HowardCohodas
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Your choice of thread title and your last sentence produce some cogitative dissonance. Using money management to minimize draw downs is precisely one of its goals.
Hoggums
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Please enlighten us with a definition of "only when is safe to scalp".
How to we determine whether it is safe or not ?
NVP
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HowardCohodas
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This is the question for another thread!
Here is question about draw-downs! You must be mathematician to understand what are you betting against! I am betting against money managment and i don't have large draw-downs!
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HowardCohodas
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My university education was in mathematics and computer science. And I don't begin to understand what you are trying to say.
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For example:
scalping
If I take 3pips of profit for 5 times in a row it is 15 pips of profit!
if I lose 20 pips at sixth try then I will be -5pips altogether!
money managment
If I lose 3 time in a row for 20 pips i will have 60 pips draw-down!
And suppose that I take 60 pips of profit (MM 1:3)on a forth time its zero!
Question is:
Who has a larger draw-down?
-------------------------------------
scalping only 5 pips of DD
MM 60 pips of DD
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Who will first touch the zero sum balance????
what is the odds for taking 3 against 60 pips?????
I hope you will understand now ( you have the degree)!
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Money managment mustn't use large leverage as scalping because of large DD!!!
So MM can not benefit from large leverage as scalping system with low DD!!!
Do I understand MM and trading size!!!?
PIP= Percentage in points
But you are not a mathematician so how would you understand mathematics behind all the pips???
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HowardCohodas
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Spot on.
Mr. Charts
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goose4
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I risk 16 pips including spread per trade or when price enters no trading zone-so at times the loss is less than 16.
Take profit 20 when trade is 15 up move exit to 1+.
I have a strike rate of 70%.
The best day traders in the world,If you trade long enough you will hit 10 losers in a row,but I have o problem with this its part of the game.
I average 20 trades per week and on bad weeks when my strike rate is 50% I still win 40 pips.
Its an easy game just most people make it damm hard.Keep it simple keep your charts clean.
Take profit 20 when trade is 15 up move exit to 1+.
I have a strike rate of 70%.
The best day traders in the world,If you trade long enough you will hit 10 losers in a row,but I have o problem with this its part of the game.
I average 20 trades per week and on bad weeks when my strike rate is 50% I still win 40 pips.
Its an easy game just most people make it damm hard.Keep it simple keep your charts clean.
wackypete2
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To determine when it is safe to scalp read a book on American Indians.
Who needs money management. I just go all in on every trade! Don't you agree? StopLosses?...peh, there're for wimps.
Peter
I use stop order but it is never been triggered because I always flat position before that.
Stop order is only measure of precaution if I loose my compass with analytic !
HowardCohodas
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I could not agree more with you!
