Comments on: April Forex Results http://www.neuralmarkettrends.com/2007/04/30/april-forex-results/ Rapidminer Evangelism & Consulting Fri, 10 Feb 2012 14:59:20 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Tom http://www.neuralmarkettrends.com/2007/04/30/april-forex-results/comment-page-1/#comment-19 Tom Tue, 01 May 2007 02:18:11 +0000 http://www.neuralmarkettrends.com/?p=64#comment-19 Gav, What I'm doing is completely counterintuitive. I control my risk by taking multiple small positions where I can sit out 150 pip price swings. I scale into the positions as long as I believe the fundamentals of the trend are still intact. This includes averaging down in a loser. Believe me, this takes balls of steel because you have to have confidence in what you're doing and what your analysis tells you. The one thing I learned from these currency markets is that they over react and over shoot constantly, you get stopped out too quick only to have the trend resume a short while later. I thought, why not get rid of the stops all together and go with smaller positions based on a % of ,my trading equity. Currently I use no more than 15% of my trading equity per position, which is awfully high but with such a small acct I need to take larger risks. My ultimate goal is to use a 3% of trading equity position size. Gav,
What I’m doing is completely counterintuitive. I control my risk by taking multiple small positions where I can sit out 150 pip price swings. I scale into the positions as long as I believe the fundamentals of the trend are still intact. This includes averaging down in a loser. Believe me, this takes balls of steel because you have to have confidence in what you’re doing and what your analysis tells you.

The one thing I learned from these currency markets is that they over react and over shoot constantly, you get stopped out too quick only to have the trend resume a short while later. I thought, why not get rid of the stops all together and go with smaller positions based on a % of ,my trading equity. Currently I use no more than 15% of my trading equity per position, which is awfully high but with such a small acct I need to take larger risks.

My ultimate goal is to use a 3% of trading equity position size.

]]> By: Gav http://www.neuralmarkettrends.com/2007/04/30/april-forex-results/comment-page-1/#comment-17 Gav Mon, 30 Apr 2007 23:39:31 +0000 http://www.neuralmarkettrends.com/?p=64#comment-17 Well done tom. Just out of curiosity , how do you justify your risk while you keep averaging down your losing position? I am interested in understanding the risk management of average-down style of trading strategy. Have a good day. Well done tom.
Just out of curiosity , how do you justify your risk while you keep averaging down your losing position? I am interested in understanding the risk management of average-down style of trading strategy.

Have a good day.

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