

Hey Paul can you just post that link in here? I would love to check that out.

Share this post


Link to post
Share on other sites
I love seeing your entries! Any guidelines you follow for your IB or ABC patterns??

 

Thanks Daedalus! I actually stopped posting because the thread was me talking to myself there for a while and nobody wants to hear someone babbling on about themselves. So it does give me pleasure to hear your kind words.

 

As for my set-ups. The most important aspect of them all is that I look for low range bars to enter so I can buy more contracts or money in the method IB(Interactive Brokers) takes their orders. With IB they want the $ amount and not the lot quantity. This means that you can enter any size $ value in increments of $1000 as long as the order is over $25,000. This allows you to size right up to your actual % Risk.

 

As for the actual set-up I am just looking for the ABC in the swing chart and then if at the top of the swing I get a low range bar then I am in heaven. Why? Because I can buy a lot of money on the low range bars. I can use a tight stop and if the bar breaks in the right direction I am sized and in within seconds. Pretty basic but the profits are all in the way I size the position. I have done a lot of math on sizing models and tight stops rule because you will get on those 10 to 15 pounders once in a while. Risking 1% and getting back 15% is a great feeling even if it only happens rarely.

 

Look at the charts I have attached and you will see why even if I get stopped out with the tight stops it is better than using a large stop of 20 to 30 pips which many traders use. Or a Fixed $ amount. It is Friday so I am going to do a short post for you. Check out the 2 ABC's from yesterday and then the one we had today as well but I did not post the pic. You can almost always find these and even several per day. The key to making big money on them is the right sizing.

 

The Pip Thief

5aa70ff975e09_4-17-2010AnotherABC.thumb.png.131c295fc0ae566ebaa5f1e52db3575f.png

5aa70ff97e97d_4-17-2010AnotherABC2.thumb.png.fdb6d0fd59d872055db1dea56dc0834c.png

5aa70ff986610_4-17-2010AnotherABC3.thumb.png.dd7d58e5539f6db1ee97d494202fbcbb.png

Edited by The Pip Thief
Forgot Pic!

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 18th April 2024. Market News – Stock markets benefit from Dollar correction. Economic Indicators & Central Banks:   Technical buying, bargain hunting, and risk aversion helped Treasuries rally and unwind recent losses. Yields dropped from the recent 2024 highs. Asian stock markets strengthened, as the US Dollar corrected in the wake of comments from Japan’s currency chief Masato Kanda, who said G7 countries continue to stress that excessive swings and disorderly moves in the foreign exchange market were harmful for economies. US Stockpiles expanded to 10-month high. The data overshadowed the impact of geopolitical tensions in the Middle East as traders await Israel’s response to Iran’s unprecedented recent attack. President Joe Biden called for higher tariffs on imports of Chinese steel and aluminum.   Financial Markets Performance:   The USDIndex stumbled, falling to 105.66 at the end of the day from the intraday high of 106.48. It lost ground against most of its G10 peers. There wasn’t much on the calendar to provide new direction. USDJPY lows retesting the 154 bottom! NOT an intervention yet. BoJ/MoF USDJPY intervention happens when there is more than 100+ pip move in seconds, not 50 pips. USOIL slumped by 3% near $82, as US crude inventories rose by 2.7 million barrels last week, hitting the highest level since last June, while gauges of fuel demand declined. Gold strengthened as the dollar weakened and bullion is trading at $2378.44 per ounce. Market Trends:   Wall Street closed in the red after opening with small corrective gains. The NASDAQ underperformed, slumping -1.15%, with the S&P500 -0.58% lower, while the Dow lost -0.12. The Nikkei closed 0.2% higher, the Hang Seng gained more than 1. European and US futures are finding buyers. A gauge of global chip stocks and AI bellwether Nvidia Corp. have both fallen into a technical correction. The TMSC reported its first profit rise in a year, after strong AI demand revived growth at the world’s biggest contract chipmaker. The main chipmaker to Apple Inc. and Nvidia Corp. recorded a 9% rise in net income, beating estimates. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date: 17th April 2024. Market News – Appetite for risk-taking remains weak. Economic Indicators & Central Banks:   Stocks, Treasury yields and US Dollar stay firmed. Fed Chair Powell added to the recent sell off. His slightly more hawkish tone further priced out chances for any imminent action and the timing of a cut was pushed out further. He suggested if higher inflation does persist, the Fed will hold rates steady “for as long as needed.” Implied Fed Fund: There remains no real chance for a move on May 1 and at their intraday highs the June implied funds rate future showed only 5 bps, while July reflected only 10 bps. And a full 25 bps was not priced in until November, with 38 bps in cuts seen for 2024. US & EU Economies Diverging: Lagarde says ECB is moving toward rate cuts – if there are no major shocks. UK March CPI inflation falls less than expected. Output price inflation has started to nudge higher, despite another decline in input prices. Together with yesterday’s higher than expected wage numbers, the data will add to the arguments of the hawks at the BoE, which remain very reluctant to contemplate rate cuts. Canada CPI rose 0.6% in March, double the 0.3% February increase BUT core eased. The doors are still open for a possible cut at the next BoC meeting on June 5. IMF revised up its global growth forecast for 2024 with inflation easing, in its new World Economic Outlook. This is consistent with a global soft landing, according to the report. Financial Markets Performance:   USDJPY also inched up to 154.67 on expectations the BoJ will remain accommodative and as the market challenges a perceived 155 red line for MoF intervention. USOIL prices slipped -0.15% to $84.20 per barrel. Gold rose 0.24% to $2389.11 per ounce, a new record closing high as geopolitical risks overshadowed the impacts of rising rates and the stronger dollar. Market Trends:   Wall Street waffled either side of unchanged on the day amid dimming rate cut potential, rising yields, and earnings. The major indexes closed mixed with the Dow up 0.17%, while the S&P500 and NASDAQ lost -0.21% and -0.12%, respectively. Asian stock markets mostly corrected again, with Japanese bourses underperforming and the Nikkei down -1.3%. Mainland China bourses were a notable exception and the CSI 300 rallied 1.4%, but the MSCI Asia Pacific index came close to erasing the gains for this year. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.vvvvvvv
    • Date: 16th April 2024. Market News – Stocks and currencies sell off; USD up. Economic Indicators & Central Banks:   Stocks and currencies sell off, while the US Dollar picks up haven flows. Treasuries yields spiked again to fresh 2024 peaks before paring losses into the close, post, the stronger than expected retail sales eliciting a broad sell off in the markets. Rates surged as the data pushed rate cut bets further into the future with July now less than a 50-50 chance. Wall Street finished with steep declines led by tech. Stocks opened in the green on a relief trade after Israel repulsed the well advertised attack from Iran on Sunday. But equities turned sharply lower and extended last week’s declines amid the rise in yields. Investor concerns were intensified as Israel threatened retaliation. There’s growing anxiety over earnings even after a big beat from Goldman Sachs. UK labor market data was mixed, as the ILO unemployment rate unexpectedly lifted, while wage growth came in higher than anticipated – The data suggests that the labor market is catching up with the recession. Mixed messages then for the BoE. China grew by 5.3% in Q1 however the numbers are causing a lot of doubts over sustainability of this growth. The bounce came in the first 2 months of the year. In March, growth in retail sales slumped and industrial output decelerated below forecasts, suggesting challenges on the horizon. Today: Germany ZEW, US housing starts & industrial production, Fed Vice Chair Philip Jefferson speech, BOE Bailey speech & IMF outlook. Earnings releases: Morgan Stanley and Bank of America. Financial Markets Performance:   The US Dollar rallied to 106.19 after testing 106.25, gaining against JPY and rising to 154.23, despite intervention risk. Yen traders started to see the 160 mark as the next Resistance level. Gold surged 1.76% to $2386 per ounce amid geopolitical risks and Chinese buying, even as the USD firmed and yields climbed. USOIL is flat at $85 per barrel. Market Trends:   Breaks of key technical levels exacerbated the sell off. Tech was the big loser with the NASDAQ plunging -1.79% to 15,885 while the S&P500 dropped -1.20% to 5061, with the Dow sliding -0.65% to 37,735. The S&P had the biggest 2-day sell off since March 2023. Nikkei and ASX lost -1.9% and -1.8% respectively, and the Hang Seng is down -2.1%. European bourses are down more than -1% and US futures are also in the red. CTA selling tsunami: “Just a few points lower CTAs will for the first time this year start selling in size, to add insult to injury, we are breaking major trend-lines in equities and the gamma stabilizer is totally gone.” Short term CTA threshold levels are kicking in big time according to GS. Medium term is 4873 (most important) while the long term level is at 4605. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Date: 15th April 2024. Market News – Negative Reversion; Safe Havens Rally. Trading Leveraged Products is risky Economic Indicators & Central Banks:   Markets weigh risk of retaliation cycle in Middle East. Initially the retaliatory strike from Iran on Israel fostered a haven bid, into bonds, gold and other haven assets, as it threatens a wider regional conflict. However, this morning, Oil and Asian equity markets were muted as traders shrugged off fears of a war escalation in the Middle East. Iran said “the matter can be deemed concluded”, and President Joe Biden has called on Israel to exercise restraint following Iran’s drone and missile strike, as part of Washington’s efforts to ease tensions in the Middle East and minimize the likelihood of a widespread regional conflict. New US and UK sanctions banned deliveries of Russian supplies, i.e. key industrial metals, produced after midnight on Friday. Aluminum jumped 9.4%, nickel rose 8.8%, suggesting brokers are bracing for major supply chain disruption. Financial Markets Performance:   The USDIndex fell back from highs over 106 to currently 105.70. The Yen dip against USD to 153.85. USOIL settled lower at 84.50 per barrel and Gold is trading below session highs at currently $2357.92 per ounce. Copper, more liquid and driven by the global economy over recent weeks, was more subdued this morning. Currently at $4.3180. Market Trends:   Asian stock markets traded mixed, but European and US futures are slightly higher after a tough session on Friday and yields have picked up. Mainland China bourses outperformed overnight, after Beijing offered renewed regulatory support. The PBOC meanwhile left the 1-year MLF rate unchanged, while once again draining funds from the system. Nikkei slipped 1% to 39,114.19. On Friday, NASDAQ slumped -1.62% to 16,175, unwinding most of Thursday’s 1.68% jump to a new all-time high at 16,442. The S&P500 fell -1.46% and the Dow dropped 1.24%. Declines were broadbased with all 11 sectors of the S&P finishing in the red. JPMorgan Chase sank 6.5% despite reporting stronger profit in Q1. The nation’s largest bank gave a forecast for a key source of income this year that fell below Wall Street’s estimate, calling for only modest growth. Apple shipments drop by 10% in Q1. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • The morning of my last post I happened to glance over to the side and saw “...angst over the FOMC’s rate trajectory triggered a flight to safety, hence boosting the haven demand. “   http://www.traderslaboratory.com/forums/topic/21621-hfmarkets-hfmcom-market-analysis-services/page/17/?tab=comments#comment-228522   I reacted, but didn’t take time to  respond then... will now --- HFBlogNews, I don’t know if you are simply aggregating the chosen narratives for the day or if it’s your own reporting... either way - “flight to safety”????  haven ?????  Re: “safety  - ”Those ‘solid rocks’ are getting so fragile a hit from a dandelion blowball might shatter them... like now nobody wants to buy longer term new issues at these rates...yet the financial media still follows the scripts... The imagery they pound day in and day out makes it look like the Fed knows what they’re doing to help ‘us’... They do know what they’re doing - but it certainly is not to help ‘us’... and it is not to ‘control’ inflation... And at some point in the not too distant future, the interest due will eat a huge portion of the ‘revenue’ Re: “haven” The defaults are coming ...  The US will not be the first to default... but it will certainly not be the very last to default !! ...Enough casual anti-white racism for the day  ... just sayin’
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.