Central Banks & Big Players

Hi Geomink and Tony!

First I want to thank Tony for his ideas and his system, because he has success and gives his knowledge for free. Most of the really successful trader, and believe me there are only a few of them, don’t explain what they are really doing!
I trade forex since around 12 years and I was also sitting in front of my pc many many hours. Some days I trained, learned and was trading up to 18 hours a day! I know it is crazy, but I am used to train hard to reach my goals from sports, so I did it also in forex. I lost a lot of money, but in the last years it was getting better and better.
The best thing in this thread is the idea of very small stops and big take profits! I only trade this way!
Please don’t understand me wrong, I don’t want to play the super hero. I am not! I made money, but I made also a lot of big mistakes!!!!!!
For geomink, I was in the financial business and so I had to take my trading capital for living, or to survive.
No matter how much money you have, when you learned the basics you can always make money.
Why do I know that? I made a test from mid December 2012 until mid of April 2013. I started with € 18,-- maybe you think it’s a joke. No its no joke, I always trade a new idea with a veeeery low amount of money, I don’t trade demo because you need real money to feel what you are doing, right or wrong!
After this time my account was at around € 200,--. Please don’t understand me wrong, it was not one luky strike, it was a lot of trades with correct money management.
Until the amount of around € 120,-- I was trading my own method, but it is not so important what you was trading in this time, because there was a good trend, and when you learned the basics you make money in this time whatever system you trade.
What was more important for me, I was trading some news manually, no buy or sell limits, with a stop loss of 5 pips and I made around € 80,-- in a very short time, I could not believe it because I also was against trading the news immediately when news are coming out. I also used only around 40% of margin for it!
Tonys method, using buy and sell limits is much better, but I only want to say that it works also with a little amount of money.
Why do I write this long story? I saw that Tony said that he wanted to give something back to receive, and he is right, so I thought maybe I can also help a little bit.
I had also a lot of brokers in the last 12 years, and O……. is one of the best I ever had, because you need a very small spread and if it is possible no slippage. I have a broker in Europe who has also the O…. platform but they have always 1 pip spread, no matter which news there are, and they have also no slippage, I don’t know if I am allowed to write the name? They are veeeeery good, but there is one problem, I wanted to post my account history, but that’s impossible, I can only go back around 1 week of history! Ok that’s not so good, but the spread and slippage is more important for me.
I also read very often that some new trader have 2 or 3 Pips spread. Why is a small spread soooo important for this kind of trading? Because you work with a very small stop loss, and there is a second point which is also very important but many new trader don’t think about that. What is the difference between 1 pip and 2 pips or between 1% and 2%? Most of the newbees will answer, its only 1 or 1%! No its 100%!!!!!!!!!!!!!!! Think about that, and how much money you loose because of that!
Some trader also asked why Tony only recommends EUR News! He knows exactly what he is doing, I think he is veeeeery intelligent! He is the living example, that vodka is good for the brain! (Its only a joke Tony!)
Maybee I am wrong, but there are times when the US are sleeping and there are times when the EU is sleeping, but there are also times when both are trading. What is if one part wants to have a cheap USD and the other wants to have a cheap EUR, if both are trading price goes in all directions, you know that!
But what is if there are times where only one group is trading?
Sorry because of the long post, and Tony if something is wrong or if you say I should delete this post, I will delete it immediately!
Wish you all the BEST!
Erkro

Thanks for yours and Tony's sharing. Indeed the forex world is a cold and heartless place, but I am lucky to have stumbled into this site and thread.

I considered myself a new trader, and it was only recently I decided to make it a full time engagement. I had very mixed successes and failures, my successes were modest, but my failures adds up to be quite epic over time. Thanks to the generous sharing here, I have changed the way I look at trading, I am even seriously considering going to the O platform.

Thanks and wishing you guys every success!

I had a few questions about the new strategy:
1. If one order is triggered do we automatically cancel the order that is not triggered? (OCO)
2. If not, do we cancel an order that is not triggered after a period of time?
3. How soon do we move the SL to zero?
4. Do we filter trades based on the spread?
5. Do we filter trades based on slippage?

Thanks Tony!

Pete

Pete,

As soon as the order is filled, I'll cancel the other that is not, although I'm not sure if that's Tony's intend. I have tried similar strategy before, and had been hit with stop losses on both directions.

If possible at all, you should move SL to zero as soon as you are in positive numbers. But this isn't always possible or necessary. When trading news, the initial surge can be so fast, your profit target or stop loss gets hit before you even had a chance to move the stop loss to zero.

The key to success here is low spread and slippage. Which is why EURUSD is the pair of choice. With a low stop loss strategy like this, difference of 1 pip spread is mammoth. Especially when news release gives a mixed picture, prices would tend to oscillate between two extremes, and you need every bit of space to avoid your stops getting hit.

Slippage is also a major consideration in news trading, because of slippage, your order may get filled at a disadvantageous rate, which makes it a bigger gamble to come out profitable. I have heard of - although never experienced spreads or slippage as big as 20 pips during volatile sessions. So bear in mind, sh!t happens from time to time. Every bit counts! Which is why O broker seems to be so popular here.

Thank you. I work full time so can't trade this strategy manually - I've found a straddle EA so ill start demoing that this week