After you mentioned that the stops on the robot may be “manually adjusted”, it makes me think that their software might be “adjusting things automatically” while the program runs. As you say, with MT4, this is particularly unsafe if there is a software crash or an internet connection, as the stop loss management might not be able to execute properly.

Yes, any situation is possible in forex trading. I know you’ve seen The Secret Forex 4.2 Formula Planner/Calculator, so you’ve likely experimented with some of the numbers. The way the strategy is designed and is reflected in that Planner is to be extraordinarily safe and cautious.

For example, on the default $4,200 USD example account, I have the “risk” set at 0.5%. This means that the absolute most that I’ll risk is $21 on my $4,200.

Unless I’m not paying attention, or the market does some nasty move, I can have 200 consecutive losing trades before I have blown my account. Not likely. It also means that a trade would have to go against me by 840 pips before the account would be blown. Quite possible, my mind would have to be blown first for either of these situations to occur.

I know that was a silly example, but it was fun. That “200 consecutive losing trades” part is quite serious, though. How likely is that to happen? We all really need to consider what that means. And, that’s why I like low risk percentages.

You can choose to risk that $21 in any way you desire. For me, I don’t want a EUR/USD trade going against me more than about 4.2 pips…so that allows me to trade 0.5 lots. If I chose to allow myself 10 pips going against me, then I would only trade 0.2 lots.

This is all shown in the Planner/Calculator, and you can see how there is a direct relationship between the lot size traded, and your risk tolerance (both in percent risk and in your max pips stop loss).

The formula I’m using is quite standard:

risk_amount = balance * risk_percent
lots_to_trade=risk_amount/max_pips_stop/pip_dollar_value_1_full_lot

So in the example I gave…

$21 risk amount = $4,200 balance * 0.005
0.5 lots = $21 / 4.2 pips / $10 full lot pip value

or if you prefer…

$21 risk amount = $4,200 balance * 0.005
0.5 lots = $21 / 4.2 pips / $10 full lot pip value

or even…

$21 risk amount = $4,200 balance * 0.005
0.2 lots = $21 / 10 pips / $10 full lot pip value

or maybe…

$84 risk amount = $4,200 balance * 0.02
2 lots = $84 / 4.2 pips / $10 full lot pip value

and even this…

$84 risk amount = $4,200 balance * 0.02
0.8 lots = $84 / 10 pips / $10 full lot pip value

The “risk” is essentially the same, depending on the preferences and approach of the each individual trader. I prefer to “start small and build up” as I show in The Secret Forex 4.2 Formula.

Sure, anything can happen…the market can spike (and then quickly return, so I don’t really want to have a shallow limit-order stop)…or I could lose my connection (but I have 4 separate fallback methods, which I discuss in a Workshop)…and so no. It just doesn’t worry me very much. And, remember, I don’t like stress.

Just as you say, manually managing my stops and trading with the flow in the CURRENT-RIGHT-NOW market, has proven to be the best and safest way for me to trade. I was ALWAYS losing when predicting the market…claiming to “know” or even hoping that some trend line or fib line that I had drawn would match where price might-maybe-hopefully be going….and I might even get a fill…(but certainly would get a fill on my stops)…well..I had enough of that.

I really have fun trading Logical Forex. It’s the easiest thing I’ve ever done. Yes, it takes some time to really let it “settle into our souls”…but when it does…and it will if you stick with it…there just isn’t a more fun and consistent and profitable way to trade that I’ve ever experienced.

Perhaps the most powerful thing of all is…that by simply allowing The Secret Forex 4.2 Formula to work FOR me…I do NOT have to change ANYTHING in the way that I trade. NOTHING. I will trade the exact same way, with the exact same setups, and the exact same risk, and the exact same stop loss EVERY DAY…and make NO changes at all to what I am doing..

And it is this consistency and process that allows us to do incredible things in forex trading…with pretty much no stress at all.

Think of all the other things you do in life that are actually quite complex, but that you do with low to no stress every day. Drive a car? Your job? Feed yourself? Yep…quite complex in the beginning, but as you’ve gained experience…with practice, repetition, dedication, and more…you are able to do some rather amazing things. Now all you are doing is adding forex to your list.

I appreciate your thoughtful post, Paolo! Stay on the Logical Forex path…and continue to build on your experience of trading this way, and you will become an even better forex trader. I’m anxious for you to keep me updated on your progress!

-Greg

It’s good to see you here!

You make some interesting statements…

1. In The Secret Forex 4.2 Formula, the listing at the back of the ebook is exactly as you say. It doesn’t have any losses. I’m not sure how else I could have represented much else, given the structure of an ebook. I guess I could have included lots of different scenarios…but I have a better solution.

Take a look at some of the comments above…and you’ll see how you can get advanced access to a “calculator” and you can plug in however many losses you want. I’m not quite finished with this tool, yet, so, be gentle on me. It is an advanced peek behind the curtain you know.

Yes, I actually do have losses. I factor that in to everything that I do…and everything that I say. That’s the only Right Thing to do…show forex trading how it really is…in reality.

However, as I’ve discussed on various posts and comments on the blog, I don’t post losses very often. I prefer to show examples how one might be “faked out”. You can see some examples of this, the fakeouts, in the blog posting I finished just a little bit ago…and you can read more about why I don’t prefer to post losses on the blog. I might post some at some point though…if i believe it would be helpful to most.

2. You got faked out.

The $21 is per TRADE…and the $105 is per WEEK.

I just simply don’t have the “screen real estate” to put all the columns I really need,. I’ve done the best I can given the limitations of the media.

Look back a couple of comments above yours, and see how you can get early access to the “planner tool” (calculator) and you can run all the examples you want to “tune in” to your realities.

-Greg

1) You assume you never have a losing trade. I don’t know anybody who’s never had a losing trade.

2) If your profit target is 4.2 and your stop loss is 4.2, that seems to be a risk/reward ration of 1:1. Yet on each trade it looks like you are risking 1 to make 4. For example, on the first trade in the spreadsheet, you risk $21 to make $105, that’s a 1:5 risk/reward ratio. How is that possible when max lass and min profit are the same?

There are plenty of trading times. I’ve address that several times on the blog, and even in the comments just prior to your. And, I also have covered the “Pips Per Day” thing, too. Scroll up.

You don’t need to “hope” that Logical Forex can deliver. It does deliver. It’s up to you to “jump in the water”, and become the best swimme…uhm, forex trader you can be.

You’ll have fun with your trial…and your timing is great. By joining the Logical Forex family…soon…you’ll have access to things that other people who join later just won’t have.

-Greg

The pairs you trade are the same ones I am most interested in. I’m in the process of talking things over with my friend about your trial. My goal is to be a full time trader. And I do have the time actually to look at the Logical Forex indicators. I can look at my favorite pairs all during the US Session. I’m just wondering if there is enough “good” setups. Plus, I really like the idea of just having one chart open (whatever range) it needs to be set on and trade off that. I can’t tell you how many “systems” says look at the 15 min chart then the 1min and 5min to confirm the trade. Not exactly the way I want to be spending my trading time. I saw some earlier posts of some traders targeting 20-30 pips as a goal. Mine personally is 25 pips. Do i think its realistic? Yes but it is far easier to get 4-6 pips at a time then one big “home run” 20 pip win. Greg, I hope your system can deliver. Hopefully, I’ll get to take a trial soon to see what its about.

Shawn

I do NOT set a “stop loss” on the broker platform. I don’t want them to “see me”. By setting a fixed stop loss, I’m essentially giving them a target…to take me out. Ever experienced that?

So, I suppose my stop order type is…clicking out.

Now, I DO sometimes set an “emergency stop loss”…usually 10-20 pips away from the current price where I entered. BUT I NEVER EVER let a trade go against me that much. NEVER.

Usually in an instant, I can tell whether I have entered into a good high probability trade. How? Price moves. In my favor. Fast.

If it doesn’t do that…then I’m already suspicious and I’m ready to exit. Fast.

There will be better setups soon enough.

For the EUR/USD, about the max I’ll ever let a trade run against me is 3-4 pips…and for the EUR/JPY maybe 4-6. It really depends on the behavior of the market during the period I’m trading…so if it’s a bit “jumpy” but overall the market is “okay”, I may let the EUR/JPY go against me a bit more…BUT NOT VERY OFTEN. Remember…with thousands of hours of “being married” to the EUR/USD and EUR/JPY, I know them pretty well. You can to…and like ANY relationship, the more time you spend with someone…uhm, your currency pair…the better you get to know them…and their tendencies…and how to relate to them.

TRUST YOURSELF. YOU WILL KNOW WHAT TO DO. Your experience…built up by practice, real involvement in real trades, and your commitment and dedication…you WILL accomplish what you desire.

-Greg

Thanks,
Benj

You may have less to learn than you think you do. So often, “the wizards” try to make forex trading “wizard-ee”…partly to elevate themselves to some ego-driven status…you know…to make it “so confusing you couldn’t possibly do it without me”.

Then, there is a different world…the Logical Forex Trading System…that takes an entirely different approach. I’m here to SHOW you how YOU can trade with the Logical Forex Indicators. It’s not a trivial task…it will take you some diligent work…but what worthwhile thing doesn’t?

Over time, YOU being to see how to trade using the Logical Forex Trading System. YOU are always in control. You make the choices…and you’ll see how and where to make those trading choices more clearly with the Logical Forex Indicators.

Being a newbie…you may actually have an advantage over many people. Why? Well, you’re not likely to drag in a bunch of baggage…things that you have to un-learn. You can truly just “look at the chart and trade” without having to learn a bunch of mysterious jargon…or draw a bunch of lines that you’re uncertain about…or try to interpret candle patterns that have funny names…or wonder if you should take action when a candle “just penetrates a trend line” or “maybe it has to close above it?”.

These issues simply do not exist with the Logical Forex Trading System.

Keep this in mind, too. You are arriving here at just the right time. I am significantly enhancing the training materials…to include “newbies” a bit more. Now, I’ll tell you that the existing training materials (and even the ones I’ll be releasing over the next few weeks) won’t “start you from nowhere”, but I know this…

Based on your comments and questions, and that you are reading and studying this blog right now, you likely know all you need to know to get started right now. All that’s left is for you to practice..and learn the Logical Forex Trading System…AND THEN APPLY IT.

What is the best way for you to get started?

Simple. Start a trial right now http://www.logicalforex.com/indicators/. Then, watch the online training videos, practice with Market Replay…study the trade examples on the blog…and stay committed to YOURSELF.

And, of course, by starting NOW, you’ll receive some additional things that other late arrivals simply won’t have access to. I can’t tell you what all that means right now, but it really is A Big Deal.

-Greg