Avoiding Over-Exposure In Forex (Podcast Episode 53)

We've covered this a long time ago, but it still ends up being a common question. Episode 53 goes over the many scenarios on how not to go over 2% risk in any one currency, and how if affects your backtesting.
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[@r6854]

I have been forward testing my Nononsense strategy. Adhered strictly to the guidelines set forth by VP. I swear it seemed like trading has become pase. Went from staring at screens all day checking various timeframes, biting my nails in anticipation and being certain that as soon as I was going to go to dinner something was going to happen (FOMA). Now I trade about 15-20 min a day, take a lot less trades, if they are there, they are there, if not maybe tomorrow. have proper risk management (watch the ATR video). He is absolutely right about "we win by not losing" it is truly amazing how it affects your bottom line. More profit, more free time, less panic,.

[@arthaslee5678]

yes agree too. makes it so much easier.

[@jeremikossak9553]

Exactly, I am on the similar path.

[@justinsquire4212]

Just applying the scaling in method alone, took my humble system from frustrating to making a consistant modest profit, just by reducing the losses.

[@PassportG]

@Roy I agree. The Daily timeframe was the key for me. No more going down to a low timeframe to get a "better" entry. No more biting nails looking at the screen for hours on end. I can spend time with my family and friends. I got hobbies too. Thanks VP you're the best.

[@arthaslee5678]

@@justinsquire4212 u mean scaling out

[@syedkazi8193]

Thank you VP for everything you do my man. I can speak for many people here including myself who took courses, paid hell of a lot of money and nothing ever clicked. The mentors would say all the "possibilities" and "probabilities" which would rarely to never actually play out. You on the other hand doing all this for free is insane. I don't know if people actually can comprehend the level of education you're providing, it might be going under-looked. I for one though can't thank you enough. Thank you for spreading your passion and I hope we can all do the same and guide people the right way.

[@ericros5784]

3:58 6:28 8:03 now its clear to me on how to trade the 27 pairs... Massive thanks VP!!

[@dennydaniel2967]

Thanks for the reminder and further advice on how to keep under 2% risk all the time. I actually just did this a few hours ago! I went short audnzd and then long on audjpy following my system, but I made my exposure above 2%. I will make my exposure below 2% in the future. Thanks vp

[@dementeddrewSA]

Just wanted to say thanks again. After watching your video's for 2 weeks, plenty of 3am mornings, finding my indicators and using your methodology I am starting to see a difference. To be honest, I've never liked the daily time frames and it was an adjustment to take everything I have learned and flip it on its head. The first trades I placed using my new system did nothing for over 24 hours which was freaking me out as I was used the excitement of the shorter time frames. Don't know why because I would lose more than win. 48 hours later I'm sitting with several winning trades, one loser and a couple that was down that are starting to pull back in the right direction. The ones that are pulling back probably reacted to some news but I don't follow the news .. anymore :) thanks vp.

[@jeremikossak9553]

Amazing timing. I had a "bad" trading days last few days, everything was on green, but I was over-exposed in two currencies. Therefore, all trades on green (+2% account) - bad trading.

[@j.o6885]

Tried to like the video midway through it.forgot that I like all these videos before I start watching.you are doing God's work fam

[@mohammedaldubaie6470]

Like before watching I just don't know how to thank you enough🙂 The greatest mentor in forex with literally no nonsense material

[@raulchaparroUSA]

This just happened to me yesterday, i was wanting to ask the question but of course i wouldn’t since i hadn’t finish hearing all the material. Also I’m still on paper trading phase. Thanks man all this stuff really helps.

[@theevilhuman1]

I was thinking of this problem this morning, because I just began demo trading last Thursday. I was thinking of what should I do, and then your podcast came out. Perfect timing!! Thank you

[@temjohngranada267]

Thanks so much Mr. VP! I've been following all your vids and podcasts recently and it really impacted my trading. Love lots from Philippines!

[@mathewtabiri6951]

As always excellent presentation and straight to the point no nonsense forex podcast.I can’t thank you enough VP. God bless

[@keithsproson4328]

Why people argue with him , I'll never know , if VP says shit a brick before you trade,, sharp sand is going on my wheetabix

[@agussumardi9120]

thanks a lot vp, after 5 years in this forex, i can grow up my account with your guide. of course this make me boring because sometime in one day i dont get entry signal, but when the signal coming that is be profit. so many thanks vp, god bless you. see you in top.

[@motivacioninspiracional]

2% risk 98% thankful!

[@mrcornutt]

My second favorite time of the week.

[@anabatta7019]

100% true.. I think greed is the reason.. maybe have a video about it? i think when you time after time look at the prices thinking this 'll go up.. this'll go down.. and it does. and when your system is not telling you to go in, its like Im leaving all that money.. Just trust your system. have displent on every part. specially risk. thankx VP . wish you safe and nice trip :)

[@cheeweefoo4590]

thanks VP... honestly trading is a difficult business. these days i only trade once a week as watching for setup..i look at weekly chart and look for entry on daily chart sometime 4hour chart. draw my S/R on weekly and daily chart is really powerful. and i only trade 1 currency pair.. i hold my trade for days and week as i m a long term trader. less noise,1or 2% on my account. now i am more of a long term investors than a day trader. SL about 200/300pips as i trade on weekly chart and enter on daily chart. stick to my rules n system n u will succeed once u understand when all put together.. best trading skill is be patience n be discpline at all time..cheers guys

[@poovendrennaidoo1805]

100 % VP realized i have to limit my risk to 2 percent and nit 2.5 percent like iv'e been doing. Thank you mate

[@timpenhale6324]

There is great indicator for MT4, Position Size Calculator. There is also a script for entering the trade that comes with it - all free! Take a look.

[@wehttamak]

where is it?

[@therealopmet7059]

Damn, this stuff just keep getting stronger and stronger 🥰😍😍❤❤❤❤

[@chrismalvers796]

Thanks for all the hard work you do VP!

[@jka671]

Good shit VP! I learn something new everyday from you. Discipline is key here and the book you recommend by Jocko is 🔥

[@johnathangrey3463]

Vice patriot. My grandmother likes you. (Lol) can't have her VP, unless you can get through my grandfather a world war 2 marine veteran. Lol. Of course it's not going to happen. My grandmother loves the money of course because it's helping her with the trading of the dollar. Lol. Yeah why? Lol. Thanks Vp. Your info is really helpful and badass.

[@kitchenspiral]

Thank you, VP, my online mentor, no matter how good systems I would have developed, it is me who execute therefore psychology always plays big part of trading, which I realized last year and currently working on trader's psychology as well.

[@DJME2FIVE]

Much respect VP. This is a good reminder to me

[@Lunkyful]

I risk per trade per currency pair even if all are the same base currency. Eur/usd, eur/gbp, eur/chf, eur/cad etc are valued at different rates, so it does not bother be if I go long on both or short on both.

[@abdalrahmanayman7069]

GrEeeeedy.. same disease ..we have... time to over come by our selves OR..leave 4x. salute bro.

[@faton7199]

Thanks a lot VP, as always your advice and materials are priceless.

[@laurenh978]

I don't feel sorry for those who don't take the time to see all of the videos and podcasts on this channel because they will not find the gems you are giving to those of us who are determined to get out of the rat race. On the one hand, I want more people to see those videos and get you more exposure. On the other hand, I want it to stay in the NNFX community... feel me? lol

[@1CarlAnthony]

Thanks VP once again for all that you do!

[@lucapuzzoli8363]

Thank you VP . Top notch as always

[@alisabzabadi2195]

I wish VP had also mentioned about total risk of capital you can take per week/month based on your capital. I have seen total 4% of your capital per month maximum for 6 monthly period. You can break it up to 0.25s or 0.5s if you like to take more trades but not more than total 4% per month.

[@kvjqxzz5905]

OK, my brain is hurting less, and I am putting together my system starting with cable, Kijun-sen, ATR, and a fast HMA for trailing stops - it is working quite nicely...I feel rich already...

[@frankiethomas1683]

K Vjqxzz 26 day linear weighted average for baseline.... thank me later

[@mohamedakl1846]

Keep going VP , you are really number one👌❤

[@richfriend9894]

Question VP: If (GBP/AUD) is giving me a Long signal, and I have (AUD/JPY) giving me a short signal, would that be considered over exposure to shorting the AUD? Do I go 1% on each or would I go full 2% risk on each ? Thank you very much 🙏

[@NoNonsenseForex]

1%

[@BigMrToe]

Another great podcast. Thank you VP.

[@Perfect_Entry_levels]

VP you are The num.1

[@manmade_movement]

Again, great podcast VP! Does this same approach apply to trading metals? Because many popular pairs involve USD.

[@nohzainalabidin7069]

thanks Sir. Logical and reasonable argument.

[@warren1871]

Thanks VP for this reminding Videos 👍 👍 👍

[@Alkosa]

This podcast has about 13.5k viewers as of today (26Aug2020), so I think it's a wise route to keep focusing especially on any of VP's material that has less than a 20k of viewers to date! Those are probably the places were we are going to find the tips, that will help us survive later, when out on the battlefield.

[@NoNonsenseForex]

Podcast vids are lower because lots of people listen to them on podcast players instead.

[@pedroseverin7224]

If for some reason all our system tells us to go long/short and we can't take the trade with a volume bigger than 0.01, should we take it anyways and take profit at 1 ATR? Just trail it to see how far we can get?

[@RyanR_27]

What if you are past tp 1 at 2% on EUR/USD and therefore have a break even SL in place, so you are at no risk of losing money now, and you then get a signal for EUR/GBP, can you enter that trade since the other Euro pair is at tp 1 so theoretically are you back at 0% risk?

[@heathfrost5708]

Oh my god just what I needed 2% on every trade for the rest of my days.

[@lokone303]

only ten times ? i think is the maximum times anyone could imagine, and this multiplied by ten XD i really think this is all about FOMO situation and small accounts, and always the best idea is to not overcharge yourself with all this stress. As an old trader i like to listen to says (traduced from spain): "los especuladores de bien se echan la siesta." "good speculators take a nap".

[@AlexPeter-i5m]

The one situation i struggle with is if I enter say EUR/USD long @ 2% and it hits my first TP and i move to BE, but then I get a new signal a few days later to go long say EUR/NZD. Would i be able to take that EUR/NZD trade now @ 2%? Could someone shed some light on this plz

[@michaeldenzelloo9856]

So in this case do you only look at the base currency in the pair when calculating risk exposure?

[@NoNonsenseForex]

No, you're trading both.

[@michaeldenzelloo9856]

@@NoNonsenseForex ok thank you sir

[@arthaslee5678]

Hi VP i wanted to ask you a question but that section of your blog is no longer available. So i thought i ll just ask here. Basically there are 3 types of entries in the nnfx algorithm which are crossing the baseline, pull backs and continuation trades. Out of the three if you had to choose would you prioritise any one of them over the others?

[@NoNonsenseForex]

Nope, treat them all the same.

[@philiptaylor2567]

But wouldn’t this strategy support correlation? I remember listening to the first video where you talked about this, and wondering about that. I know you don’t trade correlation. So wouldn’t you view each pair as its own separate entity?

[@NoNonsenseForex]

I already do view them this way. But the big banks and the news don't care about that, so you always need to protect yourself regardless.

[@philiptaylor2567]

No Nonsense Forex while things have been working well for me thus far, I’m going to have to start paying more attention to this, with a prop firm monitoring my trades now. I’ve certainly had overexposure on many occasions. Some times it works in my favor (which I would attribute to correlation) and others it goes against me. I just considered that a calculated part of the system, with losses being expected.

[@tiktokthofs6434]

Is this technique only applicable to just the base currency or both?

[@NoNonsenseForex]

Both

[@radosavmilosevic5063]

Thank you VP......

[@therealopmet7059]

So if I have a trade going long on the eur/aud but its hit my take profit m, the second half is scaling out and my stop is at break even, I can take another long trade on the euro at 2% risk, because my current risk is zero, right?

[@Bazroshan]

I would say so.

[@JoshuaHolding]

Sorry to ask but, if I have USD/JPY for example. Would that be 2% up for usd and 2% down for JPY? Many thanks for anyone who replies

[@mikescarborough9196]

I really need a blog on why being 2% long and 2% short on the same currency doesn't equal near to 0% risk. I don't hedge, but I thought that was exactly what hedging does. I need to learn why I'm wrong.

[@NoNonsenseForex]

It more comes down to what ends up happening when one of those trades gets closed out and the others still remain. Easy trap to fall into.

[@anythinggoes4763]

my approach in this scenario will be... only if my technical algorithm are in sync... eurusd long eurgbp short usdgbp long arbitrage 👌

[@factsandmyths3301]

What should be our risk to reward ratio?

[@sa_supercarz8499]

Do you guys have any good baseline tips and tricks?

[@abdalrahmanayman7069]

MA 50... you can check (MA crossovers ) video for Mr. vp. go get it.

[@abdalrahmanayman7069]

kzbin.info/www/bejne/q6STYWCgbr5npbc

[@hadassaraquel1786]

Do you ever look at price action or market structure?

[@NoNonsenseForex]

Nope

[@khoowengkean6742]

Thanks VP... 2%

[@detruth3509]

Thanks VP

[@God__Is__True__4__Us]

💪🏾💪🏾💪🏾

[@Beautiful-n7h]

Tried to post my comment on discord but I don't have the permission to post comments there or am I going about it the wrong way? My comment though is, PLEASE THROW MORE LIGHT ON HOW TO USE THE ATR FOR STOP LOSS (THE ATR * 1.5 FORMULA), I FIND IT DIFFICULT TO KNOW THE ACTUAL NUMBER TO PICK FROM THE ATR VALUE

[@NoNonsenseForex]

Watch my risk video.

[@livash7845]

Thanks man!!that's I want know!!!

[@datarecovery7846]

Good reminder - 2% ONLY

[@Calraq]

Great video as always! I know you aren't a fan of forex books but what are some of your favorite books?

[@NoNonsenseForex]

I think it's episode 31 of the pod, check it.

[@Calraq]

No Nonsense Forex Thank you!

[@mistersmith8962]

ForEx In the U.S.? Ain't nobody got time for that!

[@justgjt]

M M is the grail . .

[@pispopd]

Hmmm - emotional investment in trades.................think I've done that before :/

[@ricardito700]

Ready to attack this week 🙏🏽