FAQ about drawdown
1. So why do some signals go into drawdown?
Buying – because the signal is predictive , on my past experience maximum drawdown from this signal is 200 pip [quite scarry huh ?], often times the signal will trigger when it sees that the “market” is starting to buy or will start buying the EUR/USD.
Its Quite simply, many times buying or Long position the EUR/USD will cause the market to initially go in the opposite direction. On the retail side, a retail broker will take the opposite side of trades being taken – so, if retail [like me ] traders are loading up on euro longs [buying euro], the brokers are loading up on euro shorts [selling euro] to push the market against those trades to either shake them out of the trade or to trigger stoplosses. :)
2. What causes the EUR/USD to drop or correct?
Profit taking and Loss taking from institutional trader
Currency reserve moves
Stop hunting/stoploss triggering
Fundamental
Conclusion
I do want to be clear about one thing – I absolutely, positively take losses on trades.
Drawdown
Sunday, January 20, 2008
at
7:49 AM
Money Management
Tuesday, January 1, 2008
at
5:28 PM
For your safety [your equity and or your heart LOL] use this Signal, with max 1 % equity from your total capital [equity] per Open Postion
You can use 20% per open position but u must have a backup heart LOL
Honestly sometimes i used 5% margin ^ - ^
For example if you have US$10000 on your equity use max $100 per-open trades
that means that your maximum Open Position is 0,2 lot [based on North Finance mini account]
Use this Forumula to count your EURUSD used margin need : 1000 * EURUSD Rate
Happy Trading
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