Consequence EL Trading
Trade Price Consequence… in other words, follow the price like a hound dog to plant winners.
Simply following the footstep of the price by trading the hiccups which automatically keeps you intact with the current direction inside the short TF of 5M.
With this method we only look for short gains till achieve the daily goal and turn off the platform.
All you need is your two sets of eyes, couple of horizontal lines to determine your next entry and some commonsense.
Early Level (EL)… every time there is a price hesitation and 2 candle pullbacks, you got yourself a trade-able Level… You MUST only trade the earliest developed level and be quick to void the previous one. Your have two options to draw your EL's... you can draw it at low or high of the candle (like the chart image below) or at the close of the candle. I personally use both ways depending on the market condition and the size of the wicks... however mostly I use the close.
No indicators of any kinds to indicate anything whatsoever.. such as where the trend could be or going to be or turning or whatever a heck else, too much analysis in scalping is irrelevant if you ask me… snipers get snip in the end, lol.
Target… I look to snag 5pips out of time unless price in supremely generous and gives away more on some striking move.
Stop… I look to not get snagged for more than 5 pips on an average… the goal is to have an average loss of 5 or less.
So, there are no set in stone target/stop of 5 & 5 for the purpose of giving the trade the necessary room and time for not falling victim to premature exits. However an emergence hard stop away from the heat, is necessary, ie 20-30 pips... and definitely the stop to not be beyond your opposite pending order so you would avoid being in a hedge situation... one trade out of time and never two open trades at the same time... this will keep you safe from getting stuck in large losing trade to act as a an eliminator.
This is very much a hands on style of trading with visual stop/target where it requires a true scalper skill for quick, but balanced thinking, feeling and reacting.
The plan is to bank a quick-clean winner, period… anything short of that sequence would consider as a sign of weakness for that level at that time.. which urges the act of survival-seeking play game to exit for the least damage or a breakeven one… and yes, all manual baby.
To give you an idea of a busted trade, it would look like: a sharp move against your position quickly after trigger, or a travel of 5 pips or more against your position quickly post trigger, or trade simply taking too much time to make a move either way in a hanging mood… these are all pretty good signs of weakness from top of the list which indicates, to exit, to exit the trade and look for the next one.
This thread will show you how to sharpen such skills with my hands on live play with a small TE attached for reviews etc,.
I have traded this way for a long time and some of this kind of skills and tactics have been presented and used in my Scalper thread as well which some of you might have followed in the past.
Ok… daily goal is 15 pips… the quest to get 15 each day and no quitting till you get it. On the flip side, if you lose 20-30 pips it’s wise to stop for that day.
MM… I highly recommend to risk no more than 2%... for beginner’s go down to 1%. The skill full players with small accounts can risk more but no more than 5% ever, with large accounts risk 1%... I personally risk 1% on my large account and for small account like the TE attached 4-5%.
The calculation will go like this: balance x 1% / avg loss = pip size ( $1000 x 1% = $10 / 10pips = $1 or 0.10 lot size).. now average loss will vary for everyone... mine is no more than 10pips ever at worst and usually around 5pips.
Pair… I only trade the EU for various reasons… low spread, quicker fill, higher liquidity factor as a leading fx pair, more reliable moves and more importantly of all, sticking to one pair for better focus concentration to develop the necessary feel/sense to trade it masterfully.
News… watch out for major red EU news… no trade 10 minutes before and after price settle down... prior to news if you got a pending order you should delete it... if you got a ongoing trade I advise to close.
Working hours… EU open to close.
… and last but not least the good ol Filtering factor… it is useless and I don’t use it, point blank. It only brings second guessing, confusion, complication and worst than all, it would take away the simplicity for not much of a benefit. Please do not bring it here, its a zero tolerance state.
Last but not least please be respectful at all times… no arguing, no taunting, no nagging, no whining, no cussing, no overall f-ing around… trading is a serious business, treat it like one… on the flip side, positivity, humor, overall energetic vibrant attitude and activity is fully recommended and welcome.
oh almost forgot... a lil about me.. I am a blunt straight talking sob.. but fun loving guy who keeps it real.
I think I have covered most… welcome to my thread.
EL = Early Entry Level.. QCW = Quick Clean Winner.. DO = Daily Open.. DG = Daily Goal.. FO = Fake Out.. MM = Money Management.. DB = Daily Brief..
My Currency Market/Trading philosophy…
The currency market is a market of constant changes and sudden changes… moves happening at will with no reasonably logical or structural elements behind it, period… at least this would be a fact for short term trading. Hedge funds, banks, major players styling long term with all the money in the world and access to plenty of pre-hand information would consider as a different ball game than regular retail trader.
Therefore, I do not give any weight to probabilities nor market sentiments… there are no edge based on such market philosophy. The edge ultimately will come from skillfulness of maneuvering with the market. I trade current… what price is presenting at the moment, is what the reality is… so following the footsteps of price will free one from all kinds of analysis paralysis pressures that ultimately breaks down the trader.
I am bound to take my chances at the earliest level price presents and to defend aggressively against it in the case of fake outs. I would be involved in any and all market conditions with no fear of losing because of the defensive skill possession. I do not discriminate one signal for another or one market condition, s/r zones, s/d zones or etc, over another… the perception is the reality… no cherry picking, they all present the same amount of chance of achievement and failure.
By staying intact with prices footsteps I feel I have the best chance to win in this market with a solid trading plan in place. Trading in such fashion benefits in two major areas… one, guarantees to be in every break of the market which results in not missing out on any wining moves… two, develops this strong sense and market feel to make the better decisions in the heat of the battle… so to say, the more attached and involved, the more intuitive.
so as follower you can expect and learn couple of major elements above all as a core..
1- Learn to attack and defend at the break of all Earliest Levels (EL)
2- Courage and ability to trade all and any Market Condition.
Important posts to read as the thread moves on:
Passion, Persist, Patience, Protect