I love interacting with fellow traders.
I guess we are a different breed. Although I have been trading for years, it has only been the last 7 or 8 years that I started achieving consistent success.
There are many different setups that work, some with indicators and others with a naked chart. You can have success with either and anything in between. I know because I have.
When I first started trading years ago, I would buy every book that came out. I went to trading seminars more than a few times. As the years passed, I started searching the internet for every new trading system that would come along. I was going to find "that system" one way or the other. I'm very sure many of you on this forum have been there. In fact, I'm 100% sure some of you are there now.
I'm going keep this thread going with a very good and very effective method. I use some moving averages but you can trade with the same logic with a naked chart if you choose. I think the SMA's help me see things quicker so I can sift through all the pairs quickly.
The trade will always have an initial hard stop. This will always be 1% of my balance so position sizes will change accordingly. Take profits will vary as I am always looking to get that runner. I usually move the stop to break even once the trade is ahead more than the initial risk.
The timeframe is very important to me. I have had some success trading on lower timeframes but I have found it does not suit me. I do not like the way I feel when trading small timeframes. That said, I mainly trade the daily charts.
It is a good idea to be aware of news and news events. Of course, with President Trump things can and do change on a dime sometimes. But do be aware.
The pairs I look at are all the major and minor crosses. I do not look at exotics. This is not to say you cannot. I just don't.
So here is my method. I use 3 simple moving averages. The 200, 50 and 20.
The 200 will determine the direction I will trade. Prices above, I'm looking to go long. Prices below, look to short. Pretty simple.
For a long trade, I want the 20 and the 50 going up with a nice slope. When they are close together and criss crossing all the time, I'm not interested. The short trade is just the opposite with the averages going down. The idea here is to avoid non trending markets.
The entry setup is something most of us have seen many times before. I look for a pullback or relief rally into the area of the 20 SMA. Here you simply look for a reversal setup. You will get a nice stop loss area which would be the high or low of the rally or pullback. Here you determine your size based on the PIP risk.
Once in the trade, the fun begins. I normally just leave it alone until my profit exceeds my risk. At which point, I will often move stop to break even.
As I said at the beginning, I am looking for runners or huge moves. Sometimes, however, your trade will com in to a strong support or resistance area. Depending on how I feel and the situation presenting itself, I may take 1/2 off or on rare occasions pull the plug on the whole trade.
In most cases, I let it run by moving stops to daily fractals that form along the way. If you go back and look at daily charts you will see that some of these runs go a long, long way.
So now what? What will I be doing on this thread? Although I do enjoy helping others, I like the idea of running this thread to keep my trading relevant.
I am going to make posts explaining what I am looking at and why. I am hoping others will do the same. Collaboration is a great thing. Hopefully some of you will post your thoughts and ideas based on the straight forward concepts mentioned in this post.
It is also helpful to post or talk about things that we all just need to get out or vent. An example would be getting your stop hit by 1 PIP and then see the market roaring in the the direction of your original trade. I say vent! Yell, scream, bitch and moan. The key, however, is to QUICKLY, forget about it and let it go. This may be the most important thing we need to learn if we want to have success trading.
Finally, let me answer the question as to why the name 6200trading. I move to Toronto from NY a couple of years ago. The address of my place has the street number of 6200 and I trade mostly from there. Thus 6200trading.
I just to a quick glance at the daily charts. I will take a harder look Sunday evening here in Toronto. There are many trending pairs in play right now so next week should bring some great trading opportunities.
If you look at the USD crosses you will see that there some good possible candidates. We will see. I will post most likely after the Asian Market opens for the week.
good thread start and impressive stats more then 200 trades and your up! will follow intently - one thing though could you attach some charts to illustrate your concepts
I just took a glance at the charts and found a couple possible entries for the beginning of the week. They both involve the CAD. I will be looking at the USD/CAD and the EUR/CAD to go short.
If someone wants to put the daily charts up with 200, 50 and 20 SMA's you will be looking at the same thing I am.
The EURCAD has price drifting along the 20 SMA. Nice gap to 50 SMA. Possible short trade.
Very good trading method/strategy and I enjoy reading your intro and history in forex trading,thank you for taking the time and effort for posting in detail :-)
Below are screenshots of USDCAD and EURCAD as you suggested.
Thank you for the charts.
Also the price is firing above and below the moving averages like crazy. What does this mean to you?
To me it means, stay out and find something clear to trade.
To sum up you are looking for very clean charts with a nice healthy gap between the averages.
I just did a quick look at the calendar for the week. It looks like most of the RED news involves the AUD and NZD midweek and beyond. The US has some RED as does GBP.
That being said, we must always be wary of the Tweets from President Trump, uneasiness in the Middle East, North Korea and the China/US trade situation.
To add to this we have the new hardball thrower in the U.K.
It is a good rule to stay close to the news of the day.
And before I forget.....
My thoughts and prayers go out to the families, friends and loved ones of those killed and injured in the terrible shooting sprees in El Paso, TX and Dayton, OH.
God bless and be with all of you.
I am now short the USDCAD. It looks like the EURCAD is not done with it's relief rally.
I'm excited about this thread/strategy. So much so that after years of poking around on FF, I decided to create a profile so that I may participate too. Excellent work thus far and you have the stats to show this is legit.
To use an American Football analogy, there are many good offensive and defensive systems. The team that wins executes their system the best. Teams do not use many different systems. The good teams that win use one.
The reason I use the method I do is because number one, it works...but also I like it and it's easy for me. It comes natural now.
Execution of a good system will make you successful if not wealthy.
I just took a peek at the charts. As far as I can see, the pair in play is the one I am short. The USDCAD.
The EURCAD that I mentioned yesterday is dead for now.
The key to success is to be patient. If there is nothing to trade, I do not trade.
With the USDCAD pair, does it matter that the 20 ema is pointing upwards ahead of taking the short?
The 50 ema is certainly pointing downwards and, with the 20 pointing upwards, it stopped me taking the short trade initially.
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