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4/30
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This is a series of 2 articles.
Part 1
Trade management or money management? Often times it is confusing. I would refer to money management when choosing how to treat all of capital available for trading. For instance, trader wants to increase his lot size per each trade only after the capital has increased by 20%. However we would talk about the trade management when trader decided to move his stop loss to break even as soon as the trade has moved certain amount of pips in his favor. These are just two simple examples to illustrate the difference between both.
By knowing the proper ways of how to implement trade management based on a specific strategy trader can improve his overall performance significantly. Trade management is used mainly for 3 reasons which are to protect capital, to increase profits and to improve entry and exit.
These two articles will cover following techniques:
  1. Pyramiding ( averaging in or averaging up )
  2. Scaling in ( averaging down )
  3. Scaling out ( averaging out )
  4. Trailing stops
  5. Martingale and anti-martingale
Each of these 5 techniques will be covered in detail including variations. You will also see how it looks on a chart and will find out when…
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Elani avatar
Elani 18 Apr.

Great article!!! Waiting for the 2nd part.

Likerty avatar
Likerty 19 Apr.

I'm awaiting eagerly the rest of the series:) Thats a topic I'm focusing myself lately.. I see the most problematic part of any managmenet approach - the exits.. Often, even when I have very exact targets, I strugle to maintain positions during prolonged consolidations or when agressive corrections appears..

Armands avatar
Armands 19 Apr.

Thank You guys for Your comments and good words. I will do my best to put together a second part tomorrow.

luke1973 avatar
luke1973 22 Apr.

From all the articles for the April contest I've read this is suppose to be on a first place.But  How can you be appreciate from people which still don't know how to make money ?.............

Armands avatar
Armands 23 Apr.

Thanks luke1973! For me it is enough to be appreciated by the few who know how :) Or by those who find it valuable.

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1/40
Ranking
Given the interest last month's article generated in the community, this month I tried to come up with a short term strategy that shares the same principles: price action only (no indicators), as simple as possible to trade (perfect for beginners and experienced traders alike), no ambiguity or subjectivity in it's rules, and, of course, reasonably profitable. This is a complete strategy, with entries, exits, money management and position sizing. ______________________________________► Time and volume in the Forex market Even though Forex is a 24-hour market, the volume traded is not the same all the time. The largest Forex trading centers are, in order, Europe/London, New York, and Asia/Tokyo, with the highest volume occurring when the London and New York sessions overlap (currently 13:00 to 17:00 GMT), even for currencies which are not native to these time zones, such as the Japanese yen, or the Australian dollar. On the other hand, the lowest volume (which usually leads to wider spreads and more erratic price moves and spikes) is seen after the close of the New York session (22:00 GMT), those two hours before Tokyo opens. So why is this information useful? Because any int…
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zande avatar
zande 27 June

How long do you give the market time to come into the trade? Do you cancel the orders when they dont go online in a particular time?

Thanks for all

Alex

zande avatar
zande 27 June

I wrote you also an email but i dont know if I wrote your email adress correct
muthamilpharm and then the normal g m a i l  dot  c o m

Roberto3 avatar
Roberto3 17 July

very nice! I studied this strategy and formulate mine, and created an Expert Advisor! It works very well!
look here , what do you think?

FXProsperHub avatar

Hi Everybody, such a strategy with a given parameters is NOT so profitable as advertised due to false breakouts. Please mind that main moves happend also during NY and TOK sessions. I have JAVA strategy and backtested it on different pairs very precisely with JForex tester. There are weeks without any trasaction because of SMA filter and market sideways. So it was popular strategy a few years ago and it is harder and harder scalp pipses this way although there are proftable periods... in general losing money.

mackwag avatar
mackwag 17 Oct.

Good article, well written.  I have one problem - trying to download the Excel calculator, I get the site http://speedy.sh/TRWjS/strategy-calculator.xls which does not have the Excel file but a lot of irrelevant links.  Will you please redirect me to where I can download the calculator? Best regards.

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