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Trading the Cable swings via averages

  • #6,681
  • Dec 1, 2020 5:52am Dec 1, 2020 5:52am
Quoting Michele2020
Now that the 108 bar concept is quite clear (thanks to all the answers), I need to better understand the 2 bars test & stop concept. I am currently studying page 6. Saw this 2 bars test introduced but not really understood. If anyone can help with rules and examples please. Thanks.
Michelle
You should study all the pages by yourself
you will find the answer further with some examples
The method is not so simple but studying all the thread you will understand
If after that you haven’t understood the 2 bars test, I’ll send you some screens. But i don’t think you will need
Welcome to this fantastic method
I needed 6 months of studying and practicing to become profitable
Good luck
Chris
  • #6,682
  • Dec 1, 2020 9:11am Dec 1, 2020 9:11am
Quoting Elsaloon
{quote} Michelle You should study all the pages by yourself you will find the answer further with some examples The method is not so simple but studying all the thread you will understand If after that you haven’t understood the 2 bars test, I’ll send you some screens. But i don’t think you will need Welcome to this fantastic method I needed 6 months of studying and practicing to become profitable Good luck Chris
Hi Chris, thanks for your kind reply. Yes, this is all I needed to know. That the answers will be found with examples down the line. I am not in a hurry nor trying to find any shortcut. But obviously I have and will have questions. Still it would be nice and better if I could have some screens to put some light on the subject right now that I am trying to understand it. But again, it is good to know that there is something down the road.

Thanks again Chris.
  • #6,683
  • Dec 4, 2020 2:58am Dec 4, 2020 2:58am
Quoting Nala66
{quote} This is a bit sad really since it just points out the fact that as the trade progressed you did nothing. The same applies to the next of your posts. I have no idea at all what 30+ pips mean since pips are relative to the market movement not your account movement. Mastering the entry is only a small part of the trade the trade itself has to be managed to maximize the profit potential all the time aiming for your desired outcome which depending on your leverage could be up to 100% of your account.
Attached Image


I suppose this illustrates what Alan means in the post. Pips simply shows the movement of the market. Initial entries were loses, and in terms of pips(-2,9) i lost. but the entries that that worked, i maximized coming out with profit, even though my net pips says different.
Hope is the worst indicator...
  • #6,684
  • Dec 4, 2020 4:51pm Dec 4, 2020 4:51pm
Quoting Nala66
{quote} . However this relies on getting a positive result every single day without loss, this I am sure people would agree is not realistic. So I do things a tad differently as I will explain next.

could you please continue this?
  • #6,685
  • Dec 4, 2020 10:17pm Dec 4, 2020 10:17pm
OK I'm back and will continue with this money management practice.

As far as I can see there are four types of trades not including hedging.

1) The top heavy trade... This is where the first entry is small and then loaded larger and larger as the winning trade progresses so that the last or top trade is the largest.

2)The equal incremental trade... This is where the trader adds to the winning position in equal amounts of lot sizes.

3) The bottom heavy trade... This is where the trader puts the largest lot size on the first trade and then lesser amounts on as the winning trade progresses.

4) The single entry trade... This is where the trader places one bet and awaits the result.

I have deliberately put these in my order of preference as I will explain.

When beginning the major concern is risking our own money as apposed to risking profit made. Trade 1 does this because our first entry is small so we risk the least possible but as the trade progresses and all three trades are placed with the movement of the stops the risk is still kept low while the profits are greatly compounded. Mathematically this is the ideal situation i.e. low risk : high yield. Such is this method that 1 winner is worth over 20 losers, just sticking a pin in the chart means the odds are in your favor without any prior analysis of the charts.

Remember from what I previously wrote about using start up capital equal to the sum you wants to earn daily. For me that was $1,000. So to calculate this first method I regard 40 pips as a daily achievable event. Thus 1000/40 = 25 so I need to be trading at $25 a pip. Dividing the $25 by 6 means my entries are 3, 6 and 9 mini lots which totals $25 (For me 18 lots = AUD$25) This is my preferred daily objective.

The odd losers I experience don't matter very much in the scheme of things with 1k I could lose up to $125 but I generally build the account a tad before I risk this amount and this would happen for the second or third entries because the stops are moved to protect further loss. After a loss I have to recalculate the entries which would be less but I am still aiming for 100% of the remaining current account so my money lasts a long time in the interim.

I'll do Trade 2 next.
  • #6,686
  • Dec 4, 2020 10:46pm Dec 4, 2020 10:46pm
Quoting Nala66
OK I'm back and will continue with this money management practice. As far as I can see there are four types of trades not including hedging. 1) The top heavy trade... This is where the first entry is small and then loaded larger and larger as the winning trade progresses so that the last or top trade is the largest. 2)The equal incremental trade... This is where the trader adds to the winning position in equal amounts of lot sizes. 3) The bottom heavy trade... This is where the trader puts the largest lot size on the first trade and then lesser...
Great Insights...
  • #6,687
  • Dec 5, 2020 4:41am Dec 5, 2020 4:41am
Now with the trading entry 1) you will note the first winner is actually a doubling of the account. This does not mean we keep doubling as we are only aiming for our 1k target. Each time we make it, our risk in relation to our account diminishes and we may then consider Trade 2 where we place equal entries on winning trades and it just so happens that 6+6+6 also equal 18 mini lots or again in my case AUD$25 a pip when they are all on.

Now with Trade 1 the biggest risk comes with the second entry so we can scalp a little with just one entry but with Trade 2 the main risk is the first entry after which we move our stops, However since our account has grown we may opt for this since it also makes it a little easier to make our 1k. We still need to get the three on and traverse the 40 pips or so to call it a winning trade.

I call making the full profit a winning trade and anything less just a scalp. All trades start off as scalps and turn into wining trades as they progress but if we don't try then these winners will never happen.

You may be wondering what this 40 pip business is all about. If you look at the chart from bar 108 it is a rare day that it doesn't cover this 40 pips distance. This is the reason for it but I would be risking a great deal if I did not stagger the entries in my favor.

Another advantage of this Trade 2 type is the order ticket remains the same for each entry so all we have to do is concentrate on the stop which can keep us busy until we are safe.
  • #6,688
  • Dec 5, 2020 5:26am Dec 5, 2020 5:26am
Trade 3 is the bottom heavy trade and puts the main risk right on the beginning of the journey. There are good arguments for doing this such as quick reversals don't take you out but to me the consideration should always be the initial risk and whether the account can easily withstand the loss. I would need to build my account substantially before taking such a risk even if it does mean making the 1k a tad quicker and possibly more.

Then finally we move to the Trade 3 type and to make my 1k I am entering the whole 18 mini lots from the onset aiming for the 40pis x AUD$25 = 1k.

But look at the risk if I only have 1k I would be risking 25% so I really need to have much more than 1k in my account to diminish this percentage. Once on gets to this stage then risk/reward comes into question. My risk would be $250 and the reward $1000 making the R/R 1:4.

The advantage is that we could let the trade run and every extra 10 pips we would increase the reward a point. Another advantage is that the scalps can return a good profit and can accumulate into the required 1k over a session of trading.

A serious disadvantage is that if we attempted this with a 1k and lost then the trade would be unrepeatable and we could quickly wipe out the account altogether.

These have been the 4 trading method I consider. Note I am not interested in making a small percentage each day but always aim for the 100% win. Also I am not interested in increasing the pip distance in the equation to say 100 which would have the effect of lowering the risk level further but makes the target distance more difficult.

There are many combinations of formulae we could use for example increasing the time to a couple of weeks rather than days. I guess the point is we need to sit down with pen and paper and work out what suits us best. We need to consider where we want to be in X period and how we are going to get there in as safe a manner as we can mathematically construct it.
  • #6,689
  • Dec 7, 2020 12:17am Dec 7, 2020 12:17am
I've started reading from pg1, and downloaded the indicators to be used. Can anyone point out the page numbers where the system rules are described.
Thanks.
  • #6,690
  • Dec 7, 2020 2:58am Dec 7, 2020 2:58am
Thanks Alan,
Appreciate your time in explaining this to us
Cheers...Des
  • #6,691
  • Dec 7, 2020 4:15am Dec 7, 2020 4:15am
Quoting Nala66
Trade 3 is the bottom heavy trade and puts the main risk right on the beginning of the journey. There are good arguments for doing this such as quick reversals don't take you out but to me the consideration should always be the initial risk and whether the account can easily withstand the loss. I would need to build my account substantially before taking such a risk even if it does mean making the 1k a tad quicker and possibly more. Then finally we move to the Trade 3 type and to make my 1k I am entering the whole 18 mini lots from the onset aiming...
Thanks a lot Alan, the last few posts are very helpful, but to avoid any confusion could you post a chart where you illustrate these trades?

I mean the MM trade scenario you recommend.

Thanks

PC
Less is more...
  • #6,692
  • Dec 7, 2020 7:19am Dec 7, 2020 7:19am
Hello Alan, first of all, thank you.

I would like to ask 2 questions if i may, one is regarding divergence in general.

In the picture below i marked what i understand could be a entry at divergene and where the stop loss would be from my reading, is it correct?

The question 2 is in the other picture, would you consider entering a trade when both slow and fast RSI agree with price?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Captura de tela de 2020-12-07 10-07-47.png Size: 30 KB
Click to Enlarge Name: Captura de tela de 2020-12-07 10-03-24.png Size: 23 KB
MTN
  • #6,693
  • Dec 7, 2020 8:57am Dec 7, 2020 8:57am
"Remember from what I previously wrote about using start up capital equal to the sum you wants to earn daily. For me that was $1,000. So to calculate this first method I regard 40 pips as a daily achievable event. Thus 1000/40 = 25 so I need to be trading at $25 a pip. Dividing the $25 by 6 means my entries are 3, 6 and 9 mini lots which totals $25 (For me 18 lots = AUD$25) This is my preferred daily objective."

Hi Alan, could I possibly clarify something in the above. I am ok with the 1000/40=25 so you need 25$ per pip to make 1000$ (your target), I am a bit confused on the division by 6 to get 3, ,6, 9 and using these to determine mini lots to get to $25 eg as you say (For me 18 lots =AUD$25). Does this mean you scale in the mini lots till you have a $25 dollar exposure and then let it run for 40 pips to get the $1000 ?

grateful for any light you can throw in my direction

Cheers...Des
  • #6,694
  • Dec 7, 2020 4:03pm Dec 7, 2020 4:03pm
Quoting DuncanMac
I've started reading from pg1, and downloaded the indicators to be used. Can anyone point out the page numbers where the system rules are described. Thanks.
try going to post 60
  • #6,695
  • Dec 8, 2020 5:47am Dec 8, 2020 5:47am
-------wrong thread
  • #6,696
  • Dec 8, 2020 11:11am Dec 8, 2020 11:11am
Can anyone shows or suggests a way on how to clear order-based objects on the charts? Just a few demo trades the chart is full of objects left behind by the transactions. Quite annoying when wanna analyze and look back price action.

Thank you in advance
  • #6,697
  • Dec 8, 2020 11:20am Dec 8, 2020 11:20am
Quoting limth
... a way on how to clear order-based objects on the charts...
This script make that automaticly.
Attached File(s)
File Type: ex4 DelObj.ex4   5 KB | 149 downloads
  • #6,698
  • Dec 9, 2020 8:57am Dec 9, 2020 8:57am
Quoting Pilygrim
{quote} This script make that automaticly. {file}
This scripts delete all the home works make on the chart but none on the order-based objects.

I found this old scripts but not working anymore, wonder if somebody can modify it to make it work?


Thank you in advance
Attached File(s)
File Type: mq4 Cleanup order-based objects.mq4   81 KB | 360 downloads
  • #6,699
  • Dec 9, 2020 10:18am Dec 9, 2020 10:18am
so have red the first 33 pages and get now a better picture. its mainly a money management strategy.

my first position is 0.10, second 0.20 and third 0.30

this afternoon i saw a divergence on the H1 AND the target (red line) was reached. so good to look for shorts on the lower TF.

Attached Image (click to enlarge)
Click to Enlarge Name: ff9.12.GBPUSDH1.png Size: 57 KB

on the m5 i saw no divergence, but a close below the 26EMA.

so i started to short and closed when the third entry (0.30) reached the 40pips target.
Attached Image (click to enlarge)
Click to Enlarge Name: ff9.12.GBPUSDM5.png Size: 52 KB
trading is like dancing, don't think and just listen to the music!
  • #6,700
  • Dec 9, 2020 12:32pm Dec 9, 2020 12:32pm
Quoting limth
This scripts delete all ...
Deletes by name. If all is false, removes all objects.
Attached File(s)
File Type: ex4 DelObjName.ex4   10 KB | 199 downloads
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