Jason 74% DD WTF!!!

Right. So Jason has asked me for a little bit of expertise, experience, not advice, just asking me what I would do in my situation if I had the same situation, what I would do. So he is hedged. And firstly, we need to get his MetaTrader 4 in the correct setup. So you can see here, you can't see the charts. So the one chart has got like, funny writing on here. It's one of the displays that we've got available in the. In the Expert Advisor, which I'll share with you how to change. So firstly, let's arrange the charts. You click on there and you can arrange the charts in order. Then you must maximize MT4 so that you can see everything and then rearrange your charts again. Now you can see how you've got this writing on the chart here. So how you get rid of that is. Here it is. It's set to true to see the EA dashboard. So the EA dashboard must be set to false. And I see that you're running on an old version of.

Of the ea. I think we're on E. I think we're on version 82. I'm not quite sure why you're on version.

So if I refresh, I just want to save your presets. Have you saved your presets?

Yeah.

Okay, So I can refresh the Expert Advisor. Yeah. Okay. Because when I refresh the Expert Advisor, what's going to happen is, is that the expert. The expert section, your. Your inputs on your robot are going to change. But I don't know if you've got the right version. You don't have the right version. I'll have to update it. Okay, cool. Okay, so we can see here. Let's just expand one of the charts. You can see what's happening. Right? So he's got a global drawdown of 76% on the one chart. He's got. Sorry, got a global drawdown of 76%. Short drawdown, 22 on the one, 29 on the other, and 27 on the third. All right, cool. So I think we should open up a new chart. Let's firstly fix that and put that over there. And we should open up a new chart. Chart window. We set it to H4. We set it to Allen charts. Okay, let me just plug in my phone so we can work on my phone as well. Can you see my screen? My. My phone?

Yes.

Okay, cool. So this is the weekly chart. And I think that we're on a resistance point. We can clearly see that it's a resistance point because if we zoom in, you can see that the wick of that candle is touching the 200. It just stopped dead at the 200. Yeah. So gold is extremely low. Okay. And I think that the banks are going to do one more liquidity sweep and they're going to move the price to 1800. So if we actually try and add an indicator to see what that is going to be.

Okay. So in the top there, it's 171 pips.

Sure.

That's what I think is going to happen. It's going to go to 1800, most likely.

And we need to prepare for that. So you have a choice at 75%. So what would I do? I would definitely fund my account as much as I could to get my margin percentage up. So you've got available 436%. $436 available. So I. If this was my account, I'd fund it like.

In there.

Now, I've always said we need to have at least 100 to 200% cash flow available to fund your account in the event of. Of you making a mistake. So if you can fund it, fund it. If you can't, then at 75%. And we're right on the support line.

200 support line.

Yeah. There you can see where is there. There's no fractal. There's nothing. But there is a. Let's go to the H4 chart and see where the. Where the fractal is. Go to the H4 chart and see where the fractal is. Is there a fractal? There must be a fractal. There it is. Okay. You can hardly see it. It's over there. So it's on this candle over here. Can you see that?

Yeah.

Okay, so, yeah, take a screenshot so that everybody can see. Okay, let's enlarge it.

Okay, so there's the fractal. So we know that it's on that line there. Okay. So let's take a new. Let's take a new picture.

Let's take a new picture. So we know what the time is, the price.

And let's draw a line. Rather.

Let's draw a line.

Draw a line there. So it's 1815.

Okay.

So there we've drawn a line at that fractal shot.

Over there.

So I would hedge at that point.

Okay.

I would hedge at that point. Okay. And if it goes. Carries on 100, you need to hedge 100. If you can't hedge 100%. So like, do you know what you.

Well, let's Just have a look here. You don't have eye exposure on here. So let's add the indicator to see how many lots you need to add. So you add the eye exposure. You click on inputs, colors.

You've clicked on Ikimoku, not I exposure.

That's why it's wrong.

Okay. Colors, no inputs. And you change this to white so it can stick out. Okay.

So you are 100 hitched, dude.

Yeah, I know I am.

I am. I am.

Did that last night. Did that last night.

I wasn't sure that you were 100 hedged.

100 hedge. I think the only thing that I was curious about was I wasn't sure if I had to hedge according to the.

The.

Magic numbers. And then I realized all of them added up. It's all the same things.

Did you do a manual hedge?

Yeah. Yeah.

Okay, so once you've done a manual hit, you now have to manual. You now have to manage this account manually. You can't. I don't know if you can use the strip trade ea. You may be able to use the manual strip trade EA to get out of the hedge if you want to Manual strip trader. So once you open a manual strip trade, it works the same as the strip trademark 10. You just. We'll just see. Like.

You'Ll. We'll talk about it when you get to that point. If you want to do it that way. Okay. But you're already trading manually and you know how to do it, so I recommend that you carry on doing that. Not recommend. That's what I would do. Okay, so you're hedged. It may go to 1810 or 1800 when it moves past the fractal and it, and it gets to, let's say 1800. I. If this was my account, I would then modify this order.

And I would put in a, A take profit.

A take profit. And I would set the take profit to.

So you've placed it at 18:23.

So I, I would, I would place the take profit at 1823.80. So let me explain to you why I do that. Okay, so let's take a new. Let me just. Can I do this? Let me go to maybe an H, a week, a day chart. Maybe I can expand it there and let me remove all my lines so that you can see what's going on.

Okay, so your, so your trade. Where is your.

Where did you place your trade? 1823 78. Yeah, so we'll just call it there. Okay, I guess there's 1823, 80. Okay, good enough. Okay. And I would place.

A take profit like there, 1821. So why do I do that? Let's enlarge it. Okay, so let's go back to. So this is a day chart. That's great. Let's go to a month, a week chart. Okay. So we can expand it. Okay, cool. So let me just. All right, cool. So why have I done that? Okay, so this is what I feel may happen. The price may go down to 1800. That's 170 pips. We know that part. Right.

So you're hedged. Fabulous. This is going to be a liquidity sweep. So we know that we're on a support line. So I think the price is going to go up. The move has happened. It's a thousand pips. Never. I've never seen a thousand pip move before. So what's going to happen? Okay, this, this candle is going to turn into a wick. Can I do that? Oh, my God. It's going to turn into a wick like that.

And the wick is going to shrink and it's going to come all the way back up.

It's going to come all the way back up. I don't know if I can do it here. Okay. And then it's going to go north.

Yeah. So when it goes north, it's going to hit the take profit of that. Of that.

The hedge. Of the hedge. It's going to close out in a small profit. Okay.

Yeah.

Because we don't want to be hitched at the bottom of the trend. That's like for me the worst thing to be hitched at the bottom of the trend. Right.

So if it goes up and it goes to there, I would place another cell stop.

In case this thing reverses down. So you've now closed it. You're unedged. Okay. It goes up. It goes up. It needs to go up like 75% above where? Above this candle. This candle here? Yeah. Once it's at about here, you're above the atma. The second candle should open above the atma. And then I would place a cell stop as protection.

At the fractum.

On the H4 chart. So if you go back to the H4 chart. Okay.

Right. We place a fractal. Right. We place a cell stop at 1815.

Right.

In case it goes south.

And then.

You, you protect it. So your drawdown will be worse because you're not at 1823. Yes. So you need to know that. So maybe you want to put it like a little bit closer. I don't know if that's such a wise idea. That's why I say you need to fund your account so you need to put like there because the chances of it coming down is highly possible.

Yeah.

Again, you know, we know that it's gonna. We, we in. Yeah. This, it's got to break. The price has got to break this fractal. It's got to. We're in a structure at the moment. You can see that we're in a structure. I don't have to do it there. I can show you here. Here's the structure. That's the structure. So it's a sideways movement.

Yeah, I saw that.

Yeah. Right. So we know that. So the price has got to. The price has got a cruise. Let me do that. The price has got a cruise.

Green candle all the way through this point here. Okay. And it's got a. St's got a break structure.

Once it breaks structure. Okay, then you, you, you're fine. If it doesn't break structure and it comes back again, you need to put in your hedge again as protection. Once it breaks structure and it starts going north.

You should be fine. It's going to stop at the 1857 and then it's going to stop at 1879 at your, at your 50. And that's just how it is.

Okay, and then do I.

Okay, so tell me, tell me what your plan is so that I know that you're 100 and you understand and you have a game plan. So I told you what I would do. This is what I would do.

So the, the not the cell stop, the first one which is the take profit. So I'm going to put in a take profit to get rid of basically get rid of the hedge at.

Yeah, but you're only going to do the, you're only going to put in a take profit once it starts going south properly. Needs to really go down to 1800. Needs to cruise down to 1800. Once it cruises down to 1800. Okay. Then you can put in your take profit.

Okay.

Okay. And then what are you going to do?

Well, I'm going to monitor it to see that it goes. That it starts going up.

But it has to break through.

At least.

1845, 1840 somewhere around there. It's got to break through the. Nor the normal path that it's been following.

So that we know that it's not that it's potentially on its way up permanently.

It's got to break 1836. It's got to break. It's got to get to like 1818 42. And I know it's at 18. Paul Williams says okay. That when it breaks the fractal, we are, we, it's, it's changed direction. But I've seen that fail a few times. I've seen it break the fractal and then come down to that region again. Now you've closed your hedge and now it's a mess. So like you need to be aware and that's why you need to have your hedge in place. Yes.

15.

Yeah.

The 18. 18 15. In case it goes south again. And then obviously I'm gonna find my.

I think 1815 is.

It'S the right place. But I don't know if you're gonna have equity for it.

So, so what you do. So then you see if you, if you close out your hedge at break even you, you're still going to be, you got, you don't have equity. So if you put yourself, if you put yourself here, you gonna get to your drawdown is going to get to about 80%. You need to know like what's gonna happen. This is why.

Yeah.

You know, if you can't fund your account, maybe it's not a good idea to, to do that. Like this is just, this is, this is for skilled traders, what I'm telling you. And even as a skilled trader.

You, you gonna be, your emotions are going to be involved. Yeah. So you need to know like this is like when it happens and that hedge is removed. I know what happens. The emotions. Cuz now you're unhinged and you're thinking this thing better go north and then it starts to go south and you're freaking out and then you place your, you place a trade incorrectly and then you blow your account.

Yeah.

So just telling you what the, I'm just telling you what the, what the pros and the cons are. Okay.

Yes.

So if you, if, if you place, if you leave your hedge. You hedged. Okay. You've got 400, you've got $437.

To.

That'll go up by another 300.

Okay. So you've got $700. Okay. All right, so let's, let's, let's do this. Let's, let's think of another plan. Okay.

Okay.

Plan. Plan B.

You don't want to, you don't want to unhedge or. Okay. Or the thing starts going south. You place your hedge. So you remove your hedge and then it goes south. You freaking out. You place your head. You're 100 hedged. Okay. You better write this number down 1755 so that you don't mess it up. It is here in your eye exposure. Okay, but if you're working on your phone, you may not know and then you have to flip and go, go to the VPs and things going south and like, emotions are involved. So you need to like plan your life properly. Okay.

So let's say for example, it goes south and now you're freaking out and you place the hedge 17.55. Now you hedged. You can breathe again. Firstly, I'd walk away from the computer.

Okay, you hedged. Your emotions are.

I know that they.

I've been there. So you need to like, know where you are in life.

Okay, So I would, I would walk away and then calm down and then come back and then I would reset up, I would reset this up with the same strategy as what you have have used here.

With a hedge setting. So you'll make 10 per month. It's the conservative setting that you should make 10 per month. So if you fund your account and you, and let's say you, you carry on funding, you get to a thousand dollars, you make a hundred dollars a month, okay? Take you less than, less than eight months to get rid of this hedge. And you chip away every month. Okay, just get rid of. You just get rid of the.

The hedge. As you get more experienced with hedging, what you can do is because you're learning how to trade properly now you can place small trades 0.1 lot, nothing more than 0.1 or even 0.05. Okay? And it goes north. You take your profit and all the profit you use, you, you strip away some of the hedge. And because it's going north, there's no reason to strip away your ea trades. There's no reason for it.

If you want to, you can. But it's going north, so your drawdown's getting less. When the second candle opens below the 8 exponential moving average. Listen carefully.

Yes.

So you've, you've made profit. Now you manually trading. The robot is making profits. So you've accumulated X amount of profit. The price is going north. Okay, the chart. The candles are going north. So your draw down on your open trades. These trades is getting less, right? Okay, so what you can do, but this one is getting worse. Your hedge is getting worse.

Is that when the second candle opens below the 8 exponential moving average. I would then close out some of your bar trades, just a few.

Okay, now you're unhinged by a couple of. Buy a couple of pips, a couple of lots okay. And then when the second candle opens above the 8 exponential moving average on the next turn up the same amount of lots that you use to close out here.

You would close out here on this hedge here to be a hundred percent etched.

Do you get me or are you confused?

No, no, I get you.

Okay, so what you're trying to do is, okay, when the price goes up close to your bar trades, your drawdown is less. So the, the drawdown on these trades, the top ones, is at its lowest. And you'll only close the top trades here when the second candle opens below the 8 exponential moving average. So maybe the candles, maybe the candles go here. Maybe the candles go to here, 1903. Then the second, the, the 8 exponential moving average here. Here's your 8 exponential moving average. Okay. Like that.

Right.

And then your second. And then you got a, a red candle. You've got two red candles. What's here? Yeah, this one. Two red candles, one, two. That open below the 8 exponential moving average. These trades much lower. The drawdown is much lower here at this point than they are here. Do you agree with that?

I agree.

Okay, so then when the second candle opens below the 8 exponential moving average, close some of these trades, whatever the lots are. Let's say you close out 10 lots. All right?

When. Then the price comes down. The price comes down all the way, let's say, to 1822.

And then a new candle opens. A new candle opens. And. And then you get a second candle open above the 8 exponential moving average. You will then close out.

The same amount of lots, the five lots, whatever it was from your hedge trade to strip it now you're 100 hedged, and you find. Do you get. Do you get this?

Yes.

Are you typing it?

Yeah. When the candles are above the atma, I'm going to close out with the same number of lots that I closed the bind.

Well, listen, this is recorded. So you're going to go through this again.

Yeah, yeah, yeah. Okay.

All right. Okay. So don't type anything. Just focus on what I'm saying. You'll rewatch the video. Okay.

All right. So just a question. The, the sell stop.

This is not trading advice. This is what I would do. This is not trading advice. I must just tell you.

Yeah, yeah, yeah.

This is. This is what I would do.

Okay.

So.

What are the risks of using the sell stop that we were thinking of doing in plan A, which would close out the hedge.

And using that instead of having a permanent hedge? There's the risk because the drawdown could actually Be so high it could blow the account. Is that the risk?

Basically, the risk is that you're unhinged. And if it go. If the price goes against you and carries on going south, you will blow your account.

Right, right. And this is just. Yeah, okay, I understand. This is just a safer way of actually managing it.

So for a. For a. For a. I don't know where you are in your journey.

I can't say novice, I can't say experienced. I can't say expert. I don't know where you are in your journey. Only you know where you are in your journey.

This is really the first hedging experience that I'm having.

Okay, well, then I would say that you. Could I say that you know that you don't know.

Correct.

Could I say that you.

You are consciously incompetent or are you consciously competent? Which one are you?

I'm conscious. Unconsciously incompetent.

So you now know that you don't know.

Yeah, yeah. And I. I was trying to avoid the hedging. That's why I was following the Charles route.

And.

And I need to re. I understand what a hedge is, but I don't quite follow the process of getting out of the hedge and what.

My. What. My.

What my key checks are that I need to follow to get out of it, which obviously you've explained now.

But I need to review my training some more.

So then if. If. If that. If I was in that situation, I would definitely not remove the hedge.

Yeah.

Yeah. Keep it safe.

So, yeah, you, You. You've got money here. If you blow it, you're gonna lose 40 grand.

Okay. So you need to say, am I comfortable losing 40 grand? I'm not comfortable losing any money.

Yeah. I'm not comfortable losing anything.

Okay, so then if you're not comfortable losing money, then don't lose money. Then you need to remain hedged. There's your. That is your. Then that is your decision. That's your game plan. You can't. You're in. You're consciously incompetent. You've told me this. It's not a bad thing. Okay, I know it sounds condescending, but I'm not. I'm not saying. I don't want it to be condescending. You just. Now you know that you don't know, which is great. It's a great place to be. Okay, I now know that I don't know. Fantastic. Okay. Now I need to learn. Okay. Which is fantastic. It gives me an opportunity to now learn. Groovy. Okay, so Now I need to learn. So how do I learn? I now got to go slowly. Okay, so what do we do? We.

Can trade small lots. Okay. We can fund the account and we can trade small lots manually, like 0.01.

Get some confidence. Let's see what this thing does. Let's see if Ellen strategy does work. Okay, let's do 0.01. Second candle opens above the 8 exponential moving average. Place a trade. 0.01. Cool. Goes up. It goes up. It goes up. Second candle opens below the 8 exponential moving average. You close your trade. Open a. Open a cell. 0.01. Fantastic. You now. You now made profits. You've now becoming consciously competent. You now know what to do, but you're doing it. Okay, what must I do? What did he say? Okay. All right, let's do that. And then we do it. Oh, I made a mistake. I opened a cell instead of a bar A. Okay. So you change it. You close the trade. You might. You lose a couple of cents and you open a new trade and you consciously competence. Like, it's like driving. And you press the indicator down to turn right and you. Oh, I made a mistake. And then you lift it and you. That's what you do. Or you change gears and it's.

You know that that's where you are, and that's cool. It's a good place to be. You're learning, okay? You're getting the hang of this. That's what's important here, is that you are taking action. You are connecting. You're creating new synapses in your brain.

Then the.

My next question is, do I turn the robot? Do I put the order trading?

So I would. Then I would then fund my account and I would put the robot on. On the same strategy that you've got here. Currently making 10% plus you manually trading and you're getting experience. You becoming.

Experienced. Do this for a year again, you will become an expert. Do this for five years or 10 years and you become a master. And then you're free. Yeah.

Okay, cool.

So what I would do is I would pay the 27 and get the course so you can get the indicator.

So that.

What's the indicator? Because I. There's obviously something new that you. That you've put together.

Don't you come to my seminars?

I do, but I. I saw. I saw you had a whole bunch of new courses, but I was still working on the original course that. That you gave me.

And.

And now I don't have access to that course anymore.

I don't have any. I don't have access to any of the hedging stuff or I only had access to the ATMA.

Stuff.

No, you won't have access to the ATMA stuff.

The ATMA is an indicator that. Oh, geez.

It gives you signals.

It gives you signals.

And tells you when the second candle is opened above or below the 8 exponential moving average. So it pings your phone.

Oh, is that what that is?

Yeah. Okay. All right. Okay, so now you know when to trade. Your phone vibrates or pings. You open the phone, you go to the H. 4 second candles open above or below. Look at the chart, check where it is. If it's near the 200, don't take a trade. If you've got a trade open, and if it's in profit, close it. And then wait.

Wait for good opportunities. No, don't force trades.

Yeah, I've been doing that manual. I've been. I've had that separate center count, doing manual trades every day. Playing with. Playing with.

Okay, so then you're consciously competent with that. So are you making money with that strategy?

Yeah.

Are you making money with that strategy yet?

Sorry, am I making money? Yeah, yeah, yeah. I haven't lost any money. I haven't lost any money while I've been playing with that.

And the only thing that. And I've been playing with hedging in that manual trading. You know, whenever the things crash, I hedge and then I play. I play myself out of it. So I've been. I've been playing not in the robot side, but on the. On my manual side. I've been playing a little bit with the hedging stuff. I just. I've never read up and watched any of the videos on the strip trades. 10 and all those.

Let's. Let's just. Let's just wait a little bit. Let's just wait for the. For the price to do something, and then we can decide what we're doing. We need to get out of this. Just leave it for the moment. And then when the second candle opens above the 8 exponential moving average, then you can open new charts and start trading. All righty?

Yeah.

All right, Cool. Are we good?

We're good, Alan.

Okay, buddy.

Take care.

Thanks, buddy. Ciao.