Thread: position-sizing/pyramiding egies to decrease risk?

Originally Posted by ;

quote None of Them. I don't use TP's on trend-following transactions, I plan to own many places open as possible if the trend is ongoing. I re-set the SL on all previous transactions when the latest one is opened, the SL on all (short) trades is the exact same distance above entry as the first SL was above the very first trade's entry.

My favorite The Ladder System.

Originally Posted by ;

Which would you prefer ? image image image image image

I visit # 2 as a intriguing scenario appears like a 1:2
I Watch # 3 because 1 trade though 3 entries- I enjoy the potential reward on that. 1:2
I View # 7 because the more ideal scenario, should this be a ladder based system intriguing positioning of the stoploss is it like 1:4, 1:3, 1:2. I am unsure... or 1:3,1:2,1:2

Originally Posted by ;

quote My Favourite The Ladder System.

Number 1 is nearer to what the experts are using , else no other person is good for selling high buy bottom egy.

Originally Posted by ;

quote IMHO ... If you have a consistant 70% WR with 1:1 RR ... there's definitely no reason to change anything in the way you're trading.

Yes its profitable on its own, but I would still like to search if there's more ways to reduce risk. You're right in statistical sense.

Its hard to increase probability of the majority of mechanical systems , after a certain point. Should you join a 70% accurate egy with another 70% accurate analytical-stuff, the systems likelihood gets diminished. So egies can not be enhanced via more technical-analysis.

Then, money-management is the only method left to lower the risk which means improvement to the machine (if there's any room for this).

Originally Posted by ;

quote My favorite The Ladder System.

Thanks for the images. Its a way of visualizing possible outcomes of every risk model.
I appreciate your efforts.
If you want to share anymore understanding, please do not hesitate.

Originally Posted by ;

quote Yes profitable by itself, but I'd still like to search when there is more ways to decrease risk. You are right in sense. Its hard to increase probability of the majority of systems . If you combine a 70% accurate egy with another 70% accurate analytical-stuff, the systems likelihood gets diminished. So most egies can't be further improved via more more technical-analysis. Afterward, money-management is the only method left to decrease the risk which signifies improvement into the system (if there is...

70% with 1:1 is next to HG!
If I had such a system I wouldn't bother 2 minutes with money management: Kelly is 40 percent per commerce with such a system!!
Fiddling with all the trades can only lessen your edge.
The risk reduction would come from diversifiion as many markets as possible.

Originally Posted by ;

quote I visit # 2 as a interesting scenario appears like a 1:2 I View # 3 as one trade even though 3 entries- I like the prospective reward on that. 1:2 I View # 7 as the ideal situation, should this be a ladder based system interesting placement of the stoploss is it such as 1:4, 1:3, 1:2. I am not sure... or 1:3,1:2,1:2

Originally Posted by ;

quote Thank you for the images. Its a way of visualizing possible outcomes of every risk model. Your attempts are appreciated by me. Please do not hesitate if you would like to share anymore knowledge.

Few notes on the 7 scenarios above:Scenario (1):If TP1 is struck, and price retraces up to entry point, a second order is started at old open price, and for 1st position. Same thing with TP2. Once TP3/SL3 is struck the cycle finishes. Scenario (2): 2nd place is opened in 1st position while place is opened in 2nd position hit SL, hit SL. Reduction for teh cycle if SL was struck by all 3 positions is 3. The picture isn't scaled but when any place struck TP, total profit for the cycle should be 3. After any place hits TP the cycle ends. More about that later, if there's an interest.

Maybe I place these in a fast EA to test them on various pairs when time permits.

Originally Posted by ;

quote 70 percent with 1:1 is next to HG! Two minutes wouldn't bother with money management, if I had a system: Kelly is 40% per commerce with such a system!! Fiddling with the transactions can only lower your edge. The risk reduction could come from diversifiion as many markets as possible.

Who is Kelly?

Originally Posted by ;

quote Who's Kelly?

Kelly is Divine!

Originally Posted by ;

quote Who is Kelly?

I think he means this:
https://en.wikipedia.org/wiki/Kelly_criterion