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  • #821
  • Apr 28, 2020 8:12am Apr 28, 2020 8:12am
Quoting andys0506
Hi Laura, I see several people are finding ways to get "better entries" by adding such things as various different MAs. Being that you have used this method successfully for several months/years? what is your message in regards to trying to curve fit this technique? I'm guessing there is no value in adding these ideas if your method works well as is and gives you a nice lifestyle
Hi

The idea of the extra channel came in a discussion I was having with a friend and I found it quite interesting so thought we'd mention it here. I've tweaked things a little over the years and I'm always open to discussion about potential enhancements. One of the key benefits of the system, in my view, is that it's relatively easy to learn and the charts are relatively clean.

The methodology certainly works 'as is' but if people want to refine it a little or take certain elements of it I'm not too precious about that.

But the core of the strategy will remain and I'll keep trading it that way.
  • #822
  • Apr 28, 2020 8:12am Apr 28, 2020 8:12am
And my sell on the EN has made to the ADR Low. Good time to get out
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  • #823
  • Apr 28, 2020 8:20am Apr 28, 2020 8:20am
I think it would be good to discuss live trades, I also see the trades that are in the plus
  • #824
  • Apr 28, 2020 8:32am Apr 28, 2020 8:32am
from what I see, within the technique we are studying and experimenting with, we have a good entry in DOW and SP500.

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Let us be green
  • #825
  • Apr 28, 2020 8:37am Apr 28, 2020 8:37am
Quoting leafarct
from what I see, within the technique we are studying and experimenting with, we have a good entry in DOW and SP500. {image}
Yes Still not in play yet but I'm watching S&P closely to see if Yesterday's High becomes resistance.
  • #826
  • Apr 28, 2020 8:42am Apr 28, 2020 8:42am
That's been my most remunerative trade today. I had to close because I need to leave. Patience was pushed a lot to be honest and I will be a bit sorry if it finally gets to the ADR, but not too much... Managed 15% gain all in all Praise to Laura.
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  • #827
  • Apr 28, 2020 8:45am Apr 28, 2020 8:45am
Quoting Hammertop
That's been my most remunerative trade today. I had to close because I need to leave. Patience was pushed a lot to be honest and I will be a bit sorry if it finally gets to the ADR, but not too much... Managed 15% gain all in all Praise to Laura. {image}
Well done

Never regret what you leave on the table. There'll be plenty more on the table for you next time
  • #828
  • Apr 28, 2020 8:49am Apr 28, 2020 8:49am
Question - emergency stops. How far away? Beyond opposite ADR, or maybe smaller and beyond the next key level (prev h/l, or open) ?
  • #829
  • Apr 28, 2020 8:54am Apr 28, 2020 8:54am
Quoting andys0506
Question - emergency stops. How far away? Beyond opposite ADR, or maybe smaller and beyond the next key level (prev h/l, or open) ?
It depends, is the boring answer

But in general you want it to be far enough away so as the market is unlikely to touch it, but close enough to allow you to be trading within your risk parameters. If you manage the trade actively, the emergency stop should prove irrelevant. The example on my journal quoted 50 pips for EU and 100 pips for GU. It was just an example but you can use something similar if you wish.
  • #830
  • Apr 28, 2020 9:02am Apr 28, 2020 9:02am
Quoting LauraT
{quote} It depends, is the boring answer But in general you want it to be far enough away so as the market is unlikely to touch it, but close enough to allow you to be trading within your risk parameters. If you manage the trade actively, the emergency stop should prove irrelevant. The example on my journal quoted 50 pips for EU and 100 pips for GU. It was just an example but you can use something similar if you wish.
The further away it is, the smaller the trade size (to keep a fixed risk %) and thus a smaller potential return. Hence the question. From an R:R view it would make sense to have the stop at say 60 pips away if you knew that within about 30 or so there would be a cross in opposite direction which invalidates the trade, rather than at say 100 pips away which is beyond the ADR. If using the wider stop we are limiting our lot size.
  • #831
  • Apr 28, 2020 9:24am Apr 28, 2020 9:24am
Quoting andys0506
{quote} The further away it is, the smaller the trade size (to keep a fixed risk %) and thus a smaller potential return. Hence the question. From an R:R view it would make sense to have the stop at say 60 pips away if you knew that within about 30 or so there would be a cross in opposite direction which invalidates the trade, rather than at say 100 pips away which is beyond the ADR. If using the wider stop we are limiting our lot size.
Yes, you are right. If you have a rough idea how much price movement is required to invalidate your trade you can set your stop accordingly.

What I'm trying to guard against though, is saying to anyone 'place it just beyond ADR or just beyond yesterday's high' or whatever. Because each trade is different. And what we definitely don't want to do is to fall into the normal trader trap of placing it just beyond S/R because that's what every man and his dog does, and it's why their stops get hunted.

If you wish, we can pick a live setup and i'll tell you where I'd place my emergency stop.
  • #832
  • Apr 28, 2020 9:28am Apr 28, 2020 9:28am
Cool, so take this for example. Nice opportunity in the peach box. Target would be lower ADR. Where would you put the emergency stop?
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  • #833
  • Apr 28, 2020 9:33am Apr 28, 2020 9:33am
Quoting andys0506
Cool, so take this for example. Nice opportunity in the peach box. Target would be lower ADR. Where would you put the emergency stop? {image}
1.5225.

Because your entry was pretty close to SMA, you knew you'd be proved wrong pretty inexpensively if the channel went fully above the SMA, and you'd close manually.

Here's a trade I've just finished. I marked where I put my emergency stop when entering. That needed a wider stop in comparison to yours as it'd have required more of a retracement to prove me wrong.

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  • #834
  • Apr 28, 2020 9:49am Apr 28, 2020 9:49am
Quoting rtradern
{quote} Thanks Laura, Makes perfect sense...
Laura, how long you been trading this method? And has there been any markets periods or conditions where this method did work well?

Many thanks,
RtraderN
  • #835
  • Apr 28, 2020 10:06am Apr 28, 2020 10:06am
If anyone is willing to export their trade details via excel, I will gladly build reports.

I am a numberphile, so If it would be valuable for anyone to see trade times, successes, etc, Id gladly build the report!
  • #836
  • Apr 28, 2020 10:08am Apr 28, 2020 10:08am
Quoting LauraT
{quote} 1.5225. Because your entry was pretty close to SMA, you knew you'd be proved wrong pretty inexpensively if the channel went fully above the SMA, and you'd close manually. Here's a trade I've just finished. I marked where I put my emergency stop when entering. That needed a wider stop in comparison to yours as it'd have required more of a retracement to prove me wrong. {image}
lauraT - is this image have the 120EMA channel (15min) added as mention on the previous page, or is this a different filter you are utilizing?
  • #837
  • Apr 28, 2020 10:09am Apr 28, 2020 10:09am
Quoting rtradern
{quote} Laura, how long you been trading this method? And has there been any markets periods or conditions where this method did work well? Many thanks, RtraderN
I hope you mean where it DIDN'T work well It struggles on those grinding sort of days where price just flips back and forth in a narrow range. Ultimately it needs a bit of a trend to do it justice.

I've been trading it for more years than I can remember. I have made little tweaks along the way but the core principles are the same as originally.
  • #838
  • Apr 28, 2020 10:11am Apr 28, 2020 10:11am
Quoting tradeChaser
{quote} lauraT - is this image have the 120EMA channel (15min) added as mention on the previous page, or is this a different filter you are utilizing?
Yes, it's the 120.

I'm just playing around with it right now though to do some analysis. It's not an official change to the chart setup. If it becomes something more firm I'll let you all know
  • #839
  • Apr 28, 2020 10:14am Apr 28, 2020 10:14am
Took a trade on AUDCAD, channel crossover, waited for price to move towards the bottom of the channel before entering long. My target was towards the daily high. As you can see I Was stopped out in a loss. Lesson learned = have a much wider stop loss to allow for a channel failure. As you can see price ALMOST made it towards the daily high so the analysis wasn't incorrect - just poor money management.
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  • #840
  • Apr 28, 2020 10:27am Apr 28, 2020 10:27am
Quoting johnsmith2nd
Took a trade on AUDCAD, channel crossover, waited for price to move towards the bottom of the channel before entering long. My target was towards the daily high. As you can see I Was stopped out in a loss. Lesson learned = have a much wider stop loss to allow for a channel failure. As you can see price ALMOST made it towards the daily high so the analysis wasn't incorrect - just poor money management. {image}
I don't think your money management was the issue here. I think the issue was bad luck. The setup was fine and, if you look at the 15m chart below, you'll see it was just bad luck that you had chosen a timeframe where the channel was going from one side of SMA to the other.

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P.S - it did just hit Yesterday's High
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