• Author / Uploaded
• Hakim Latiffi

Citation preview

Introduction to Swing trading

Drawdown

It is extremely important to limit the total risk to which your portfolio is exposed. This value is called portfolio maximum drawdown.

% needed 5%

5,26%

10%

11,11%

15%

17,65%

20%

25,00%

25%

33%

30%

43%

40%

67%

50%

Your portfolio maximum drawdown should never exceed the level of 15% - 25%.

100%

60%

150%

70%

233%

80%

400%

90%

900%

5

$

▪

▪ ▪

▪

▪

▪

▪

▪

▪

▪

▪

▪ ▪

▪

▪ ▪ ▪

Daily

Hourly

Weekly

T6

T5

B6

T4

B5

T1

T3 T2

B4

B3

B1 B2

B1 > B2

T4

T3

T4

2

T2

4

T3

6

T3 T2

T2

T1

B4

B3

B3

T1

T1 B3

B2

B2

B1

B1

T5

B2

B1

T5

8

T4

10

T4

T3

T3

B4

T1

B4

T2

T2 T1

B3 B2

B1

B3 B2

B1

T2 > T1

T2

T1 T3

T4 B2 B3 B1

T5

B4 T6

B5

B6

T1

3

1

T2

T1

T2

T3

T2

B1

B1 T3

T4

T3

B2

B2

B1 B2

B3

B3

B3

B4

B4 T2

7

T2

T1

9

T3

T1

T3

B1

B2

B2 T4

T4

B3

B3 B4

B4 B5

T1

5

B5

B1



 144  0.382 377 89  0.236 377

89  0.618 144

55  0.618 89

0.382  0.618 0.618 0.236  0.618 0.382

377  1.618 233 377  2.618 144 377  4.236 89

1.618  0.618 2.618 2.618  0.618 4.236







,

4.236%

2.618%

13,82  10  23,82

1.618%





20

x 20,00  6,18  13,82 10

10  0,618  6,18

T5

T4

423.6%

261.8%

B5 T3

161.8% T2

B4

B3

B1 B2

T2

T1 T3

T4 B2 161.8% B3 T5

261.8% 423.6%

B4

B5

T5

T4

B5 T3 T2

B4

B3

B1 B2

T2

T1 T3

T4 B2 B3 T5

B4

B5

T3

T2

B4

T1

B3

B2

T1

T2 B1 T3

B2

B3

Moderate Trader Calculations:

Monthly risk

(Weekly Time frame)

30%

3.000$

Weekly Risk

(Daily Time frame)

16%

1.600$

Daily Risk

(4Hour Time frame)

4%

400$

Per Trade Risk (1 Hour Time frame)

2%

200$

If you lose 400$ in a day Stop for the Day If you lose 1.600$ in a week Stop for the Week If you lose 3.000$ in a month stop for the Month If you lose 10.000$ you put more money in account ☺