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  • #61
  • Apr 19, 2020 8:16am Apr 19, 2020 8:16am
Quoting ingo3344
Thanks for your help, too bad your forum is already full
Contribute as much as you can, I am sure there will be a place available for the ones who are showing they really are up for it...
  • #62
  • Apr 19, 2020 8:16am Apr 19, 2020 8:16am
Quoting Patje
{quote} This is definitely advanced, I am sure Laura will cover that further in the thread...
All you touch and all you see, is all your life will ever be.
  • #63
  • Apr 19, 2020 8:44am Apr 19, 2020 8:44am
Quoting Degolep
LauraT which tf do you trade the most? Any specific pairs that you trade? Lower adr or higher adr?
Hi,

As Patje says, the methodology can be applied across all timeframes/instruments. But me personally, I tend to mostly trade the 1m Dow and 1m Oil. When I'm trading currencies it will either be with a short-term view (5m or 15m charts) or with a long-term view (4H or Daily charts). I don't tend to pay too much attention to whether currency pairs are high or low ADR, except in relation to money management (which I'll get onto later). I do however like to ensure markets I trade are highly liquid and don't have oppressive spreads.

Hope this helps.
  • #64
  • Apr 19, 2020 8:47am Apr 19, 2020 8:47am
Hi Guys, I trade mostly the Dax ( DE30 ), now if you look at Fridays 5min chart, you would have missed that runaway train before market close because there was no pullback, or am I missing something ?

Sorry, my bad, I should have checked the 1 min chart, there are a couple of entry points.
  • #65
  • Apr 19, 2020 8:49am Apr 19, 2020 8:49am
Quoting portergw
Hi Guys, I trade mostly the Dax ( DE30 ), now if you look at Fridays 5min chart, you would have missed that runaway train before market close because there was no pullback, or am I missing something ?
Please post a chart with it
  • #66
  • Apr 19, 2020 8:51am Apr 19, 2020 8:51am
Quoting Loftboy
{quote} Hi Laura, It looks like there are some good profits to be had if the channel is a fair way from the 200 MA and a trade is taken towards the 200 MA. Is this OK, or is this considered more advanced?
There can be instances where this is viable but, as Patje says, it's definitely advanced and I would advise against trading it for now. It'll be much easier to make profit trading away from the SMA. The problem with reversion to the SMA is that often the trend will be so strong that the SMA will move to the channel instead of vice versa. As per this dow example:

Attached Image (click to enlarge)
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Interesting question though, I like that you are thinking about the bigger picture
  • #67
  • Apr 19, 2020 8:55am Apr 19, 2020 8:55am
Quoting LauraT
{quote} There can be instances where this is viable but, as Patje says, it's definitely advanced and I would advise against trading it for now. It'll be much easier to make profit trading away from the SMA. The problem with reversion to the SMA is that often the trend will be so strong that the SMA will move to the channel instead of vice versa. As per this dow example: {image} Interesting question though, I like that you are thinking about the bigger picture
Thanks for your time. I was just think of a few extra pips on a reversal. (Greedy sod).
All you touch and all you see, is all your life will ever be.
  • #68
  • Apr 19, 2020 9:05am Apr 19, 2020 9:05am
Quoting portergw
Hi Guys, I trade mostly the Dax ( DE30 ), now if you look at Fridays 5min chart, you would have missed that runaway train before market close because there was no pullback, or am I missing something ? Sorry, my bad, I should have checked the 1 min chart, there are a couple of entry points.
With the Dax, much like the Dow, I find I really have to focus on the 1m chart, especially in these current volatile times. Here's Friday's chart with the two opportunities you've mentioned

Attached Image (click to enlarge)
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This brings me to another point though. Runaway trains. Part of the discipline required to successfully trade this methodology is being able to avoid chasing price. Yes, there will be cases where we just never get a chance to get in and that's okay. There are so many opportunities each day, spread across markets, that we don't have to dive into such strong-moving markets and risk buying at the top/selling at the bottom.
  • #69
  • Apr 19, 2020 9:21am Apr 19, 2020 9:21am
Thanks LauraT, and yes absolutely, discipline plays a major role in trading.
  • #70
  • Apr 19, 2020 9:29am Apr 19, 2020 9:29am
Subscribed! Appreciate the setup explanation, trade examples and the approach to focus on channel trades & channel failures.. Will closely follow this thread.
  • #71
  • Apr 19, 2020 8:38pm Apr 19, 2020 8:38pm
Subscribed! It is refreshing to learn your style of trading. Thank you for taking the time to outline your system. I can't wait to learn more in-depth about your successful trading methodology.
  • #72
  • Apr 20, 2020 12:46am Apr 20, 2020 12:46am
Good morning traders

Let's run through a few charts before the trading day starts.

Attached Image (click to enlarge)
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I was asleep when this set up but, if anyone was awake and caught the channel entry on oil, you should be sitting on a very nice profit right now! Notice how the decline was originally halted by a 'locked' ADR low. Today I'd watch for a break of that ADR low, then perhaps a re-test before price falls further. Alternative scenario is that ADR low holds and price rises. Due to bias though, I wouldn't be looking to take any long trades.
  • #73
  • Apr 20, 2020 12:51am Apr 20, 2020 12:51am
Quoting LauraT
{quote} With the Dax, much like the Dow, I find I really have to focus on the 1m chart, especially in these current volatile times. Here's Friday's chart with the two opportunities you've mentioned {image} This brings me to another point though. Runaway trains. Part of the discipline required to successfully trade this methodology is being able to avoid chasing price. Yes, there will be cases where we just never get a chance to get in and that's okay. There are so many opportunities each day, spread across markets, that we don't have to...
Well, my first attempt at this (for me) new system and it blew another demo account. Lessons? It was the Asian session, I'm in Australia, maybe the price was too far from the 200 MA, (130 pips)', maybe I should have had a S/L, or maybe I'm just crap as a trader. It was on Gold.
All you touch and all you see, is all your life will ever be.
  • #74
  • Apr 20, 2020 12:55am Apr 20, 2020 12:55am
Dax...

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Notice how Friday's High (dotted blue line) is cushioning price right now. My hope would be for an eventual long entry on the basis of a channel entry but we'll see how it progresses this morning.

EU...

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Well, well, well. An active channel failure. I'll be waiting for price to retrace near to the upper band before getting short.
  • #75
  • Apr 20, 2020 12:55am Apr 20, 2020 12:55am
Quoting Loftboy
{quote} Well, my first attempt at this (for me) new system and it blew another demo account. Lessons? It was the Asian session, I'm in Australia, maybe the price was too far from the 200 MA, (130 pips)', maybe I should have had a S/L, or maybe I'm just crap as a trader. It was on Gold.
I’ll go with.... all of the above

It takes a lot for me to IGNORE you, but you can try.
  • #76
  • Apr 20, 2020 12:57am Apr 20, 2020 12:57am
Quoting Loftboy
{quote} Well, my first attempt at this (for me) new system and it blew another demo account. Lessons? It was the Asian session, I'm in Australia, maybe the price was too far from the 200 MA, (130 pips)', maybe I should have had a S/L, or maybe I'm just crap as a trader. It was on Gold.
Do you have a chart showing your trade(s)? I can go through it for you if it's helpful. I'm glad it was demo, I know I haven't covered money management yet but let's look at the trade and see where you went wrong.
  • #77
  • Apr 20, 2020 1:22am Apr 20, 2020 1:22am
Quoting Loftboy
{quote} Well, my first attempt at this (for me) new system and it blew another demo account. Lessons? It was the Asian session, I'm in Australia, maybe the price was too far from the 200 MA, (130 pips)', maybe I should have had a S/L, or maybe I'm just crap as a trader. It was on Gold.
I've had a look at a 1m Gold chart and marked the entry points for channel trades. Were your entries very different to this?

Attached Image (click to enlarge)
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  • #78
  • Apr 20, 2020 1:29am Apr 20, 2020 1:29am
Quoting LauraT
Dax... {image} EU... {image} Well, well, well. An active channel failure. I'll be waiting for price to retrace near to the upper band before getting short.

The EU price went further down, are you still looking for a retrace to the upper band or let this trade go?
  • #79
  • Apr 20, 2020 1:33am Apr 20, 2020 1:33am
Quoting FlyingCat
{quote} The EU price went further down, are you still looking for a retrace to the upper band or let this trade go?
Retrace happened
  • #80
  • Apr 20, 2020 1:45am Apr 20, 2020 1:45am
Hi Laura,
Firstly, I wanted to thank you for sharing your strategy with us. I feel really fortunate to have happened across it and be able to learn in real time.

My question is to do with the universe markets that you monitor/trade. From your previous post, it sounds like you focus on Dow and Oil and at times currencies. I’m wondering under what conditions you would trade the currencies and which ones? Do you routinely monitor all of them or somehow filter down the list to the most promising to focus on?

It seems like a lot of the major and minor pairs could potentially work from a liquidity/spread perspective. However, visually monitoring them all throughout the day would be a lot of work. So I'm wondering how I kind of choose among them.
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