Gann Pivot Indicator

Gann Intraday Pivot
  • The indicator is based on W.D. Gann Methodology and Grid chart system customized for the modern market with a simplistic approach.
  • It is designed for Scalping to Intraday Trading. A complete tool with Customizable Price and Time Support and Resistance level.
  • The indicator shows day trend strength in advance with the start of the day. Indicator plots buy/sell signals on charts (Subject to consider with market price action), also the current trade.
  • Indicator plots Daily and Hourly Pivots. Also, Custom Pivots based with 4 calculating points, from Current day high / Last Day High / Current Day Low / Last Day Low.
  • The indicator also plots time pivots which indicate ideal time for a major trend change in the market. ( Subject to consider with market price action.)
  • Indicator plots Gann Master Grid chart layout for advanced analysis.
  • Best Usage: 1 Minute to 15 Minutes charts, All Instruments
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SFX Intraday Planetary Line Indicator

Space Time Intraday Planetary Line Indicator
  • Indicator plots planetary lines without using any CSV file or any kind of data fetching from 3rd party software or Internet!
  • It has inbuilt astronomical calculation being the first of its kind in the MQL indicator history.
  • Planet Degree might differ from 0.5-1.0 degrees than actual. NASA quality.
  • Indicator plots planetary lines based on Custom-able Planetary Coordinates ( Geocentric | Heliocentric ), Planetary Zodiac Method Tropical | Sidereal (Vedic), scaling for plotting planetary lines for Sun, Moon, Mars, Mercury, Jupiter, Venus, Saturn, Uranus, Neptune, Pluto, North Lunar node and South Lunar Node and average of 5 and 8 planets planetary lines. Plots planetary aspect price lines with planets and aspects selection. Also plots Mundane Aspects, Moon Ingress Timing with its Trend strength (Strongest, Stronger, Weak, Continuation, Reversal) Hora lines. All inputs are customizable.
  • Dashboard data shows the daily trend for individual instruments along with effective planet name in Advance. Also the indicator per deg scale. Draws buy/sell signals on the chart with alerts. (Subject to consider with market price actions)
  • Best usage: 1 Minute to 15M chart. (for scalping to day trading)
  • Instruments: All instruments including FX pairs, metals, and indices. Simply adjust the scale accordingly.
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SFX Multi Pair Trend Dashboard Indicator

Multi Pair Trend Dashboard Indicator
  • Indicator show signals for 15 Instruments/ Pairs (custom-able) based on a selected time frame.
  • User can select Maximum 8 indicators according to their choice among 14 available indicators and oscillators with changeable inputs.
  • Indicator Automatically Adjusts its columns and rows based on the user input and can plot multiple Dashboard on the Same chart.
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SFX Risk Reward Indicator

Risk Reward Indicator
  • Shows Risk, Reward and Trailed position monetary value for all active open orders.
  • Here locked profit represents trailed positions.
  • For ECN broker indicator counts order commission into the calculation to show the actual monetary value for a trade.
  • If any order doesn't have any stop loss, then it shows the account free margin in the risk field.
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Trade Duration Indicator

Trade Duration Indicator
  • The indicator shows current active trades (including pending orders) time duration in Minutes, Seconds and Hours.
  • Time duration means how long the order is active in the market, how long the order is running.
  • The indicator shows Trade Lot size, Instrument Symbol, Trading serial number chronologically.
  • Indicator refreshes its data on the chart according to the order activity.
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Saturday, April 2, 2016

The Logic Behind 2% Per Trade Risk

All over the net, you find this particular percentage as a standard norm. Some people may disagree, cause some people risks 10% per trade, say W.D.Gann. He persistently repeated 10% per trade risk. But he has highest strike rate of winning. So far from his public statistics, he said it not possible for him to lose 10 out 10 trade to make 100% draw down.

Well, we are not extra ordinary. For me risking 10% per trade is simply over confidence & gambling specially when you don't know what you are doing. Plus Gann didn't traded Modern Fx Market. If you are Forex trader then its worth risking 2% per trade.
Forex market is highly liquid asset class. Thus it provide lots of opportunity to make reasonable profit even with 2% per trade risk. Today I am going show that, statistically how its possible.

2% Per trade provide some mental peace & you will be trading under less stress.
With 2% per trade risk, you will have 100/2 = 50 attempt to make before losing the whole account. 50 attempt is enough room for a trader to handle draw down psychologically.

From the table above you will see, it if you risk 10% per trade & made 5 consecutive losses, that means you have to gain 100% to reach break even. That's a huge pressure!
But with 2% risk per trade & 5 consecutive losses, you will only lose 10% of your account. You just need 11.11% back to reach Break even. Very relieved isn't it?

You might say, I can't get 5 consecutive losses, my strategy is bullet proof. Honestly all strategy fails under certain market condition. That's natural. So when you do the position sizing, you need to keep the worse case scenario in mind. There can be some days where you get 50% win rate.

With 50% win rate statistically chances of having 5 consecutive losses is 18.26% under the batch of 15 trades. When number of trades will increase, this losing chances will increase too.

Risk/Reward Ratio: Generally if you have a system where your Risk/Reward ratio is high, say 1:2. That means when you risk 2% you get 4% back. If you have 50% win rate with 10 trade sample, you can actually make 10% return on your account. With higher wining rate even more, just risking 2% per trade which feels better.

From an Equity Trader prospectives:
From an Equity Trader prospectives risking 2% is very low. Why? simply because of the daily price movement & volatility, Say you are trading stock ABC which moves only $2 per day average for last 100 days. Then with a $1000 account, 2% risk would be only $20. In that case, you can actually buy 10 shares of the stock with leverage. There will be lots of money invested in the market. But you know where the risk is situated. Its all logic & maths.

Conclusion:
How much actually you risk per trade that completely depends upon the trader him/herself. Because, so far most of the trader with small account size risks more than 2% per trade. I find it sort of gambling. Sometimes they make large return, sometimes they blow their account many times in order to pursuit "Rich in no time" bias.
Below I shared a table which shows that with proper money management with reasonable stress level, what one can achieve.

Start AccountAvg Risk Pip/Trade2% / TradePip ValueAvg Win Pip/ TradeTotal No of TradesWin rateExpected P/L
$100.00 10$2.00 $0.20 1510050%$50.00
$150.00 10$3.00 $0.30 1510050%$75.00
$225.00 10$4.50 $0.45 1510050%$112.50
$337.50 10$6.75 $0.68 1510050%$168.75
$506.25 10$10.13 $1.01 1510050%$253.13
$759.38 10$15.19 $1.52 1510050%$379.69
Here we used RR ratio of 1:1.5. But if you have higher RR ratio with 60-70% win rate, then you can make more profits. Simple.

Using 2% per trade risk what are my chances of blowing the account?

Basically with 2% per trade risk, you can generally get 50 attempt to blow account. No one can ever lose 50 out of 50 trades. Even if you trade with a coin flipping method, still you will have chances of wining & losing 50%. (You can use this coin flipping simulator)
But yes in case of trading you need to consider brokerage charges for each of your trades. Even with 2% per trade risk & 50% win rate you can eventually create a downward graph, if you have risk reward ratio below 1:1. Means you lose more & earn less.
Also not to mention over trading. Adding trade per trade on same zone. Not always everything works. There are some times, when no technical analysis works, those are the time for you to have a coffee break! 

Once You avoid over trading, avoid cutting profit early & avoid letting loss run longer. You will see you are never blowing accounts. You are giving yourself time to learn & succeed. Good luck!

Download consecutive losing streak calculator

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