Flexible Money Management [Contest]
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  1. #1
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    Flexible Money Management [Contest]

    My Strategy: Flexible Money Management.

    Account Information:

    Account No. : 2190311
    Investor password: 123asd
    Server: Roboforex demo
    Trading Style: Swing and long term.
    Time Frame: D1, W1 or MN
    Currency Pair: All

    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. To test my strategy I opened a demo account with deposit of 10000$.

    Entry, Exit and Flexibility:

    Generally I'll open a trade with volume of 0.4 lot with profit target of 800$ and maximum possible loss 800$ 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. I'll open 6 more pending orders immediately after opening a position for minimizing loss and maximizing profit.

    Money management.jpg

    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 200$ from the active trade. The volume of the order will be 1/4 of first opened trade with profit target of 150$ and maximum possible loss of 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 400$ from the first trade. The volume of the order will be 1/4 of first opened trade with profit target of 100$ and maximum possible loss of 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 600$ from the first trade. The volume of the order will be 1/4 of first opened trade with profit target of 50$ and maximum possible loss of 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 200$ from the active trade. The volume of the order will be 1/4 of first opened trade with profit target of 150$ and maximum possible loss of 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 400$ from the first trade. The volume of the order will be 1/4 of first opened trade with profit target of 100$ and maximum possible loss of 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 600$ from the first trade. The volume of the order will be 1/4 of first opened trade with profit target of 50$ and maximum possible loss of 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.

    Not allowed!
    Last edited by Value trader; 06-07-2014 at 07:52 PM.

  2. #2
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    My 1st Order

    Currency Pair: NZDUSD

    Order Type: Sell

    Order No. : 69635892

    Open Price : 0.85155

    Take Profit: 0.83155

    Stop Loss: 0.87155

    Time Frame: D1

    Lot Size: 0.4

    Profit Target: Initial profit target of 200 pips or about 8%.

    nzusd.jpg

    Entry: I have used the pin bar candle to open my position. I opened my trade immediately after pin bar candle on D1 chart of this pair. This time I short the pair.

    Flexibility: I have placed 6 more pending orders or 0.1 lot to maximize profit and minimize loss. 3 buy stop orders are placed for providing necessary hedging up to 75% so that I can minimize loss. And 3 sell stop order are placed for adding lot size up to 75% more so that I can get good profit.

    Necessary Adjustment: As these pending order has relatively small SL, it is possible that those might be hit frequently. If any trade get hit to SL I'll add new pending order with same parameters.

    Money management: Initially maximum loss from the trade could be 8%. But if pending orders are triggered and move to the end to hit TP/SL then loss value might be different. I'll never close the trade manually whatever happens. Added lots can give me more profit than initial profit target.

    Updates: I'll try to give necessary updates about pending orders which will be triggered. For now chart will show you pending order no., open price, SL and TP.

    Not allowed!
    Last edited by nkhan2810; 06-09-2014 at 07:04 AM.

  3. #3
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    My 2nd Order

    Currency Pair: NZDCAD

    Order Type: Sell

    Order No. : 69639026

    Open Price : 0.93060

    Take Profit: 0.90874

    Stop Loss: 0.95246

    Time Frame: W1

    Lot Size: 0.4

    Result of other trades: My previous trade is active.

    Profit Target: I set profit target of around 800$ which will be equivalent to 8% of initial invest.

    nzcad.jpg

    Entry: I have used the trending candles to open my position. I opened my trade on the 5th candle on W1 chart of this pair. I sold the pair.

    Flexibility: 6 pending orders of 0.1 lot has been placed to maximize profit and minimize loss. 3 buy stop orders are placed for providing necessary hedging up to 75% so that I can minimize loss. And 3 sell stop order are placed for adding lot size up to 75% more so that I can get good profit.

    Necessary Adjustment: It is possible that those might be hit frequently, as these pending order has relatively small SL . If any trade get hit to SL I'll add new pending order with same parameters.

    Money management: Maximum loss from the trade could be around 8%. But if pending orders are triggered and move to the end to hit TP/SL then loss value might be different. Added lots can give me more profit than initial profit target.

    Updates: I'll try to give necessary updates about pending orders which will be triggered. For now chart will show you pending order no., open price, SL, and lot size.

    Not allowed!

  4. #4
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    Quote Originally Posted by nkhan2810 View Post
    My 2nd Order

    Currency Pair: NZDCAD

    Order Type: Sell

    Order No. : 69639026

    Open Price : 0.93060

    Take Profit: 0.90874

    Stop Loss: 0.95246

    Time Frame: W1

    Lot Size: 0.4
    The first sell stop order was triggered few minutes ago. Now I give you the details of that sell order.

    My 3rd Order(Sub order):

    Currency Pair: NZDCAD

    Order Type: Sell

    Order No. : 69639065

    Open Price : 0.92511

    Take Profit: 0.90874

    Stop Loss: 0.93060

    Time Frame: W1

    Lot Size: 0.1

    Result of other trades: My previous 2 main trades are active. Both of them have the volume of 0.4. Till now those are doing well and I have almost 3% profit from these trades right now.

    Profit Target: From this trade I expect to get profit of around 150$ which is about 1.5% of the invested amount.

    nzcad1.jpg

    Money management: Maximum loss from the trade could be around 0.5%. It is because volume is very small and SL set around 55 pips from open price. I hope not to close the trade manually.

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  5. #5
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    My 4th Order

    Currency Pair: USDCAD

    Order Type: Sell

    Order No. : 69668336

    Open Price : 1.09004

    Take Profit: 1.07913

    Stop Loss: 1.10095

    Time Frame: H4

    Lot Size: 0.8

    Result of other trades: Last three trades are active and working.

    Profit Target: In this trade I have doubled the volume and lowered the target pip level to half. But the profit target of around 800$ kept same which will be equivalent to 8% of initial invest.

    cad.jpg

    Entry: I have used the trending candles to open my position. I opened my trade on the 5th candle on H4 chart of this pair. I sold the pair. As I tried to test the strategy in small scale with lower time frame I opened the trade.

    Flexibility: 6 pending orders of 0.2 lot has been placed to maximize profit and minimize loss. 3 buy stop orders are placed for providing necessary hedging up to 75% so that I can minimize loss. And 3 sell stop order are placed for adding lot size up to 75% more so that I can get good profit. You can see those orders on the chart right now.

    Necessary Adjustment: You can see SL are set very close of about 27 pips which means can be hit frequently. So it might be necessary to put those order back, I mean I might place new order.

    Money management: Here I have taken a risk by doubling the lot size. And in order to get the desired profit I have to reduce the pips between open position and SL/TP. Here it is expected to get maximum 8% loss from the trade. But it might be different if pending orders are triggered.

    Updates: I'll try to give necessary updates about pending orders which will be triggered.

    Not allowed!

  6. #6
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    I am sorry to update. The trade hit the stop loss with loss of 50.41$ where I estimated it 50$. A little bit change. So the loss from the trade is 0.5% but it didn't cause very much affect to the equity I think. Another trade triggered in the mean time. I am giving the details of the trade now.

    My 5th Trade:

    Currency Pair: NZDUSD

    Order Type: Buy

    Order No. : 69635978

    Open Price : 0.85659

    Take Profit: 0.87155

    Stop Loss: 0.85155

    Time Frame: W1

    Lot Size: 0.1

    Result of other trades: I have now 4 trades active.

    Profit Target: Target made for this trade is to make profit of 150$ which is about 1.5% of the total invest.

    etc.jpg

    Entry: It was predefined when I put the order of this pair with volume of 0.4 lot.

    Money management: It the trade hits the SL it will cause me 0.5% loss. If it hits the SL I would place another trade with almost same parameters.

    - - - Updated - - -

    I am placing another pending order with the same parameters that was hit by SL. I am just giving it the order number. The order no of the trade is 69892078.

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  7. #7
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    Quote Originally Posted by nkhan2810 View Post
    My 4th Order

    Currency Pair: USDCAD

    Order Type: Sell

    Order No. : 69668336

    Open Price : 1.09004

    Take Profit: 1.07913

    Stop Loss: 1.10095

    Time Frame: H4

    Lot Size: 0.8
    The first sell stop order has been triggered. Now I give you the details of that sell order.

    My 6th Order(Sub order):

    Currency Pair: USDCAD

    Order Type: Sell

    Order No. : 69668380

    Open Price : 1.08730

    Take Profit: 1.07913

    Stop Loss: 1.09004

    Time Frame: W1

    Lot Size: 0.2

    Result of other trades: 4 other trades are active and working.

    Profit Target: From this trade I expect to get profit of around 150$ which is about 1.5% of the invested amount.

    etc2.jpg

    Money management: If the trade hit the SL probable loss might be around 50$. If it hits loss will be around 0.5%. I will place new order in case of trade close due to SL hit.

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  8. #8
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    Two buy stop orders have been triggered. One of NZDUSD and another of NZDCAD. But according to the rule of the contest here I am giving details of one trade. I'll give details of other in next few hours.

    My 7th Order(Sub order):

    Currency Pair: NZDCAD

    Order Type: BUY

    Order No. : 69639639

    Open Price : 0.93634

    Take Profit: 0.95246

    Stop Loss: 0.93060

    Time Frame: W1

    Lot Size: 0.1

    Result of other trades: All 5 five trades are active and working.

    Profit Target: From this trade I expect to get profit of around 150$ which is about 1.5% of the invested amount.

    etc3.jpg

    Money management: Maximum loss from the trade could be around 0.5%. Low volume ensure small deviation in equity.

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  9. #9
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    My 8th Trade(Sub Orders):

    Currency Pair: NZDUSD

    Order Type: Buy

    Order No. : 69635966

    Open Price : 0.86167

    Take Profit: 0.87155

    Stop Loss: 0.85655

    Time Frame: W1

    Lot Size: 0.1

    Result of other trades: I have now 6 trades active.

    Profit Target: Target made for this trade is to make profit of 100$ which is about 1% of the total invest.

    etc4.jpg

    Entry: It was predefined when I put the order of this pair with volume of 0.4 lot.

    Money management: If the trade hits the SL it will cause me 0.5% loss. If this trade is closed by hitting SL I would place another trade with almost same parameters.

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  10. #10
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    Two more buy stops has been triggered. I am giving details of one here. Another will be available in two hours I hope.

    My 9th Order(Sub order):

    Currency Pair: NZDCAD

    Order Type: BUY

    Order No. : 69639824

    Open Price : 0.94161

    Take Profit: 0.95246

    Stop Loss: 0.93610

    Time Frame: W1

    Lot Size: 0.1

    Result of other trades: All 7 trades are active and working.

    Profit Target: From this trade I expect to get profit of around 100$ which is about 1% of the invested amount.

    eee.jpg

    Money management: Maximum loss from the trade could be around 0.5%. Low volume ensure small deviation in equity. I might reopen a pending order if this trade is hit by SL.

    Not allowed!

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