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  • Originally posted by Amadorian View Post
    And then there is this extra pressure, already being in a big DD, and now having more trades hit the SL.

    But let's just wait and see.
    Now you are just assuming .
    Last edited by MrMcmahon; 05-09-2018, 11:26 AM.

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    • Originally posted by MrMcmahon View Post

      Now you are just assuming .
      Assuming that a drawdown of this size puts a lot of pressure on the trader? Yes, wouldn't you agree?
      Or don't you agree that trading with tight stops, trades get stopped out more often?
      Last edited by Amadorian; 05-09-2018, 12:42 PM. Reason: added quote

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      • Originally posted by Balboa View Post

        If he has changed the approach to LARGER TPs and SMALLER SLs whereby the Reward:Risk ratio is greater then 2:1 then we are now seeing a transformation for the better.

        But I still think that he should not be trading client funds until he has demonstrated that he can trade this strategy profitably for at least 6 months.

        A strategy with high Reward:Risk ratio requires a very strong psychology as you could be losing around 50% to 60% of the times although the losses will be far smaller then the gains.
        I completely agree with you.
        .

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        • Did we receive the "updated account guidelines" SC was talking about? Trading is to resume next week and we don't know anything about R:R, max allowed DD, etc.

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          • It's possible things took a different turn because it seems like they removed the signal.

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            • Removed the signal from where?

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              • Never mind, it's back. Solved. Looks like it was a problem on my end.

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                • Hey guys,

                  I've received a copy of SteadyCapture's new trading rules to pass on.
                  1. Overall maximum allowable percentage of Equity risked = 20%
                  2. Commit to never draw down more than = 22%
                  3. Use of Leverage per trade = Up to 10x Equity / trade
                  4. Total Account Maximum use of Leverage allowed at any given time = 24x
                  5. Maximum number of separate positions allowable at any given time = 14 with no limit on sub trades managed within those positions
                  6. Maximum single position allowable loss = 16%
                  7. Maximum allowable DD within 24 hours = 16%
                  8. Maximum allowable DD within 1 week = 20%
                  9. Maximum allowable DD within 1 month = 20%
                  10. Maximum allowable DD within 1 year = 22%

                  “Large Stop Trade” Definition = Any trade using a stop greater than the average daily range of the last 5 trading days employing a risk to reward ratio greater than 1. These trades are used to scale into and out of positions.
                  • There will now be only 2 classes of authorized “Large Stop Trades”: “Top Tier Scored” trades and “Risk Off Co-related Cross Pairs” trades.
                    • “Top Tier Scored” trades: Any trade in any currency pair or direction that has scored in one of the top 3 tiers of the proprietary SteadyCaptureFX “DAILYfx” scoring system on the day the associated position is entered.
                      • All such trades may also employ tighter stops for a portion of the overall allotted position size
                    • “Risk Off Co-related Cross Pairs” trades: These are cross pairs with a significant positive correlation shared between currencies that 1) Does not have USD, JPY or CHF in the pair, and 2) Has a known strong history of moving in the same direction during “risk off” market environments.
                      • Allowable pairs and direction: Long EURAUD, Long EURNZD, Short AUDCAD, Short AUDNZD, Short NZDCAD, Long GBPAUD, Long GBPNZD
                      • Any of these trades taken with large stops must do so only in a “risk off” direction and with at least a 40% reduction in initial trade size compared to the previous rules
                  • There will now be a more active use of trades using tighter stops and better risk to reward ratios. Such trades will be allowed in any pair or direction.
                    • Range for these trades will be 7:1 – 1:150 risk to reward ratio
                    • Maximum stop for these trades will be 70 pips or 70% of the average daily range through the trailing 5-20 trading days (whichever is greatest)
                  The most notable change is the reduction in the maximum drawdown from 30% to 22%

                  Jay expects to see trading activity within the next week as the path to recovery begins.

                  If you have any questions about the info above, please let me know.

                  Click here to check out the most popular forex channel on YouTube

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                  • Originally posted by Nick View Post
                    [*]Maximum single position allowable loss = 16%[*]Maximum allowable DD within 24 hours = 16%
                    What?! I hope he meant 1.6% and not 16%...

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                    • Thanks Nick. Has he backtested the strategy and if so what were the results?

                      Sent from my SM-N950F using Tapatalk

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                      • Too long and complicated trading plan with far too many rules... Good luck though...

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                        • Originally posted by Nick View Post
                          Maximum single position allowable loss = 16%
                          Maximum allowable DD within 24 hours = 16%
                          hi, there is a typo here?

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                          • Hey Nick. I think this 16% drawdown In 1 day needs some clarification.

                            This sort of plan needs some layman's talk. Too confusing.

                            Sent from my SM-N950F using Tapatalk

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                            • Originally posted by dazz1975 View Post
                              Hey Nick. I think this 16% drawdown In 1 day needs some clarification.

                              This sort of plan needs some layman's talk. Too confusing.

                              Sent from my SM-N950F using Tapatalk
                              The thing that really counts is the 22% total drawdown.

                              The daily, weekly, monthly breakdown is what hedge funds do when allocating risk to traders, so he's using that model.

                              22% is the number that we all care about.
                              Click here to check out the most popular forex channel on YouTube

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                              • Originally posted by Nick View Post

                                The thing that really counts is the 22% total drawdown.

                                The daily, weekly, monthly breakdown is what hedge funds do when allocating risk to traders, so he's using that model.

                                22% is the number that we all care about.
                                But he had a 20% max DD rule before.

                                I really am struggling to see how the money management in this new plan is any different to the money management on the old plan.

                                The one positive I see here is the RIsk:Reward of 1:150. However that's a big R:R ratio and very unlikely to be hit.

                                But my concern is on the 22% max DD. It's a big DD. Good traders don't hit these kind of drawdowns including those that are making 50% ROI per annum.

                                Secondly what evidence is there that this strategy is profitable. Surely you would have tested it out before selling it onto your clients..

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