Print

Please login or register.
1 Hour 1 Day 1 Week 1 Month Forever
Login with username, password and session length

[FF]

I just found this posting:

http://www.forexfactory.com/showpost.php?p=3462135&postcount=13574
Scout size is proportional to your account size, not daily objective. Think about this, most people here doing ants work trying to for a minimum return of 1-2% a day. How big is your book?

10K account 1% = $100.00

1% daily consistently, that's non compounded 20% a month or roughly tripling your account in a year.

Keep with a conservative leverage, 100:1 or less, I trade at 50:1. Take your available max size and divide it by 100.

Example 10k account at 50:1. you can trade 500,000 on the market, /100 = 5000 leveraged per skew size, that's roughly .50 per pip. Depending on how your home account currency is listed in the pair affects this math some what but just use a set figure for all pairs as your actual $.xx per pip might vary a few cents. You could use $1 pip in this case, but at .50 a pip a 1-3-8 skew puts you $6 a pip.

That's plenty enough to get you into trouble

what is the meaning of 5000 leveraged per skew size?
After reading over 60 pages the discussion mostly comprise of MM while the MO is simply own interpretation of PA.

I'm still a little doubtful over the MM whether it won't be too dangerous by attacking on multiple level.
As example if a scout is deployed at 1 unit, and market moves in its favor, we attack further with 2,3,5,8. And if the last 8 soldiers move was wrong won't be our capital easily wiped out?

I've got to put a scenario. The 1,1,2,3,5,8 seems more useful to me more during rescue operation rather than attack operation.

[HC]

http://www.forexfactory.com/showpost.php?p=3462135&postcount=13574
Scout size is proportional to your account size, not daily objective. Think about this, most people here doing ants work trying to for a minimum return of 1-2% a day. How big is your book?

10K account 1% = $100.00

1% daily consistently, that's non compounded 20% a month or roughly tripling your account in a year.

Keep with a conservative leverage, 100:1 or less, I trade at 50:1. Take your available max size and divide it by 100.

Example 10k account at 50:1. you can trade 500,000 on the market, /100 = 5000 leveraged per skew size, that's roughly .50 per pip. Depending on how your home account currency is listed in the pair affects this math some what but just use a set figure for all pairs as your actual $.xx per pip might vary a few cents. You could use $1 pip in this case, but at .50 a pip a 1-3-8 skew puts you $6 a pip.

That post is trying to address the question on sizing of scout.  In other words, what is the size/single skew unit.

Eg: Account size US$10k.  Broker give you 50x leverage, you can hold up to a total of positions 10kx50= US$500,000.

Scout size should be the 1% of that, ie: 500,000x1% = US$5,000 contract size.  This US$5k is 0.05 standard lots (or 0.5 mini lots, depending on your broker), each pip move is US$0.50 fluctuation.  This is base scout size, and if you wish to attack/rescue at, say, size 3, then at 0.05x3=0.15 standard lots or U$15k contract size.  You add another level at 8, you will have a total of (1+3+8=)12x scout size in market, controlling a total position size of 12 x scout size, or US$60,0000, or 0.6 standard lot, or US$6 per pips move.

I'm still a little doubtful over the MM whether it won't be too dangerous by attacking on multiple level.
As example if a scout is deployed at 1 unit, and market moves in its favor, we attack further with 2,3,5,8. And if the last 8 soldiers move was wrong won't be our capital easily wiped out?

1. I have similar response when I first encounter this method.  My doubt made me "passed" this method.  It is only after a few more bumps in FX market then I appreciate what fti is teaching.  What I am saying is that (a) this method of trading may not suit everyone and (b) give some times to yourself to experiment it in demo account.

2. The adding of attacking level is like Turtle trading, it is part of the risk control.  ONLY add when there is opportunity.

3. Extend from point 2: one of the factor that determine the adding attacking level is "trader's skill".  fti can add up to 7-8 levels, many of his student cannot.  I currently only can do 3 levels (including scout).  The "trader skill" includes: ability to read the market, competency in rescue & mind set.

3. Yet another extension from point 2: Another factor that affect the adding of levels is: the trading time zone.  You see, most price move come from US trading time, but I rarely trade them.  My normal trading time zone is Asia and UK, where the move is not that much.  So there is not much opportunity for me to add so many levels.

(
3a: did you notice the flexibility of this method over Turtle rule?  => no fix 4 levels adding
3b: my (lack of) trading skill is part of the reason I can only do 3 levels.
)

[FF]

Hi HC,

based on my trading experience I only practiced upto level 2.
I think, I need to remove my psychological barrier in doing that and remove the old thinking.

Yes, this one definitely needs to trade on demo.
The higher the level, the more dangerous it becomes.

Your explanation really helps me.

thanks.

[FF]

it seems like EURUSD (1.3772) has another leg up
The Marketmaker might just want to swipe the sitting ducks who short the market.

[FF]

it seems like EURUSD (1.3772) has another leg up
The Marketmaker might just want to swipe the sitting ducks who short the market.

finally sitting ducks got shot.  EU(1.3785) now. I look for higher level to short after the marketmaker have their feast.