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The Secret to Success and profitable trading - What is it?

  • #341
  • Oct 3, 2019 9:33am Oct 3, 2019 9:33am
I'm using hedging system, it's giving me good results over stop loss...
  • #342
  • Oct 3, 2019 10:51am Oct 3, 2019 10:51am
Quoting Ibraheem
I'm using hedging system, it's giving me good results over stop loss...
what happen when the hedge goes against you? do you hedge the hedge?
  • #343
  • Oct 3, 2019 1:24pm Oct 3, 2019 1:24pm
Quoting Ibraheem
I'm using hedging system, it's giving me good results over stop loss...
me too,i use martingale hedging
  • #344
  • Oct 3, 2019 1:29pm Oct 3, 2019 1:29pm
Quoting RickM
{quote} Hi Jordi I trade the momentum of the move on M1 in basket trades set by my trade manager. The exit is programmed into the trade manager which is based on percentage of points earned. I hedge at 10 pips (M1) and build trades in baskets till any pullbacks hits 50% of total points earned. Sometimes I close on a double MA or a MACD setting optimized for that pair. I just decide which setting to use at entry depending on the SHAPE of the move. The Algo that drives the market has a top speed and uses a range of angles which can be analysed and...
how can u trade basket? because all pairs has its own route and different timings of entry and if ur 2 trades in basket is not ready,u will have drawdown.how do u manage that?
  • #345
  • Oct 3, 2019 3:13pm Oct 3, 2019 3:13pm
Quoting T4Trade
{quote} how can u trade basket? because all pairs has its own route and different timings of entry and if ur 2 trades in basket is not ready,u will have drawdown.how do u manage that?
Hi T4Trade

If I was a poker player, I would be a card counter.

I study the SHAPE of each spike or wave on the pairs I trade. Each breakout is either a false move or the beginnings of a grind movement which either climbs up or descends. A card counter in poker knows there is only X amount of cards in a deck, there isn’t 6 queens for example. A card counter in Forex can tell the different of a spike and a grind due to the angles of the move and recent occurring movements. For example I know a breakout to the top after a period of consolidation is just a move to trade buyers before it goes on a bearish grind. We can count these moves and know when they are due next.

So I take an initial position at about 1/3 normal trade size then build up trade size as position moves in my favour. if it’s goes more than 10 pips or a few more, i hedge and look for another entry point.

Don’t fiddle with the hedge, forget about it for the time being. Once I am in again at the right spot and in profit, I will look to close the hedge at the same time as closing the whole basket in profit (minus small loss on that small hedge position as that should only be minus 10 )

You need to be assertive when trading, almost cocky and have at least 4 exit plans.


Cheers
Trading thin liquidity at the boundary of the charts
  • #346
  • Oct 3, 2019 3:14pm Oct 3, 2019 3:14pm
Quoting RickM
{quote} Hi Jordi I trade the momentum of the move on M1 in basket trades set by my trade manager. The exit is programmed into the trade manager which is based on percentage of points earned. I hedge at 10 pips (M1) and build trades in baskets till any pullbacks hits 50% of total points earned. Sometimes I close on a double MA or a MACD setting optimized for that pair. I just decide which setting to use at entry depending on the SHAPE of the move. The Algo that drives the market has a top speed and uses a range of angles which can be analysed and...
hi Rick, what do you mean by "pullbacks hits 50% of total points earned"

do you require minimum move in favor before executing the 50% pullback?
  • #347
  • Oct 3, 2019 3:30pm Oct 3, 2019 3:30pm
Quoting RickM
{quote} Hi T4Trade If I was a poker player, I would be a card counter. I study the SHAPE of each spike or wave on the pairs I trade. Each breakout is either a false move or the beginnings of a grind movement which either climbs up or descends. A card counter in poker knows there is only X amount of cards in a deck, there isn’t 6 queens for example. A card counter in Forex can tell the different of a spike and a grind due to the angles of the move and recent occurring movements. For example I know a breakout to the top after a period of consolidation...
are you mean reverting or going with the trend?
  • #348
  • Oct 3, 2019 6:31pm Oct 3, 2019 6:31pm
Quoting T4Trade
{quote} how can u trade basket? because all pairs has its own route and different timings of entry and if ur 2 trades in basket is not ready,u will have drawdown.how do u manage that?
Hi T4Trade
I prefer to enter manually and let my EA perform the exit strategy. If it’s going against me, the EA will hedge at X amount of points. If you run EA’s, you will learn to back test it against all pairs to get the best settings. This way you will work out where the money is or isn’t

Cheers
Trading thin liquidity at the boundary of the charts
  • #349
  • Oct 3, 2019 6:38pm Oct 3, 2019 6:38pm
Quoting alphadude
{quote} are you mean reverting or going with the trend?
Don’t say trend, doesn’t EXIST.
Price is performing random movements while it’s waiting to run a liquidity pool above a recent high or below a recent low.
I trade towards a liquidity pool after breakout inside a grind while I am waiting for the bigger money to be made trading the Reversal at the point of exhaustion.

Cheers
Trading thin liquidity at the boundary of the charts
  • #350
  • Oct 3, 2019 6:53pm Oct 3, 2019 6:53pm
Quoting RickM
{quote} Hi T4Trade I prefer to enter manually and let my EA perform the exit strategy. If it’s going against me, the EA will hedge at X amount of points. If you run EA’s, you will learn to back test it against all pairs to get the best settings. This way you will work out where the money is or isn’t Cheers
Hi RickM
What EA is doing your exit? Do you consider swaps in your trading style?
  • #351
  • Oct 3, 2019 7:50pm Oct 3, 2019 7:50pm
Quoting RickM
{quote} Don’t say trend, doesn’t EXIST. Price is performing random movements while it’s waiting to run a liquidity pool above a recent high or below a recent low. I trade towards a liquidity pool after breakout inside a grind while I am waiting for the bigger money to be made trading the Reversal at the point of exhaustion. Cheers
quite true. its all about liquidity.

what instrument do you trade the most?
  • #352
  • Oct 3, 2019 8:16pm Oct 3, 2019 8:16pm
I build all my own Trading managers to perform my trading exits. That way I can program a EA to send me both signals and perform trade closures at the same time.
My favourite pairs to trade is the Beast GBPNZD, GBPUSD, GBPJPY, EURCAD & Gold.

Still, there is no easy money in Forex Trading, only hard earning profits during the battle.
Trading thin liquidity at the boundary of the charts
  • #353
  • Oct 3, 2019 9:18pm Oct 3, 2019 9:18pm
I like this thread and it's premise. I've read quite a few opinions that are very interesting. So, instead of lurking, I've decided to throw my thoughts into the ring as well.

It's obvious to me from my own personal experience, and reflected in this thread, that there is multiple "systems" or approaches that will turn a profit, even consistently. So what do they all have in common and is rarely spoke of?

The discipline, the plan, and the control of emotions. To me, that is the "secret sauce" to any trading system. It is what they all have in common.

Years ago when I first started, I thought finding the best "system" is what would lead to consistent profit. Now looking back, it was really the "non-technical" things that actually made a difference, for me at least.

Knowing where to begin and end a trade. The experience of watching the price action across multiple markets and pairs. Being patience with winners, and impatient with losers, instead of vice versa. Trading a single trade at a time, waiting to open another trade until my current trade is "mature", in the green and with stop and tp set (I had an issue over-trading when I started).

I wrote my own robots, and tried scalping. That was too stressful. I've settled into mid to long term trend following style, and it frees me up to live my life a bit more instead of staring at a screen for hours on end. My eyes couldn't handle that anyway.

Now I'm pretty happy with the way things have worked out and I've enjoyed the journey. But I doubt my story is unique, many people before me have had a similar path and hopefully many of you reading this will have a similar one in the future.

Happy Trading!
  • #354
  • Oct 4, 2019 3:44am Oct 4, 2019 3:44am
Quoting RickM
I build all my own Trading managers to perform my trading exits. That way I can program a EA to send me both signals and perform trade closures at the same time. My favourite pairs to trade is the Beast GBPNZD, GBPUSD, GBPJPY, EURCAD & Gold. Still, there is no easy money in Forex Trading, only hard earning profits during the battle.
i traded mostly EURUSD for its low trading cost. but recently volatility has been dead for a while.

what is your average holding period?
  • #355
  • Oct 5, 2019 12:22am Oct 5, 2019 12:22am
Quoting RickM
I build all my own Trading managers to perform my trading exits. That way I can program a EA to send me both signals and perform trade closures at the same time. My favourite pairs to trade is the Beast GBPNZD, GBPUSD, GBPJPY, EURCAD & Gold. Still, there is no easy money in Forex Trading, only hard earning profits during the battle.
Hi Rick, do you use leverage?
life is a reflection of what we allow ourselves to see
  • #356
  • Oct 5, 2019 5:00am Oct 5, 2019 5:00am
Quoting mikeeating
{quote} Hi Rick, do you use leverage?
Yes, I run a few Algo accounts running over 100 open trades at any one time. I use their money not mine - 400:1
As for my manual trading, yes but I use a lot lower leverage.

However in Australia, high leverage ends within weeks.
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Trading thin liquidity at the boundary of the charts
  • #357
  • Oct 5, 2019 5:45am Oct 5, 2019 5:45am
Quoting alphadude
{quote} i traded mostly EURUSD for its low trading cost. but recently volatility has been dead for a while. what is your average holding period?
Hi Alphadude

There's little money in that pair, don't be fooled by thinking low spread costs means higher profits. That pair is a lame duck.
You can't go wrong trading GBPUSD, nice movement with good returns. I actually like the returns on GBPNZD (Beast) better and if you trade it during the London session, the spread can come down to 0.06 pips. This pair moves around 170 pips on a average day compared to EURUSD which is only around 60.
My holding sometimes can be crazy. It I am trading a grind within a Liquidity zone, anywhere from 5 seconds to 5 minutes. My goal is to trade George AUS style hitting the M1 reversals normally from 5 to 45 minutes.

Actually for those traders who are struggling and just not making money trading Forex, here has to be the most basic and fool proof method to win. Download the Colour Toolbox and starting drawing lines - Here is ONE Bloody easy method.

GOLD - Now if you can't make money doing this, perhaps fishing is your thing
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Trading thin liquidity at the boundary of the charts
  • #358
  • Oct 5, 2019 6:13am Oct 5, 2019 6:13am
Good advice, overall yes, EURUSD is a dead market. Only large operators (inter-bank) are making money by writing put/call options and collecting premiums here.

On GNZ though - hardly you'd find a reputable operation with spreads lower than 2-4 points for GNZ.
Also some shops require 40-60 point SL for GNZ, they won't let you put in a lower SL.
Finally, GNZ is a lot different to GU. It frequently moves during asian session due to activity in NZDUSD.
Overall, I'd recommend sticking to GU, GNZ is for advanced traders only.

Also liquidity is pretty low, which could result in massive slippage during data.
  • #359
  • Oct 5, 2019 6:16am Oct 5, 2019 6:16am
Also hedging might work, if you are hedging with put/call options but that's for position traders only.
I doubt that anyone over here is hedging spot with currency options.
  • #360
  • Oct 5, 2019 6:18am Oct 5, 2019 6:18am
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Trading thin liquidity at the boundary of the charts
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