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Trading Made Simple 138,928 replies

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Trading Made Simple(r)

Quoting Bluejay12
{quote} You get enough pips to put all your eggs in a couple pairs and plenty of opportunity every week ? Doing it that way ?
Sure. I am a happy camper to finish a trading week with +2R. Those are more than enough pairs to make that happen.
Emotion - it steals your money.
Swift Trade All Time Return: 7.8%
EURUSD trailing stop hit for +2R
Attached Image (click to enlarge)
Click to Enlarge Name: EURUSD+H4.png Size: 54 KB
Emotion - it steals your money.
Swift Trade All Time Return: 7.8%
Just want to remind folks about good money management. I have lost 5 trades this week and won 3 (that's a dismal 37.5% win rate) yet I am up +2R for the week. Keep your winners bigger than your losers and NEVER take more than a 1R loss.
Emotion - it steals your money.
Swift Trade All Time Return: 7.8%
who's going to short USDCAD next candle?
Quoting paroucia
who's going to short USDCAD next candle?
It looks nice, but I am not taking it the SL is to far away
Quoting TheSpoof
Just want to remind folks about good money management. I have lost 5 trades this week and won 3 (that's a dismal 37.5% win rate) yet I am up +2R for the week. Keep your winners bigger than your losers and NEVER take more than a 1R loss.
How do you put your SL? ATR(7)? 2*ATR(7)?
Thanks
Trade Safe !
Quoting marcara
{quote} It looks nice, but I am not taking it the SL is to far away
good point. also as i see for about past month it's too tight for trading. something like sidways or ranging!
Quoting Goodgame42
{quote} How do you put your SL? ATR(7)? 2*ATR(7)? Thanks
I generally either use the the high/low of the signal candle or the midpoint of the signal candle. I trade aggressively, but if you look at the charts most successful trades never retrace past the 50% mark of the signal candle (not counting very small ones obviously) and go onto 2-3R profit relatively quickly.
Emotion - it steals your money.
Swift Trade All Time Return: 7.8%
Quoting paroucia
{quote} good point. also as i see for about past month it's too tight for trading. something like sidways or ranging!
What the hell. Lets go short and see what happens. Everything looks good here
Quoting TheSpoof
{quote} I watch six pairs and oil and I have often thought of dwindling it down to just one or two. I used to trade gold but I find it too volatile. Oil can trend really nicely which is why I like it. The pairs I trade are AUDUSD, EURUSD, GBPUSD, EURJPY, USDJPY, and USDCHF. I think if I were to chose two pairs it would be AUDUSD and GBPUSD. Watching too many pairs and managing the trades is too stressful for me - don't care for it. Not to mention that I thinks o many pairs are correlated which just invites over trading.
What about Dax30 or the E-Mini Nastaq? Anyone tried trading it with this method?

I really only want to focus on just one market, I think it’s much better to do that and get a good understand or the rhythm of price instead knowing a little from dozens of different markets.

However like said I am not sure if this will be enough to reach my weekly/monthly targets.

Lets say you start on Monday looking at this one 4H chart selected for your trading, what if market looks like a total mess with no clear direction lots of upside down. I mean 1 candle represents 4 hours here so you probably don’t even need to look at it Tuesday again because it maybe will take days/weeks or even a month before it turns into a cleaner market structure again you want to enter on a valid signal.

So this would mean no trade, no profits for 30 days, then after 30 days you finally get a valid signal + the good looking market condition you want to trade in and this is going to be a loss, so you wait another X long time for the next setup only for recovering that last losing trade.

So no idea how to realize my goals with trading this method on H4 preferable only trading one market.

Appreciate any help.
Quoting lddd
{quote} What about Dax30 or the E-Mini Nastaq? Anyone tried trading it with this method? I really only want to focus on just one market, I think it’s much better to do that and get a good understand or the rhythm of price instead knowing a little from dozens of different markets. However like said I am not sure if this will be enough to reach my weekly/monthly targets. Lets say you start on Monday looking at this one 4H chart selected for your trading, what if market looks like a total mess with no clear direction lots of upside down. I mean 1 candle...
This is why I look at 6 pairs and oil. I don't look at anything else because it is just too much. I believe those are enough to get me at least 2R per week. I can't see all of them being a choppy mess in a week and if they are I guess I don't make any money that week I don't have an actual target because I have no idea what the market is going to hand out in a particular week. I just know that if I can have one 2R net winning trade for the week I can pay the bills. Some weeks I get that, some less, and some more. I am sitting at +7R so far for July.
Emotion - it steals your money.
Swift Trade All Time Return: 7.8%
Quoting TheSpoof
{quote} This is why I look at 6 pairs and oil. I don't look at anything else because it is just too much. I believe those are enough to get me at least 2R per week. I can't see all of them being a choppy mess in a week and if they are I guess I don't make any money that week I don't have an actual target because I have no idea what the market is going to hand out in a particular week. I just know that if I can have one 2R net winning trade for the week I can pay the bills. Some weeks I get that, some less, and some more. I am sitting...
What again you mean by „R“ ?
Quoting lddd
{quote} What again you mean by „R“ ?
R= risk taken 1R can be 100 dollar or 2 percent of the account. If you go for 2 R you go for doubble what you risk for example 500 dollar or 5 percent of account size

Best regards
Quoting lddd
{quote} What again you mean by „R“ ?
As jgadefelth mentioned above. My stop loss is set at a location such that it will give me, for example, a $100 loss (including commission) if hit that is 1R and I am looking for at least a $200 (plus commission) take profit which is 2 times my risk or 2R. So if my risk is $100 on each trade and I am up 7 times my risk, or 7R, then I have made $700 in profit. Last month I had an overall 1.32R loss (tried my hand at some stocks...didn't go well). I only deal with dollars and not pips or percentages and my dollar amount risked is always the same on every trade until I decide to increase it.
Emotion - it steals your money.
Swift Trade All Time Return: 7.8%
Quoting TheSpoof
{quote} As jgadefelth mentioned above. My stop loss is set at a location such that it will give me, for example, a $100 loss (including commission) if hit that is 1R and I am looking for at least a $200 (plus commission) take profit which is 2 times my risk or 2R. So if my risk is $100 on each trade and I am up 7 times my risk, or 7R, then I have made $700 in profit. Last month I had an overall 1.32R loss (tried my hand at some stocks...didn't go well). I only deal with dollars and not pips or percentages and my dollar amount risked is always the...
Like you told me you are not able to forecast what the market is willing to give you, what if the 2R target doesn’t get reached and price reverses back from let’s say a trade already haven been 180 pips in floating profit?

Do you constantly monitor such 4H trade and how, do you look at the trade on each new 4H candle open to see if there might be a sign of price is going to reverse to the opposite?

I mean it would be stupid to let a 180 pips trade which is already in profit turn back against you hitting your fixed 100 Pips stop loss just because that 2R target was only reached for 90%.
Quoting lddd
{quote} Like you told me you are not able to forecast what the market is willing to give you, what if the 2R target doesn’t get reached and price reverses back from let’s say a trade already haven been 180 pips in floating profit? Do you constantly monitor such 4H trade and how, do you look at the trade on each new 4H candle open to see if there might be a sign of price is going to reverse to the opposite? I mean it would be stupid to let a 180 pips trade which is already in profit turn back against you hitting your fixed 100 Pips stop loss just...

what is the option ? to have no target and just a trailing stop and also get out when indicators tel you too ? But also with a trailing stop and indicator shifts you give something back to the market

Best regards
Quoting lddd
{quote} Like you told me you are not able to forecast what the market is willing to give you, what if the 2R target doesn’t get reached and price reverses back from let’s say a trade already haven been 180 pips in floating profit? Do you constantly monitor such 4H trade and how, do you look at the trade on each new 4H candle open to see if there might be a sign of price is going to reverse to the opposite? I mean it would be stupid to let a 180 pips trade which is already in profit turn back against you hitting your fixed 100 Pips stop loss just...
This is why I shed risk as the trade progresses. I trail my stop every four hours (just like RH says) to reduce my risk and lock in profit. Will I always get a 2R? No. But when I do get it the 2R win is far larger than my losses. I take the occasional full 1R but mostly not. Even if I were to reduce my risk to 0.5R and left it there my 2R wins now become 4R wins without having to push the take profit further away from the entry (the further your TP the less likely it will be hit).

It sounds to me as though you are trading with fear and greed. I don't care what the outcome of each individual trade is. I know and trust that over a large number of trades I am going to come out ahead because my wins are much bigger than my losses and I never let my losses go beyond 1R or take revenge trades or increase my position size to make back a loss. Even if I didn't trail my stop to reduce my losses and left a 1R stop and a 2R take profit I'd still be profitable losing half my trades. Look at this week so far. I only won 37% of my trades yet I am 2R in profit because I keep my losses small. My risk value allows me to take 20 full 1R losses in a row - not ever going to happen. My overall win rate is ~45% (not just with RH's methods) and because I shed risk I don't take many full 1R losses my 2R wins really start to add up.

I am actually contemplating increasing my initial risk since I don't take full 1R losses often. I will see how well RH's methodology pans out for me over the next few months and I may just do that. I view the stop loss as more of an emergency/worst case scenario type thing and quickly reducing the risk as the trade moves will allow me to take a larger risk to get a larger reward more often than not - theoretically I believe it comes down to trusting your methods, money management, and skill at keeping one's emotions in check. If you have all that dialed in why not make larger trades? I think trading small is a sign of fear and trepidation and lack of confidence in oneself and one's methods.
Emotion - it steals your money.
Swift Trade All Time Return: 7.8%
Quoting TheSpoof
{quote} This is why I shed risk as the trade progresses. I trail my stop every four hours (just like RH says) to reduce my risk and lock in profit. Will I always get a 2R? No. But when I do get it the 2R win is far larger than my losses. I take the occasional full 1R but mostly not. Even if I were to reduce my risk to 0.5R and left it there my 2R wins now become 4R wins without having to push the take profit further away from the entry (the further your TP the less likely it will be hit). It sounds to me as though you are trading with fear and greed....

You have found your holy grail in trading...

everyone has your own holy grail in you.... keep on working at it.

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Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
Quoting TheSpoof
{quote} This is why I shed risk as the trade progresses. I trail my stop every four hours (just like RH says) to reduce my risk and lock in profit. Will I always get a 2R? No. But when I do get it the 2R win is far larger than my losses.
Thanks for your kind help and detailed feedback. i understand, yes i would pretty much do the same.

No i am not trading with greed and fear. I am just trying to figure out a trading plan that could fit my
personality trading this method on a higher time frame while providing a realistic chance to reach my goals.

I think I will simply have to try. Will post some chart examples of trades taken hopefully soon, right at the moment I am quiet to busy with my other businesses.

thanks again so far ;-)
Quoting emmanuel7788
{quote} You have found your holy grail in trading... everyone has your own holy grail in you.... keep on working at it. {image}
Well...so far so good anyway. After 5 years of very unprofitable trading and ignoring the one thing that was causing my losses - trading psychology - I am finally starting to figure it out. I was the reason for being constantly unprofitable not the trading system, the market, the "big boys", or my brokers. I mean just look at all the traders here not being able to follow RH's simple methodologies My trading literally turned 180 degrees over night when I adopted good trading psychology.
Emotion - it steals your money.
Swift Trade All Time Return: 7.8%
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