The Only Money Management Strategy That Works in Trading
- 1. The Only Money Management $trategy That Work$ in Trading
- 4. Lie #1 Trading is Just Like Investing
- 7. The Simplest Way to Make Money In The Market Is....
- 8. Put 60 into VTWSX 40 into BNDW Every Week for Rest of Your Life
- 10. EXCEPT...
- 13. Trading is Also About Proper Gambling
- 16. Lie #2 Discipline is what Matters
- 18. No One Could Follow Such Rules Consistently Total Nonsense
- 19. The Only Way To Create Discipline is to Institutionalize FAILURE Into Your Trading
- 20. Lie #3 Trading Strategies Are Key to Winning
- 21. There Are Only TWO Strategies in Trading Continuation |Reversal
- 22. The Key To Winning Is To Figure Out If the Market Is Lying or Not
- 23. Good Poker Players Read The Table Good HF Managers Read Market Regime
- 24. All Winning in Trading: Apply Right Strategy to Market Regime
- 25. Lie #4 Indicators are Unique
- 26. All Indicators are Variant of Rate of Change Calculations in Price
- 28. All Indicators Generate Basically the SAME Signals
- 29. Lie #5 To Trade - All You Need Is Technicals
- 33. They Dont Create Price They Only Report It NEWS Creates Price
- 34. Lie #6 Automated Trading Will Make Me Money
- 37. Why You Cant AI the Market 1.The Data Keeps Changing 2.Data More Noise Than Signal 3.Edge Comes from Nuance 4.Complexity Kills
- 39. Lie #7 You Cant Win Unless You Trade 2:1 Risk/Reward
- 41. Backtest Any Strategy And You Will See That 2:1 Trades Occur 25% of the Time
- 43. 2:1 Trade is a LOTTERY TICKET
- 44. The Only Way to Capture it Successfully is with Short/Exit Long/Exit Setup
- 45. What is R?
- 46. R = Stop (i.e. 30 pips)
- 47. Strategy Trade 2 Units 1.Short Exit->1st Unit @ 1R 2.Move Stop to Breakeven 3.Long Exit-> 2nd Unit @ 2R
- 48. EXAMPLE 1 52% Win on Exit 1 28% Win on Exit 2 +4R on Exit 1 +8R on Exit 2 (56-48) +12R per 100 trades
- 49. EXAMPLE 2 48% Win on Exit 1 32% Win on Exit 2 -4R on Exit 1 +12R on Exit 2 (64-52) +8R per 100 trades
- 50. NIRVANA 55% Win on Exit 1 35% Win on Exit 2 +10R on Exit 1 +25R on Exit 2 (70-45) +35R per 100 trades
- 51. NOTE in None of the Examples do You Need a Big % Edge to WIN
- 53. #1 Judge Results in 100 Trade Batches
- 54. #2 Enter with Algos Exit with Discretion (Adjust 4 Regime)
- 55. or #2 Use Algos to Signal Use Discretion to Enter and Exit
- 56. #3 Machines Only Give Signals Regime Wins Trades
- 57. #4 Trade 3 Pairs Only Per Strategy (Less is More FX Highly Correlated)
- 58. #5 Diversification in Trading Comes from Strategies NOT Instruments
- 59. #6 Trade ONE Times Equity Per Trade (i.e. 10,000 Units per Trade for Every 10,000 in Account
- 60. 1 Million Years of Evolution: I Want To Eat NOW! I Want to F NOW!
- 61. #7 Understand Why You Will Never Be Patient (Build That Human Flaw In Your Trade Plan)
- 62. Have FUN:) In What Other Business Do We Look Forward To Mondays?