Stay alive….to gain money
One Formula :THE STRATEGIC HOPE (SH)
STEP 1 – FIND YOUR ML (Max Loose)
• What is-it ?
– If your capital is 1’000 $
• If you are playing with 10k lot, your ML is 1’000 pips
• If you are playing with 1k lot, your ML is (1’000 / 0.1 ) = 10’000 pips
STEP 2 – SEE HOW IS THEPOTENTIAL LOOSE OF THE
STRATEGY : PL
Take the largest losing trade
Take the MP
Take the MaxDD
THE PL FORMULA
Exercice…
• We have 1000 $ and we use micro lot of 2k
• It means that our ML are :
– ML = 10 x Kapital/Lots = 10 x 1000 / 2 = 5’000
OUR ML IS 5’000
We choose ONE strategy OnTheRiverWL with AUDUSD
MP=4
MaxDD =-479.20
Larget loosing trade = -300.10
We compute the PL
PL1= MP x Largest Loosing Trade x Lots / 10PL2 = MaxDD x Lots / 10
PL1 = 4 x (-300) x 2 / 10 =-2400 / 10 = -240 PL2 = - 479.2 x 2 / 10 =- 958 / 10 = -95.8
PL1 < PL2 then..
Our PL is -240
STEP 3 : ADD THE PL & THE ML.
BUILDING THE STRATEGIC HOPE (SH)
STRATEGIC HOPE (SH)
=ML + PL = 5000 + (-240) = 4760
DECISION
• IF SH (STRATEGIC HOPE) < 0 it means that the strategy have a good probability to blow your account : DON’T TAKE IT EVEN IF STATS ARE GOOD….RUN AWAY
• IF SH > 0 , IT MEANS THAT YOU CAN TAKE THE STRATEGY
With more than ONE STRATEGY SELECTED
• IF you have more than one strategy the ML stay the same BUT your need to compute the different PL or each strategy and add them.
• If you select 2 strategies :
– Strategy A have -100 in PL and Strategy B have –200 in PL it means that the PL you enter in the formula is -100 + (-200) = -300
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