Take a look at these two fib set ups, using the ICT classic fibs that he introduced a lot of us to
Which one would you rather net? The bigger one is 5.68R, the smaller one is 3.2R
You'd go for the larger one right; but what if you TP all the way up?
Which one would you rather net? The bigger one is 5.68R, the smaller one is 3.2R
You'd go for the larger one right; but what if you TP all the way up?
First, let's assume a few things:
- Account size of $10k
- Risk size of 1% / $100
- Leverage of 20 (doesn't matter in this case)
You can see the position size worked out per the below (irrelevant in this case)
Note the 5.68R / $568.03 potential gain (no TP's)
TP's next:
- Account size of $10k
- Risk size of 1% / $100
- Leverage of 20 (doesn't matter in this case)
You can see the position size worked out per the below (irrelevant in this case)
Note the 5.68R / $568.03 potential gain (no TP's)
TP's next:
Truth is that if you use a TP regime like the below:
- 10% at 0.28
- 25% at 0
- 25% at -0.27
- 30% at -0.68
- 10% at -1
Your initial 5.68R will turn into the smaller trade of 3.2R.
Sequential results excluding fees shown on the far right
- 10% at 0.28
- 25% at 0
- 25% at -0.27
- 30% at -0.68
- 10% at -1
Your initial 5.68R will turn into the smaller trade of 3.2R.
Sequential results excluding fees shown on the far right
To work out your profit from each level, you pull the long or short tool to the level you want to TP at, and then it looks like this:
(Amount to TP (%)) * (Level of TP in terms of R) * (Equity Staked / Risked) = Profit (less fees)
Here's the 1st & 2nd TP from the image above
(Amount to TP (%)) * (Level of TP in terms of R) * (Equity Staked / Risked) = Profit (less fees)
Here's the 1st & 2nd TP from the image above
Here's the comparison of the original figures of letting a trade run, vs the combined figures if you sequentially took profit:
If you took aggresive profits as shown above, you're actually worse off.
You R value is almost halved!
If you took aggresive profits as shown above, you're actually worse off.
You R value is almost halved!
So there's simply no point holding on to a trade based on this regime of TP'ing like this. You're better off simply aiming for 3.2R on the trade & moving on to other opportunities.
The red line shows the 3.2R level
The time spent managing a trade like this isn't worth it
The red line shows the 3.2R level
The time spent managing a trade like this isn't worth it
Don't get me wrong, there are other ways of TP'ing, moving SL, or just letting the trade run (we'll take a look at this shortly).
I just wanted to share this with you now in case you were religiously following something that can be great for training, but not in the long run
I just wanted to share this with you now in case you were religiously following something that can be great for training, but not in the long run
If you like the above - @johnnie_jacks and I share the MindJacked brand, where all of our channels are free, forever.
Sharing what we can to help
Discord:
discord.gg
Youtube:
youtube.com
Telegram:
t.me
Cheers
🤝🍻
Sharing what we can to help
Discord:
discord.gg
Youtube:
youtube.com
Telegram:
t.me
Cheers
🤝🍻
youtube.com/c/MindJacked
MindJacked
Check out all the free crypto trading content that Mindset BTC & Johnnie Jacks share as both themsel...
discord.gg/yFdcmbd8yt
Discord - A New Way to Chat with Friends & Communities
Discord is the easiest way to communicate over voice, video, and text. Chat, hang out, and stay clos...
t.me/Mindset_BTC
MindJacked
Free Educational Trading Content from Mindset & Johnnie Jacks Discord - discord.gg/yFdcmbd8yt Youtub...
Loading suggestions...