Seeking Mentorship

[fxeconomist 11]

On 11/4/2024 at 6:24 PM, RJo said:

I would forget about tinkering with lot sizes in the short-term. I only increase my lot size when it's justified by my growing capital (closed profit). Adjusting lot size on the fly would imply that I somehow know the specific probability of each individual trade succeeding--which I don't. So, I focus on the overall statistical performance of my strategy over every 6 months.

This doesn't require anything clever. As an example, choose a chart structure (15 minute, 1 hour, Renko, range bar, etc.) where price swings are identifiable to your eye. Load a MACD oscillator onto the chart. Note that there are two MACD's floating around online. The "old" MACD uses a weighted EMA in its calculations while the "new" MACD uses a regular MACD in its calculations. If you're using the old one, focus on the main line crossing the signal line and ignore the zero level. If you're using the new one, focus on the main line crossing the zero level and ignore the signal line. These are your entries.

Your dynamic exit target is the opposite crossover of whichever MACD lines you're using. Now for the most challenging part... stopouts. You need to determine the number of pips/points/ticks at which price traveled against your entry and did not return in favor of your entry for all trades. These stopout statistics can be collected with pen and paper, which I have arduously done in the past. This is much easier if you can code, backtest, and auto-optimize the stop level.

The idea is that your dynamic takeprofit is theoretically infinite, and your stop is fixed at a level that is statistically favorable to you.

Although this isn't really "money managment," it certainly manages your money.

 

Why not to simply connect you account to myfxbook which will collect all this data automatically for you? The process you described looks tedious and a bit obsolete but may work for you though.

Edited December 25, 2024 by fxeconomist

[aimhi 10]

Myfxbook can also be a good source of showcasing traders' skills and performance over the time in my opinion.