Hello traders,
Introduction
I'm quite new around here. Trading for fun at first but since a year i became a part-time daytrader. Having a solid day job with the room to trade, made it more easy to switch from demo to (small) live accounts. Since i've tried several trading methodologies, it became clear i wanted to detect trends based on fundamental approaches. I joined some courses to understand such approaches like Jarratt Davis offers. No, i am not sales related to any stuff mentioned in my thread, but sharing openly my journey and opinion. Please, if you do not like it, do not put hate in this thread, but skip this one. Thank you. To continue, it didn't felt like it was my cup of tea: intensive listening to news squawks, interpret them into trades, being very active... nope. So i stumbled upon a thread on this forum where some of you are using bank positions. And yes, there are lots of things to say about that thread, but i wanted to investigate and share my experiences so far.
Investigation
At first, i tried to find all companies, banks and services that offer all the info i need regarding positions of banks on the markets. There are quite a few but some of them doesn't offer such info anymore. To make sure this would be legit, i went to my business bank in Belgium (ABN Amro). I attended to be a potential client to invest a part of my 'capital'. Enough possibilities i must say, but the main reason was to discover if they would share their market positions with their premium clients. Yes they said. By law they are obligated to inform their clients whenever a transaction is executed with the necessary transaction details. As i understood, they do not invest on the spot FX market as retail traders think. They use other instruments and methods, but to translate it into a customer friendly transaction, the synonym of their transactions are used instead by using the swap and futures exchange markets. More details aren’t given by the bank employee. So, as of now i think i have done my research to trust my money using services like that.
Chosen Service
As you already might knew before me, there are some companies that offer bank transactions details (upon certain details regarding the AVG-law). I have chosen getbankpositions.com due to the fact that they offer an MT4 indicator for displaying all info. I can see the positions and a summary. That last part, the summary, is the info i use to trade lately. Important: you can chose whatever service you like, as long as there are several banks in their portfolio to give a more diverse speculation!
Trading
I use the service for over 2 months now. Blindly copying new positions is, in the end, profitable. But that doesn't satisfy me at all. I would like to maximise the profitability and take control of my entries and exits myself. That is why i am sharing my way of trading so far since i became more profitable than just copying those positions. Please take a moment to check my charts if interested. Perhaps you could easily see why i took the trades and, perhaps, you think you could do it even better... the chances are: yes, you could, since there are numerous traders and indicators out there that are better. Simple and honest as that!
Rules
As you can imagine, i use the currency strength to chose my pairs. USD & EUR are the currencies that are most bought by banks and CHF, AUD & NZD are the weakest. Due to the fact that i am not all over the place regarding multiple trades, i setup a max of 4 trades within my account (my leverage is 1:10 and i need enough room to cover 4 times a stop loss of 0.20 lots per position). In this case/example, i seek the following opportunities:
- Buying USD/CHF, EUR/CHF, EUR/AUD
- Selling AUD/USD
Now i know the directions, i need to explain the triggers....
Indicators Used + Settings:
- MACD = 48, 104, 36 (4 times the default settings for the hourly chart to see the 4hour trend without a 4 bar recalculation)
- RSI = 3 (making it more sensitive due to a clear trend by using only the strongest vs the weakest currencies)
Buying:
- Main MACD (grey bars) is above the signal (red line) for technical trend instead of fundamental/bank -trend
- RSI is oversold and nearby a level of S&R
$When above occurs, i place a pending buy order at the nearest level of S&R or directly open a transaction when it already touches a level of S&R. The stop loss would be just below the next level of support downwards.
Selling:
- Main MACD (grey bars) is below the signal (red line) for technical trend instead of fundamental/bank -trend
- RSI is overbought and nearby a level of S&R
$ When above occurs, i place a pending sell order at the nearest level of S&R or directly open a transaction when it already touches a level of S&R. The stop loss would be just above the next level of resistance upwards.
Actual Trades
I have made several trades but to keep it clear, i will display the latest trades from all pairs.
Starting with the most strongest vs weakest currency:
Buying USD/CHF
In the chart you can see that i completed 2 trades whereby i opened a second trade whilst one was still open. I felt very confident about it and had room in pips/profit. The first trade on the chart was closed at a resistance level and the second trade by intervention due to the fact that the week was about to close. I do not like having trades still open when there isn't enough room to take that risk:
Buying EUR/CHF
Here you can see that i closed a trade that costed me some swap, but in the end a pretty nice call. The move was strong and my confidence grew with it. Between the 2 trades, there was another perfect possibility (2020/09/24 at ~05:00 am), but at that time i prefer to sleep and dream about other things! The second trade was a quick one. I expected it beforehand since; the pair already made a solid upwards move, the pair is known for its low volatility, the pair like to move within a certain range and... the weekend was coming. That is why i closed that one late in the evening:
Selling AUD/USD
On this pair i have still a position open. Holding that one because the move it made... was awesome! It surpassed every support and well, enough room to pay the swap over the weekend and risk the gap. To make sure, i set the stop loss level above a visual resistance (previous pull back). Let's see how that one plays out:
Buying EUR/AUD
This pair... i love its volatility and relative low spread. Having a buy position still open and moved the stop loss just below a level of resistance. Why not below the last pull back? Because its volatility. Giving such a pair more room created nice profits in the past. And yes, again, a quick trade on Friday. I wished i could let that one run as well but there wasn't enough room for it. So i closed that trade late in the evening as well:
Overall
At the moment i enjoy lots of profitable closed trades during my live trades: 44 against 5 losing ones. For me it is a good way of trading since i only use the hourly charts in combination with my day job and private obligations. BUT... i think it is too early to say that this stays consistent profitable in the way it currently is. There is room for improvement, but my intellect keeps hanging on the current trade plan. I think there are enough traders that could benefit more than i am. If you are thinking: this trade plan is great and i want to give it a try... please make sure to read the following 'disclaimer':
- start your journey in a positive minded state, understand what a trade plan is, guard your capital from medium & high risks, as: too emotional decisions, using too much leverage vs available equity, trading every possible pair, lack of personal sharpness and energy, working with targets other than take profits and stop losses... and the list goes on and on...
Final Words
I can not repeat myself enough: do not react when you're not positive minded and you're having no intention to share positive/constructive thoughts. This thread is about my personal experience and i took the time to be as open and as detailed as possible. I would like to see that in your reactions as well. The intention is to share knowledge and experience. Whenever someone stumble upon this thread, i hope they enjoy reading it and instantly detect wether it could be of value.
Peace,
FreshFX.
PS. i used the following custom indicators as well (they are not mine, none of them are):
Introduction
I'm quite new around here. Trading for fun at first but since a year i became a part-time daytrader. Having a solid day job with the room to trade, made it more easy to switch from demo to (small) live accounts. Since i've tried several trading methodologies, it became clear i wanted to detect trends based on fundamental approaches. I joined some courses to understand such approaches like Jarratt Davis offers. No, i am not sales related to any stuff mentioned in my thread, but sharing openly my journey and opinion. Please, if you do not like it, do not put hate in this thread, but skip this one. Thank you. To continue, it didn't felt like it was my cup of tea: intensive listening to news squawks, interpret them into trades, being very active... nope. So i stumbled upon a thread on this forum where some of you are using bank positions. And yes, there are lots of things to say about that thread, but i wanted to investigate and share my experiences so far.
Investigation
At first, i tried to find all companies, banks and services that offer all the info i need regarding positions of banks on the markets. There are quite a few but some of them doesn't offer such info anymore. To make sure this would be legit, i went to my business bank in Belgium (ABN Amro). I attended to be a potential client to invest a part of my 'capital'. Enough possibilities i must say, but the main reason was to discover if they would share their market positions with their premium clients. Yes they said. By law they are obligated to inform their clients whenever a transaction is executed with the necessary transaction details. As i understood, they do not invest on the spot FX market as retail traders think. They use other instruments and methods, but to translate it into a customer friendly transaction, the synonym of their transactions are used instead by using the swap and futures exchange markets. More details aren’t given by the bank employee. So, as of now i think i have done my research to trust my money using services like that.
Chosen Service
As you already might knew before me, there are some companies that offer bank transactions details (upon certain details regarding the AVG-law). I have chosen getbankpositions.com due to the fact that they offer an MT4 indicator for displaying all info. I can see the positions and a summary. That last part, the summary, is the info i use to trade lately. Important: you can chose whatever service you like, as long as there are several banks in their portfolio to give a more diverse speculation!
Trading
I use the service for over 2 months now. Blindly copying new positions is, in the end, profitable. But that doesn't satisfy me at all. I would like to maximise the profitability and take control of my entries and exits myself. That is why i am sharing my way of trading so far since i became more profitable than just copying those positions. Please take a moment to check my charts if interested. Perhaps you could easily see why i took the trades and, perhaps, you think you could do it even better... the chances are: yes, you could, since there are numerous traders and indicators out there that are better. Simple and honest as that!
Rules
As you can imagine, i use the currency strength to chose my pairs. USD & EUR are the currencies that are most bought by banks and CHF, AUD & NZD are the weakest. Due to the fact that i am not all over the place regarding multiple trades, i setup a max of 4 trades within my account (my leverage is 1:10 and i need enough room to cover 4 times a stop loss of 0.20 lots per position). In this case/example, i seek the following opportunities:
- Buying USD/CHF, EUR/CHF, EUR/AUD
- Selling AUD/USD
Now i know the directions, i need to explain the triggers....
Indicators Used + Settings:
- MACD = 48, 104, 36 (4 times the default settings for the hourly chart to see the 4hour trend without a 4 bar recalculation)
- RSI = 3 (making it more sensitive due to a clear trend by using only the strongest vs the weakest currencies)
Buying:
- Main MACD (grey bars) is above the signal (red line) for technical trend instead of fundamental/bank -trend
- RSI is oversold and nearby a level of S&R
$When above occurs, i place a pending buy order at the nearest level of S&R or directly open a transaction when it already touches a level of S&R. The stop loss would be just below the next level of support downwards.
Selling:
- Main MACD (grey bars) is below the signal (red line) for technical trend instead of fundamental/bank -trend
- RSI is overbought and nearby a level of S&R
$ When above occurs, i place a pending sell order at the nearest level of S&R or directly open a transaction when it already touches a level of S&R. The stop loss would be just above the next level of resistance upwards.
Actual Trades
I have made several trades but to keep it clear, i will display the latest trades from all pairs.
Starting with the most strongest vs weakest currency:
Buying USD/CHF
In the chart you can see that i completed 2 trades whereby i opened a second trade whilst one was still open. I felt very confident about it and had room in pips/profit. The first trade on the chart was closed at a resistance level and the second trade by intervention due to the fact that the week was about to close. I do not like having trades still open when there isn't enough room to take that risk:
Buying EUR/CHF
Here you can see that i closed a trade that costed me some swap, but in the end a pretty nice call. The move was strong and my confidence grew with it. Between the 2 trades, there was another perfect possibility (2020/09/24 at ~05:00 am), but at that time i prefer to sleep and dream about other things! The second trade was a quick one. I expected it beforehand since; the pair already made a solid upwards move, the pair is known for its low volatility, the pair like to move within a certain range and... the weekend was coming. That is why i closed that one late in the evening:
Selling AUD/USD
On this pair i have still a position open. Holding that one because the move it made... was awesome! It surpassed every support and well, enough room to pay the swap over the weekend and risk the gap. To make sure, i set the stop loss level above a visual resistance (previous pull back). Let's see how that one plays out:
Buying EUR/AUD
This pair... i love its volatility and relative low spread. Having a buy position still open and moved the stop loss just below a level of resistance. Why not below the last pull back? Because its volatility. Giving such a pair more room created nice profits in the past. And yes, again, a quick trade on Friday. I wished i could let that one run as well but there wasn't enough room for it. So i closed that trade late in the evening as well:
Overall
At the moment i enjoy lots of profitable closed trades during my live trades: 44 against 5 losing ones. For me it is a good way of trading since i only use the hourly charts in combination with my day job and private obligations. BUT... i think it is too early to say that this stays consistent profitable in the way it currently is. There is room for improvement, but my intellect keeps hanging on the current trade plan. I think there are enough traders that could benefit more than i am. If you are thinking: this trade plan is great and i want to give it a try... please make sure to read the following 'disclaimer':
- start your journey in a positive minded state, understand what a trade plan is, guard your capital from medium & high risks, as: too emotional decisions, using too much leverage vs available equity, trading every possible pair, lack of personal sharpness and energy, working with targets other than take profits and stop losses... and the list goes on and on...
Final Words
I can not repeat myself enough: do not react when you're not positive minded and you're having no intention to share positive/constructive thoughts. This thread is about my personal experience and i took the time to be as open and as detailed as possible. I would like to see that in your reactions as well. The intention is to share knowledge and experience. Whenever someone stumble upon this thread, i hope they enjoy reading it and instantly detect wether it could be of value.
Peace,
FreshFX.
PS. i used the following custom indicators as well (they are not mine, none of them are):
