Bashir,
Looking forward to this next updated video with some of your new insights.
Regarding those of us trading with very small accounts (less than $15,000) your method seems to give the best results with a minimum of 2 contracts traded per set up. This starts you off with a $200 to $300 risk (depending on if you are using a 20 tick or 30 tick stop loss). I know the system gives you a high rate of success (almost 90%) but a $300 loss in a $10,000 account equates to a 3% risk of total capital. As you have more experience, do you think this is an excessive amount to risk in a smaller account? Did you start off trading a minimum of 2 contracts from the start of your trading career? Just curious on your thoughts with this issue.
I was thinking one way to reduce the risk would be to try to trade the breakout or breakdown through the 15 EMA with 1 contract first (assuming it's profitable) and then the retracement as per your system. I think you mentioned this before as hitting 2 birds with 1 stone.
Hi santana, i started out with a 10k account, and i have been doing 2 contracts ever since almost
I know i sometimes use 30tick stops,but i suggest those with 10k account use 20tick stops, if the marked is so volatile that it requires 30t+ tick stops, then i woould suggset that person not to trade for that day.
When doing 20ticks stops, then that would be 200usd and 2% of the account and that should be okey, as the account grows the 2 contracts will be less and less % of the the account and risk will be lowered.The importent thing is to get the account size to a level where risking 2 contracts is only 1% of the account. After that i would wait for the account to grow 40k and then start doing 4 cars, and using same profit targets and same method , and then wait for account to grow to 8 cars and do the same over and over again.If this was 50% hitrate method, then i would never in my wilderst dreams risk 2-3% of account, cause that would give you huge drawdown before hittting that big trade. You could be down 20% before getting a good homerun trade. Cause methods with low hitrate usualy try to get into a trend, and they make alot of misses before they actualy are in one.
Imagine doing 2 trades with 2 contracts each day for 20 days a month:
(40ticks x 20days) - (4tick commision x20days) = 720ticks pr month = 3600 usd.
Thats a 36% increase of the account, so getting it to grow will be going very fast.
If not 2 trades a day, even 1 trade a day will give you a 18% increase in account each month, i think 2 good trade pr day is more then possible.
With kind regards
Bashir Naimy
What i mean with hitting to birds with 1 stone is that when price breaks the last support or resistance, is that you wait for it to break, u dont do a breakout.
When a 1min bar is closed below that last support/resistance, then start look at your 89tick chart and buy it at the 15expon ma, make sure that the 1min stoch is on your side.
That way you can ride that breakout pretty easly, as soon as the 1min stoch is getting overbough/oversold then wait for your retracement/pullback, and do a second trade.
Thats a good way of getting 2 trades out of 1 move.
With kind regards
Bashir Naimy
