₦airaland Forum

Good opportunity coming up on the Nasdaq 100 futures. Any takers? I believe most of the brokers would offer this.

A 0.5mini lot would typically have a $250 margin requirement (assuming you're on a 1:500 leverage) - $0.1 per pip and $1 per pip would be 5mini lots, which requires a bit more.

Risk Management. Here's how to go about it.

I'll try to keep this post as concise and straight to the point as possible.

Now, We all have our money management systems. Some don't risk more than 5% per trade, some go over 10% (depending on how confident they are/their trading systems or plan). But Whichever you choose, bear in mind that it decides the number of "loosing trades" you can make before your account is completely wiped out.

When I think of "risk" when about to go in on a trade, basically what's on my mind is "How much I'm willing to lose on the trade, if it goes wrong". Then comes the stoploss. to cut off the trade if it goes wrong so I lose ONLY the percentage of my account I budgeted to risk on the trade.

So when you're going in on a trade, how do you manage/calculate your risk and know how many lots to trade?

Simple - your stop loss.

Let's look at this trade for example. Let's say you are on a $200 account and you wish to trade this setup and you've calculated your stoploss (13pips) and entry point.

https://i39.tinypic.com/33wp3du.jpg

If you budget to risk just 5% of your account on this trade, it means you want to lose no more than $10 if it went wrong.

Here's how you calculate the recommended lots to trade:

Amount to risk ÷ stop loss in pips x pip value. (of course amount to risk is the percentage you budgeted - i.e 5% of $200 is $10, so your amount to risk is $10)


So in this case it's --> (10)/(13 x 1) = 0.77lots.

i.e this is supposing you are trading on a mini account (where 1lot = $1 per pip). If you're on a standard account, then 1lot will likely be around $10 per pip so you calculate accordingly.

Don't leave money on the table or put your account in risk by "guessing" how many lots to trade.

If that trade above were to go bad, you'd lose just $10 - 5% of your account, but if it went well, you'd have 49pips, which would amount to $37.73 in profit for you.

There is my approach, and this is how I calculate my risk vs lots to trade.

I've seen a lot of people say to newbies, don't trade over 0.01lots, don't start trading with anything less than $500 and all that - Ignore those.

If you can effectively manage $200, you'll be able to manage $2000. It's the same principles, different order sizes.

If you had a $2000 account and wanted to risk just 5% on that trade ($100), your profit would be $377.3 - which is still an 18.85% ROI. Any smart trader will always look at the ROI to gauge performance and not figures.

(Of course, The only reason small deposits tend to be a little hectic are issues like the spread, and margin requirements and all those little hiccups, but it does NOT mean you cannot grow a small amount into a large one).

I've attached an excel file to help with calculating the recommended lots to trade if needed.


Hope this helps someone.

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Looking to buy gold, if resistance is broken. 1st target 1407.60.

naijababe: Did you say you have an indicator that can give 10 mins tf on MT4?

\

See this post. Provides some insights.
http://www.forex4noobs.com/forex-blog/forex-tips/trade-any-time-frame-in-mt4/

or download this

http://www.mt4i.com/appstore/app.aspx?id=12&sort=&rx=1346299564814

or this one (strictly for FXCM's MT4)
http://www.fxcmapps.com/metatrader-4/custom-time-frames/

What a week it's been. The futures and CFDs have been lovely. Currencies, well, little 20's here and there. Oil bit me twice this week.

But nonetheless, I'm loving this heiken ashi build, soon as I can fix the exit and entry rationales, I believe it will be smooth for long trade signals on the EA.

On the Nasdaq 100 futures, I'm at +4900pips and still going. From around 11pm yesterday.

Banned for posting a link to the webmoney site. That's how "volatile" this Anti-spam bot is?

Anyways, good to be able to post again.

ayox2003: XHTML,

Are you a programmer? Can we Africans have an e-payment system like LR? Africans need to stop kissing-up these foreign payment firms. Its time we have our own LR/E-gold/Money-bookers payment mechanisms etc. Can we?

Frawzey

Not a pro but yes.

I agree, we need our own payment system. It's a brilliant idea. But to make it successful we'd have to scale the challenges.

Kirinwa: You mistake intent.I speak not of the way pips are counted only but rather in terms of profits garnered from them.Truth be told make comparison between 4 and 5 digit brokers and find the later vanish from sight absent need.Have you used both before then speak forth and let us see reason.

Ah, this early-english format makes it a tad difficult to get your point.

My broker displays prices in five digits. FXCM, Oanda is same. I have used a couple of four digit brokers (infact I was once actively trading with instaforex - 4digits). Besides the fact that sometimes it gets confusing for some . There's no difference. Just ignore the fifth digit.

If EUR/USD moves from 1.2985 to 1.2996 on a four digit broker, it would be 11pips P or L even on a five digit broker (which may show it as 1.29854 to 1.29964).

Kirinwa: MFI is a 5 digit broker.What I mean is Eurusd is 1.30122 instead of 1.3012.I don't like the way pips are counted.I hate them with passion.

What? Based on that alone or other issues? 4 or 5 digits, it's the same thing. The last digit is just a fractional pip, you can ignore it.

Infact, the five digits may provide slightly lower spreads, sometimes (like say 1.9 instead of 2pips).

ULSHERLAN: I weep for nairaland

I wonder how these threads get to the frontpage. Shocking to say the least.

naijababe: Was not paying attention to it o until it was too late . But have short on oil, just need the next 4hr to close below the last low of 91.65, then I will leave my short running till next week

Ample opportunities await us all in the new week.

@Igwe. Ah, Clear evidence of a lot of pips in the bank. Enjoy, Enjoy.

Wrapping up the month of may, I hope everyone has been successful thus far. Time to review the month, trade history, take into account all the mistakes, work on them and put ourselves together.

I'll be using this weekend to prepare for a new week, and a new month in all. Happy New Month to everyone in advance. I hope june presents better opportunities for us all.

XHTML: Still holding this trade. SL yet to be hit - moved to 1392.53.

Trendline broken on the 4hr timeframe. Gold will likely remain bearish until market close.

Trade closed. Would've loved to leave it over the weekend but I'll do the rest on paper.

Sold - 1418.02 to 1385.80 - 3222pips.

martog: u got a mail

Replied.

kcc515: Heiken ashi, looks nice and dependable to me, just pulled it up, how much do you use it, do you use it as a support or you do pull off trades stictly on it?

Strictly on the ashi indi? No. To me, I tend to use it to determine "how long" to stay in a trade (and sometimes how strong the change in trend is) but for entry points, best have other indis to guide you.

Actually, some friends and I were working on an EA with this indicator as a component so for the past month I've been running a lot of strategies/combinations with it (stochs, EMAs, name them).

naijababe: Oil tinz, following till market close

Second attempt at yesterday's support. Let's hope it breaks. I have one small position from 92.25.

You seeing all these gold movements?

Still holding this trade. SL yet to be hit - moved to 1392.53.

Trendline broken on the 4hr timeframe. Gold will likely remain bearish until market close.

kcc515: 'm looking to buy, when/if I spot a nice entry...

Yeah, Strong Support at the 1389 region. Around 1396.xx is where I'm looking to spot a Buy opportunity.

But I'm buying only after the SL is hit on the heiken ashi setup trade (currently 1397.33).

On the 4hr chart, Gold.

wapmasta001: TANKS....BUT AM THINKING A BREAK ABOVE DIZ H-LINE SHUD TRIGGER ME CLOSING D TRADE....HUN

You're in line. If price gets to 1394.91, you may exit. if not, well keep holding the trade (IMO).

I'm watching the RSI divergence on both Gold and USD/JPY.

wapmasta001: DO U C DIZ SELL TO CONTINUE

USD/JPY is going down strongly, so we're going to see some bullish moves on Gold. If price reaches 1394.91 on gold, best to exit at that point and watch for another entry opportunity.

Closed my first position above at 1390.524. Momentum slowed and the bears seemed to have lost steam.

2,202.1 pips.

Meanwhile, on the Heiken Ashi candle setup I'm still moving the SL consecutively. Let's see how it goes.

Meanwhile, Gold seems to be looking to touch 1389.xx. No buys for me till then.

Do your analysis, spot an entry and get in if you can.

9ja4u: Please @XHTML What is your setting for the attached smoothed Heikin Ashi indicator

Here you go. Attached.

Note: I may do some fine-tuning if needed.

Of course, I also used this on currencies too. And results are well, coming up nicely. I need to plug in a few things and work on the system. This is still on the drawing board.

AUDCAD and AUD/USD turned up good results. Too many charts to post. The page might get clogged.

My other trade from two days ago followed a similar setup - 3500+ pips.

- MACD Bullish crossover.

- Buy order opened at second heiken ashi candle

- SL placed below support and moved consecutively to new support regions.

I'm still working on this, anyways.

XHTML: SellStop 93.00 placed on Oil.

Closed at 92.76 with a measly 24 pips.

Hmm, Trying to blend a modified heiken ashi smoothed indicator into an existing strategy. Working on it at the moment.

My sell position (1418.02) on gold still running. Trailing stops in place.

gerald2: My $2000 was lost in that Liberty Reserve run, now I use webmoney cos they are reliable.

That's quite a sum. Pray they're back up soon. Why didn't you go the wire transfer route?

Personally, the thought of having to "find a buyer" for large sums on these e-currencies makes me stay away.

kasonud: thanks.i wantedan advice on their spread/commission.funding/withdrwaing,i dont thing i would trad below minilot,thanks

Deposit/Withdrawal on FxPro - credit/debit cards, wire transfer, (and some online platforms like Moneybookers and Paypal). I suppose it's similar on FXCM (although they don't seem to accept the online platforms listed above).

FXCM Spreads
http://www.fxcm.com/advantages/forex-spreads-pricing/

FxPRO MT4 Information:
http://www.fxpro.co.uk/trading/products/mt4-specifications

Hope that helps.

takeprofit: i hav decided not to use only one broker again. at least 3 is ok. as for insta. i'll continue to trade my acct there until it grows to 2 million dollars, no matter hw long it takes. then if they like let them take 50%

Just pick one or two good and regulated brokers and you'll be fine.

Reminds me of a certain instatrader who made 1million in 2weeks (or so they claimed), then lost it again over the second half of the month.

https://cabinet.instaforex.com/partner/news/company_news/4/2964

Well, what can I say.

SellStop 93.00 placed on Oil.

Finally it appears the SL will be hit on my Long position on Gold from two days back.

If support is broken on the 1hr timeframe.