10PipDirectional TE
I went ahead and set up a TE for the FXCM MT4. It should be up and running with funds shortly.
Pair Focus
The TE will focus on pairs with obvious and prolonged trends on higher time frames (Daily) and will largely concentrate on the majors (EUR/USD, GBP/USD, and USD/JPY; I may throw in EUR/GBP, too), in order to take advantage of the lower spreads/commissions for these pairs.
Basic Set-Up
1. Lot/position sizes will be between .5 times equity and 1 times equity. I have yet to decide on the factor of equity I will use, but given the number of pairs that are likely to be open at any given time, even a 1 x equity per position should provide an adequate safety margin between max position exposure and 10 x equity, which is the maximum exposure I want to have to all open positions at any time.
2. The Grid. The best way to illustrate the set-up is by way of example. EUR/USD, for example, is currently trading at 1.1315. Assuming that I ascertain that EUR/USD is likely to continue lower, the directional grid will be set up as follows:
Sell EUR/USD at 1.1310/TP 1.1300.
Sell EUR/USD at 1.1300/TP 1.1290.
Sell EUR/USD at 1.1290/TP 1.1280.
Etc., etc.
3. Size of Grid. In most cases, I will let the 3-Level ZigZag Semaphore indicator be determinative of how deep the grid goes, with the last grid level in the series stopping slightly above where the indicator shows is a previous low or slightly below where the indicator shows a previous high is present.
4. "Danglers." With this type of grid, "danglers" are inevitable. This occurs when price hits a grid level and then retraces. I will dispose of these as I would with any Fib Retracement Pivot Point-based entry. In other words, I will add to the position as appropriate using the Fib Retracement Pivot Points as a guide, proceed to adjust the TP for the net position to fit into the directional grid, and add grid levels between the net position TP and the next outstanding grid level, assuming that it is apparent that the direction of the grid is consistent with a pair's long-term trend.
5. ROI Goal. There is no ROI goal for this particular TE.
I went ahead and set up a TE for the FXCM MT4. It should be up and running with funds shortly.
Pair Focus
The TE will focus on pairs with obvious and prolonged trends on higher time frames (Daily) and will largely concentrate on the majors (EUR/USD, GBP/USD, and USD/JPY; I may throw in EUR/GBP, too), in order to take advantage of the lower spreads/commissions for these pairs.
Basic Set-Up
1. Lot/position sizes will be between .5 times equity and 1 times equity. I have yet to decide on the factor of equity I will use, but given the number of pairs that are likely to be open at any given time, even a 1 x equity per position should provide an adequate safety margin between max position exposure and 10 x equity, which is the maximum exposure I want to have to all open positions at any time.
2. The Grid. The best way to illustrate the set-up is by way of example. EUR/USD, for example, is currently trading at 1.1315. Assuming that I ascertain that EUR/USD is likely to continue lower, the directional grid will be set up as follows:
Sell EUR/USD at 1.1310/TP 1.1300.
Sell EUR/USD at 1.1300/TP 1.1290.
Sell EUR/USD at 1.1290/TP 1.1280.
Etc., etc.
3. Size of Grid. In most cases, I will let the 3-Level ZigZag Semaphore indicator be determinative of how deep the grid goes, with the last grid level in the series stopping slightly above where the indicator shows is a previous low or slightly below where the indicator shows a previous high is present.
4. "Danglers." With this type of grid, "danglers" are inevitable. This occurs when price hits a grid level and then retraces. I will dispose of these as I would with any Fib Retracement Pivot Point-based entry. In other words, I will add to the position as appropriate using the Fib Retracement Pivot Points as a guide, proceed to adjust the TP for the net position to fit into the directional grid, and add grid levels between the net position TP and the next outstanding grid level, assuming that it is apparent that the direction of the grid is consistent with a pair's long-term trend.
5. ROI Goal. There is no ROI goal for this particular TE.
Fireworks are fun ... as long as you don't blow your fingers off.