Hav Trading

This is a discussion on Hav Trading within the First Steps forums, part of the Reception category; Originally Posted by Quantt Can you please elaborate a bit, especially how you can make money with 5% target and ...

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Old Oct 29, 2017, 6:44pm   #9
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Can you please elaborate a bit, especially how you can make money with 5% target and 14% risk? So in a trade with 10k you are targeting to make 500 while risking 1400, this doesn't make any mathematical sense to me...
The stop loss is only ever going to be a maximum of 10%, but is usually less than this - it depends upon the values of 2 other indicators. This is essentially a risk/reward ratio of 2/1

If the 10% stop is hit this should be approx 14% of the trading bank going from the manual's staking plan and a 5% profit boosting the bank by up to 7%.

As mentioned previously, when demo/live trading I use the 10% figure when calculating my max bank risk and my stake etc.

Very rarely is the stop loss anywhere close to the 10% level, but it does depend upon the values of two other indicators.
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Old Oct 29, 2017, 6:53pm   #10
 
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Originally Posted by Becks100 View Post
The stop loss is only ever going to be a maximum of 10%, but is usually less than this - it depends upon the values of 2 other indicators. This is essentially a risk/reward ratio of 2/1

If the 10% stop is hit this should be approx 14% of the trading bank going from the manual's staking plan and a 5% profit boosting the bank by up to 7%.

As mentioned previously, when demo/live trading I use the 10% figure when calculating my max bank risk and my stake etc.

Very rarely is the stop loss anywhere close to the 10% level, but it does depend upon the values of two other indicators.
Still doesn't make sense to me, so I am eager to see your back testing results...

Cheers!
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"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

My number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
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Old Oct 29, 2017, 7:10pm   #11
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Becks100 started this thread There are some things I can't divulge, but people who are familiar with the system will hopefully understand the screenshot I will upload later of demo/live trades since Sept
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Old Oct 29, 2017, 7:20pm   #12
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I hope that has worked
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Old Oct 29, 2017, 8:11pm   #13
 
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Originally Posted by Becks100 View Post
Yes it is and it involves checking the values of 2 indicators against the closing price at the end of each week.

Back testing, I was just running through the charts on a weekly basis, not easy and it took me a long time
oh i see so more of a manual back test on a longer term system.

Although I don't know about and cant comment on the system you seem to be keeping a good track of risk, position sizing and keeping records so it all looks promising

One thing id highlight is being careful of taking multiple trades in correlated markets like multiple indices etc which could all punish you at the same time. Perhaps have a rule about that. If you're already clear on this then thats alright

Last edited by Kaeso; Oct 29, 2017 at 9:51pm.
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Old Oct 29, 2017, 9:34pm   #14
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oh i see so more of a manual back test on a longer term system.

Although I don't know about or can comment on the system you seem to be keeping a good track of risk, position sizing and keeping records so it all looks promising

One thing id highlight is being careful of taking multiple trades in correlated markets like multiple indices etc which could all punish you at the same time. Perhaps have a rule about that. If you're already clear on this then thats alright

Thanks Kaesong that's really useful. The manual briefly touches on the subject but I had completely forgotten about it until you jogged my memory

The back testing took ages and I did most of it at work whilst waiting for people to disturb me and it drove me nuts.

There are no new trades scheduled for this week. The last one opened was the Eur/Chf forex one which at one point in the week was about 60 pips up but is now -15
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Old Oct 29, 2017, 11:19pm   #15
 
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Thanks Kaesong that's really useful. The manual briefly touches on the subject but I had completely forgotten about it until you jogged my memory
its an important thing to remember if you are holding multiple positions. Here is a chart of CAC n DAX for example:

(DAX is red)

Click the image to open in full size.

Last edited by Kaeso; Oct 29, 2017 at 11:41pm.
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Old Oct 30, 2017, 12:37am   #16
 
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Originally Posted by Becks100 View Post
Attachment 247564

I hope that has worked
Hello Becky, frankly for a system to be robust, you'll have to back test it for at least one market cycle, also I would be very careful with 10% risk per trade, because you can get a big draw down quite fast... Other than that, good luck and keep us posted on how it goes...
__________________
"If you don't find a way to make money while you sleep, you will work until you die." Warren Buffett, CEO of Berkshire Hathaway.

My number 1 trading rule: EDUCATE YOURSELF!

Before you trade even single penny on the stock market, please spend the time and educate yourself by back testing different trading strategies and ideas - go to eBay and search for "historical stock market data", you can buy 20 years of data for less than $100 - that's all you need to start.
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