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Trading Made Simple(r)

  • #101
  • May 27, 2019 6:43pm May 27, 2019 6:43pm
Quoting emmanuel7788
{quote} you missed one ... trading with DISCIPLINE ...
LOL. That one is fairly important too!
Always a Student, Never a Master - Emulate What Works
  • #102
  • May 27, 2019 10:19pm May 27, 2019 10:19pm
Two continuations trades. If we check the daily it's a good possibility for trend change for these pairs.
For these trades I will use exit methods based on color change for 2-3 indicators.

EURAUD 4H:

Attached Image (click to enlarge)
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EURNZD 4H:

Attached Image (click to enlarge)
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  • #103
  • May 28, 2019 2:02am May 28, 2019 2:02am
Quoting kirinda
Two continuations trades. If we check the daily it's a good possibility for trend change for these pairs. For these trades I will use exit methods based on color change for 2-3 indicators. EURAUD 4H: {image} EURNZD 4H: {image}
Exit EURAUD with -31 pips
  • #104
  • May 28, 2019 2:13am May 28, 2019 2:13am
Quoting kirinda
{quote} Used the following method to exit the trade: 6. The HMA Line and the Yellow Line cross to the opposite direction AUDNZD -10pips I think the entry was according to the rules, but when I look at daily timeframe the trend is weak. This week I will check the daily before crossover trades to make sure that I have a clear trend.
Hey Kirinda - yep, the AUDNZD is traditionally a correlated pair so movement is limited at the best of times. I held as i have a feeling the fundamentals will change in the next 12 hours
  • #105
  • May 28, 2019 2:37am May 28, 2019 2:37am
Quoting neil001
{quote} Hey Kirinda - yep, the AUDNZD is traditionally a correlated pair so movement is limited at the best of times. I held as i have a feeling the fundamentals will change in the next 12 hours
It's important to follow the exit rule. This rule you must know before enter the trade and never violate it. In trading never follow your feeling only the rules.
What exit rule do you have?
  • #106
  • May 28, 2019 3:31am May 28, 2019 3:31am
Quoting kirinda
{quote} It's important to follow the exit rule. This rule you must know before enter the trade and never violate it. In trading never follow your feeling only the rules. What exit rule do you have?
lol Kirinda - my exit (and TM rules) have been built over 5 years. But for this trade - If i enter on an H4 timeframe, the SL represents the amount i am prepared to "spend" to find out what the market is going to do. At no point was the SL in play and the higher TF never changed - so i'm still in based on my initial assessment (which was very marginal based on my notes) BUT it was worth the risk "amount" to find out at that time - and my risk size was chosen as 0.25% based on the low score the setup gave. So far the natural rhythm has not been enough to hit my SL so i DO NOT INTERFERE WITH THE TRADE until MY BE point (pre-set at trade entry) is reached and then and only then will i manage the trade further. My feelings i mentioned are about the FUNDAMENTALS - not the trade.... the individual trade will be what it will be.

So for RH exit method - exit for me is rule no 7!!!
  • #107
  • May 28, 2019 3:44am May 28, 2019 3:44am
Quoting neil001
{quote} lol Kirinda - my exit (and TM rules) have been built over 5 years. But for this trade - If i enter on an H4 timeframe, the SL represents the amount i am prepared to "spend" to find out what the market is going to do. At no point was the SL in play and the higher TF never changed - so i'm still in based on my initial assessment (which was very marginal based on my notes) BUT it was worth the risk "amount" to find out at that time - and my risk size was chosen as 0.25% based on the low score the setup gave. So far the natural rhythm has not...
Neil, I see from my own message that I was little rude. Sorry for that. Maybe the tone here at FF start to affect me?

You had a good explanation about your stop loss and trade management.
  • #108
  • May 28, 2019 3:49am May 28, 2019 3:49am
Quoting kirinda
{quote} Neil, I see from my own message that I was little rude. Sorry for that. Maybe the tone here at FF start to affect me? You had a good explanation about your stop loss and trade management.
Lol - kirinda ....no probs, i never read it as rude at all. I do appreciate that FF can be a warzone (i've seen it many times but i am really happy to share my entire trade management strat with anyone that gets involved here to grow - not just to critisize and i absoluteley categorize you in the "good-guy" zone
  • #109
  • Edited 6:17am May 28, 2019 6:03am | Edited 6:17am
Continuation trade.
I will use exit method based on color change for 2-3 indicators.

AUDCAD 4H:

Attached Image (click to enlarge)
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  • #110
  • May 28, 2019 7:08am May 28, 2019 7:08am
I just shorted the EURAUD based on a 4 hr. chart, a Continuation trade. I was a bit late entering because I had guests over for the Memorial Day weekend and they just left.

Amateur traders ask themselves: "How much can I make?"

Professional traders ask themselves: "How much can I lose?"

If I am wrong, I'll lose 20 pips and I have no problem that because of the money management strategy I use, of which I plan to explain in depth soon because someone asked me what my money management strategy was in a private message. And I told them that I would explain it here when I get a chance because I thought many other traders could benefit from learning it.
Always a Student, Never a Master - Emulate What Works
  • #111
  • May 28, 2019 8:09am May 28, 2019 8:09am
Looks like EURGBP struggling going through weekly resistance. Can mean that we get a bigger pullback or reversal: EUR will get weaker and GBP stronger.

Attached Image (click to enlarge)
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  • #112
  • Edited 1:57pm May 28, 2019 11:58am | Edited 1:57pm
One of My Favorite Money Management Strategies

1. Always initiate a trade with 3 units. 1 unit is defined by you, and can be things such as: 100 shares, 1 lot, 1 contract, 100 pips or 1,000 pips, etc.

2. Using the Set-up Bar (usually it's the bar immediately preceding the Entry Bar) you measure the length of the Set-up bar in pips, pennies, dollars, points, etc. and this defines your Initial Risk Amount.

3. The total length of Set-up Bar (in pips for example) + 10 pips defines your Profit Target basis.

------------

When Trading the Forex for Example...

Stops

Long Trades:

1. Place your Stop Loss order 10 pips below the low of the Set-up Bar

2. When the pair appreciates by an amount greater than or equal to your Initial Risk Amount, exit 1/3 of your position and move your Exit Stop on the remaining
2/3's to 5 pips above your entry price. (Break-even + 5 pips)

3. Place an order to exit your remaining position when the price appreciates to 3 times your Initial Risk Amount.

Short Trades:

1. Place your Stop Loss order 10 pips above the high of the Set-up Bar

2. When a pair appreciates by an amount equal to your Profit Target basis, exit 1/3 of your position and move your Exit Stop on the remaining 2/3's to 5 pips below your entry price. (Break-even + 5 pips)

3. Place an order to exit your remaining position when the price appreciates to 3 times your Profit Target basis.

------------

Why I Like It If You Win on All 3 Units:

For Example, Using a Long Trade

Set-up Bar length: 40 Pips

Initial Risk: 40 Pips + 10 Pips = 50 Pips

Exit 1 Unit at +50 Pips

Exit Remaining 2 Units at 3 x 40 Pips = 120 pips x 2 units = +240 pips

Total Profit: 50 Pips + 240 Pips = +290 Pips

OR

You could exit the 1st and 2nd unit as described above and let the 3rd unit run until you decide to exit.

------------

Why I Like It If You Lose on All 3 Units:

Set-up Bar length: 40 Pips

Initial Risk: 40 Pips + 10 Pips = 50 Pips

Exit 3 Units at -50 Pips x 3 = -150 Pips

Total Loss: -150 Pips

------------

Why I Like It If You Win on 1 Unit But Break-even on the Remaining 2 Units:

Set-up Bar length: 40 Pips

Initial Risk: 40 Pips + 10 Pips = 50 Pips

Exit 1 Unit at +50 Pips

Exit Remaining 2 Units at +5 Pips. 5 pips x 2 units = +10 pips

Total Profit: 50 Pips + 10 Pips = +60 Pips

------------

There are many other possible ways to exit using a 3 unit strategy, but you have to figure out which way appeals to you most.

Hopefully I have all the math correct, but if I don't let me know and I will correct it (I'm really tired from a long 3 day Memorial Day weekend entertaining guests).

I'll talk about using Trailing Stops in another post.
Always a Student, Never a Master - Emulate What Works
  • #113
  • May 28, 2019 1:37pm May 28, 2019 1:37pm
Quoting RobinHood
One of My Favorite Money Management Strategies 1. Always initiate a trade with 3 units. 1 unit is defined by you, and can be things such as: 100 shares, 1 lot, 1 contract, 100 pips or 1,000 pips, etc. 2. Using the Set-up Bar (usually it's the bar immediately preceding the Entry Bar) you measure the length of the Set-up bar in pips, pennies, dollars, points, etc. and this defines your Initial Risk Amount 3. The total length of Set-up Bar (in pips for example) + 10 pips defines your Profit Target basis. ------------ When Trading the Forex for Example......
Thanks RobinHood - well done!
Do you have a script or an EA to trigger or do you trade it all manually?
  • #114
  • May 28, 2019 1:55pm May 28, 2019 1:55pm
Quoting kofix11
{quote} Thanks RobinHood - well done! Do you have a script or an EA to trigger or do you trade it all manually?
I don't use scripts or EA's with MetaTrader.

Years ago I wrote trading systems using Easy Language (which is part of TradeStation) and the future results were never as good as the historical results so I quit using them.

So now I just enter all my trades, stops and profit targets manually.
Always a Student, Never a Master - Emulate What Works
  • #115
  • May 29, 2019 12:39am May 29, 2019 12:39am
RobinHood, do you care about news when you trading?
  • #116
  • May 29, 2019 1:58am May 29, 2019 1:58am
Quoting kirinda
Two continuations trades. If we check the daily it's a good possibility for trend change for these pairs. For these trades I will use exit methods based on color change for 2-3 indicators. EURAUD 4H: {image} EURNZD 4H: {image}
EURNZD 4H hit stop loss.
  • #117
  • May 29, 2019 2:06am May 29, 2019 2:06am
NZDUSD 4H crossover trade. Short entry in the same direction as the trend on daily timeframe. I will use exit method based on color change for 2-3 indicators.

Attached Image (click to enlarge)
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  • #118
  • May 29, 2019 4:36am May 29, 2019 4:36am
Quoting kirinda
RobinHood, do you care about news when you trading?
It may be hard to believe, but I NEVER look at the news, or even consider looking at it.

For me, it's similar to when a professional pilot flies a plane by just reading the instruments, I just read the indicators. They tell me everything I need to know.
Always a Student, Never a Master - Emulate What Works
  • #119
  • May 29, 2019 4:39am May 29, 2019 4:39am
Quoting kirinda
NZDUSD 4H crossover trade. Short entry in the same direction as the trend on daily timeframe. I will use exit method based on color change for 2-3 indicators. {image}
That could be a good trade as the daily chart looks like it may be rolling over to resume the downtrend.

I'm short the 4 hr. EURAUD
Always a Student, Never a Master - Emulate What Works
  • #120
  • May 29, 2019 4:46am May 29, 2019 4:46am
kirinda,

One important piece of advice, only trade in the same direction as the RSI (14).

RSI (14) > Purple 50 Line = LONG ONLY

RSI (14) < Purple 50 Line = SHORT ONLY
Always a Student, Never a Master - Emulate What Works
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