Which software is best for position sizing strategy?

[hylt]

 

[FTSE Beater]

Hi Hylt

Welcome to T2W
What are you trying to do / find.

If your looking at "what if" type results, then Excel should be able to do it.

Hope this helps

 

[msibm]

Wealth-Lab
Trading Recipes
etc.

 

[The Pip Thief]

I use PositionSizer. It is absolutely amazing. It is for order entry and not analysis. You trade right from the charts. It does all the currency conversions if your base account currency is not in USD. If your account is in USD it will convert all financial instruments that are not in USD like the CAC40 or FTSE into your risk of USD.
This is a lifesaver and the main reason I bought the software because with pip values changing all the time as well as contracts being in different currencies, it gets confusing to manage risk properly. Check out there site. I am not here to sell them but I could never trade without it now. Oh the site is PositionSizer.com

The Pip Thief

 

[The Pip Thief]

To ABC patterns on the GBP one minute today. Excellent second set-up to scale in!

Check out the pic - risking 99 GBP ( This is a GBP account) you finish with over 23% or 2300GBP with out counting if you scaled in.

The Pip Thief

 

[The Pip Thief]

Another ABC! Even 2 more to be exact. I missed this one because I was sleeping. Up 5R and offered the possibility to scale in. Two days in a row. These patterns allow for excellent entry points. Risk = 99GBP risk with a 9 pip stop I was able to buy 193000. Using the Micro lots with IB is the best option to allow to size right up to desired % Risk.

Check out Pic.

 

[salvadorveiga]

isn't that the MTPredictor or something? Or is that the positionsizer you talked about?

 

[The Pip Thief]

No I actually typed the ABC letters on the chart myself because they are easy to see. I do not need a program to chart an ABC although the DP set-up in MTP is heard to be one of the finest.

PositionSizer is the order entry software. See the info bar on the bottom of the screen and the buttons on top with the TRADE POSITION once you have finished to get your position size. That is PositionSizer.

I was just showing this as an entry form but you can use this with any set-up or system.

I will show an inside bar tomorrow. I love those as a set up as well. They offer nice risk reward ratios when you look for inside bars with a range less than x pips.

The Pip Thief

 

[The Pip Thief]

Here is an nice inside bar that offered nice R/R Ratios. The pink bars are bars that have a very small range. If a pink bar is an inside bar and the ATR stop is short then you would enter in below the pink bars low. If the high is broken then the signal is cancel.

The system does not matter, I mean it does but it does not. This may sound crazy but it is the money management side of the game that really separates the winners from the losers. Trading is a betting game.

And small bars or small ranges on entry = low risk with high reward. Look for small bars and then size right with those bars and your trading will change overnight.

The Pip Thief

 

[The Pip Thief]

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

 

[The Pip Thief]

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

 

[The Pip Thief]

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

 

[The Pip Thief]

Stopped out at break even.

The Pip Thief

 

[The Pip Thief]

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

 

[The Pip Thief]

Update, almost there. 27 Minutes in! I am going to manage the trade ATR stop on a 2 minute chart now to let the trade breath but protect my profits.

The Pip Thief

 

[The Pip Thief]

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

 

[The Pip Thief]

Update! Check the pic.

The Pip Thief

 

[The Pip Thief]

Almost there! See Pic. If this works out you will have seen an excellent way to manage a trade and scale into it without hurting yourself.

The Pip thief

 

[The Pip Thief]

Got stopped out but over all very fine example on risk management and how to scale in without getting hurt or turning your winner into a loser.

The Pip Thief

 

[The Pip Thief]

Took some time off but wanted to post the folloing ABC's that showed up.

Offered some nice RR ratios with PositionSizer.

The Pip Thief