Money management system #1 (Lucky 7 - trading sequence)

Submitted by Dachel Miqueli

Ok guys it's been a while since I don't post anything here, that doesn't mean I haven't been working on something. I have a great system to share that fit my personality perfectly so I want to post it here so you can benefit from it. This is not a system designed by me so all the credit goes to FXTraderpro. I just modify it a little to completely fit with me.

Before you read further I have to say that this is a semi-martingale system were you can have control over your losses instead of losing all your capital like any other martingale systems. The winning risk ratio is 1/2.

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Hi Dachel

If you get you break out on point 1,2, or 3 above you will make money but if you need to wait for point 5 to break out and only a TP at 50 pips you will end up 10 pips out plus your lots will be smaller so there is no way of making money only min your loss.

if you loose 10 pips on point 1,2,3, and 4 thats 4x 10 pips = 40 pips plus the spread assuming its 4 pips thats 4x 4 = 16 pips
40 + 16 = 56 pips lost

now you open on point 5 and make 50 pips less the spread of 4 pips = 46 pips profit

56 lost - 46 won = overall 10 pip loss plus as i mentioned the lots are getting smaller.

Nice idea but I suggest if at point 3 it doesn't go your way you leave that trade and look for another setup of your entry signal.

Hi Dachel

Thanks for sharing.

Appreciate it!!


To: Ron

To be honest there is not too much more regarding entry. You have to spend some time in front the computer trading this method to have a market feeling when you see the right set up. I personally like to see some consolidation before jump in. For example GBP/USD this particular pair tends to move enough around 1:30am (EST) so I open my 30 min chart to see the recent S/R then I take a look at the 60 min chart to see if those S/R are strong enough to have an idea of some possibles scenarios. Then I open the daily chart to check the general direction. If I see tat there is a clear S/R on 30 min and 60 min I will place a entry order on each. A buy for the S and a sell for the R. That is basically what I do but you will develop a feeling when you spend some time doing this. Then you will be able to Identify a good set up. You can always look for a set up on many other pairs but remember the spread. Even if the spread is bigger you could adjust your ST and TP but I never had to do that. Keep in mind that there is not a easy way to become profitable in Forex than to spend time on the market mastering a particular technique. That's what professionals do.

1-Find a system that fit with your style.
2-Master that system if you find it profitable.

That's the real Key to wealth

Dachel Miqueli

Hi Dachel

Thanks for sharing. Would you be kind enough to share your detailed entry criteria apart from just S/R?



To: Jan

I've been trading this system for a whole month now. I use a pair with a low spread, something around 2-3 pips and I choose the pair that has a better looking set up because that will add more probabilities. I like to trade the GBP/USD on the London opening and I use to trade EUR/USD on the US opening, but I always take a look at USD/JPY, USD/CHF, EUR/JPY to be sure to pick the best set up. My best bet is to sell on resistance and buy on support. Today in the London opening I manage to get my full sequence in the 5th entry so my rule will be that one in first place.

Hi Dachel. I'm interesting about trading sequence MM type. How long are you trading that concept? Which pair are you using? Do you have any rule for starting sequence? Thanks for help.


To: Jacob

As this system is based on probability you should realize that a we earn money if the market goes to one direction only. Said that I will trade at the market most volatile hours, around the London opening and the US opening. With that in mind I will now look for S/R because I found it very effective to trade using this method. I usually look for a time of consolidation before enter the market. One powerful tip is to SELL on resistance and BUY on support. Soon I will upload some chart so you can see some examples. There is much more regarding entries but for now that's a good start.

To: Mohammed Al Khuseibi

I'm sorry about step 4. I just jump one important detail. If the stop is hit then you place a sell and set a 10 pip stop and a 50 pip limit. If our stop is hit once more then you place a buy with the same SP and TP as always. The sequence is explained above.

I hope this answer your question and your english is fine.

Hi again,

You've said that when the SL hit, we change the TP to the other direction.
What is shown in the diagram that the SL is hit (at 2 and 4), but the TP still at the same value !

Does the line connected between 1,2,3,4 and 5 means price motion ?
Hope u understand my english :(

Mohammed Al Khuseibi

I order to clarify I will resume a bit more the process. I will use the image above as reference

Let's say I have $5000 deposited so this are the steps:

1- Open the excel file and fill the yellow box below "Balance" with you balance amount ($5000)
2- Right to the balance box is risk. You should input the amount of % you want to risk. In my case I will risk 10% of my account.

After you do that you should get the lot sequence automatically calculated. The OCO (Once Cancel the Other) at the right side indicates the amount of lots you have to use when using OCO.
With $5000 and risking 10% ($500)the sequence should be 0.05, 0.18, 0.63, 0.75, 0.90, 1.08, 1.30

Example using the picture above

3-Enter the market buying at 1.3500. Place a 10 pips stop and a 50 pips limit. If you are using OCO then instead of placing a 10 pips stop you should place a sell entry of 0.23 at 1.3490 with always a 50 pips limit.
4-Repeat the same concept until your hit the TP or hit the 7th entry stop.

I hope this help understanding the basic concept. There is much more involved but let's start simple.

Dachel Miqueli
[email protected]

Thanks Dachel, for the tips. Can you please give an update on your entry and exit tips. I would love to know. You can equally add some more tips :)

Best Regards,

In which way are you confused?? Let me know and I gladly explain.

Thanks Dachel,

I guess I understood the strategy. But the diagram confused me a little bit !!!


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