The Return of Flexible Money Management
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Thread: The Return of Flexible Money Management

  1. #1
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    The Return of Flexible Money Management

    Account Information:

    Account No. : 5191753
    Investor password: nkhan810
    Trading Style: Swing, mid and long term.
    Time Frame: H1, H4, D1, W1 or MN
    Currency Pair: All

    Capture robo.png




    Description:

    I mainly focus only on money management. Here I have shown how to reduce our loss using hedge and how we can extend our profit by adding volume. This strategy works well for Swing and Long term trader but it is flexible enough for day traders even for scalpers. Here I have minimum of 100$ to trade on my strategy.

    Entry, Exit and Flexibility:

    Generally I'll open a trade with volume of 0.04$/lot with profit target of 8$ and maximum possible loss 8$ for all pairs except TRY, ZAR, AU and AG pairs. For those high volatile pairs I'll open trade with volume of 0.2 lot. I'll use either "Use of Pin Bar indicator in 50:50 trading" or "Scalping using trending candles" strategy to open a position. Details of "Use of Pin Bar indicator in 50:50 trading" can be found here

    http://forum.roboforex.com/threads/4...rading-Contest

    or you can have a quick look of entry points on the picture.

    Capture robo3.jpg

    And information about "Scalping using trending candles" can be seen from here

    http://forum.roboforex.com/threads/4...rading-Contest

    The number 4 indicates the entry for trending candles.

    Capture robo4.jpg

    I'll open 6 more pending orders immediately after opening a position for minimizing loss and maximizing profit.

    Capture robo 2.png

    For losing trade:

    I will place 3 pending orders opposite to open position. If I am longing then my pending orders will be short.

    1st pending order(stop order):
    It will be placed at such price that will be triggered if floating loss is 2$ from the active trade. The volume of the order will be 1/4 of first opened trade with profit target of 1.5$ and maximum possible loss of 0.50$. It means I have applied 25% hedging. Both TP and SL will be set for those values.

    2nd pending order(stop order):
    It will be placed at such price that will be triggered if floating loss is 4$ from the first trade. The volume of the order will be 1/4 of first opened trade with profit target of 1$ and maximum possible loss of 0.50$. It means I have total 50% hedging. Both TP and SL will be set for those values.

    3rd pending order(stop order):
    It will be placed at such price that will be triggered if floating loss is 6$ from the first trade. The volume of the order will be 1/4 of first opened trade with profit target of 0.50$ and maximum possible loss of 0.50$. It means I have total 75% hedging. Both TP and SL will be set for those values.

    For wining trade:

    I will place 3 pending orders in the same direction of active order. If I am longing then my pending orders will be long also.

    1st pending order(stop order):
    It will be placed at such price that will be triggered if floating profit is 2$ from the active trade. The volume of the order will be 1/4 of first opened trade with profit target of 1.50$ and maximum possible loss of 0.50$. It means I have added 25% lots. Both TP and SL will be set for those values.

    2nd pending order(stop order):
    It will be placed at such price that will be triggered if floating profit is 4$ from the first trade. The volume of the order will be 1/4 of first opened trade with profit target of 1$ and maximum possible loss of 0.50$. It means I have added total 50% lots. Both TP and SL will be set for those values.

    3rd pending order(stop order):
    It will be placed at such price that will be triggered if floating profit is 6$ from the first trade. The volume of the order will be 1/4 of first opened trade with profit target of 0.50$ and maximum possible loss of 0.50$. It means I have added total 75% lots. Both TP and SL will be set for those values.


    Necessary adjustment:


    It is possible that triggered pending orders with 1/4th volume hit SL very frequently as SL's are set closer. In that case new pending orders might be placed again.


    Money management:

    Maximum possible loss for the trade is 8% initially. If all the pending orders are triggered and goes till the end loss value might be different.
    Maximum possible profit from the trade will be 11% if all pending orders along with first opened orders hit the TP.

    Comment moderator

    1. ContestFX
    2. Strategy confirmed

    Not allowed!
    Last edited by ContestFX; 11-28-2016 at 12:49 PM.

  2. #2
    Trader
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    In recent time USDJPY gone up and up and up due to strength of USD. It is the correction mode for last two days. I have opened a sell of 4 lot trade of USDJPY. Placed few pending orders(3 buystop and 3 sell stop) orders. I hope it will go down and will give me some profit. So for now.

    Pair: USDJPY
    Type: Sell
    Lot: 4
    Open: 112.642
    TP: 111.60
    SL: 113.70


    Capture robo con1.jpg

    You can see few pending order with TP and SL.

    Not allowed!

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