My theory of averaging

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Re: My theory of averaging

Postby Edward Revy » Sat Mar 13, 2010 1:47 pm

Congratulations, Kjell!

that's one bright piece of money management idea and an interesting evaluation. I should admit, I've done some MM calculation in my practice, but never to the extent you've shown us.

I liked the data and details you've brought in, and I'd be exited to follow your topic further.
Sure, if I have anything smart to say :D I'll be glad to comment on.

Happy trading!
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Re: My theory of averaging

Postby ivanlim » Tue Mar 16, 2010 1:51 am

Does this rule apply for smaller timeframes such as 30 or 15 minutes timeframes?
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Re: My theory of averaging

Postby ivanlim » Tue Mar 16, 2010 9:48 pm

so to use this system,i'll place 3 contracts instead of one,eg. 3 sell trades of different SL & TP instead of one fixed? According to your explanation,should one contract have the smallest SL & TP,one contract the largest SL & TP, the other in between? For example 25 & 33,37 & 66, and 50 & 100?
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Re: My theory of averaging

Postby ivanlim » Wed Mar 17, 2010 8:34 am

Ok. So if i were to trade a 30 mins timeframe,would i still place the 33 & 25,66 & 37,and 100 & 50? Or should i lower the SL and TP?
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Re: My theory of averaging

Postby ivanlim » Wed Mar 17, 2010 10:58 am

Thanks. Sorry but i'm still a bit confused, how does having 3 contracts help you earn more? How does the 2 other smaller contract affect the biggest one? For example,what difference does it make if i don't have a smaller contract such as the 25 & 33 or 37 & 66,only a 50 & 100 contract?
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Re: My theory of averaging

Postby ivanlim » Wed Mar 17, 2010 12:04 pm

Forgive me,but what do you mean when you say '1000 pips is peanuts if SL is 2000 pips.150 pips is excellent if SL is 30 pips, returning more money than the 1000 pips'? Is it when the stop loss is triggered?' How does it return more than 1000 pips?
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Re: My theory of averaging

Postby ivanlim » Wed Mar 17, 2010 9:47 pm

Oh,i think that cleared things up for me,thanks. However,i still don't get why did you divide your pips profit or loss?
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Re: My theory of averaging

Postby ivanlim » Thu Mar 18, 2010 8:00 am

Alright. So if my usual trade is one contract of 6*$100000 of TP 100 & SL 50,i should break it up into 2*$100000 of 33 & 25, 2*$100000 of 66 & 37, and 2*$100000 of 100 & 50?
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Re: My theory of averaging

Postby ivanlim » Thu Mar 18, 2010 8:45 am

I see. Well kjell,this is a really great system. I hope this would help me. Thank you very much for sharing such a wonderful idea. :D

Looking forward to future ideas from you =P
Ivan
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Re: My theory of averaging

Postby ivanlim » Thu Mar 18, 2010 9:22 am

Oh dear,i just realised that i am not allowed to open 2 or more contracts of the same buy/sell trade for any currency pair. Do you know how do i open 3 contracts instead of 1? Probably i did it with the wrong steps
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