Disliked{quote} OAPDave, I really found this post (926) interesting and useful. While I am quite interested in D1 opportunities you have usefully combined things down to a M15 entry using both the MML and your fib tool. And it builds on the powerful idea of confluence. By the way, I guess I need some kind of fib tool like this just now. Setting the manual one is a bit slow and, in my case, possibly drawn incorrectly . . . so the fib tool is really nice at least for the time being. It seems at least some entries down on the H1 or M15 level are *necessary*...Ignored
- #943
- Aug 7, 2017 8:08pm Aug 7, 2017 8:08pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} GBPNZD [Update] {image} Trade #2 entered long just above the 1.77 handle @ 1.77109 Current SL risk for both trades = 4.8% Masterrmind............
I have now adjusted the SL on Trade #2 so that it too sits middway between the octaves.
Current SL risk for both trades is close to 4.95% < 5%.
The preferred SL location for a long entry is at least 50% below the nearest MML of the swing low.
The preferred SL location for a short entry is at least 50% above the nearest MML of the swing high.
In certain situations variations are possible however, the initial trade should follow this basic guideline.
If you look on the chart at where the SL for Trade #2 is placed you will see the swing low just piercing the 0/8 MML level and some discretion is needed here in choosing the next octive down for the SL consideration.
If the swing lows and the lows of the D1 candles actually closed down deeper below the 0/8 MML then perhaps I would have not entered the 2nd long trade since the SL location would be deemed not a reasonable location.
Some flexibility is required in the SL approach but I hope with the 2nd Trade I have taken that the SL location is in a reasonable and logical location on the chart.
If any trader thinks otherwise then please post your comment as positive constructive criticism is always welcome.
So you must identify the entry level then the swing low area or swing high area and then the nearest octave and place the stop on the opposite side.
Note: This SL placement for Trade #2 should have been determined at entry time but no harm done in adjusting it about 30 pips lower today.
Masterrmind.........
Master your Mind then Master your Trades
- #944
- Aug 7, 2017 8:30pm Aug 7, 2017 8:30pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} GBPNZD [Update: SL tweak for Trade #2] {image} I have now adjusted the SL on Trade #2 so that it too sits middway between the octaves. Current SL risk for both trades is close to 4.95% < 5%. The preferred SL location for a long entry is at least 50% below the nearest MML of the swing low. The preferred SL location for a short entry is at least 50% above the nearest MML of the swing high. In certain situations variations are possible however, the initial trade should follow this basic guideline. If you look on the chart at where the SL for...
I know that should price drop below the 0/8 MML then PA and chart structure is showing me that my SL on Trade #2 is very likely to get smashed as the previous lows may get tested.
If you look at where the 2 stops are placed and understand that they both represent very close to a 5% risk limit then it may be necessary to move Trade #1 SL higher up the chart and drop Trade #2 SL down the chart below the lows to the left.
All the while maintaining a common sense and logical SL approach.
What I would look to do if a drop in price occurs is to tighten up the SL on Trade #1 to just under -1/8 MML which would still have it under previous lows (refer to the chart).
This is part of the dynamic SL trade management and not all situations are the same although being a GBP pair it could fan out in a similar way as the previous GBPCHF long setup.
My expectation is that the GBPNZD will hit the next MML level up the chart and possibly pullback a bit (or a lot) before 'favorable' data drives it higher up the chart.
I cannot know the data in advance so this remains a risky trade to the upside since unfavorable data may bring the GN tumbling down.
As traders we can only manage the risk of which we have some control but there will always be risk that cannot be entirely controlled.
This is part of what makes trading such a fascinating profession.
Masterrmind..............
Master your Mind then Master your Trades
- #946
- Aug 8, 2017 2:08am Aug 8, 2017 2:08am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} Hi Masterrmind, the trades are close each other and it is not easy to handle the stop losses in a different way. If you opened the 2nd trade because after the pull back, I would put the 2nd stop below the pull back or if you think a complex pull back can happen below the minimun of the chart. Anyway, adding the second position, I would have moved below the -1 MML the first stop
Yes they are close and you are right managing the SLs is a challenge in a situation like this because of Trade #1's deep stop.
Its another day or so until the high impact news hits this chart so lets see how the 2 trades pan out.
If it wasn't for such a great zone of support I would not have entered the second trade as I tend to like larger gaps between additional entries.
This is an exception but I will control risk as much as possible and stay within the self assigned 5% limit.
Lets see.
ps. I am now contemplating where Trade #3 would be entered based on favorable price action to the upside ... always think a step ahead.
Masterrmind.............
Master your Mind then Master your Trades
- #948
- Aug 8, 2017 4:59am Aug 8, 2017 4:59am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} Masterrmind, with your help I am very happy with the set-ups and how to spot them and the trades , been to the local chemist and bought some JUST DO IT NOW TABLETS so its all up to me to get on and trade now, gone through all my thoughts and ideas nothing left other than (The very interesting stage) so its just mostly a case of watching and reading your posts ready to support you in any way. Thanks
My only wish is to have traders show live accounts (eventually) that produce growth at a greater rate than the DD over a long period of time.
They really only have to convince themselves that they can trade consistently and be profitable and control the risk.
Good trading,
Masterrmind............
Master your Mind then Master your Trades
- #949
- Aug 8, 2017 5:23am Aug 8, 2017 5:23am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
AUDUSD [D1 QUAD]
CHFJPY [D1 QUAD]
Masterrmind.............
CHFJPY [D1 QUAD]
Masterrmind.............
Master your Mind then Master your Trades
- #950
- Aug 8, 2017 5:36am Aug 8, 2017 5:36am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
AUDUSD [D1 QUAD] {image} CHFJPY [D1 QUAD] {image} Masterrmind.............
From a technical point of view what is the risk of going long now ?
Hint: a) Fibs, b) MML
Based on the above where would an ideal place be to long this symbol ?
How sure can you be ?
Masterrmind............
Master your Mind then Master your Trades
- #951
- Aug 8, 2017 6:08am Aug 8, 2017 6:08am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} CHFJPY From a technical point of view what is the risk of going long now ? Hint: a) Fibs, b) MML Based on the above where would an ideal place be to long this symbol ? How sure can you be ? Masterrmind............
Masterrmind.............
Master your Mind then Master your Trades
- #952
- Aug 8, 2017 6:23am Aug 8, 2017 6:23am
- Joined Jan 2015 | Status: Trader | 5,144 Posts
{quote} CHFJPY {image} Masterrmind.............
- #953
- Aug 8, 2017 7:23am Aug 8, 2017 7:23am
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} That chart is pure magic, cannot be a better way to show how to trade
Pity its not the greatest of movers but it does ok in its own right.
Look for price to drop down closer to the 112.500 price or 0/8 MML, stop just above the 111 handle looking to TP up closer to the 3/8 MML or above.
If the bulls come in sooner so be it ... just leave it alone and go look elsewhere.
We trade on our terms ... Yes !
Masterrmind............
Master your Mind then Master your Trades
- #957
- Aug 8, 2017 7:35pm Aug 8, 2017 7:35pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
With this live example I would like to show you how I am operating with CAD-JPY It is a very aggressive mode but however not exceeding the risk ( to be honest it is lowering the risk and it sounds not bad ) I know this way of trading ( with small stops ) often can get me out although the direction is correct, but I am wondering if it is better to accept this kind of risk comparing to the risk to get a large loss ( in case of add positions but with large stops ) or to run a trend with one or two positions ( that would lead to a gain but not enough...
Just remember though that you can add in as many as you like and trail all these additional trades within an assigned risk%.
However, unless some trades are taken as profit or locked in at BE or better then a big swing in PA against you can reduce your unrealized gain or stop you out based on the SL risk applied.
As always the adding in of trades looks very simple if price continues to go the way you like but when it reverses then its a different type of trade management needed to minimize the loss.
Keep experimenting with the trade adding and SL placement as its very important.
Masterrmind.............
Master your Mind then Master your Trades
- #958
- Aug 8, 2017 8:19pm Aug 8, 2017 8:19pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
{quote} CHFJPY {image} Masterrmind.............
So what is happening on this pair now ?
Refer back to Post #951.
This is about putting it all together and having price come to you by meeting your expectations.
Then its up to you to determine an entry if an entry presents itself and then manage the risk.
ps. This is a D1 setup so it can take some time to play out and setup so it teaches us to be patient and that is critical.
Good trading,
Masterrmind............
Master your Mind then Master your Trades
- #959
- Aug 8, 2017 8:21pm Aug 8, 2017 8:21pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
Just a quick thank you again to Mastermind, OAP Dave and to Eldero for all of the contributions, I am new to trading and I am learning so much from your kind efforts. Thank you for taking the time.
Masterrmind...........
Master your Mind then Master your Trades
- #960
- Aug 8, 2017 8:36pm Aug 8, 2017 8:36pm
- Joined Jun 2013 | Status: Master chaos and you master trading | 11,287 Posts
Similar situation with NZD-USD {image}
However, on a big swinging GBP pair the situation can be and usually is very very different especially in choppy markets.
This is one reason why on the king of pairs the GN I prefer to manage the risk from the extremes meaning I leave the stops as wide as I can for as long as I can just to allow the pair to make its move.
Sooner or later though the SLs will need to be reined to protect some of the gains.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Additional trades (on a given symbol) can also be added after say a D1 closes beyond the next MML.
Keep the TP uniform with all the others but have the SLs staggered and 2 octave gaps will keep most trades out of trouble and then you can trail the stops 1 octave after price moves favorably an additional octive.
So many ways to play the SL management.
Masterrmind............
Master your Mind then Master your Trades