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  • #3,601
  • Oct 5, 2020 6:28am Oct 5, 2020 6:28am
Fresh channel cross on EURAUD.

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Gold.

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  • #3,602
  • Oct 5, 2020 6:42am Oct 5, 2020 6:42am
Quoting LauraT
Fresh channel cross on EURAUD. {image} Gold. {image}
Naughty price was not above M30 200 EMA on EURAUD or Gold M15
  • #3,603
  • Oct 5, 2020 6:46am Oct 5, 2020 6:46am
Quoting Detto
{quote} Naughty price was not above M30 200 EMA on EURAUD or Gold M15
Lol. It doesn't have to be. As long as at least 2 of the 4 relevant timescales agree, it's fine.
  • #3,604
  • Oct 5, 2020 6:47am Oct 5, 2020 6:47am
A short trade on the Dollar Index - waited for Friday's Low to be broken and then re-tested before getting in.

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  • #3,605
  • Oct 5, 2020 6:49am Oct 5, 2020 6:49am
Quoting LauraT
{quote} Lol. It doesn't have to be. As long as at least 2 of the 4 relevant timescales agree, it's fine.
Surely if you trading M5 the next two TF are M15 and M30?
Or do you mean if M30 is under but H1 is above its all good ?
  • #3,606
  • Oct 5, 2020 6:53am Oct 5, 2020 6:53am
Quoting Detto
{quote} Surely if you trading M5 the next two TF are M15 and M30? Or do you mean if M30 is red under but H1 is above its all good ?
If you are trading the 5m, you need at least two of the 1m, 5m, 15m, 30m to be the 'correct' colour.

If you are trading the 1H, you need at least two of the H1, H4, D1, W1 to be the 'correct' colour.
  • #3,607
  • Oct 5, 2020 6:54am Oct 5, 2020 6:54am
Quoting LauraT
{quote} If you are trading the 5m, you need at least two of the 1m, 5m, 15m, 30m to be the 'correct' colour. If you are trading the 1H, you need at least two of the H1, H4, D1, W1 to be the 'correct' colour.
Gosh I have been waiting for 2 higher TF TO AGREE ALL ALONG , works well though
  • #3,608
  • Oct 5, 2020 6:58am Oct 5, 2020 6:58am
Quoting Detto
{quote} Gosh I have been waiting for 2 higher TF TO AGREE ALL ALONG , works well though
It's a solid enough plan. And, if it's working for you, don't change
  • #3,609
  • Oct 5, 2020 7:28am Oct 5, 2020 7:28am
Quoting LauraT
Fresh channel cross on EURAUD. {image} Gold. {image}
I noticed that your entries lately are generally selling under the channel lows and buying above the channel highs. I've been doing the same lately and noticed that I almost always have to go through a drawdown due to a solid retracement before swinging back into a profit. Based on your experience, do you enter at these extremes to avoid missed opportunities where price runs away without any retracement? Is there any benefit to this as opposed to the original roadmap rules where you enter when price retraces back inside the channel?

Edit: The retracement after channel cross seems to occur more often in currencies. Indices seem to trend a little smoothly whereas currencies chop around even as they are trending.
  • #3,610
  • Oct 5, 2020 7:37am Oct 5, 2020 7:37am
Quoting Tensor
{quote} I noticed that your entries lately are generally selling under the channel lows and buying above the channel highs. I've been doing the same lately and noticed that I almost always have to go through a drawdown due to a solid retracement before swinging back into a profit. Based on your experience, do you enter at these extremes to avoid missed opportunities where price runs away without any retracement? Is there any benefit to this as opposed to the original roadmap rules where you enter when price retraces back inside the channel? Edit:...
You're right. Lately I've been going for momentum, which means a bar closing on the appropriate side of the channel.

It's a trade-off really. Sometimes waiting for a retracement will either not get you in because price flies away from you or that retracement will be the start of a reversal or mini-reversal and you'll be fighting against momentum.

On the other hand, the downside (as you identify) is that you will effectively be paying a price premium outside the channel and you'll often be faced with an initial bit of drawdown.

I tend not to look at my trades much for the first little while the trade is in progress. As long as the reason I got in is still there, I don't worry about being in negative territory for a time. If I spot what I think is a directional move, I'll pay the premium to ensure I have a seat.

Nothing at all wrong with entering inside the channel though. I still occasionally do, just depends when I happen to notice something happening on a particular chart.
  • #3,611
  • Oct 5, 2020 7:53am Oct 5, 2020 7:53am
Quoting Tensor
{quote} I noticed that your entries lately are generally selling under the channel lows and buying above the channel highs. I've been doing the same lately and noticed that I almost always have to go through a drawdown due to a solid retracement before swinging back into a profit. Based on your experience, do you enter at these extremes to avoid missed opportunities where price runs away without any retracement? Is there any benefit to this as opposed to the original roadmap rules where you enter when price retraces back inside the channel? Edit:...
Here's a trade I just closed.

You'll see that, again, I entered outside the channel and suffered some drawdown for a while. But also notice that buying inside the channel wouldn't have made much difference (ok, I'd have got a slightly better price, granted).

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  • #3,612
  • Oct 5, 2020 8:14am Oct 5, 2020 8:14am
Quoting LauraT
{quote} Here's a trade I just closed. You'll see that, again, I entered outside the channel and suffered some drawdown for a while. But also notice that buying inside the channel wouldn't have made much difference (ok, I'd have got a slightly better price, granted). {image}
i could not trade with this style because this trade took more than 10 hours. maybe thats the reason i became a scalper;-)

how do you handle this matter with these long lasting trades?
trading is like dancing, don't think and just listen to the music!
  • #3,613
  • Oct 5, 2020 8:25am Oct 5, 2020 8:25am
Quoting birdland
{quote} i could not trade with this style because this trade took more than 10 hours. maybe thats the reason i became a scalper;-) how do you handle this matter with these long lasting trades?
I'm pretty patient generally. Some trades last 12 hours and some 12 minutes
  • #3,614
  • Oct 5, 2020 8:36am Oct 5, 2020 8:36am
Quoting LauraT
{quote} You're right. Lately I've been going for momentum, which means a bar closing on the appropriate side of the channel. It's a trade-off really. Sometimes waiting for a retracement will either not get you in because price flies away from you or that retracement will be the start of a reversal or mini-reversal and you'll be fighting against momentum. On the other hand, the downside (as you identify) is that you will effectively be paying a price premium outside the channel and you'll often be faced with an initial bit of drawdown. I tend not...
Or you can do both. Go in early and then add into the move from a - usually - much better price after the break, pullback, off-we-go, entry. Split your trade size.

I've been tempted to mention this earlier but no one else seemed to be bothered by it, so I let it lie, however it has been obvious for a long time that - certainly on currencies, indices do their own thing - that all you need do is wait for a break, two closes over, then there will almost inevitably be a pullback into drawdown before a much better priced entry.

Follow basic, ultra baby-language basic price action to see if you are getting in on the second move, really simple stuff.

If you go in and you still get it wrong, you will lose a lot less than you would if you had tried and failed to anticipate the move.

I think you will find that the times it pays off will far outweigh those it doesn't and cash reward will be greater overall.

I detest giving anything back to the market and drawdown, especially to me as a scalper, is anathema.

Just my ha'penny's worth.
  • #3,615
  • Oct 5, 2020 8:41am Oct 5, 2020 8:41am
Quoting LauraT
{quote} Here's a trade I just closed. You'll see that, again, I entered outside the channel and suffered some drawdown for a while. But also notice that buying inside the channel wouldn't have made much difference (ok, I'd have got a slightly better price, granted). {image}
In hindsight, all those dips below the EMA55 channel after your entry would have been excellent opportunities for a long. If you had not seen this chart until after 8:00, would you still have entered? Or would you have waited until the breakout above the EMA55 at 11:50 to enter? Knowing me, if I were looking at the chart in that moment, I would have been convinced a downtrend was forming and not have the guts to pull the trigger on a long.
  • #3,616
  • Oct 5, 2020 8:54am Oct 5, 2020 8:54am
Quoting lemercenaire
{quote} Or you can do both. Go in early and then add into the move from a - usually - much better price after the break, pullback, off-we-go, entry. Split your trade size. I've been tempted to mention this earlier but no one else seemed to be bothered by it, so I let it lie, however it has been obvious for a long time that - certainly on currencies, indices do their own thing - that all you need do is wait for a break, two closes over, then there will almost inevitably be a pullback into drawdown before a much better...
I was ready to answer this but caught myself in a bit of self-delusion so this is the new reply

I actually had to ask myself why I no longer scale in or out of a position, despite recommending it to others. I think the honest answer is that I've become lazy about entries and exits. It's not an excuse but, between trading, posting here and running the Slack group, I think trading has had to fit in rather than be the priority. And, because I keep making a profit, I've not really had to confront the fact that I'm getting sloppy.

Thanks Lem - useful prod
  • #3,617
  • Oct 5, 2020 9:00am Oct 5, 2020 9:00am
Quoting Tensor
{quote} In hindsight, all those dips below the EMA55 channel after your entry would have been excellent opportunities for a long. If you had not seen this chart until after 8:00, would you still have entered? Or would you have waited until the breakout above the EMA55 at 11:50 to enter? Knowing me, if I were looking at the chart in that moment, I would have been convinced a downtrend was forming and not have the guts to pull the trigger on a long.
I was aware that Friday's High, Daily Open Line and SMA were all in the vicinity. Together they create a pretty mean barrier.

If I had only seen the chart later in the morning, I would have waited until nearer 12.30 broker time (11.30 my time) before entering, due to a trendline break. Of course, further to my reply to Lem above, I'd have been in at a much better price, with hindsight.
  • #3,618
  • Oct 5, 2020 9:17am Oct 5, 2020 9:17am
Quoting lemercenaire
{quote} Or you can do both. Go in early and then add into the move from a - usually - much better price after the break, pullback, off-we-go, entry. Split your trade size. I've been tempted to mention this earlier but no one else seemed to be bothered by it, so I let it lie, however it has been obvious for a long time that - certainly on currencies, indices do their own thing - that all you need do is wait for a break, two closes over, then there will almost inevitably be a pullback into drawdown before a much better...
very good post, absolutely true.

i found the hardest part in trading this style is the psychology. but it pays...
trading is like dancing, don't think and just listen to the music!
  • #3,619
  • Oct 5, 2020 9:44am Oct 5, 2020 9:44am
Quoting LauraT
Fresh channel cross on EURAUD. {image} Gold. {image}
hi Laura, sorry for the curiosity for your last 2 trades , what is channel8? it's an ea on the channel? in the second figure on the top right I see an indicator that I don't know, what would it be? thanks and sorry again.
  • #3,620
  • Oct 5, 2020 10:24am Oct 5, 2020 10:24am
Quoting maxymm74
{quote} hi Laura, sorry for the curiosity for your last 2 trades , what is channel8? it's an ea on the channel? in the second figure on the top right I see an indicator that I don't know, what would it be? thanks and sorry again.
All explained in post 1 and the Journal!! Read it! The secret to success is G+O+Y+A. Getoffyouranatomy!!
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