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The brutal truth of day trading

  • #641
  • May 7, 2021 10:13am May 7, 2021 10:13am
Quoting ryuryu
{quote} EU ATR on 1m TF is 25 points, so x3 is 75. Not so big.
Are the points written up to 4 decimal places or 5 decimal places?
A trade should be based on an assumption based on facts
  • #642
  • Edited 10:37am May 7, 2021 10:16am | Edited 10:37am
Quoting maverick2017
{quote} How do you use stop loss then? Do you always have a target before opening a trade? Does this work for you? If yes, then how much time did it take before you could do it on every trade you take. What is delta?
Sure I have target before I enter trade, there is no point to enter , if thinking its good entry, but target is too near.
Usually its nearest price cluster.

I dont have "stop loss" i know my trade accuracy, and i get "my money back" in certain time period.
which is short time. Which happens maybe once a year. If I am loss position end of day, and have to close. WHich is not happening often because i trade only one hour after london and then two hour after new york forex open, and i have time to make enough profit for day if i am negative balance for day, untill day is closed. ("two hours still time before london close") spare time.
It depends how much is your monthly,daily profits and risk. I mean very low DD.

One key is trading, have a good ballance. Can have couple small bruises and stand up.

And I dont think/focus single entries, the whole result of the day. or something like that, even usually it can be just a few trades.
  • #643
  • May 7, 2021 10:23am May 7, 2021 10:23am
Quote
if thinking its good entry, but target is too near
How often does a market move significant no. of pips before retracing? An entry is good if the trade is profitable, I guess. But it depends on the personality really.

Quote
Usually its price cluster.
Couldn't understand this.
A trade should be based on an assumption based on facts
  • #644
  • May 7, 2021 10:55am May 7, 2021 10:55am
Quoting maverick2017
{quote} How often does a market move significant no. of pips before retracing? An entry is good if the trade is profitable, I guess. But it depends on the personality really. {quote} Couldn't understand this.
Rick knows better about those retracement numbers, i only watch 5 min and hourly ATR, sometimes they match.

Here is one and only entry for me today, and i put it lot of weight, the red arrow is where was my cluster price target,
My sauna was allready hot, and I got enough profits, closed before my target, Its WEEKEND. and nice for everyon
Attached Image (click to enlarge)
Click to Enlarge Name: USDJPYM1.png Size: 19 KB
  • #645
  • May 7, 2021 11:00am May 7, 2021 11:00am
Quoting kk100
{quote} Here is one and only entry for me today, and i put it lot of weight, the red arrow is where was my cluster price target, My sauna was allready hot, and I got enough profits, closed before my target, Its WEEKEND. and nice for everyon{image}
Nice trade.
Cluster is to the left, right?
A trade should be based on an assumption based on facts
  • #646
  • May 7, 2021 11:19am May 7, 2021 11:19am
Quoting maverick2017
{quote} Are the points written up to 4 decimal places or 5 decimal places?
EURUSD has 5 digits after dot. 1 point = 1$. So if you set 75 point TP then you will get 69.5$ profit (if trading 1 lot). 5.5$ will be the comission paid. To get RR 1:1 you have to set 75 TP and 64 points SL.

I'm not using ATR as distance like RickM, but I'm using ADR instead. Several times we compare our distances for EU, GU, Gold and it seems they are pretty equal. For example my ADR for EU is exactly 75 points. For GU it is 94, for Gold it is 266.

But this is different story. The key here is to calculate the distance depending on the pair, but not have same for all. Because 75 is good for EU but too small for gold and too big for JPY pairs.
Observer effect
  • #647
  • May 7, 2021 1:04pm May 7, 2021 1:04pm
Quoting ryuryu
{quote} EURUSD has 5 digits after dot. 1 point = 1$. So if you set 75 point TP then you will get 69.5$ profit (if trading 1 lot). 5.5$ will be the comission paid. To get RR 1:1 you have to set 75 TP and 64 points SL. I'm not using ATR as distance like RickM, but I'm using ADR instead. Several times we compare our distances for EU, GU, Gold and it seems they are pretty equal. For example my ADR for EU is exactly 75 points. For GU it is 94, for Gold it is 266. But this is different story. The key here is to calculate the distance depending on the...
Hi ryu,
hmmm.. then 75 TP can be achieved with consistency. but 75 points is big if calculated from 4 digits after decimals.

Is there a place for retracement in these calculations (historical levels are respected. is that how these nos. are calculated?)?

Pips < points?
A trade should be based on an assumption based on facts
  • #648
  • May 7, 2021 1:37pm May 7, 2021 1:37pm
Quoting maverick2017
{quote} Hi ryu, hmmm.. then 75 TP can be achieved with consistency. but 75 points is big if calculated from 4 digits after decimals. Is there a place for retracement in these calculations (historical levels are respected. is that how these nos. are calculated?)? Pips < points?
Sorry I don't know what pips are. As I understand it is old mt4 standard. I'm trading using mt5, so there are no pips. There are points. 1 point for EURUSD = 1$. For 4 digit pairs or for gold for example you have to calculate them separately. I'm using master pair and ADR for that. But it is a little bit complicated, you can use ATR like RickM said.

As about retracement I didn't get your question...
Observer effect
  • #649
  • May 7, 2021 1:43pm May 7, 2021 1:43pm
Quoting ryuryu
{quote} Sorry I don't know what pips are. As I understand it is old mt4 standard. I'm trading using mt5, so there are no pips. There are points. 1 point for EURUSD = 1$. For 4 digit pairs or for gold for example you have to calculate them separately. I'm using master pair and ADR for that. But it is a little bit complicated, you can use ATR like RickM said. As about retracement I didn't get your question...
pips means points in profit.
someone here will help with this.

Between the top and the bottom of a swing, market retraces back a bit, sometimes more sometimes less. After this retracement the market continues to move in the direction of the original swing. My question is, do you take the starting of a retracement as your target?
A trade should be based on an assumption based on facts
  • #650
  • May 7, 2021 6:42pm May 7, 2021 6:42pm
Quoting maverick2017
{quote} pips means points in profit. someone here will help with this. Between the top and the bottom of a swing, market retraces back a bit, sometimes more sometimes less. After this retracement the market continues to move in the direction of the original swing. My question is, do you take the starting of a retracement as your target?
Think of a pip as a measurement, measuring the movement in price. Doesn't necessarily mean profit and the term is not platform specific, MT4, MT5....

Its a standard forex term that represents the change in the pair you are trading.
Swing the AXE..HARD w/ Effort, Consistency and Patience
  • #651
  • May 7, 2021 7:39pm May 7, 2021 7:39pm
Quoting maverick2017
{quote} Are the points written up to 4 decimal places or 5 decimal places?
Maverick, go to Baby Pips and do some research there, including the free FX course.
  • #652
  • Edited 11:44pm May 7, 2021 8:36pm | Edited 11:44pm
Quoting RickM
{quote} Hi Maverick I wrote a lot of EA's a few years ago that tested different exit strategy's for standard price action setups. An example was say a Engulfing candle price action setup where I would enter on the close of that candle. I tried various exit strategy's like simple moving average exit, 2 bar invalid exit, set take profit, trailing stop, risk reward exit, trendline exit, etc. etc. I tried about 25 exit plans to nut out what strategy seemed to work best on about 8 of my trading strategy's that were running in my EA's. There was a clear...
RickM

I believe in taking small and quick profits. That helps me in practising to remain patient and focus only on the screen.

I consider trading as speculation and observe how the internal forces of supply and demand influence the moves and whether I can detect them on the chart .
Having done this for several years, the detection of sideway moves is a skill I have developed.

I just use a time pip box and tick volume as my helper and watch the dance of the boxes to enter and exit. I try to enter at a point where both entry and exit possibilities should be minimum of 10 that includes at least 6 breakouts and 4 retracements. The focus is on avoiding stop loss as well as R:R ratio. Both SL and RIsk rewards have never helped my trading.

In your view is it an example of building strategy from the exit?

Will you please give a couple of examples of using the back end as a trade plotter?

Thank you.
Practice makes a person perfect
  • #653
  • May 7, 2021 9:46pm May 7, 2021 9:46pm
Inserted Video
Real Trading is not gambling.
  • #654
  • May 7, 2021 10:30pm May 7, 2021 10:30pm
Quoting PeterCaleb
https://www.youtube.com/watch?v=-KqXcm-I2zY
Something very strange about you Peter.
  • #655
  • Edited May 8, 2021 2:32am May 7, 2021 11:40pm | Edited May 8, 2021 2:32am
Quoting simnz
{quote} RickM I believe in taking small and quick profits. That helps me in practising to remain patient and focus only on the screen. I consider trading as speculation and observe how the internal forces of supply and demand influence the moves and whether I can detect them on the chart . I sincerely and genuinely believe it does not help the economy in any way. Trading auction markets are another Capitalistic device specifically set up for the cartels to work and where the elite can rig the game in the favour of moneybags. What is the point of...
New kid on the block: Warehousing - sell small proportionate stock slices to retailers

I genuinely believe Speculation (sans equity market) in the financial trading instrument does not help the economy grow substantially except creating a few jobs in the trading sector.

The only silver lining I can see is it helps the re-distribution of wealth and the beneficiaries can be people like me who are willing to understand the game in its entirety and give time to help line up our pockets.

On the contrary, I am finding the retailers are falling into their traps by believing in effortless success and helping the rich become richer. Certain trading communities from Israel, the USA, UK, EC, China and India understand this game well and they keep floating new ideas to tap the greed for money by effortless money makers.
MT4 specifically designed for B books operation, Binary options and now comes this new speculation game setup.

Trading auction markets are one of the Capitalistic devices specifically set up for the cartels to work and where the elite can rig the game in the favour of moneybags.
It is a game that needs to be understood well and practised.

What is the point of getting influenced by news or market noise?

Play their game on their turf and never grumble about it because it influences your trading decisions.


https://www.ifec.org.hk/web/en/inves...k-parking.page

https://www.ifec.org.hk/web/en/inves...ics/index.page
Attached Image (click to enlarge)
Click to Enlarge Name: cartoon on market manipulation.png Size: 307 KB
Practice makes a person perfect
  • #656
  • May 7, 2021 11:47pm May 7, 2021 11:47pm
Quoting mallee
{quote} Something very strange about you Peter.
Not really, he is an older gentleman, and well educated.

"There is no such thing as bad publicity"--PT Barnum

Quoting simnz
{quote} New kid on the block: Warehousing of stocks to sell to retailers I genuinely believe Speculation in the financial trading instrument does not help the economy in any way. The only silver lining I can see is it helps the distribution of wealth and the beneficiaries can be people like me who are willing to understand the game in its entirety and give time to help line up our pockets. On the contrary, I am finding the retailers are falling into their traps by believing in effortless success and helping the rich become richer. Trading auction...
This would suggest that these stocks have poor fundamentals, such as a bad or antiquated business model, low on cash, big on debt, etc.

Retailers can check this stuff now.
If you are good at something, never do it for free--Joker
  • #657
  • May 7, 2021 11:56pm May 7, 2021 11:56pm
Quoting TraderTim125
{quote} How To “know” when bankers are behind a move. What footprints do the leave? The first and most obvious footprint is simply the size and speed of the move. Retail traders and other smaller institutional traders don’t have the resources to drive these sorts of moves so when you see one, you can be almost certain that the big guys are behind it. For example you may see price slowly going up over a number of hours and then down by a similar amount in a few minutes. The question then is why and what are they up to? What they are always up to...
My similar observatrions on my two posts at this thread:
https://www.forexfactory.com/thread/...0#post13529220
Practice makes a person perfect
  • #658
  • May 8, 2021 12:10am May 8, 2021 12:10am
Quote
Maverick, go to Baby Pips and do some research there, including the free FX course.
When I used to trade forex then we had 4 digits after decimal. Now that has changed I guess.

10 pips if there are 4 digits after decimal is different than 10 pips if there are 5 digits after decimal.

Quote
Pip is an acronym for "percentage in point" or "price interest point." A pip is the smallest price move that an exchange rate can make based on forex market convention. Most currency pairs are priced out to four decimal places and the pip change is the last (fourth) decimal point. A pip is thus equivalent to 1/100 of 1% or one basis point.
^^ taken from investopedia.
A trade should be based on an assumption based on facts
  • #659
  • May 8, 2021 12:15am May 8, 2021 12:15am
Quoting mallee
{quote} Something very strange about you Peter.


mallee,

Contrary to popular belief or opinion on here, I only have one main goal/interest for having a presence here.... and it's not just to stir up trouble. Although sometimes stirring the pot CAN BE fun. If someone calls me strange, I see that as a low key compliment. SO .... thank you. Being exactly the same as 'the mob' has always ended badly for people, and so, I see it as rather irresponsible to be like that. And so, when it comes to trading, I see it as an extension of basic real life.

And so, the video I posted is my overview of what I see happening here. Now it might seem judgmental or nasty to some, but really, there ARE other perfectly worthwhile perspectives to view the situation from. And ... when you put them all together, you start to see more of what is going on.

So to me, that video is both insightful, educational AND a tad playful with tongue in cheek !!

So thanks again for the compliment mallee.


Peter
Real Trading is not gambling.
  • #660
  • May 8, 2021 1:26am May 8, 2021 1:26am
Quoting simnz
{quote} New kid on the block: Warehousing - sell small proportionate stock slices to retailers I genuinely believe Speculation in the financial trading instrument does not help the economy in any way. The only silver lining I can see is it helps the distribution of wealth and the beneficiaries can be people like me who are willing to understand the game in its entirety and give time to help line up our pockets. On the contrary, I am finding the retailers are falling into their traps by believing in effortless success and helping the rich become...
Speculation in the financial trading instrument does not help the economy in any way
Perhaps think of it this way. Speculation creates liquidity which encourages more speculation which creates more liquidity and so on. Without liquidity, markets collapse. The Forex market happens to be the biggest and most important market in the world and needs all the liquidity it can get. All financial markets, collectively have a profound influence on global living conditions. Clearly some people do a lot better than others and there are many things that could undoubtedly be improved. I find it hard however to see how returning to living in caves and going out to hunt woolly mammoths (assuming you can even find one) to be a step in the right direction.
Don't Guess Test
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