Nomoretoxics Money Management
1 2 3 ...

thread: Nomoretoxics Money Management

  1. #1

    Nomoretoxics Money Management

    My Cash managements rulesNot in any Specific orderDaily funds risk = 2% - not to be confused with 2% risk per transaction. A mistake.

    Will divide trades in two 1%(risk) trades. This way, You will have two chances for trading.

    Optimum risk/reward -- 2:1.


    If you make 2:1 -- please stop trading.

    If you lose 2% - just stop trading, there is nothing more for you.

    Here's the most likely outcome(s) should you obey those rules.

    A: You place a trade, Searching for 2:1 using a 1% risk. 2:I'm possible, market moves on your side. Your goal is hit, You close the charts and go do anything.

    B: You place a trade searching to get a 2:1 using a 1% risk. 2:1 is feasible, market moves against you(stopped out).
    You start looking for another chance (still have 1% longer to play)

    C: You place a trade searching to get a 2:1 using a 1% risk. 2:1 is feasible, market moves against you. AGAIN!! You close the charts and go do anything...2% daily risk limit has been reached.

    ORA: You place a trade searching to get a 2:1 using a 1% risk. 2:1 is feasible, market moves against you.
    You start looking for another opportunity (nevertheless have 1% more to play)

    B: You place a trade, searching for 2:1 using a 1% risk. 2:I'm feasible, market moves on your side. Your goal is hit, You close the charts and go do anything

    Why don't opt for a third round???

    Inside my screw-ups, I did this next round many times. I really don't understand, maybe is attached to the law of probabilities or something. But trust me on this one. If you did the math, then you've got 1% in your pocket. Do yourself a favor and don't go for longer.

    If you lose one ride (1%) and it's like 2-5 PM and nothing else happens, don't feel guilty. Just feel that you put at risk 1% of your funding (which can be 1/2 of your allowed daily risk) in order to receive double. Please wrap this up. The market will be there tomorrow, trust me. If it's Friday, unless a holiday on Monday, the market will be there next week.



    ORAny of the outcomes laid out before using the inclusion of transferring stops/targets.In this particular one, be prepared to be screwed over the long run.
    1:1 Risk/Reward

    Simply as: If you get a 1:1...choose another round. If nothing happens afterwards,
    close the charts. Be happy.

    Same daily 2% rules apply.


    Okay, here's the question most are searching for:

    How can I know if 2:1 is feasible??

    Continue reading.


    Common SenseIt is important that you be aware of the daily range average of the pair you are willing to trade.

    About EUR/USD for instance, a ballpark figure may be everywhere for 60-100 pips.

    If you've got a stop-loss around 80-100 pips distance, you understand already that's not a normal situation on this pair. Imagine 80 pips on a 2:1 - I'll be 160 pips.

    If your stop is something easy like 20 pips, well you understand 2:1 is quite possible.

    I truly don't have a hard and fast rule on this one. Creating one is a waste of precious time. You need to think just how far this particular pair may stretch out at the time period you are trading. Like if you are trading London/NY session, you are aware that the pair will normally operate the average mile. If you are on Asia session trading any USD pairs, the range is significantly less.



    Load adjustmentThe load (# of lots) must be adjusted so that you risk the exact same sum of% funding however far-distant your stop is. You will have more flexibility using mini-lots.

    If you are planning to go off-balance, be warned that you will earn less money than 1:1 or better trade. My suggestion would be to take off these trades the 2% rule and lower your load to the stage you won't feel guilty if you lose.

    In this particular case above(off balance), instead of measuring the transaction by% funding risk, use dollar figures. I personally go like”well I am gonna risk 50 dollars on this one” If you lose, just take it off the 2% daily risk. Either should you win or lose, nevertheless you can shoot for longer, if it's possible. My mentor called that trades”Pizza Party” trades.

    These rules is exactly what keeps my head above the water. They're to me very like a code and I won't change it . I prefer to not exchange if I feel temped to tweak this specific rules for almost any reason.


    I've reviewed this document and I hope haven't miss anything, like I play those rules by memory after many years. If I did, I'll make an”change” LOL.

    I am profitable because I blend both my system(s) along with also my Money Management Rules. If you get started adding/taking stuff off the rules, I assure you with all of my heart, you'll get screwed in the long run.

    I sincerely hope you all can gain from it.

    Great Karma.
    https://www.cliqforex.com/attachment...9124589986.doc

  2. #2
    Please, read above. Might take the time to digest. Don't go fast ' crazy over reading. Take your time and make certain that you receive it.

    Cheers.

  3. #3
    Junior Member RittraderRS's Avatar
    17
    Thank you for sharing your own rules. Easy and conservative maintain us in the game long term and to climate conditions.

  4. #4
    Thanks for sharing your rules. Simple and conservative to climate conditions and maintain us in the game long term.
    Always Pleased to help.

  5. #5
    Junior Member Gerardomoreno84's Avatar
    22
    Hi Nomoretoxic thank you for all of your assistance and patience.

    E

  6. #6
    Junior Member Franvizu's Avatar
    2
    Hi nomoretoxic,

    Thanks for sharing your money management rules. It's extremely helpful to observe a prosperous trader's profesional approach to the market. Happy trading.

  7. #7
    Junior Member YenaySani's Avatar
    14
    Great rules, but what about if you have put a buy on and also your currency keeps moving up, would you put a gauranteed stop in your initial goal then follow it up with a 7 or 8 MA for a way to escape when it eventually retraces?

  8. #8
    Junior Member aj87oke's Avatar
    3
    Very fine, I have similar rules and patience is rewarded in forex, don't overtrade. I just place a maximum of two trades every day. Somedays I don't put any trades and I am fine. Trading forex also has a huge plogical element.

  9. #9
    Great rules, but what about if you've put a buy on and your currency keeps going up, do you put a gauranteed stop in your initial goal and then follow it up using a 7 or 8 MA as a way to escape as it finally retraces?
    I do not. Just stick to the rules.

  10. #10
    Hi nomo:
    Thank You for the Excellent document. I was thinking about opening up a daily chart and using ATR to determine the daily range of a currency like you indicate. Any ideas on if this is a fantastic idea, and if it is, how many times to be included from the indior. Thanks

    Jim

  •