And staying true to form, from the emails I've been getting, this is the #1 video (coupled with the ATR video) responsible for changing traders' results from negative to positive. Just a basic level of discipline can change things dramatically.
No Nonsense Forex I still can’t figure out how many contracts I can enter based on this system. Have tried the calculations across a few instruments (crypto) and each time, the stop loss depth blows out. What am I missing?
@@troyrichardson4119 You don't enter trades in Forex the same way you do other equities. Contracts aren't a thing. If you check out episode 2 of the podcast, it shows you where to go to learn the differences and such.
I knew the banks had their paws on the cash, but not on the scale that you mention, new friend. I know it's no conspiracy theory either. My grandfather was a police guard for the federal reserve. He said "the federal reserve is not owned by the US government. It's only on US government soil and pays only land tax. That's all it really pays. Funny part it the federal reserve was a bad idea to begin with. The US government knew this and still did it anyway without the approval of Congress or the people. Attempts to steal our wealth for the Euproean Elitists hangs in the balance every day. Never put your gold in bank. And always keep an eye on the bank's favorite word. Fees." No conspiracy theorist. Just plain scary facts. Thank man.
I been trading for 3-4 years and wasted so much time and money being fall into trap of "Guru". I am so thankful for my son for DISCOVERING YOUR CHANNEL and PODCAST. Now my growth in trade is tremendous. If I can only share to you my trading history, oh man. THANK YOU SO MUCH VP. I may use different set of indicator (definitely not the Dirty Dozen) but the principles all derived from your teachings. YOUR ATR VIDEO IS FREAKING EYE OPENER for me plus your RISK and RATIO episodes. You are a God's gift to us.
Just came back to re watch this gem. Its 2022 and you'll forever be the man who taught me how to trade Forex. I'm one year in I'm profitable but have to pay my dues of the learning process. Thanks VP.
Wow!! Again. This is way better then the way I was doing it. I was doing the ratios. This is the way I was taught. I’m going to spend the hole weekend trying to find the indicators you said to find no matter how long it takes. This what I want to do with my life. Like you I hate going to work everyday to make money to support my family. I will succeed no matter how long it takes. Thank you for your knowledge.
VP I can't thank you enough for every video you drop, it's a hidden golden nugget among the gurus on the internet, the last 2 days iv been GRINDING on your videos and putting together a algorithm. Much thanks for everything you've done for the community and everything you continue to produce. Keep it up boss!
I wasn't sure where to put this comment so I put it on a video I revisited. I would like to comment on a couple of things that might help some. I come from a mountaineering/back-country skiing background. With both pursuits, there is constant risk assessment. As the saying goes, "There are old climbers and there are bold climbers. But there are few old bold climbers. Old bold climbers have superior risk assessment skills, and much of that comes with experience. Climbers and back-country skiers divide risk into two categories, objective risk and subjective risk. Objective risk is risk you have no control over and subjective risk is risk that you may mitigate to some degree. Although VP doesn't discuss risk in the same terminology, it is exactly what he is talking about. Just being in the market at all is an exposure to objective risk. The many tools discussed throughout the series is a fantastic blueprint to mitigate the subjective risk. Very well done and thank you. Cheers! PS My favorite read on risk management by far: The Art of War. It has nothing to do with trading, it has nothing to do with climbing, but it has everything to do with both.
Hello, I am very happy to have found this channel. For the first time I don't feel like I'm wasting my time watching Forex based content. I've never gotten past demo trading and I've invested so much time watching these stupid videos like “make a living on that”. I also paid a guy 300$ to teach me how to draw lines and squares on my chart in his online course. But it didn't do me any good. But now, I feel like I'm actually getting somewhere. I take the time for the podcast, for the videos and learn so much. I've thrown all the crap overboard and started from scratch and I'm so happy about it and very excited to see where the journey will take me. Thank you again for this wonderful channel. Greetings from Kiel, Germany
The first time I watched this video I really couldn’t have known what you meant when you said sometimes you see a signal that looks like it’s just a day away based on the algorithm. I mean, I understood the theory there, but didn’t actually know what that would look like on the charts. Now just over a month later, and with a rough system in place, I know exactly what that means. Must be on the right track. Each of these videos really are golden nuggets. It’s takes time to apply them and really understand. But I determined about 16 months ago that I was going to find a way to EVENTUALLY become a day trader. I see the path now, and it’s very exciting. One step at a time, slow and steady wins the race
Hey man, I'm a complete newb on trading. right now I am working my way through all of your stuff. 1-2 videos daily and already got so much info i've never thought about before. i'll take my time, take notes and look forward to become a smart trader. Bless you, greetings from germany.
I like your approach of how you refrain from mentioning other possible golden indicators so they can remain valid and give us a road map to find the grail ourselves. This is what leaving a legacy is about.
I know this video is 2 years old but. I've been looking for something like this for a minute. Every half decent coach tells you to use risk management. They may even say 2% but to give a formula on how to provide that to different pairs is priceless. Thank you.
Holy Hell, I have been binge watching this channel, listening to the podcasts and reading the website for the last few days. I have been going back retesting old strategies. There are a few of them that were losers that would have been winners if I had applied the risk strategy and money management discussed here. Can't wait till I have a proper strategy and proper risk money management.
For those confused by the position size, I think I can clarify this. The platform VP is showing here does the calculation behind the scenes, he is simply changing the position size (in 10,000's) to match his calculation for Risk/Pip. The platform uses the following inputs to produce the $/pip number: *1. Tick Value of the pair's Quote Currency (the minimum tick of the pair, which is 0.0001 for all pairs except for JPY, which is 0.01) divided by the pair's exchange rate at either the bid, ask or mark.* For instance, the current tick value of the GBP/NZD is 0.0001 / 1.91954 (at the marked rate) = 0.000052096. This was as of 11 AM or so today. *2. Base Value of the pair in Account Currency (which is the currency the account is denominated in).* This is the value of the Base currency (in this case, GBP) value in USD (or whatever your account currency is denominated in). For instance, the current USD value of GBP is 1.23499, which is the "mark" rate for the GBP/USD. This value, 1.23499, will be the Base Value in USD for all pairs where GBP is in the Base position. Again, this was as of 11 AM or so today. *3. Position Size in 10,000's* The formula is: *(Tick Value x Base Value) x Position Size.* VP has to put some value into the field for it to start the calculation...he adjusts the position size to match the $/pip he produced with the Risk and ATR calculations. There are other ways to do this, but his method does what he says it does... :) Its a cool feature to have, I use a spreadsheet tapped into my brokers RTD feed. If you are adept with Excel you can create your own calculator using the formulas above. You don't need a RTD feed, either...although most brokers do provide it. You will need to enter the numbers by hand.
If my account size were $50,000, my Risk would be $1000. The ATR value (1.5 x ATR) would be 1.5 x 177.1 = 266 (as of today). I'm going to set my stop 266 pips away from my entry point, and the value of each pip will be $1000/266 = $3.7594. OK, just realized that you can actually predict the position size by making the above formula equal to the $/pip value. If you're still with me, the formula for position size would be: *Position Size = Pip Value / (Tick Value x Base Value);* The position size is equal to the Pip Value divided by the product of the Tick Value and the Base Value. In the above example, it would be Position Size = $3.7594 / (0.000052096 x 1.23499) = 58,432. Position size would need to be rounded to the nearest 1000...so 58,000. 5 minis and 8 micros!
I would just calculate my 2% max risk against my trading capital ... and use the amount of 1.5% of Atr to see if this amount was within my max admissible 2% risk ... if it was r then i would place the stop limit against the entry price level ... so far so good ...
If my 2% of usd 10000 capital is usd 200 and my 1R is within this amount then I would use this 1.5 atr to pace sl against entry price and this sl amount in usd is my risk ... for a standard lot size I would multiply the customer sl amount by 10 to v get pips and then multiply it again by 10 to get usd per pip ... I would see if this amount felt too big or else I would just reduce it to the mini lot size... how x wrong am I? Just started demo trading of gold
I found you channel about one week ago and I must say I am really impressed of the way you teach and even more impressed that you don't charge one single penny for all this great stuff. I will be listening to all your videos more than once in the near future. Thank you and cheers from Sweden VP
I did my own test on the ATR after watching this Video and I must say this is the best indicator to set SL. For example i would always use 60 pips SL on a 4 Hour GBPUSD chart, but when I went back and backtest i see that the ATR was would give me a better calculation sometime even lower than the 60 pips I use to set which would give me better reward on my trade when going in my direction. Thanks 🙏
The very best Forex RUclips channel..!!! Love from India !! God Bless You Brother. The best thing about this channel is that you are not handover all the things we need to be pro in this market.. you want us to work on some stratiges and practice to find out the rest things we need to be a pro.
For anybody who wants a little short cut to calculating your pip value Just copy and paste this into your calculator change X and Y obviously. X = account balance Y = ATR(14) VALUE (X × 0.02) ÷ (Y × 1.5) I hope this helps. You can test it on the example shown in this video if you want confirmation its correct. (50236 * 0.02) ÷ (86 * 1.5)
Brilliant! I have been looking for money management information out there and no one has ever explained nothing even close what you just did. This channel is UNIQUE. Big Thanks to you !
you re creating a masterpiece when it comes to setting blueprints for the future 1 per%. Am 100% sure that youre making HISTORY. Sendin luv from ETHIOPIA
4:15 , this here is what killed 3 of my accounts and nearly 15k. Wished you were around back in 2010 when I started VP, but glad your here now. After starting watching your podcast I decided to try forex again in the future
VP, I love your "no nonsense" to forex. This video alone changed my trading account, results and strategy. I was lost until I found this channel. Thank you and look forward to watching and seeing more videos!
I read the book "A Man for all Markets" by Edward Thorp. He covered many things, but Risk in great detail. He covered a lot more than just money. I would recommend it for all traders. Edward Thorp also wrote the book "Beat the Dealer," back in 1966.
VP. Spent the whole week in the truck driving around while working, no pandora, no Xm radio, no talk shows, NOTHING BUT FOREX Q&A PODCAST ON BLAST. Now I gotta catch up on the blog..
Seriously thank you for all the in depth content, VP! I so appreciate you not just giving away all your answers/algorithm components; it forces us to actually do the work, learn and understand your concepts first. Nothing else out there has had a bigger impact on my trading strategy and mentality.
VP. Thanks a lot man. My trading partner and I about a week ago got through your Core Concepts playlist. We are now refining our money management strategy and trading algorithm. We have seen amazing results already with about a 80% wins. It's still early days but your guidance we believe have put us on to a much better path. Really appreciate the time you take to help others. Stay Blessed.
I am so glad I stumbled across this channel. I've spent my whole Sunday watching these videos and taking so many notes! What I like is, your approach to education seems to be 'I will drop you off on the correct road, but you'll have to find the destination yourself'. This encourages people to jump out and say okay, I need to make this work for myself now, and not rely heavily on someone else. I cant wait for more content. This channel will explode in popularity soon, and so it should. Thanks man.
VP you are so amazing. This video is both priceless and timeless. You truly are serving us. You don't only give us value but by NOT giving out your entire algorithm and trading system, you encourage us to take initiative.. to create our own system because the truth is, real bosses create their own systems and you are making bosses out of us! God bless all of your financial endeavours ten-fold!!!
This is by far the best video on FOREX risk video i have ever watched .I finally get it (RISK), and thank you VP for helping us learn this stuff the right way and helping us building OUR OWN Trading system!
I would agree this is the MOST important video you have hands down ( yes more value than the ATR) I'd never used the ATR but this video after watching the ATR video showed me how not only to use the ATR (Other videos out there SUCK!) but to calculate risk, and most importantly PIP SIZE. I'm treating this like college. I am an O.K trader but you are making me more confident that I can be what I set out to be A DOMINANTE trader
I've been real trading for past 2 years off and on with little success. Mostly demo trading now because I feel there's no point in risking real money if you can't do it in demo plus unwilling to give up until I succeed. I can say I've studied a kazillion things and this content seems way more realistic, logical and down to earth. I am generally a skeptic since I've been burned so many times with useless learning. I keep an open mind. I trust, but verify. I have to say, I haven't verified yet. Either way, this content does excite me going forward. Awesome stuff!
Hey VP. Thank you for making this video. I can honestly say I have learned more in the 31min 30 seconds in this video than I have learned in my 2 years of trading. 2 losing years at that. No one has ever explained risk management like you have here. For me this is the best video you have made to date. ( am working my way through the play list ). Please keep sharing your knowledge. I really appreciate it. As am sure everyone else does. Your keeping it real, and I thank you for that.
I've Binged On 20 Forex Q&A Podcast, 6 RUclips Videos & About 7 Blog Posts In The Course Of A Day & A Half & I Agree Wholeheartedly That NO ONE is giving up The Juice Like This. I've Been An Active Forex Trader For A Little Over 6 Months & The Content On This Channel Has Raised My IQ Tremendously. Very Much Appreciated VP.
Before I started watching you, I thought that podcast would be boring. But later I saw that your way of explaining things is better and you have a natural style of talking about trade. Thank you for your effort and please keep on doing these videos.
I'd also like to point out - mostly to those who are doubtful of the logic behind using the ATR for stop-loss placement - that it is a volatility based initial stop-loss placement strategy, and probably the most organic one that exists. It is quite logical in principle and easy to calculate. Its a powerful tool. A volatility based stop-loss placement strategy should place your initial stop-loss order far enough out to prevent a loss due to the "random" or "normal" noise of the market. It will also limit your loss in the event that the "random" or "normal" noise turns into a meaningful move against you.
Dude, I don’t know what to say but you actually blew my mind with all the knowledge you are passing down. Stupid enough. I actually blew my 50k account for the past year looking for the best indicator and entry point. I kept my risk management at 5% but I have no idea in calculating the stop loss. Everything I did was based on emotion. I really want to thank you for providing me with a clear vision and I hope I can hit it off with my final 10k deposit. I’m not chasing my loss but I hope I can set myself up for the future. Anyway, thanks again for all the knowledge.
Absolutely agree, that's one of the most important videos a trader must watch, it completely changed my trading, and you know? I'll keep this forever! Wake up traders!! Thanks Patrick!!!
Been working on your nnfx way of trading for 10 months now...grateful for every micro-second of learning, bettering my skills. Ive been slowly getting to the point of knowing that you are a good friend to everyone who wants this process to work for the remainder of our lives. Thank you dearly VP. Tears of grattitude. Thank you God!
I wish I had seen this video before losing my $5000 and blow my account, but I will be back soon I am doing an extra uber driving to save some money do be back ,. Thanks
sat here for 5 hours going through his videos with a notebook, making notes...testing them and then making more notes and testing them on a dummy account...by the time i get to putting money into it ill already have a damn decent algorithm and knowledge of trading, thank you dude. Great videos!
Thank you for another great video VP. I'm really shitty at maths to do these calculations confidently but what I noticed is I'm slowly getting used to it and it truly is not too bad after all. So for everyone who is following this channel. Guys practice and don't be afraid of the calculations even if u are horrible at maths it will become peace of cake further down the road
Subscribed to the channel a couple days ago. I've been around trading for some years now, never consistently taking profits so I decided to give it a last change before quiting. I don't know how I found this channel but all the information provided on it has changed drastically my way of seeing trading. Thanks a lot VP.
At 25:44 I now understand why to write your trades down first, all of them, before executing the trades. Gives the opportunity to mitigate risk from too much in one currency. Love your videos.
I really want to start trading FOREX to supplement my retirement account. I find your channel very informative and motivational. I plan on watching all of your videos and podcasts, then back test before I plan on start trading. I hope to start trading starting next year. I am going to take my time getting as much education as possible.
Hey patrick, i been watching your videos about 3 weeks now....i been on demo.. when i say i doubled my account by watching your videos back to back i got my own algorithm because of you. i got two confirmation indicators, and my Exit indicator I have not lost a trade as yet. Just by trading on the daily charts...All i want to say is thank you....and wow...may god bless you....I was not confident at all now i got my own system set up in place...i owe all thanks to you...I will forever be a subscriber!!!!! Much love from Nyc Brooklyn
As a way to contribute I have taken all points mention on this video and compiled a spreadsheet that calculates all the formulas for you, if anyone is interest just let me know! Also VP thank you for all the amazing content you post week after week, I look forward to constant improvement to one day be the best trader I can possibly be! :)
Dear Sir... Your contribution to FOREX education in particular and to the welfare of your fellow traders in general, shall be recognized. To your kind spirit and generosity, I remain, gratefully, in arrears.
There is not a more impactful trading channel out there on RUclips than yours. 3 year trader here, futures, and I have to say thank you for everything you do for the trading community. I've had so many puzzle pieces that I just couldn't quite put together until I came across your content. Thank you VP!
Actually on the over leveraging part, another method of deciding which currency to use is to look at the interest rates. So for example I'd like to short both AJ / AC .. I would choose AC as I'd probably earn a little or nothing much on swaps. However if I choose to short AJ, the daily swaps will eat into my profits. Hope this helps!
Thanks!!! Now things become VERY concrete. Of course I took notes and put this very important video on my personal playlist and start with this calculation tomorrow at my demo account. Let`s look and see what happens :-))) I also will look for this indicators you`ve mentioned , but this will take time until I find useful ones. I hoped the time when I have to struggle with indicators is over, but until now I never looked for special indicators which are made for forex trading. This information was actually completely new for me. Thanks for that. I will give it a try. I anyway have nothing to lose haha. My trading can`t become worse as it is right now lol. If your teaching makes my trading profitable, you can note this down as great success, i`ll keep you updated.
I cannot express how great this video is for ALL fx traders. I’ve heard about the 2% previously, but this gives a clear, concrete method on how to put this 2% risk rule in play. This video is exactly what I needed. Thank you so much ❤
this is what screwed me up in my demo account i risked 1% per trade, but i was sometimes investing 30% of my trades on a single pair ty learning a bit a time
I REALLY wish I ran into u b-4 I put money into MTI 😩🤦🏾♂️ But, like a blown account, money will be squandered somehow. Thank you for going slow, and being real with everyone that follows you. Good will return to you. Thank you.
Priceless!!!!. Perhaps the best video I have ever watched in my four+ years as a trader. A huge thank you. I have been working on my trend strategy for a short while and this has helped alot and has already made some major improvements just from watching your videos. However, I use some indicators that you might not agree with but they work well once I have modified the parameters. They now provide really good trade entry and exit levels just from these two indicators
Makes sense the 2% risk is like the last resort should things go the wrong way. Now it's time to "micromanage" the risk within that 2% window so that we never hit it. Believe or not I actually thought that to trade until I hit my stop loss was the plan to trading greatness. Thanks for the epiphany.
Interesting. Currently, my exit indicator is kinda of the same as the confirmation indicator, and I am assuming here that we should ideally be looking for something (i) simple and (ii) different in each step of the algorithm. Am going to test out the PSAR, thanks for the tip.
VP - in the risk video, you mentioned that the exit indicator should get you out of the trade before the stoploss is reached. If we are to check our charts once a day, prior to the daily candle close, how does the exit indicator get you out of the trade without a conditional order being entered to close your trade once there is an exit indication? The exit indicator could indicate an exit at any time, but one wouldn't know if they didn't check until prior to the daily candle close the following day. Time is pips, but time is time also, so just wondering how you handle this. Thanks.
Dude, this is genius.. I dont have to think about anything, its all mechanical.. All i have to do is guess the direction. This solves my 5 year struggle of Money management. Amazing. THANK YOU.
thank you VP, you have enlightened me on everything i was constantly doing wrong. I am now learning the right way & will use all the tools you are teaching us to level up my trading, THANK YOUUU
I have been looking for Risk Management plan for a long time but I haven't come across anything straight forward and applicable like this. Thanks for sharing this wonderful knowledge.
Tried a paper trade account using 1% with only with $4,000 and it was impossible to stay in a trade because of fluctuations in a day time frame. This guy is right folks!!
when I have a question in mind that I dont know where to find the answer (EX:over leveraging). then i an watching your video and out of nowhere you just give the answer to me without me asking. LOL you can read amateur traders mind LOL
I discovered your videos by accident, having been actively seeking all kinds of information since November and viewing lots of videos from brokers to individual traders (prefer the personal views, more authentic). In my first month of Forex trading (39 positions, 9 loses, £453 real money lost!) I'm learning a lot. Cautious by nature but happy to accept risk, thinking deeply about the actual aspects you post on and I'm very grateful. No spin, no sell, cuts through the noise. I can focus so much better going forward.
This video is pure gold ! I listen all of you podcats in 1 week, almost watched all of your videos and red alot of you blog post ! You're the best thanks a lot !
Thanks for the great content VP, I’ve filled almost a full notepad so far and I’ve still got so many videos left! Quick question, Is it possible to use the position size calculator on myfxbook to calculate unit/lot size instead of guessing and matching it up with the pip value? 😊
This weekend I will start with concentrating myself on all your video's and would not stop following your teaching until I have seen all and having them Bookmarked. Thanks VP, you are the Greatest ...
the lot size is actually pretty simple to work out, just do the same calculation if you would then divide by 10, in the calculation above,divide 7.790697674418605 by 10 gives you ~0.78, given the pip value is $10 USD per lot, if you are on MT4, that's the lot size you enter, correct me if wrong?
I normally don't comment on stuff as I'm fairly new to FX trading, I working on it for almost a year on demo account to figure my shit out.. 2-3 weeks ago I came across your channel and love it.. working through the vids... One thing I'd love to share with the audience here and specially about Risk management is, that there are apps out there for your smart phone that calculate the the exact lot size for you in a blink of a eye.. you type in your account balance, the risk percentage and the SL distance in pips plus the currency pair you wanna trade and it gives you the exact amount of the lot size you have to buy/sell... Stinu position size calculator is one of them.. just makes it very easy to calculate all that.. Thanks VP for sharing your insight.. next time I'm in Vegas, I'd love to have a few words with you.. Cheers to all and happy trading
And staying true to form, from the emails I've been getting, this is the #1 video (coupled with the ATR video) responsible for changing traders' results from negative to positive. Just a basic level of discipline can change things dramatically.
@@troyrichardson4119 Cost of....what exactly?
No Nonsense Forex I still can’t figure out how many contracts I can enter based on this system. Have tried the calculations across a few instruments (crypto) and each time, the stop loss depth blows out. What am I missing?
@@troyrichardson4119 You don't enter trades in Forex the same way you do other equities. Contracts aren't a thing. If you check out episode 2 of the podcast, it shows you where to go to learn the differences and such.
No Nonsense Forex thanks, I’ll check it out 🙏🏼
I knew the banks had their paws on the cash, but not on the scale that you mention, new friend. I know it's no conspiracy theory either. My grandfather was a police guard for the federal reserve. He said "the federal reserve is not owned by the US government. It's only on US government soil and pays only land tax. That's all it really pays. Funny part it the federal reserve was a bad idea to begin with. The US government knew this and still did it anyway without the approval of Congress or the people. Attempts to steal our wealth for the Euproean Elitists hangs in the balance every day. Never put your gold in bank. And always keep an eye on the bank's favorite word. Fees." No conspiracy theorist. Just plain scary facts. Thank man.
I guarantee to you guys, I have been studying FX for almost two years now. One of few honest fx speaker I´ve seen at net.
I been trading for 3-4 years and wasted so much time and money being fall into trap of "Guru". I am so thankful for my son for DISCOVERING YOUR CHANNEL and PODCAST. Now my growth in trade is tremendous. If I can only share to you my trading history, oh man. THANK YOU SO MUCH VP. I may use different set of indicator (definitely not the Dirty Dozen) but the principles all derived from your teachings. YOUR ATR VIDEO IS FREAKING EYE OPENER for me plus your RISK and RATIO episodes. You are a God's gift to us.
Love this video! Risk formula gives me the confidence not to be “scared” anymore.
right! And avoiding trading during news/economic data releases decreases stress that could kill a person LoL no LoL. : )
Hey how are u
Just came back to re watch this gem. Its 2022 and you'll forever be the man who taught me how to trade Forex. I'm one year in I'm profitable but have to pay my dues of the learning process. Thanks VP.
Wow!! Again. This is way better then the way I was doing it. I was doing the ratios. This is the way I was taught. I’m going to spend the hole weekend trying to find the indicators you said to find no matter how long it takes. This what I want to do with my life. Like you I hate going to work everyday to make money to support my family. I will succeed no matter how long it takes. Thank you for your knowledge.
This comment motivates me to do the same.
Hello Brother, if you could send it to me, i would appreciate it a lot! Thanks man, hleite20@hotmail.com
Never fails to hold my undivided attention to the end! Much appreciation from Kenya.
VP I can't thank you enough for every video you drop, it's a hidden golden nugget among the gurus on the internet, the last 2 days iv been GRINDING on your videos and putting together a algorithm. Much thanks for everything you've done for the community and everything you continue to produce. Keep it up boss!
Hello, how's your trading now?
I wasn't sure where to put this comment so I put it on a video I revisited. I would like to comment on a couple of things that might help some. I come from a mountaineering/back-country skiing background. With both pursuits, there is constant risk assessment. As the saying goes, "There are old climbers and there are bold climbers. But there are few old bold climbers. Old bold climbers have superior risk assessment skills, and much of that comes with experience.
Climbers and back-country skiers divide risk into two categories, objective risk and subjective risk. Objective risk is risk you have no control over and subjective risk is risk that you may mitigate to some degree.
Although VP doesn't discuss risk in the same terminology, it is exactly what he is talking about. Just being in the market at all is an exposure to objective risk. The many tools discussed throughout the series is a fantastic blueprint to mitigate the subjective risk.
Very well done and thank you.
Cheers!
PS My favorite read on risk management by far: The Art of War. It has nothing to do with trading, it has nothing to do with climbing, but it has everything to do with both.
I had never taken notes in my life for anything..... and by the time i got to this video you have had me writing almost everything down
No One Is giving trading wisdom in this format or this in depth! Thank you! lights of lightbulbs are going off.
Hello,
I am very happy to have found this channel. For the first time I don't feel like I'm wasting my time watching Forex based content. I've never gotten past demo trading and I've invested so much time watching these stupid videos like “make a living on that”. I also paid a guy 300$ to teach me how to draw lines and squares on my chart in his online course. But it didn't do me any good. But now, I feel like I'm actually getting somewhere. I take the time for the podcast, for the videos and learn so much. I've thrown all the crap overboard and started from scratch and I'm so happy about it and very excited to see where the journey will take me.
Thank you again for this wonderful channel.
Greetings from Kiel, Germany
The first time I watched this video I really couldn’t have known what you meant when you said sometimes you see a signal that looks like it’s just a day away based on the algorithm. I mean, I understood the theory there, but didn’t actually know what that would look like on the charts. Now just over a month later, and with a rough system in place, I know exactly what that means. Must be on the right track.
Each of these videos really are golden nuggets. It’s takes time to apply them and really understand. But I determined about 16 months ago that I was going to find a way to EVENTUALLY become a day trader. I see the path now, and it’s very exciting. One step at a time, slow and steady wins the race
Hey man, I'm a complete newb on trading. right now I am working my way through all of your stuff. 1-2 videos daily and already got so much info i've never thought about before. i'll take my time, take notes and look forward to become a smart trader. Bless you, greetings from germany.
Thanks bro you are the best I appreciate
I like your approach of how you refrain from mentioning other possible golden indicators so they can remain valid and give us a road map to find the grail ourselves. This is what leaving a legacy is about.
I know this video is 2 years old but. I've been looking for something like this for a minute. Every half decent coach tells you to use risk management. They may even say 2% but to give a formula on how to provide that to different pairs is priceless. Thank you.
Holy Hell, I have been binge watching this channel, listening to the podcasts and reading the website for the last few days. I have been going back retesting old strategies. There are a few of them that were losers that would have been winners if I had applied the risk strategy and money management discussed here. Can't wait till I have a proper strategy and proper risk money management.
For those confused by the position size, I think I can clarify this. The platform VP is showing here does the calculation behind the scenes, he is simply changing the position size (in 10,000's) to match his calculation for Risk/Pip. The platform uses the following inputs to produce the $/pip number:
*1. Tick Value of the pair's Quote Currency (the minimum tick of the pair, which is 0.0001 for all pairs except for JPY, which is 0.01) divided by the pair's exchange rate at either the bid, ask or mark.* For instance, the current tick value of the GBP/NZD is 0.0001 / 1.91954 (at the marked rate) = 0.000052096. This was as of 11 AM or so today.
*2. Base Value of the pair in Account Currency (which is the currency the account is denominated in).* This is the value of the Base currency (in this case, GBP) value in USD (or whatever your account currency is denominated in). For instance, the current USD value of GBP is 1.23499, which is the "mark" rate for the GBP/USD. This value, 1.23499, will be the Base Value in USD for all pairs where GBP is in the Base position. Again, this was as of 11 AM or so today.
*3. Position Size in 10,000's*
The formula is:
*(Tick Value x Base Value) x Position Size.*
VP has to put some value into the field for it to start the calculation...he adjusts the position size to match the $/pip he produced with the Risk and ATR calculations. There are other ways to do this, but his method does what he says it does... :) Its a cool feature to have, I use a spreadsheet tapped into my brokers RTD feed.
If you are adept with Excel you can create your own calculator using the formulas above. You don't need a RTD feed, either...although most brokers do provide it. You will need to enter the numbers by hand.
If my account size were $50,000, my Risk would be $1000. The ATR value (1.5 x ATR) would be 1.5 x 177.1 = 266 (as of today). I'm going to set my stop 266 pips away from my entry point, and the value of each pip will be $1000/266 = $3.7594.
OK, just realized that you can actually predict the position size by making the above formula equal to the $/pip value. If you're still with me, the formula for position size would be:
*Position Size = Pip Value / (Tick Value x Base Value);* The position size is equal to the Pip Value divided by the product of the Tick Value and the Base Value.
In the above example, it would be Position Size = $3.7594 / (0.000052096 x 1.23499) = 58,432. Position size would need to be rounded to the nearest 1000...so 58,000. 5 minis and 8 micros!
thank you!
What are we logically trying to do ?? The video was much more confusing and I'm a beginner but completely still don't understand
I would just calculate my 2% max risk against my trading capital ... and use the amount of 1.5% of Atr to see if this amount was within my max admissible 2% risk ... if it was r then i would place the stop limit against the entry price level ... so far so good ...
If my 2% of usd 10000 capital is usd 200 and my 1R is within this amount then I would use this 1.5 atr to pace sl against entry price and this sl amount in usd is my risk ... for a standard lot size I would multiply the customer sl amount by 10 to v get pips and then multiply it again by 10 to get usd per pip ... I would see if this amount felt too big or else I would just reduce it to the mini lot size... how x wrong am I? Just started demo trading of gold
I found you channel about one week ago and I must say I am really impressed of the way you teach and even more impressed that you don't charge one single penny for all this great stuff. I will be listening to all your videos more than once in the near future. Thank you and cheers from Sweden VP
I did my own test on the ATR after watching this Video and I must say this is the best indicator to set SL. For example i would always use 60 pips SL on a 4 Hour GBPUSD chart, but when I went back and backtest i see that the ATR was would give me a better calculation sometime even lower than the 60 pips I use to set which would give me better reward on my trade when going in my direction. Thanks 🙏
If you ready this please reply
I ADD THE SPREAD IN ON TOP OF THE ATR %
The very best Forex RUclips channel..!!! Love from India !! God Bless You Brother.
The best thing about this channel is that you are not handover all the things we need to be pro in this market.. you want us to work on some stratiges and practice to find out the rest things we need to be a pro.
For anybody who wants a little short cut to calculating your pip value Just copy and paste this into your calculator change X and Y obviously.
X = account balance
Y = ATR(14) VALUE
(X × 0.02) ÷ (Y × 1.5)
I hope this helps. You can test it on the example shown in this video if you want confirmation its correct.
(50236 * 0.02) ÷ (86 * 1.5)
Thank you; I am soooooo bad with numbers !!!
Ad Z = askprice
(X x 0.02) : (Y x 1.5) : (10 : Z) = Lotsize
(50236 x 0.02) : (86 x 1.5) : (10 : 1.1290) = 0.87
how can i do that in crypto?
@@TheZoekie please how can I calculate my TP
Brilliant! I have been looking for money management information out there and no one has ever explained nothing even close what you just did. This channel is UNIQUE. Big Thanks to you !
you re creating a masterpiece when it comes to setting blueprints for the future 1 per%. Am 100% sure that youre making HISTORY.
Sendin luv from ETHIOPIA
The only real content creator on youtube...Great Job VP!!
4:15 , this here is what killed 3 of my accounts and nearly 15k. Wished you were around back in 2010 when I started VP, but glad your here now. After starting watching your podcast I decided to try forex again in the future
how is that going?
@@Alex-ym9pu I would like to know too
VP, I love your "no nonsense" to forex. This video alone changed my trading account, results and strategy. I was lost until I found this channel. Thank you and look forward to watching and seeing more videos!
Hey How is your results one year later ?
A friend of mine is teaching me how to trade XAU/USD, And he uses your videos as guidelines, such solid content.
I read the book "A Man for all Markets" by Edward Thorp. He covered many things, but Risk in great detail. He covered a lot more than just money. I would recommend it for all traders. Edward Thorp also wrote the book "Beat the Dealer," back in 1966.
VP. Spent the whole week in the truck driving around while working, no pandora, no Xm radio, no talk shows, NOTHING BUT FOREX Q&A PODCAST ON BLAST. Now I gotta catch up on the blog..
Get it!!
Seriously thank you for all the in depth content, VP! I so appreciate you not just giving away all your answers/algorithm components; it forces us to actually do the work, learn and understand your concepts first. Nothing else out there has had a bigger impact on my trading strategy and mentality.
VP. Thanks a lot man. My trading partner and I about a week ago got through your Core Concepts playlist. We are now refining our money management strategy and trading algorithm. We have seen amazing results already with about a 80% wins. It's still early days but your guidance we believe have put us on to a much better path. Really appreciate the time you take to help others. Stay Blessed.
I am so glad I stumbled across this channel. I've spent my whole Sunday watching these videos and taking so many notes! What I like is, your approach to education seems to be 'I will drop you off on the correct road, but you'll have to find the destination yourself'. This encourages people to jump out and say okay, I need to make this work for myself now, and not rely heavily on someone else. I cant wait for more content. This channel will explode in popularity soon, and so it should. Thanks man.
hows your results so far @Joshua? doing better i suppose?
Hasnt been up to 24 hours I subscribed and I’ve been watching chronologically and I’m here. Soo Glad i found this !😫🙏🏽
I'm feeling so blessed, having this guy teaching me the right way. I hope you and your family stay happy and healthy always
VP you are so amazing. This video is both priceless and timeless. You truly are serving us. You don't only give us value but by NOT giving out your entire algorithm and trading system, you encourage us to take initiative.. to create our own system because the truth is, real bosses create their own systems and you are making bosses out of us! God bless all of your financial endeavours ten-fold!!!
This is by far the best video on FOREX risk video i have ever watched .I finally get it (RISK), and thank you VP for helping us learn this stuff the right way and helping us building OUR OWN Trading system!
I would agree this is the MOST important video you have hands down ( yes more value than the ATR) I'd never used the ATR but this video after watching the ATR video showed me how not only to use the ATR (Other videos out there SUCK!) but to calculate risk, and most importantly PIP SIZE. I'm treating this like college. I am an O.K trader but you are making me more confident that I can be what I set out to be A DOMINANTE trader
I've been real trading for past 2 years off and on with little success. Mostly demo trading now because I feel there's no point in risking real money if you can't do it in demo plus unwilling to give up until I succeed. I can say I've studied a kazillion things and this content seems way more realistic, logical and down to earth. I am generally a skeptic since I've been burned so many times with useless learning. I keep an open mind. I trust, but verify. I have to say, I haven't verified yet. Either way, this content does excite me going forward. Awesome stuff!
Ive been studying for 1 year and i found a system that has a 65 percent win rate.
You have changed my life for the past 3 years
Hey VP. Thank you for making this video. I can honestly say I have learned more in the 31min 30 seconds in this video than I have learned in my 2 years of trading. 2 losing years at that. No one has ever explained risk management like you have here. For me this is the best video you have made to date. ( am working my way through the play list ). Please keep sharing your knowledge. I really appreciate it. As am sure everyone else does. Your keeping it real, and I thank you for that.
I've Binged On 20 Forex Q&A Podcast, 6 RUclips Videos & About 7 Blog Posts In The Course Of A Day & A Half & I Agree Wholeheartedly That NO ONE is giving up The Juice Like This. I've Been An Active Forex Trader For A Little Over 6 Months & The Content On This Channel Has Raised My IQ Tremendously. Very Much Appreciated VP.
This Channel gives Infos that ive never heard on any youtube channel, fuck the Mainstream this is the good shit!
Take risks and minimize risk !!! What a keyword. I feel that you are the best and only mentor who educates traders. Thanks from Thailand
HOW do people watch your videos and NOT take notes???? 😂😂😂
Before I started watching you, I thought that podcast would be boring. But later I saw that your way of explaining things is better and you have a natural style of talking about trade. Thank you for your effort and please keep on doing these videos.
I'd also like to point out - mostly to those who are doubtful of the logic behind using the ATR for stop-loss placement - that it is a volatility based initial stop-loss placement strategy, and probably the most organic one that exists. It is quite logical in principle and easy to calculate. Its a powerful tool.
A volatility based stop-loss placement strategy should place your initial stop-loss order far enough out to prevent a loss due to the "random" or "normal" noise of the market. It will also limit your loss in the event that the "random" or "normal" noise turns into a meaningful move against you.
so my question, will you still be risking 2% per trade?
@@sunsfree no. the stop loss is 2% risk, while your exit should be much much less.
Dude, I don’t know what to say but you actually blew my mind with all the knowledge you are passing down. Stupid enough. I actually blew my 50k account for the past year looking for the best indicator and entry point. I kept my risk management at 5% but I have no idea in calculating the stop loss. Everything I did was based on emotion.
I really want to thank you for providing me with a clear vision and I hope I can hit it off with my final 10k deposit. I’m not chasing my loss but I hope I can set myself up for the future.
Anyway, thanks again for all the knowledge.
You could have just gave me that 50k
Absolutely agree, that's one of the most important videos a trader must watch, it completely changed my trading, and you know? I'll keep this forever! Wake up traders!! Thanks Patrick!!!
Been working on your nnfx way of trading for 10 months now...grateful for every micro-second of learning, bettering my skills. Ive been slowly getting to the point of knowing that you are a good friend to everyone who wants this process to work for the remainder of our lives. Thank you dearly VP. Tears of grattitude. Thank you God!
I wish I had seen this video before losing my $5000 and blow my account, but I will be back soon I am doing an extra uber driving to save some money do be back ,. Thanks
Respect
Awesome for taking the extra effort
Leggo!!
hey man, it's been 6 months. Are you back on your feet?
you can say that again, i have blow several accounts now in the thousands.
sat here for 5 hours going through his videos with a notebook, making notes...testing them and then making more notes and testing them on a dummy account...by the time i get to putting money into it ill already have a damn decent algorithm and knowledge of trading, thank you dude. Great videos!
VP , THIS IS INCREDIBLE! YOU GIVE PEOPLE WHO KNOW THEY CAN DO THIS ___A REAL PATH TO AUTONOMY!
Thank you for another great video VP. I'm really shitty at maths to do these calculations confidently but what I noticed is I'm slowly getting used to it and it truly is not too bad after all. So for everyone who is following this channel. Guys practice and don't be afraid of the calculations even if u are horrible at maths it will become peace of cake further down the road
This way of money management is great for those who are not good at math -- like me.
Subscribed to the channel a couple days ago. I've been around trading for some years now, never consistently taking profits so I decided to give it a last change before quiting. I don't know how I found this channel but all the information provided on it has changed drastically my way of seeing trading. Thanks a lot VP.
At 25:44 I now understand why to write your trades down first, all of them, before executing the trades. Gives the opportunity to mitigate risk from too much in one currency. Love your videos.
I really want to start trading FOREX to supplement my retirement account. I find your channel very informative and motivational. I plan on watching all of your videos and podcasts, then back test before I plan on start trading. I hope to start trading starting next year. I am going to take my time getting as much education as possible.
Hey patrick, i been watching your videos about 3 weeks now....i been on demo.. when i say i doubled my account by watching your videos back to back i got my own algorithm because of you. i got two confirmation indicators, and my Exit indicator I have not lost a trade as yet. Just by trading on the daily charts...All i want to say is thank you....and wow...may god bless you....I was not confident at all now i got my own system set up in place...i owe all thanks to you...I will forever be a subscriber!!!!! Much love from Nyc Brooklyn
What indicators do you use
and is it still working well?
This episode is full of gems 💎
VP, who ever you are...you deserve a big hug !!...I love you brother...thanks a lot for the time and effort you have put in
As a way to contribute I have taken all points mention on this video and compiled a spreadsheet that calculates all the formulas for you, if anyone is interest just let me know! Also VP thank you for all the amazing content you post week after week, I look forward to constant improvement to one day be the best trader I can possibly be! :)
@@vastenvironments I can send to your e-mail if you can provide one? :)
ozzy2k11 ▒🙂🆗🆒▤ can you please Send me this spreadsheet! Thx 4 sharing enihoe MY EMAILADRESS IS vivianvanderburgt@gmail.com vivianvanderburgt@gmail.com
@@ozzy2k11 Hey man, if you could send it to me, i would appreciate it a lot! Thanks man, aaronluce@icloud.com
Hi ozzy2k11 am interested please send me the spreadsheet, my email is mariochangala@gmail,com
Hi ozzy. I would be interested in your spreadsheet if you could please send it to me. Thank you very much.
davidmcewan01@yahoo.com.au
Dear Sir... Your contribution to FOREX education in particular and to the welfare of your fellow traders in general, shall be recognized. To your kind spirit and generosity, I remain, gratefully, in arrears.
You are awesome..Thank so much for this very practical no BS video lesson! I will watch ALL you have.
There is not a more impactful trading channel out there on RUclips than yours. 3 year trader here, futures, and I have to say thank you for everything you do for the trading community. I've had so many puzzle pieces that I just couldn't quite put together until I came across your content. Thank you VP!
Actually on the over leveraging part, another method of deciding which currency to use is to look at the interest rates. So for example I'd like to short both AJ / AC .. I would choose AC as I'd probably earn a little or nothing much on swaps. However if I choose to short AJ, the daily swaps will eat into my profits. Hope this helps!
Thanks!!! Now things become VERY concrete. Of course I took notes and put this very important video on my personal playlist and start with this calculation tomorrow at my demo account. Let`s look and see what happens :-))) I also will look for this indicators you`ve mentioned , but this will take time until I find useful ones. I hoped the time when I have to struggle with indicators is over, but until now I never looked for special indicators which are made for forex trading. This information was actually completely new for me. Thanks for that. I will give it a try. I anyway have nothing to lose haha. My trading can`t become worse as it is right now lol. If your teaching makes my trading profitable, you can note this down as great success, i`ll keep you updated.
Richard Branson's Biography 'Losing my Virginity' taught me one simple thing above taking bold risk. He says "cover your down side".
Watch it one again and the more I watch it the more I LOVE it !!! thank you VP !!!
Absolutely the most impactful RUclips channel for trading
I cannot express how great this video is for ALL fx traders. I’ve heard about the 2% previously, but this gives a clear, concrete method on how to put this 2% risk rule in play. This video is exactly what I needed. Thank you so much ❤
OMG - You have just shown me the errors of my way. Thanks so much VP! Keep up the great work !!!!
"Some Fibonacci level" can't count how many times I've heard him say that. Love it! 👌 VP, your knowledge and the way you teach is golden!
This is great! Especialy mentioning to keep it 2% per currency pair, avoiding over leverage. Thank You!
this is what screwed me up in my demo account i risked 1% per trade, but i was sometimes investing 30% of my trades on a single pair ty learning a bit a time
I REALLY wish I ran into u b-4 I put money into MTI 😩🤦🏾♂️ But, like a blown account, money will be squandered somehow. Thank you for going slow, and being real with everyone that follows you. Good will return to you. Thank you.
Priceless!!!!. Perhaps the best video I have ever watched in my four+ years as a trader. A huge thank you.
I have been working on my trend strategy for a short while and this has helped alot and has already made some major improvements just from watching your videos. However, I use some indicators that you might not agree with but they work well once I have modified the parameters. They now provide really good trade entry and exit levels just from these two indicators
Lol I'm guessing RSI at 80/20.
I'm continually amazed by how much I learn from each lesson. Thank you, sir. I don't know how I can ever express my gratitude.
Man on some next level mission
VP : "My goals are beyond your understanding"
Makes sense the 2% risk is like the last resort should things go the wrong way. Now it's time to "micromanage" the risk within that 2% window so that we never hit it. Believe or not I actually thought that to trade until I hit my stop loss was the plan to trading greatness. Thanks for the epiphany.
Idea for the exit indicator: Parabolic SAR
Interesting. Currently, my exit indicator is kinda of the same as the confirmation indicator, and I am assuming here that we should ideally be looking for something (i) simple and (ii) different in each step of the algorithm. Am going to test out the PSAR, thanks for the tip.
I was thinking about that. Thanks for the comment
Thank you. Bookmarked. I will be back later and watch this video again.
VP - in the risk video, you mentioned that the exit indicator should get you out of the trade before the stoploss is reached. If we are to check our charts once a day, prior to the daily candle close, how does the exit indicator get you out of the trade without a conditional order being entered to close your trade once there is an exit indication? The exit indicator could indicate an exit at any time, but one wouldn't know if they didn't check until prior to the daily candle close the following day. Time is pips, but time is time also, so just wondering how you handle this. Thanks.
Dude, this is genius.. I dont have to think about anything, its all mechanical.. All i have to do is guess the direction. This solves my 5 year struggle of Money management. Amazing. THANK YOU.
how is your journey, four weeks on?
thank you VP, you have enlightened me on everything i was constantly doing wrong. I am now learning the right way & will use all the tools you are teaching us to level up my trading, THANK YOUUU
I have been looking for Risk Management plan for a long time but I haven't come across anything straight forward and applicable like this. Thanks for sharing this wonderful knowledge.
I just put the 2% number on tradingview and it automatically calculates the pip values, the risk and also the quantity. SUper convenient.
JUST STARTING FOREX TRADING , IVE BEEN WATCHING ALL YOUR VIDEO AND I LEARNED ALOT! MIND BLOWNED ALL THE TIME. THANKS VP .
Hey VP, thanks for the really nice video. Shouldn't we also take into consideration the spread of the specific pair during these calculations?
Tried a paper trade account using 1% with only with $4,000 and it was impossible to stay in a trade because of fluctuations in a day time frame. This guy is right folks!!
when I have a question in mind that I dont know where to find the answer (EX:over leveraging). then i an watching your video and out of nowhere you just give the answer to me without me asking. LOL you can read amateur traders mind LOL
I discovered your videos by accident, having been actively seeking all kinds of information since November and viewing lots of videos from brokers to individual traders (prefer the personal views, more authentic). In my first month of Forex trading (39 positions, 9 loses, £453 real money lost!) I'm learning a lot. Cautious by nature but happy to accept risk, thinking deeply about the actual aspects you post on and I'm very grateful. No spin, no sell, cuts through the noise. I can focus so much better going forward.
Thank you, great content. Will put into practice this week and looking for those indicators. Keep up the great work, really appreciate it!
OTA went over this and banged it into our heads. 1st rule is money management. Training us to preserve capital first. At least the instructor I had.
Here goes my treasure hunt for confirmation and exit indicator :-)
This video is pure gold ! I listen all of you podcats in 1 week, almost watched all of your videos and red alot of you blog post ! You're the best thanks a lot !
Thanks for the great content VP, I’ve filled almost a full notepad so far and I’ve still got so many videos left! Quick question, Is it possible to use the position size calculator on myfxbook to calculate unit/lot size instead of guessing and matching it up with the pip value? 😊
Any pip calculator should do the job.
the only trading channel that's worth subscribing for imo!
The beginning court me off guard 😂😂😂
This weekend I will start with concentrating myself on all your video's and would not stop following your teaching until I have seen all and having them Bookmarked. Thanks VP, you are the Greatest ...
the lot size is actually pretty simple to work out, just do the same calculation if you would then divide by 10, in the calculation above,divide 7.790697674418605 by 10 gives you ~0.78, given the pip value is $10 USD per lot, if you are on MT4, that's the lot size you enter, correct me if wrong?
I normally don't comment on stuff as I'm fairly new to FX trading, I working on it for almost a year on demo account to figure my shit out.. 2-3 weeks ago I came across your channel and love it.. working through the vids...
One thing I'd love to share with the audience here and specially about Risk management is, that there are apps out there for your smart phone that calculate the the exact lot size for you in a blink of a eye.. you type in your account balance, the risk percentage and the SL distance in pips plus the currency pair you wanna trade and it gives you the exact amount of the lot size you have to buy/sell...
Stinu position size calculator is one of them.. just makes it very easy to calculate all that..
Thanks VP for sharing your insight.. next time I'm in Vegas, I'd love to have a few words with you..
Cheers to all and happy trading