How to reduce a high drawdown

Hi, everybody. More evening. Evening. Morning. My gosh, must be tired.

Definitely lacquer in plate.

You're lacquer at the sea.

So Nkubile, is he online?

So he's the one to know what to reduce his drawdown.

And I was hoping to help him this evening, but.

Okay, no problem. Whose account is in trouble?

Whose account's in trouble? Who's got a hard drawdown?

I'm good. Thank you, Alan. My drawdown is very low.

Okay, great.

Then I'll carry on with. Then I'll carry on with Estonies account and show you what we've done, because that's the account that you guys are used to. So Eston is online.

So please can you mute your microphones, guys?

Thank you.

How's it, Destiny?

Unmute your microphone, please.

Hello. Hello.

How's it.

So we're gonna check your account because the guy that I wanted to analyze.

Isn'T on.

Isn'T online.

So we'll just carry on with your account and show everybody what we're doing with your account.

Cool.

So exactly what I said would happen.

Happened, huh?

Yep.

Yeah. Turned around at the.

Exactly what I said.

Yeah. Okay, cool.

Okay, so this is where it really gets exciting. And this is when I love what I do.

Just shows how far I've actually come. I'm proud of myself of how far I've actually come in this. In this industry of the land of the unknown, the land of the west of cowboys.

This is when you. Yeah, well, this is where the newbies are, like, jittery and. Oh, my God.

Yeah.

And you very excited.

So I'm excited about this. I think this is. Okay, so this is Esny's account. So Esny, what we decided to do is. Okay, so Esme's got a high drawdown for those of you that don't know. So let's just. Let's just please mute your microphones, guys.

Okay, so let's do that. Okay.

So he has her account. $15,000. It's a center count, and she's minus $4,147.

So it's about 30%. So let's check it out.

What it is.

26% is the drawdown.

Cool. So most of her.

Most of the challenge is coming from GJ. So there's 72 trades open in GJ. So if we go to the charts and we check out how many trades are open. These are old, old trades. Then she fries up. She removed the robot from her account, and we've been managing trades over here. We might. We've made good profit, and we've reduced quite a bit of drawdown. We reduced the drawdown from, I think, 43% to now 30 to 26%. So 50% of her drawdown has been reduced. Some of it from increasing.

Her equity and the other from the. Some of the trades closing and her taking profit, which is great. Cool. So what we decided to do was we decided to take a risky move. And why are there no trades here?

Is this the right chart?

Destiny.

Where the trades. Okay, there it is.

Okay. So we'll go to it. We'll go to an H1 chart, okay. And tell you what we did. So what we decided to do is she. What she did was, is that she paused her robot, okay. And we knew what the magic number was. So if we go over here, we can see that if you mouse over the trade, it highlights and tells you what the expert ID is. Now that expert ID is your magic number. So now you know what the magic number is. So now what you can do is, is that you can restart the robot with the same magic number, and the robot will carry on from where you left off. Okay. And this is where learning to read a forex chart plays a crucial role so that you can make educated decisions rather than looking at the numbers over here and panicking. Okay. Which is what I found that a lot of the traders do. They look at the drawdown, and they're looking at the balance and the equity and the margin percentage, and they don't really understand how to read a forex chart. Now, there are billions of ways to read a forex chart. Billions literally. And everybody's got their own way, and everybody holds the magic, the holy grail. And that's great. I follow very simple, pragmatic approach, which is candlestick analysis with a few moving averages. And those magic. Those moving averages are the moving averages that the banks use. So I highly recommend that you use what the banks use because they're the ones that are moving the markets. And if you understand what. What is going on with those moving averages, then you'll understand why the price freezes at certain levels. It's a very, very simple concept of which that's not what this conversation tonight is. It's about how to get out of a high drawdown. But I highly recommend that you go through my learn to read a forex chart.

Course. It's free. It's on my. It's on. On the training website in the frequently asked questions section, I think Also in Section 4, it's one of the tabs Will take you to the. To the course. Okay. So what we decided to do was when we were over here, I think it was maybe over there, we decided to add. Add the robot back. Quite a risky setup of a 2 and a 3 lot. And then the.

The price reversed back to here. The drawdown was getting quite large. These are the trades. So there's I think 29. Is it 19 or 29? There's 29. 29 trades. So this is 29 trades. It reversed and you can see.

Sorry, sorry. 20, 29 lots.

29 lots. So it's 19 trades, 29 lots. Okay. And it's not a lot of money. It's about, I don't know, six, seven hundred dollars, maybe less. Did you work it out what the.

Damage was in dollars?

It's like about not today.

800, $800, whatever it is. Not a lot of money. Okay. So we decided to hedge the account. Okay. So the currency started to go up here. We paused it and then we placed the hedge probably about here and went up and then it came down. And then esthet said.

Was the hedge over here?

Where was the hedge?

At the bottom there?

Yeah, yeah, must have been. Yeah. And we did this on Friday. She placed the hedge. She was getting a little bit skittish and she placed the hedge. And then this was over here on Friday. It went up and then it came down. And when it came down, she thought it was going to actually reverse down. And she had removed the hedge. She made $55 on the hedge, which is great. And then the price started climbing and then she started to get worried. And I said to her, this is a great time to add the ro back. And the reason I said let's add the robot back that's got an H4 chart was because of these doji's over here, which are imminent of a reversal. And I said to estony that this is going to reverse. And even if it doesn't reverse, I actually hope that it actually breaks this resistance line and goes north to the 200. Because we'll make a lot of money.

When it actually reverses.

So here is the strategy to get out of trouble. So what you do is, is that you check your. Let me move this down here.

Let's go back to the robot over there. And let's go to the input section.

So there is your magic number over there. So when you add the. Cut the. The. The robot back to the chart, make sure that the magic number is the same as what you have in the. In the ID over here. So when you mouse over, when you click it and you mouse over it, it tells you what the magic number is. 2014. So that's why I don't like removing the robot from the chart. I prefer just pausing the robot. And how you pause the robot is you go to commons and you just uncheck live trading. And you can also limit the amount of trades here, which you can do. I don't like doing that.

I'll just leave it as 100. You've got 120 is also fine. And then make sure the magic numbers.

Are the same and the settings are the same. That's why I don't like removing the charts because you can't remember what preset you used. Maybe you change the preset. And that's why when you save it, I like to save it as the currency. So you save it as the currency. And we haven't done that. So GJ, we on GJ. Yeah.

So let's do that. Just do that now.

GJ 2014.

Right. So there's the preset.

Cool.

So it's saved.

Okay.

Then we can click.

Ok. Now when you, when you put the robot back, you can change it, you can mix it up a bit. You can increase the lot size. If you know what you're doing, you can do that. Now, increasing the lot size, what's that going to do? Let me explain to you why we increase the lot size. Okay. We increase the lot size. Let me go back to the day chart. Okay. This is where the take profit was. Okay. Her lot sizes were.

What were they like a one? Yeah, they were a one.

Okay.

And I said to her, listen, this thing's gonna go south. Let us, let's increase the lot size and that will then bring the take profit all the way up and hopefully we can get the, the take profit to here. Okay. And, and if not, it's also no problem because what we're going to be doing is, is that when this thing goes, carries on going down. You know my strategy that these are sell trades, right?

These all sell trades. Yes.

Okay. So when this goes down. So let me draw it out for you.

It's.

Guys should be excited about this. I love this. Okay, cool. So I can't go back. Let's hypothetically say that this is an H4 chart. Okay. Hypothetically speaking. Okay. That these candles are four hour candles. Okay.

It's the only way I can do it.

Okay, great. So let's say this is a four hour candle. This is your eight exponential moving average.

This red and white line Right, So.

Let'S draw some lines here.

Red candles.

Okay, so we've got a red candle and we've got a red candle, okay? And that's a sell trade. And these are all sell trades, right? So you're going to leave the robot to trade. It's opened. It's open to trade there, which I'll discuss just now. And let's say it opens another candle. And you're gonna open a few more candles. And they hit support. So this, this red line here is a support resistance line. Okay? So we get a few candles over here and a few candles over there. Okay, I'm going to enlarge. I'm going to enlarge it now so that you can see what I'm doing. And let's do your 8x your 8. Your 8 exponential moving average. Call. So here's the 8 exponential moving average.

Try and draw it nicely for you guys, right? There we go. Okay, let's do that. Bring it down. Groovy. Okay.

It's actually the other side. Is that right? That is correct. That is right. Great.

Okay, so there we go. The. So these are all red candles, right? The eight exponential moving averages is following.

It's following.

Can I make this smaller?

I don't know if I can.

No, I can't.

Okay, so we'll put another candle there.

Just so that it actually makes sense. There we go.

Okay, cool. So now what happens is that all these trades are now in positive at this stage because of the lot sizes, we probably in a about a 3 to $400 profit.

Okay?

And then what happens is, is we.

Get a nice green candle, okay? And a nice green candle.

Now your.

Just drop it down like that. There is your.

There is your 8 exponential moving average. And not you and not LB.

LB to not answer anybody else. What is my rule about the 8 exponential moving average? You can unmute yourself.

I will skip this as well, Alan.

Thank you.

That's not the case. So we know that police have had their background at the same time. Ronald, you know, just from your rule.

Is when we get the second kangaroo, that confirms a trends reversal.

When the second candle open of the eight exponential moving average, that is the signal that the trend has reversed. As this candle opens, you close out all these trades in profit. Okay? So let's say that you've made $300 profit, right? So what you do is, is now you can start removing your trades. Okay? You can a one.

Go and check your profit.

So this is irritating. There we go. Let me do this another way. Let me Stretch this over there.

And let's do it like that. Okay, cool.

So you can. So she's made $61 for the day. So let's say you're going a couple of days, three, four days, maybe a couple of weeks. So we go here and we check the history. Okay? Custom period. And we haven't done anything for. Let's say we haven't done anything for five for a week. We go check the profit, and we say, okay, great. We've made $315 in how long?

Since the 5th? To the. To the 12th. So.

One week. It's almost six days of trading. So if we do it for like, let's say two weeks. And you say, okay, so you have a choice. You can say, do I keep the profit or do I keep the drawdowns? Those are your options. Okay. And what I do is I say I like to keep both. What that means is that I want to have my drawdown, but I want to halve my drawdown. And I want to have my profit, but I want to have my profit. My profit as well. That way I'm paying for my robot. Okay? But I'm also increasing my equity. My balance is increasing, and my drawdown is decreasing. Okay? So what I'm going to do is I'm going to take 50% of this number. So $230, okay? That's what I'm going to take, $230. And I'm going to start reducing my open trades. So I'm gonna go back to the trade history, and I'm gonna say, right, and you start from first in, first out. So you go back to the beginning of where the drama started, and you say, okay, well, let's close out. 1, 2, 3, 7. 3 is a 21. So it's. Three of these trades will disappear, which means that you. You've lost those trades. You've lost the money on those trades, and then you will then only be left with your profit of $231. But what's nice is, is that these trades, these three trades now are.

Out of the the picture, and your drawdown is not going to increase anymore. Okay, cool. So I'm going to stop there before I continue and I'm going to take questions.

Do you understand?

Do you not understand.

Alan?

Do you take it from the date that first.

In first.

How do you calculate when the trouble started?

When your heart started beating?

Okay, so. So when the percentage went up, you use that date to mark when you start closing trades.

No, no, I'm closing Trades from first in, first out. It's a mace. The tribes are a mess. Okay. You need to recover your account. How do you recover your account? So you need to be able to, you need to start reducing, getting rid of that whole trade sequence. Sometimes, very seldom, okay, does the robot trend like this. Okay. And you get into trouble. So you've got two, you've got two scenarios. Yes. Okay. One is.

There wasn't a major trend and you, you over leverage your robot. So maybe you're sitting with 15 trades and you use the wrong lot size. Okay. And that has taken up 20 or 30% of your drawdown of your, of your capital. Okay. And like you need to manage that. Okay. Second is the, the currency trended 500 pips and now you're in shit. So let's go and have a look at the. That's the distance here. So from here first trade to Last trade is 895 pips. Okay, so how did I do that? For those that don't know, you click on the crosshairs. Then you go to the trade and you mount left mouse click down, hold your mouse and drag it to where you want to. It draws a para, A diagonal line. Can be whatever line you want. Okay, so let me explain the numbers. The first set of numbers is 13. Okay. So the first number indicates the candles. Okay. The second number is in points. Okay, so it's 808,415 points. How many pips is it? It is 8, 800 and.

Today 868 pips. Okay, that is an anomaly in Forex. It doesn't happen like that. Okay, it happens like that. If you get jittery, you switch off your robot and you don't know what to do. And then it just gets away with the price like moves very far away from the take profit and you're stuck in a trade and doesn't happen often. Okay. Generally speaking it goes maybe 30, 40, 50 trades and then retracement. Normally that's what happens. Even that is like a rarity. So the experienced traders. Can you concur?

Do you agree?

Yes, Alan, I agree. It's. It's uncommon for a pay to just go up. It. It has to go up, but it has to take some breathing room of take profits and then it comes down a little.

850 pip movies, we don't normally get that. Normally there's a. It's called an ATR and average true range of. It's this wave kind of thing. So it'll go up maybe 100 pips. And then come down 100 pips. And if it comes down 100 pips, then we'll go up 100 pips. That's called the average true range and it usually sticks to that. Okay. That's what normally happens. Okay. So we decided to play in this region here. We made a lot of profit and then we opened some big trades and then the currency reversed. And then if me got a little bit of a fright, she wasn't used to the drawdown of which now she's a bit more used to it because it's Monday morning. She's had time to think about what happened over the, over the last three days. No trading happened. You can reset your mind. And that's another thing that I say when you actually lose money in forex. Step away from the computer for about three days, digest what's just happened and then come back with a fresh mind. You'll be making better trading decisions. Okay, cool. So what, she removed the hedge and, and I said to add the robot back at a two lot size. I said this is what's going to happen. You can see that we're on a support resistance level of which we could check that on the four hour chart you can see a dodgy, dodgy, dodgy on the, on the 32. And if you take the crosshairs. Let me just move this down and you can see the timeframe. This is 4 o', clock, 12 o' clock and then there's a 4 o' clock candle. And then this was a 12 o' clock candle.

I don't know if it was 12 midnights. So let's see.

That'S.

12 midday.

Yeah, that's 12 midday.

Yeah.

That's 12 midday. So for the Doji to happen at 12 midday, there's something going on. Okay. Something going on. Normally when I see a Doji that happens in an uptrend when it's above the 8 exponential moving average on a four hour chart, I believe that there's.

Going to be a reversal.

Normally that's what happens. Very seldom that it doesn't happen that way. And it carries on a doji and then carries on going north. Very seldom does it happen maybe 5 or 10% of the time. Okay. So yeah, it's hit the 100 moving average. And I said to it either going to hit the moving average or probably hit the moving average and then reverse down. And that's why I said to Esny, add the robots now.

Okay.

And leave the robot on. Either you can just place one trade or you can Leave the robot on and it'll place trades all the way up here. I said when it gets to here, when it gets to here. That's why that line is when it gets to here, switch on the robot and leave it on. Okay, Leave the robot on and let it open trades all the way up here. What that's going to do is it's going to bring the take profit line, this take profit line all the way up to about here that day. That's where the take profit will be and that's what we want. Okay. It's calculated risks that we take where we understand what the currency is doing. It's playing within an area. And I said to Esme that you can expect an extra $2,000 drawdown on this account when it gets to, if it does reach this line over here.

I think it's that line.

When it does hit this area, it's going to be an extra two thousand dollar drawdown. But when we, when it reverses down and that is in profit, and that is in profit. And all these are in profit, we're going to make a good, we're going to make good money, maybe 300 and then you're going to take that 300 and take a hundred and fifty dollars of it and then you're going to close out two more of these trades on over here. So you already got rid of three. Then you're going to get rid of four and five and you're going to carry on playing this game. It's a manual, little bit of manual pt. It happens, unfortunately. So here are your options. Okay, Some people say to me, yeah, but that's not passive income. I agree with you. It's not passive income. 100% is not passive income. If you want 100% passive income then you need to be investing with an institution and earn negative growth which is your 12% per year. Then you're going to be taxed on that as income in your personal capacity. Most of you don't do it in a business. It'll be in your personal capacity at between. If you had a high tax bracket, 40% and then you've got CPI to contend with. So should we do the maths for you? A lot of people argue with me.

That is Alex on the call.

Let me just check. Alex is a financial advisor with one of the big corporates.

Not on the call. Okay, cool.

So let's, let's take, let's take a thousand, a thousand rand. You invest it, okay? You make 12% in the year. That's 120rand. Okay? From that 120rand, you're going to pay tax on that. Call it 40% out of that 120rand. Call it.

50. 50$50rand. So you left with 70rand. Okay? So out of that 70rand, that's supposedly your profit, right? But CPR last year was 10% just over. It was actually 11.1%. That was what CPI was 11%. But you're paying 11% on the full amount of the 120. Okay, which is how much?

11.

So you left with 40. So 40 out of your.

40Rand divided by the thousand, you've made a growth of 4%. That's not money. Okay? That to me is a waste of time. Okay, so, yes, this is a little bit more manual than what you were expecting. Sometimes it happens. As I said to you when you first signed up with me, I said to you, there is no such thing as 100% passive. Okay? Even with your investment broker, with whatever institution you've chosen, you'll need to manage that broker. You can't just leave the broker, okay, and expect to be financially free. That is what old people do.

Like my mother.

And not advisable. Messing with my inheritance is what she's doing. Drives me nuts. Okay, so.

Unfortunately, that's the scenario. So do you guys understand what we are doing and how you do it now?

I understand what you're doing. I don't know if I'd be able to do it unassisted just yet.

Okay, well, that's why Esther me phones me every day. You guys pay me a lot of money. You can phone. I am available.

I will take.

You. You've always been very good with responding to me, Alan. Thank you.

Pleasure. I mean, if you don't phone me, I can't help you. I'm not. I'm not logging into your account. It's not my account. I don't have permission into your account. So I can't. Okay? I can only log into your account when you say to me, I'm in trouble, I need assistance. Please assist me. I don't know what to do. So if you use that, if you use.

That knowledge that I have, I will be able to save your account. If you do nothing, then one thing is for sure. Nothing is not going to happen. Something is going to happen, okay? Either you're going to run out of money and you're going to blow your account or.

You'Re going to. The swap fees are going to eat it or hopefully it'll reverse and you'll make Money. So I've got a few minutes left of this call.

I just want to see how long I have left of this call.

Lawrence, I will take your question now.

I don't know how long I've got.

Left of this call.

So Lawrence. Yes, I've got nine minutes left.

Lawrence, you were talking off.

Cool. So who does not have, who has a problem? Who does not understand this?

Yes, Ellen, hi. And I'm just.

Sorry.

Yes, you can see.

Yeah, thanks. Sorry, I thought something else was going on there. Look, I'm just hanging up by my fingernails. I just really tuned in to try and absorb something and just use it as a building block for when I will begin to understand something. Perhaps something is stuck. But the one question, the two questions I think I've got number one is how did all this start? Maybe I missed something in the beginning. How did this get over the.

Was it lot sizes too big or.

Not with account was.

My rule in trading is that.

When the drawdown gets to 10%, you need to change your lot sizes. So you've made a mistake on your account.

Either the currency's trended because of an announcement, there's an anomaly in the industry, the bank is moving the currency, or you've used too much, you've been too rambunctious and you've over leveraged your account. So when you, when your drawdown gets to more than 10%, you need to change your, your lot size down to 0.01 and let the currency trend your take. Profit will be left behind, way behind. It won't catch up. Okay, because you, you've changed your lot size to 0.01. Okay, but you're saving your account if you do nothing, which is unfortunately what Esme did. Not on purpose, she just didn't catch it in time and she changed it at 23%, which was a little bit too late. And then she had to fund her account. If you don't catch it at 10%, you're going to have to fund your account. I'm telling you now, you're going to have to fund your account. You're going to have to fund your account or you're going to have to hedge one of the two. And I don't like hedging because you don't know when it's going to reverse. And the problem with the hedge is now you've got another trade that you need to manage.

Alan.

People need to understand that the gold EA is very, very good at trading and making money. But people need to go and have a Look at the Excel sheet that you provided at what your drawdown could be when a level 12 position opens up. And I'm telling you now that most people's positions would incur a drawdown of at least 25 to 30%. If a level 12 opens up. And they need to keep this in mind. Yes.

What is a level 12?

Level 12 is the. The 12th trade that opens. It's actually a 13th trade. Level 12 means that the 13 trades are. So I agree with Lawrence, 100%. So, Alan, to get back to your thing. So she caught it late, and then we had to manage the account. She caught it late. She saw the drawdown. She had to fund her account twice to save it. And I said, it's going to calm down. The currency doesn't just go up forever. It has to. It will settle and then it will reverse, and then we will reassess your account when it starts reversing and the charts cool down. And she freaked out. She went back to crypto. And then only a couple of weeks ago, she said, okay, we need to.

Sort out my account, which is what we're doing, which.

And we've.

And we've. And we've managed it.

Correct, Esther?

Okay, and then second question is.

Just on my account, I'm very new in it. And we set it on 0.0, 5.3, 0.01 on the three trades, the three pairs in the beginning, for two weeks up to 2.5, 0.05, and 0.1 on one of the one. And it ticked away. And I was so busy, I didn't even look at the. I literally didn't look at it for two weeks. And on Thursday or Friday, I took the first look at it and I'd made about $200. It was just ticking away in the background.

Was I lucky?

Was I lucky? Or.

Were you lucky that there wasn't a trend? You need to be looking at your phone every day, two, three times a day. You need to be checking your phone on MT4, seeing the drawdown, making sure that your account is safe, your equity safe. If you don't, this is not 100% passive. You need to look at your phone like, okay, so.

You know, when you taught initially, you know, you watch, you buy a couple of shares and then you look at the share price, like every day you bought the shares. It's your investment. Like, I'm not saying you specifically, Alan, but everybody, you need to pay attention, guys. You need to log into your account and you need to.

Monitor your drawdown and See what's going on and try and get a grasp on this so that you can just. Can you give me a second? Yeah, one second. Get a grasp on it so that you can get better. Make better.

Decisions and invest more money in this and make this. Let this become a proper investment for you and a proper investment vehicle for you where you trust it. And you can start making about 15%, 20% a month on your entire portfolio. Not 15% on $1,000. $1,000 is for you to get your feet wet and for you to, like, start understanding that this is possibly a route that you want to go. Okay, but you need to start understanding it. Cool. Pleasure. Anybody else got any questions on the strategy? Does everybody understand the strategy?

I just. I just want to come in here and I think I'm sounding like something that goes over and over and I would like to advise people again to. I think the first strategy that you should have is to try and not get this situation by. By looking at your starting lot sizes when you trade. Because if you're starting lot sizes is really low risk. Then this robot can run and do 20 or 30 trades. And your drawdown should be quite low at that stage. Don't change the dollars, change the return on investment. So, yes, a 1% on a $1,000 is only $10, but you only invested a thousand dollars. If you invested thousand dollars, well, then 1% would be a thousand dollars.

So.

So look at it that way. Chase the percentage. Get that right, and then your account will grow when you invest more 100%.

Okay, so I'd like to unmute you.

Okay, I'd love to assist you, but I need to go into another room where the TV is not on. But I can't compete that have been. Okay, switch off the TV or go to another.

Okay, let me switch it off.

Okay.

Okay. Is it fine now?

Yeah, that's fine. Okay, great. So this is your account over here.

Okay.

Where is it? Okay, so here it is.

So I see that you've hedged it.

Yes, I did.

Okay.

Okay. Let me just see this hedge of $1446 to ensure the safety of drivers.

To ensure that the store huge supply chains that drive our economy. Okay, so I'll need to go here to my phone because you don't have.

Any.

Averages on it.

Okay.

If you need to mute your tv, I'm not going to ask again.

Okay.

Okay. So I can see that it's below the 8 exponential average. So.

The price is going to go down.

But we've got two.

Okay.

Opposite pin Bars here. So.

So look, according to my analysis, it looks like it's going to go.

We're in a. We're in a cell position, so I wouldn't want to remove the edge yet. But what you can do.

So this is what, this is how the hedge situation work, is you'd wait for the currency to come all the way down. Okay, but I can see that there's a line here. You've placed the hedge too late. The hedge sort of been placed like here where we can manage it now. It's like at the right at the bottom of the trough. So it's going to be difficult to remove that edge now, but you've got lots of money to play with. Although you've only got a drawdown of 40. The drawdown is 41%.

It's like nothing.

And I can't see your screen. Are you, are you sharing your screen or.

Yeah, I should be.

Am I, am I, Have I done something wrong? Oh, here we go.

Okay.

Sorry.

Thanks.

No problem.

Thank you.

Okay, so there's the, there's the candle that's below the 8 exponential moving average. There's a pinball here saying that.

That we're going south. But there's a pin bar here which shows that the north. The north. The bull candle just didn't work, which is showing me that we're still in a bear trend.

So I wouldn't want to remove your hedge just. Just yet.

Just yet.

Yeah.

Okay.

So because you obviously. I hate, I hate working with.

With the hedgehog because of the specific reason that you don't know where the bottom is, you don't know where the top is. And now you've got the two trades to manage. I think if this was my account and this is not trading advice.

I'd wait. The hedge is on, so I would wait. I would wait to see exactly what this, what this does here. If it carries on north, then we'll have to manage. You'll have to manage the search by.

By adding the robot back. So you're on a point now. So if this was me. So we draw a line here, that's.

The first thing that we need to do.

Right. So that's where your take profit is.

Okay.

Do you want to manage this? You want me to help you manage this?

Yes. Yes, definitely.

What I would do here is.

Okay, so let's just check what the story is here.

2021.

Let's see what the.

It's 2021. That's right.

Okay, so I would, I would add. I would add the trade back here at a point two. So all that, we're going to add the robot back. Okay. And it's gonna place. It's gonna place bar trades.

Okay.

Okay.

So it's gonna continue from weight left.

From exactly where it left off. Okay. So if it carries on going south. Okay. So this is what's gonna happen. Let me show you what's gonna happen so that you understand. It's gonna open a trade there. I can't.

Okay.

I can't do it yet.

So I'm just gonna.

Just gonna say, okay, save my settings. Okay, cool.

So it's going to open a trade over there now. Okay. And then if it carries on going south, it's going to open trades. Going to open trades all the way down here. But your take, profit is going to start moving down. Okay. Hopefully it'll go north and then we can start managing these trades.

And then if it goes north when it gets to here, I hope you guys are concentrating. When it gets to here.

Then we can start.

Deciding what we're going to do with the. With the. With the bar trades.

With.

With the bar trade. So if the price goes up, all these trades. 1, 2, 3, 4, 5. Over here, all these trades over here will be in profit when it gets to here, which is. I don't know where. Where this is because you don't have.

Any moving averages on here.

So this is why it's important, guys, for you to insert your moving averages. I mean, you need to. Need to do this. 8 simple exponential add a level add.

Let's put in a dotted line. No, we'll make it white like that. Parameters.

Red will make it a thick line.

Groovy. There it is.

There's your 8 exponential moving average.

So just click it a bit.

Okay, there it is.

8 exponential moving average. Insert.

What is it?

Indicators, Trend moving average.

And we're going to put in a 200. Delete parameters. Simple 200. Okay, there's the 200.

Great.

Let's put in another one. Insert indicators. Trend moving average. Put in 100.

What colors? 100. Anybody?

Blue.

It's blue.

Thank you.

So why, if you know it, haven't you done it?

Trend moving.

34.

What colors 34 hyri.

It's gold, yellow, gold and white.

Inserts indicators moving average. Moving average.

And then the 50. The 50 is important. And it needs to be purple and white. Because estony.

Because estony. Is she on the call?

I'm here. I'm just muted.

So then why.

I don't know why.

Purple and white.

Oh, My God.

I don't know why it's a purple.

And white embarrassing man.

Because it is the 200 moving average.

On the one hour chart. That is.

I know that but I don't know why it's purple and white so that.

You can know that it is. That it coincides with another time frame.

That's why I do it right like that. Okay, cool. There are your moving averages. Very, very simple. Okay. So we here and we.

You can just let anyone. If you right click on the chart and then you just do safe template.

Yeah, I normally do that. So I don't do it.

Just tell the other people and then it's easy and you just apply it. You don't have to do it again. You just apply it and every chart you do it will automatically be there.

Save templates. And we're going to call it Alan.

And we're going to make sure your robot's not active.

Yachts not.

I'm going to not save it. I'm going to remove the robots. Firstly, let's save this template.

Inputs Save EU 2014. Okay. Okay. And let's remove the robot.

Experts advisors remove. Now we can save the templates. Save templates.

And we're going to call it Alan. Okay, great.

So.

I'll drop it on everybody's. No, you guys must go do it. I'm not babysitting you all the time. Go and set up your. Your charts properly. That you've got it done. You want me to help you? Your chart needs to be set up. Otherwise I'm not going to help you. Okay. You need to meet me halfway. Okay, so this is.

I think that's right.

We're gonna, we're gonna just change this.

We're gonna change this.

I'm gonna make this into a thick line.

Right? So that is your.

Support resistance line.

Okay.

So when the price goes there, we'll decide what we want to do. I want to see where the, where the moving averages are. When it gets there on a different time frame. I want to like just check where we are. Okay, so this is what I would do. I would add. I would add the robot.

20. That's what your biggest mistake is. It needs to be a hundred.

Well, let's load up the. The template as EU 2014 and Max trades.

Well, that's where your problem is. That's why you ran into. Because this was set to 15. Okay.

Yeah.

Okay. So.

Normal mistake. Everybody makes it until they learn that Ellen's way is right.

Yeah.

Okay, there we go. So now it's going to open a trade. So let it just open a trade. And we need to set it at H1.

And then we'll open the trade.

Right. There's your track. Cool. So there's your bar trade at point two. It's opened. And now we'll just wait. And we'll wait and see. You need to phone me every day, maybe every second day. You need to monitor this and ask me for advice. You need to watch your drawdown. If your drawdown gets to 50%, you need to find me urgently. Okay, 50. To reassess the situation and make decisions. Okay.

All right. Yeah.

So there's nothing more to do now. We just wait and wait.

Okay.

And hopefully it'll come down. I'm hoping that it's going to come down to Sue. Let's open up another.

Let's just close this trade. This one over here. We'll deal with that later.

And let's open another.

Let's just hide all great. EU chart window. Groovy. And let's do it on a four hour. And that's where we are. Let's load the templates.

Load.

Ellen. Bang, bang on. Okay, cool. Therehere we are. Four hour chart. Okay. So yeah, it's nothing to do.

We just wait now and check. Point two is conservative, but let's see what it does with a drawdown. Okay, but lots of money to play. $100 to play with. Yeah, we'll make your money back. We'll get all your money back.

Okay, thank you.

No problem. Call me. Appreciate me in a couple of days. Need to find me on WhatsApp and we'll log into your accounts. You need to download a program called Any desk A N Y D s k from anydesk.com. you install it on your computer. And then I can. We can look at your account together and I can help you. Okay.

Yes.

Cool.

Okay, thank you.

Moving along. Next.

Anyone else?

No one else. Okay, cool. So did you understand what I did there for Ukubile? Hello, people.

Did you understand what we did there? Do you understand why we did it?

Important that you understand why we did it. This is a trick that.

LB taught me this. So kudos to Albie. Okay, so why don't we just pause the robot and when it reverses, we switch on the robot. And he said, I found the most amazing thing.

We can restart the robot and it'll carry on from where it ended off. And that's exactly what we're doing here.

Alan, I just want to ask the question with a current age, you activating it and Then you're going to use profits to close out all the trades.

Yeah, I don't want to close it until the price actually comes down here. So when the price actually comes down here. Okay, so we'll put a line over there. Okay. So when the price gets there, when the second candle opens above the 8 exponential moving average, wherever it is here, we'll close the hedge if we can.

If we can. And we'll use those profits from the hedge to close out some of these trades. That's what I'm hoping to achieve here. That's why I don't want to close it out now.

Okay, so did everybody the plan of.

Action be if price action actually turns around now and the hedge actually just turns around being more negative?

Well, the accounts hedge. So what difference does it make?

Yeah, no, it doesn't make any difference. It's just another thing that you would have to get out eventually of it.

Is what it is. So I looked at it. It's $40.

It's $40. The, the hedge.

Let's move this. I don't know if you can see it.

Yeah, it's 47 there.

Yeah, it's $47. So it's her money.

It's not for me to close out that trade.

She placed the hedge, she did the right thing. She got a frat, she called, she said, hedge. I said, these are your options. She said, okay, I'm going to hedge.

So she hitched.

So it's $47. We're in. The reason I haven't also closed it out is because the second candle is below the 8 exponential moving average. So what's the point of closing, closing it out now if we already know that we're going in the south direction? We already know itself.

Yes.

So why close it? Why lose the $47 if we don't have to? I'd rather wait for this to happen. It's going to come down here. We're playing in this area. We can see where we play. We can see where the ATR is.

Yeah, this is on a four hour. It's here. So since the 6th of July to the 12th of July, the last week, it's been playing in this area. So I'm expecting it to come back down here. When it does, we'll close out the hedge. If we need to reapply it will reapply it, but we'll use the profits. Well, I don't think we'll have to because we're going to use the profits for, from this hedge. Okay. To close out three or four of these trades, which will reduce the drawdown to 30%, and then we'll be back in the game. So if it's. If this was your account, Lawrence, what would you do?

I would definitely. I'm a big fan, not most probably, of the hitch. I would have activated the robot again.

Yeah, but. Okay, so now that the hedge is on, what would you do? If this was your account, what would you do?

Yes, no, I 100% agree with you. Since all is aligning up and price action is most probably going to move down, you will leave the hedge until otherwise proven. So if the next candles opens up above the 8 EMA, then you might have to be put to a decision of what you're going to do.

Albie, if this was your account, what would you do? But.

Okay, now I would do the same.

Alan, because.

If we're not moving south, then I would be tempted actually to close the hedge at this stage and take the $47 knock.

Yes.

If there was a strong move northwest. But since we're below the atma, keep the hedge. And when. When the edge turned green, the moment that you can't get out of the hedge, I would get out of the hedge.

Does anybody have a different opinion? I'm happy to learn. I love learning. I don't know everything.

Only know what I know. I don't know what I don't know. So if you've got something to say, speak up. I love to learn. Exciting.

Now, Alan, I think people need to learn here as well that a hedge is a great tool if you do it soon enough.

Yes.

In my opinion, this was too late.

Absolutely.

There was a better opportunity to do a hedge.

Absolutely. It was here. It was here and then. Yeah, that's where the hedge.

There we are. Now. That's where I would have done a hedge if I would have done a hitch. That's why I would have done it.

You wouldn't have to have done it. If you had changed your lot size down to 0.01 and let the robot trade, you wouldn't have had to manage this. But why are you not using the gold EA? This is what I don't understand. You've got $600.

How often can you look at your phone for villa?

Maybe twice, thrice a day.

And if something happens to your account, can you log into your account and place another hedge at work?

Yes. Okay, great. So then use. Let's connect the gold E.

Okay.

Okay, so symbols.

I'm sure your gold EA is coded.

Metals. Gold. Close.

Chart.

Window.

One minute doesn't make a difference. Gold inputs.

All good.

65%. Let's make this 70 so we don't have a free cut and let's trade.

Can I press go?

Yes, yes.

Cool. So let's press go, let it open up my trades.

And now we're going to use the gold EA to then.

Use the profits of the gold on a daily basis to start removing these, these, these trades over here. Okay. We'll be out of this, we'll be out of this in three weeks. You'll have no drawdown in three weeks.

Wow, that would be great just to.

Just to come in here and just to provide some comfort as well. On a lot size of 0.01 looking at most probably somewhere in the region of a possible $140 drawdown. If a level 12 opens up and I think that is quite safe.

Exactly.

And if, and the profit there will be 11, 11 to $15 probably during the day. If you hit it, if you hit a level 12 you'll have a $15 profit plus the rest of the profit for the day. You'll be have a 20, 20 to $30 day. And if you have a 20, $30 day. Let's see what we can do here. We can close out one of these tribes. Boom.

Gone.

So let's just add another indicator.

Let's go over here and say indicators and let's see the I explore and see where we're at. And we're going to put it on this chart over there where my mess is. Inputs. What?

Okay. Colors? None. Groovy.

Okay, so how many 18 traits? It's nothing, nothing to worry about. We'll be out of the dwang here in less than 30 days. Okay.

Okay, very cool.

Anybody else got questions?

Hello Alan, can you hear me?

I can right now.

I just want.

To ask a question, please. Every time I watch the video I'm getting, I'm not sure. Your first candle moving through the eight average. That is your first candle.

No, that's not. That's not my first candle. Let me enlarge it for you.

Can you zoom that? That, that's.

That does it. Thank you very much.

This is the first candle. You were saying? This candle is the candle moving through the atmos. The first candle. No, this is an open candle. It's the candle that opens below the 8 exponential moving average. So when this candle ends and the new candle begins, that's candle number one. This is candle number one. This is candle number two.

Okay, can I make sure if I understand it if, if you go to the chart where it, the red line is. So that bullish. Bullish candle.

Which one?

A little bit left. Just zoom in again please.

This?

Yes. Can you zoom in that tray? Yes, yes. There's perfect. If you take about 20 hours back, the bullish is starting there from the line. So yeah, that, that second bullish candle going through the hmi. You don't count that?

No, don't count it. This is your first candle above the atm. This is your second candle.

Okay, thank you very much, Alan. Now I understand it correctly.

So that's what I'm doing my way. I like my way. I get good results with it and I'm happy with it. So that's the story. So has anybody got anything else to comment before we end this call? I'm tired.

I just realized how much I got to learn.

Listen, I learn every day, period. Lauren taught me something again today which is great. I didn't know that what that thing was. And it's only when you in a team with like minded people can you actually learn stuff. So.

That'S what the 147 is, guys. Like I would say a good portion of the 147 is learning from other intelligent professional traders.

Alan. I would agree there. I think the value that you get out of being part of the community and being in the telegram and especially on these zoom calls, they are much more worth than the $147 that you are paying for the robot, in fact. And everyone got the gold EA for free, which is really well. So. But this is where you learn and this is where you become successful.

Exactly 100%.

I just hope that the experienced traders don't mind the beginners questions on the same group.

You know what, even the experienced traders forget sometimes and you get into bad habits. It's like why do you think Tiger woods has a coach? Why do you think.

You know, the top, top performers have coaches. You think not only Tiger woods, you think all the tennis champions don't have coaches? Business people, top business people, they have coaches get into a bad habit. You need to have coach to put you back on track.

That's the way it works.

Somebody that can look at it through clean eyes, you can, you can't see what you're doing wrong. Very difficult.

I would say as well as well.

I mean we, we find joy out of helping people. I think there's, there's nothing more rewarding than, than helping people. It's not the money, it's helping people. And that, that says a lot as well.

You know, look at the empty guy. Empty. Okay. That took. It's just such a disaster there. Okay? And you know what? I've been doing this for four years.

I'm still standing.

Okay? LB's been with me for four years.

Still standing, still carrying on, still helping.

Still vowed that I'd still be helping everybody, contributing to the community, trying to make it a space that is trustworthy in where there's so many scammers out there.

It's just flipping frightening.

Frightening. Yes.

Alan, they should watch it because this Ferrari is moving to second, third and fourth gear very, very soon.

Hopefully we'll get the EA this week, Wednesday, Thursday.

I don't want to. I'm not going to remove your old ea. You need to test this new EA.

On a. You can't test it on a separate chart, unfortunately, which is a bit of a mess.

Alan, it does have.

You can. It's got a magic number. So you can test it on a. On a different chart. Test it on the 0.01, see how it works. And I can't vouch for it. It's just new strategies that we've implemented. But you will have access to it.

Everybody will have access to it.

You can wait for the professional traders, Lawrence, Pierre, myself, Albi, to test it out before you go all in and.

Then learn from our mistakes and get a preset that. That will work. But we think that we don't even need a preset. We think we've got it waxed, but we'll see.

Exciting times, guys.

Exciting times.

And it's devastating out there now. I get so many calls all day. Losing their jobs and they still like this economy. And the education has trained them to be skeptical, not trust. And that's why I need the testimonial so, so badly from everybody. Your testimonials are to help the rest of South Africans make a decision.

That's right, Alan. I would come in here as well, and I would advise people as well. I have blown several accounts and I'm the first one to admit that. And it comes down to your risk management, revenge, trading, things like that. And if I could prevent anyone else doing that, I think that would be great.

Yeah.

Thanks, Lawrence. Appreciate it.

So we're all here to help you. I just. You need to take advantage of it. If you don't take advantage of it, you. You freeze up and you're embarrassed. You can't be embarrassed if you don't know. If you don't know what you don't know, then why were you embarrassed? It's not your fault. You messed up your account. You didn't know you were messing up your account. It's part of trading. We all do it. Albion. I've.

We've blown so much money, it's scary.

When you blow a million rand in five minutes, you catch a.

Wake up real fast. Real fast.

Okay, guys, have a good evening. It was lovely chatting with you. I hope I made a difference in your lives tonight. If you liked it, please comment on the telegram channel and I'll see you on the next call. Take it easy.

Thanks, Alan.

Good night, Allan.

Appreciate man.

You can unmute yourself.

You can talk.

Oh, okay. So I wanted mobile.

I'm good.

So the trick here is to wait for a like, second kingly so that to confirm a. A reversal. That's when. Yeah, that's when you like sort of increase lots of size.

Yeah.

And then the robot like will.

Okay, so let me help you. What is. What is your. What is your username on the vpn?