immy wrote:I have finally completed my testing on a different money and trade management that gives us a lot of benefits. The advantage cover several aspects of trading.
1. Improved Trade Management
2. Improved Money Management
3. The above Result in a HUGE and Very Important advantage - Care Free State of Mind.
I'll quickly note here some of the things I've learned so far in my 5+years trading career.
1. Trading is a Pattern Recognition Numbers Game
2. Winning Traders have a Different Mind Set - Probabilistic Mindset. This gives them a unique Trading Personality that Matches the Market they trade.
3. 80% of Successful trading depends on the MIND. A winning trader has the ability to maintain a "Care Free State of Mind" THE Zone.
4. Higher Probability Setups are Breakouts in the direction of Higher Time Frame Trends.
5. Trading in its essence is RISK MANAGEMENT. So we find LOWEST possible Risk Entry Points with a potential for highest possible Gains. We can achieve that by finding TIGHT AIMS BOXES. Couple this with a Strongly Trending H1 chart or any other
Immy: Darren: the MM plan is for those who struggle with Letting it run. Its to do with achieving the State of Mind which is conducive to Objective Thinking. 17:42
Immy: Let me here try to clarify what I mean by "Objective" thinking. its to do with the process of perception. Now this is purely a psychological terminology. 17:43
Darren: ok 17:44
Immy: Mind scientists have discovered that our subconscious mind, blocks information, oh wait, I'd rather say "filters" information that does not conform with the neural pathway that you have decided at certain stage of life Day or hour (for the next few hrs) .. its like google, if you have the instant results thing on, the moment you type something it starts guessing, your mind works like that too. but there are two levels. some superficial some profound some hidden some visible, conscious and subconscious. 17:46
Immy: A belief is nothing but a "Recurring Thought". 17:47
Immy: based on that, if you choose a thought, your mind will naturally, "Attract" or allow other thoughts that match this thought (like in the goggle example) 17:47
Immy: So your new thoughts must match your previous thoughts. 17:48
Immy: or lets say your new thoughts must match your beliefs (recurring thoughts) 17:48
Immy: so if you have a belief system, which usually happens to us all, if I put a trade it may turn into a loser. And its true 50% of the time. so mind is working "sensibly" 17:49
Immy: that thought creates a fear. "An emotional response" (and an emotional response is a "physical manifestation" of a subtle thought frequency. Emotions are physical vibrations felt in your body. 17:49
Immy: The fear creates a filter. 17:49
Immy 17:50
the feeling of fear dictates what you should or should not perceive. "don't let this event happen so I don't experience pain" a natural process.
the filter will then not allow any thoughts that may lead you to taking an action that may not conform to the belief system.
Immy: The filter will then not allow any thoughts that may lead to Taking the action that may result in pain. 17:51
Immy: cutting the long short now... loads of things needs to be explained but .... in the interest of saving time. 17:52
Immy: traders experience two problems due to the "natural" process. 17:52
Immy: 1. Not Taking Setups... (fear of losing) 17:52
Immy: 2. Getting out too early (fear of loss and fear of giving profits) 17:52
Immy: So the Question is What could be done to avoid the above two "emotional responses". 17:53
Immy: 1. Meditations and Visualizations and Affirmations 17:53
Immy: 2. Additional specialized techniques. 17:54
Immy: in 2, we need certain techniques in trading that may help us achieve the objective of eliminating fear. 17:54
Immy: Why eliminate fear ?because fear causes your perception to change. You can't see "Opportunity" that it is "Now-HERE" instead you fear "what could happen - in the future" based on "what happened - in the past". Care free state of mind = IN THE NOW - Joy - Fun - Focus - Relaxed , Fear = in the future , in the past, not in the now. 17:55
Immy: when in FEAR you stop Perceiving the situation for WHAT IT IS.... 17:55
Immy: instead you see it for "what you want it to be" or "what you don't want it to be". 17:55
Immy: so when you are in the Fear of Missing Out! You start seeings things, (literally and i'm not joking, happened to me so many times) that makes a setup a setup when its NOT a setup. in other words. YOU ARE NOT OBJECTIVE. 17:56
Immy: all the above is to clarify what I mean by BEING Objective. 17:56
Immy: Fear Obscures Sight - Results in Loss of Objectivity - Because it twists the Process of Perception. 17:57
Solution:
Immy: I've found that there is a money and trade management concept that can HUGELY help or have positive effects in achieving two things 17:57
Immy 17:58
1. Trading without Fear, Stress and Anxiety (or less of it) i.e. Care Free State of Mind - The Zone. (Thanks Mark Douglas)
2. The ability to take trades and letting them run as long as it allows. Plus the ability to Add on and still have remain in The Zone = Care Free State of Mind where there a. Joy b. Focus c. Relaxation d. Confidence (Self Trust)
Immy: an Integrative Approach that cures all things 17:59
Immy: There is A money management plan that cures a. fear of trading b. fear of losing c. fear of giving profits d. fear of losing out. 17:59
Edit: Continued...
20 April 2013.
The Money Management Plan Please Chapter 4 there is no difference.
This Money Management Uses Variable Lot Sizes. That's the Edge.
The Tighter the AIMS Box the Higher The Lot Size. Soon You'll find, its not worth Trading Big Boxes.
How to Calculate Lot Size: As in the Book.
Longs: Count the distance Between Upper and Lower Levels of an AIMS Box you're interested to Trade. Add 1 pip to each side + whatever is your spread.
You will have to find out how to calculate lot size in forex else where. But I'll try to find good simple sources where you can learn to do that. I think Snorm has an indicator that can do it for you simply by moving Lines or You can use the EA that Richard Shared with us. thank you sir.
The Trade Management Plan as Per the Money Management:
Before the Plan there is an Important Note you MUST READ: you might be tempted to create your own version the very moment you understand this. I beg you to not do that before you give this a fair amount of testing and trial. This is the WORST disease of all traders. They just don't do what they are told or are supposed to do. The very moment you share you hard found truth, what they all agree to do is, Not do what made this what it is. And then they all complain, this stuff does not work. Well, my dear friend, the stuff you're saying does not work, is not what you tried, what you are complaining about is not the System that you did not even try, what you are complaining about is your own Lack of Discipline. 95% of traders who lose money do not follow their plan period.
The Plan:
1. Take A Setup and Calculate your Lot Size/ Position Size based on Above suggested technique.
2. At 1:1 Close Half.
3a. You may now just follow the green line, or red line, or AIMS Boxes or follow 3b.
3b. Let the market go your way until you see eWave showing some peak or where there is a current high in the current wave, or as soon as their is an AIMS level created or you see the peak on price chart. Draw a fib entrancement. Starting from where you think is the start of the wave to where is your Current peak using the latest high/low of the candles.
4. Now put your SL at the 50% Retracement, a few pips below it for longs or above it for shorts. (You may leave your SL at the original stop or if you're a bit worried about giving profits, cure that fear by putting Hard SL below this level. But this is just for safety. The objective here is point 5. The 38% retracement.
5. Now keep watching if price retraces to 23% and stalls or 38% (38% carries more weight). If it forms an AIMS level at 38% and goes back in the direction of the trend. move SL to 38%. (This is based on the premise that 8 out of 10 times, 4th wave ends between 38 and 50%. And comes in the zone of the previous 4th within previous wave 3.)
If prices move sharply you may trail behind 23% but not without a confirmation of prices stalling there first.
6. keep doing it until stopped out.
7. Do the Same for any add ons and continue trailing enjoying 2 or 3 FREE TRADES. CARE FREE STATE OF MIND TRADES. Make money without Stress.
You will notice that in doing so your SL distance will widen as the trade progresses in your favour. This allows you to convert your M1 trade in to M5 then m15 and even h1. I've even enjoyed taking a 5pip Risk Trade and successfully converted it into a swing trade that latest a whole week in some cases.
The law of fractal geometry prevails. Waves, Impulse waves, Spring Out of a Seed called The Setup. (Tight AIMS Boxes) and it expands exponentially in a form of an expanding triangle, or a tree, a broccoli, or a tornado... tighter where it started, broader on the top... and then you'd see it starts to collapse into a Seed again for you to take more profits. I'll post pictures later. ..
keep in mind, the most important bit is Close half at 1:1 and DO NOT MOVE SL. This will give you AMAZING results. e.g. you will find m1 setups with 5pip SL requirement, at just 5pips you will end THE ZONE. why? because as soon as you ahve sold half, you cannot lose. And you know how easy it is to hit 5 or 7 pip SL? Simple but very very very powerful. Its not the money or the technicality of the stuff. its THE MIND. We must do everything to GET INTO A CARE FREE STATE OF MIND, it is only then we ENTER THE ZONE. It is only then, we SEE the market for IT IS instead of seeing things that are just not there.
You will be amazed at the accuracy of 38% and 50% retrace. When you think price has peaked and diverged, or you've counted 5 waves with divergence, you may then notice that prices will either reverse going straight through 23% down to 38%. If you're nicely in profit, you may now use 23%. If you continue to use 38% even after 5 waves completed on your time frame. What you will be doing would mean, you've now decided to trail behind 2 or 3 higher time frames. Before you do that, check the higher time frames and see that your trade is not just a retracement within a larger time frame trend. e.g. h4 retrace might produce a nice 60-100 pip trend on M1 but turn around sharply as the higher TF trend resumes. So start slow.. baby steps... The Whole Point of this is to Achieve Care Free State of Mind as soon as possible after you've entered a trade. This is, to eliminate fear so that you remain Objective. So that Fear does not Affect your Judgement. Hundreds of hours of testing and neuron busting thoughts have gone into it, please do not ruin it for me or others by asking silly questions. Think, think hard then formulate a well thought out question. thank you.
to be continued....
edit: 24 April: Here I attach an EA Called, CanSomeOneCodeOneLikeThisSellHalfTrailRestEAforAIMS
This EA only requires you to Put the PO and then let the EA take over. You Must Take a Setup that requires no more than 10 pips SL by default. If The overall rik form AIMS level to AIMS level is e.g. 7pip, you can change the SL and TP for 50% close (close half) to 7 and then let it run. Nothing more to do. TEST IT ON DEMO FIRST (a 1000 times) When in active it also shows Tick Value and Spread.
EA-Settings.png
CanSomeOneCodeOneLikeThisSellHalfTrailRestEAforAIMS.zip
(rofl)
