The brutal truth of day trading | Page 49 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

The truth about trading 164 replies

Truth about trading 9 replies

Truth about online trading...Is this us also? 5 replies

Pulos Bill - The Truth About Fibonacci Trading (Attached) 4 replies

The Bonehead Trader..please be brutal!! 47 replies

Attachments: The brutal truth of day trading
Exit Attachments

The brutal truth of day trading

  • #961
  • May 24, 2021 5:58am May 24, 2021 5:58am
Quoting TraderTim125
{quote} Looking at other possible approaches to working with order flow Hi Rick Thanks for answering my questions. I think I now understand what you are trying to do. One of the numerous question in my mind is how correlated is the Depth of Market (DOM)’s on the Reuters and EBS interbank platforms with those of CME FX futures? I did some quick and dirty analysis comparing intraday spot FX data with FX futures data. The price correlation was roughly what I expected with the futures price slightly leading the spot price. What I didn’t expect was the...
If you want to trade order flow with DOM then you need to trade Currency futures rather then FOREX.
  • #962
  • May 24, 2021 6:47am May 24, 2021 6:47am
Hi All, I am new to the forum, by the way, not many forums out there!
I am not sure if this is a good place to ask for advice since I am not a forex trader, I spread bet on Germany Dax index, mostly day trading.

It is purely a question on the exit strategy aiming at minimising the loss.

I have a loss position of nearly 8k of which 3.8k is my money. The loss position I have maintained opened back in March 2021 enabled me to bet double the cash margin I have put in - unfortunately Dax shot up to 15k from opening my position at 13800 or so....
So at the moment I am left unfortunately with very little of account value - of merely 68 euro, and the loss position is 8k made of 6.8k of loss position running all the time, and the hedge of buy positions at different levels of 'profit' of 1200 (5 euro sell and 5 euro buy hedge - on the same instrument) - my overall margin is zero ( Cash at 6,800 since I have not wanted to close positions.

So even if today dax dropped to 13800, I could not close my sell position, since not enough margin to cover the 5 euro be sell that is hedging.

Please do not ask me why I am still learning! Obviously do not want to put in more money, but just thinking how to exit in stages once dax goes into correction territory...

Any suggestions ( except - closed all position and be left with 68 euro appreciated.
Thanks a lot in advance for sharing the knowledge!
  • #963
  • May 24, 2021 7:09am May 24, 2021 7:09am
Quoting LotstoLose
Hi All, I am new to the forum, by the way, not many forums out there! I am not sure if this is a good place to ask for advice since I am not a forex trader, I spread bet on Germany Dax index, mostly day trading. It is purely a question on the exit strategy aiming at minimising the loss. I have a loss position of nearly 8k of which 3.8k is my money. The loss position I have maintained opened back in March 2021 enabled me to bet double the cash margin I have put in - unfortunately Dax shot up to 15k from opening my position at 13800 or so.... So at...
maybe keep all as is. and learn to trade. develop strategy. then test it quite enough. with demo money. and then when ready - go to battle for your frozen capital.
  • #964
  • May 24, 2021 8:11am May 24, 2021 8:11am
Quoting LotstoLose
Hi All, I am new to the forum, by the way, not many forums out there! I am not sure if this is a good place to ask for advice since I am not a forex trader, I spread bet on Germany Dax index, mostly day trading. It is purely a question on the exit strategy aiming at minimising the loss. I have a loss position of nearly 8k of which 3.8k is my money. The loss position I have maintained opened back in March 2021 enabled me to bet double the cash margin I have put in - unfortunately Dax shot up to 15k from opening my position at 13800 or so.... So at...
Who needs help? | Forex Factory
A trade should be based on an assumption based on facts
  • #965
  • May 24, 2021 8:33am May 24, 2021 8:33am
Quoting LotstoLose
Hi All, I am new to the forum, by the way, not many forums out there! I am not sure if this is a good place to ask for advice since I am not a forex trader, I spread bet on Germany Dax index, mostly day trading. It is purely a question on the exit strategy aiming at minimising the loss. I have a loss position of nearly 8k of which 3.8k is my money. The loss position I have maintained opened back in March 2021 enabled me to bet double the cash margin I have put in - unfortunately Dax shot up to 15k from opening my position at 13800 or so.... So at...
It is the biggest question. No matter what signals you use you will always stuck with some trades. I have spent years to figure out how to manage it. First that comes in mind is to average against. But here you must calculate the distance correct. For example people use 100 points for EU as a step (or whatever), but for DE30 it is too small. It must be 1000 for example. Second idea is to reverse the trade. But both methods are not working good, first will ruin your trade on trending market second on ranging. And to predict market behavior... is... impossible.

Third approach is to average against and if X averages gave nothing reverse. That is not working too.

I have talked to RickM and he said me that it is better just no hedge the position and calm down. Just wait for the new opportunity for trade. Since I'm trading with eas, this is best possible approach I have. In most cases other pairs/total profit cover the losses without any need of additional trades for that pair.

In your situation I can't give you the advice, because you are out of margin yet. So first you need to free up some. You can use close by function to close some trades with each other. That will free some margin, but will reduce your equity and balance for sure.

Anyway before entering the trade you must have calculations how much you can hedge. What loss you can handle. And make all the calculations depending on that. For example if you are using averaging + reverse and your loss can be 1% that mean that total loss after 5 trades can't be more than 1%, so each must be 0.2% maximum. And so on. This is very simple example if real trading it is more complicated, but I hope you got the point.
Observer effect
  • #966
  • May 24, 2021 8:52am May 24, 2021 8:52am
Quoting Brixton
{quote} If you want to trade order flow with DOM then you need to trade Currency futures rather then FOREX.
Current Thoughts About Order Flow

Hi Brixton,
You may well be right.

What I am trying to do is figure out for myself the current state of the art in this area. I discovered this thread a couple of weeks ago by searching "Order Flow". I have since found another dedicated thread on this same subject that takes a someone different tack. A couple of years ago I did some R&D work for a guy in this area. All three approaches to order flow that I have looked at employ different methods and techniques but all converge on essentially the same objective.

At this stage I am interested in but not necessarily committed to using DOM. There may be other means of obtaining the same information and I am still uncertain as to whether order flow in the fx futures market is a good proxy for the order flow that the bank traders see or create on their Reuters/EBS systems. I would be very interested in any knowledgeable input on that subject. I also pointed out in a previous post that there is a spot forex based DOM on the Metatrader MT5 platform. I would love to hear from somebody who has some knowledge of or experience using it.

In due course I will probably attempt to develop a fourth approach but in my experience, it always makes sense to thoroughly check out what others have done before hand.

The guy who started the other FF thread that I mentioned, DonPato, seems to know what he is talking about. He describes a market as being made up of four main structural components: (1) Time; (2) Order flow; (3) Volume; (4) Price. Price is the final component and determining price movement the objective. How we manipulate any or all of these other three components to achieve this objective defines the problem that we are trying to solve.

Regards
Tim
Don't Guess Test
  • #967
  • May 24, 2021 9:17am May 24, 2021 9:17am
Quoting TraderTim125
I would be very interested in any knowledgeable input on that subject. I also pointed out in a previous post that there is a spot forex based DOM on the Metatrader MT5 platform. I would love to hear from somebody who has some knowledge of or experience using it.
Hi Tim! There are no real volume on spot forex. So all that forex DOM is fake. It based on tick data that can't be used. You need to have real volume and it is available only on futures. But the good is that you can take data from futures, but trade on forex. Because the movements somehow are exactly the same.

Attached Image (click to enlarge)
Click to Enlarge Name: 5428d2d1494d049df356cce5d527326c.png Size: 12 KB

Red is forex spot "volume", blue is futures volume.
Observer effect
  • #968
  • May 24, 2021 4:09pm May 24, 2021 4:09pm
Quoting ryuryu
{quote} Hi Tim! There are no real volume on spot forex. So all that forex DOM is fake. It based on tick data that can't be used. You need to have real volume and it is available only on futures. But the good is that you can take data from futures, but trade on forex. Because the movements somehow are exactly the same. {image} Red is forex spot "volume", blue is futures volume.
And if I can add to ryuryu’s good description of futures data, the volume extreme’s you see on futures over forex spot FX is 100% accurate.
Finally you have the chance to see a big player dump huge volume on to the market and see how it changes market direction.

JUST USING VOLUME
Trading thin liquidity at the boundary of the charts
  • #969
  • May 24, 2021 5:10pm May 24, 2021 5:10pm
Quoting RickM
{quote} And if I can add to ryuryu’s good description of futures data, the volume extreme’s you see on futures over forex spot FX is 100% accurate.
Finally you have the chance to see a big player dump huge volume on to the market and see how it changes market direction. JUST USING VOLUME

Hi Rick & Ryu,

I can see things in my own (myopic) way at times. And what I am seeing from those last 2 posts has my mind meandering down a perhaps awkward path.

I am assuming guys that the charts ryu posted are from the 1 min. And not tick based.

If that could be clarified firstly by either of you pls.


And, IF (yep I’m an “if” guy, when sorting things out in my mind) they are 1 min candles then 60 seconds is a LONG time in the world of high frequency computing.

A LONG, LONG time. Especially (if) someone is “front running” their own trade on Futures and then facilitating the required price movement direction (yes, by themselves maybe) back onto the FX market.

eg
Quoting ryuryu
{quote} Because the movements somehow are exactly the same. {image} Red is forex spot "volume", blue is futures volume.

My 'if' is if its just a pure front running attempt for a futures profit based on current forex price, are they always successful? at this in your opinion, is my next question.


As I work on a longer movement & timeframe (1hr down to 5mins), and trade in the washing machine of price turbulence, I usually let all of what I just said above “happen on the charts first” prior to any trading.


For example, yesterday 10:00 (chart-time London open) the GBPUSD was in a beginning shortening phase when all of a sudden it flipped long (which I assumed at the time was the fake).

It ran the ‘fake? (imho)’ move for approx one hour and then the real (original as I viewed it) short move began again. With many (new) longs trapped high and then price did an impressive ~40 pip move over about just 7 mins.

(No I did not get all the run, as usual, as I missed the start and closed before the end of that 7 mins, when the bounce-back occurred right to where I had ‘exited’).


That final short move started at 11:32 chart time, on one minute candles.

My question Rick & Ryu, and only if the futures volume data is still available, is what do you guys ‘make’ of that GBPUSD move from 11:32 to 11:38 chart-time in regards to the FUTURES volume data. Was there an ‘influx’ of new futures volume or nothing really any different in the volume at all?


If that data is not available, no probs at all. It won’t affect how I trade. Just my curiosity.
  • #970
  • May 24, 2021 6:08pm May 24, 2021 6:08pm
Quoting ryuryu
{quote} Hi Tim! There are no real volume on spot forex. So all that forex DOM is fake. It based on tick data that can't be used. You need to have real volume and it is available only on futures. But the good is that you can take data from futures, but trade on forex. Because the movements somehow are exactly the same. {image} Red is forex spot "volume", blue is futures volume.
Real V's Fake Volume
Hi ryuru,

I am very much aware of the common argument that tick data is decentralised etc and can't be used but I have to respectfully disagree with your statement.

There was a research paper published about 10 years ago by a guy named Caspar Marney. This paper set out to prove that this commonly held assumption is wrong. I personally validated Marney's research findings myself a couple of years ago and found his claims to be correct. In the process I also discovered a few other interesting things about volume and order flow and the way in which some and probably most retail brokers actually operate.

"you can take data from futures, but trade on forex. Because the movements somehow are exactly the same."

I don't think that is correct. Based on some quick and dirty tests I did a couple of days ago they appear to be approximately correct but certainly not exactly. My findings, which I reported on a previous post on this forum, indicated that futures volume was actually more correct (better correlated) with tick volume than price was but again not exactly. This finding quite surprised me.

As said, the tests I did the other day were pretty rough. If someone wants to provide me with some decent futures data I would be happy to run better tests and report them here.

I also found some work by some guys over on one of the techie threads that was pretty interesting. They have looked at this area of order flow quite thoroughly from a different perspective and come up with some very interesting conclusions and results.

Please note that I am not claiming that the process of using FX futures data to try and determine order flow for trading spot FX is wrong. At this stage I simply have my doubts. At the same time I am looking to see if there is a better/easier/cheaper/more valid approach. At the end of the day, even if you have access to Reuters and EBS platforms, I believe it will still come down to subjective interpretation.

The objective is to find or develop tools that will assist this interpretation as much as possible.

The question that I have thrown up a couple of times and that no one has yet attempted to answer is this.

How well does the DOM from CME futures data correlate with the DOM's on Reuters and EBS platforms?

Unless there is some way of determining whether they are both at least approximately the same, it seems to me that trying to use the futures DOM to determine spot FX order flow is somewhat questionable.


Regards
Tim
Don't Guess Test
  • #971
  • May 24, 2021 6:31pm May 24, 2021 6:31pm
Quoting TimeTells
{quote} Hi Rick & Ryu, I can see things in my own (myopic) way at times. And what I am seeing from those last 2 posts has my mind meandering down a perhaps awkward path. I am assuming guys that the charts ryu posted are from the 1 min. And not tick based. If that could be clarified firstly by either of you pls. And, IF (yep I’m an “if” guy, when sorting things out in my mind) they are 1 min candles then 60 seconds is a LONG time in the world of high frequency computing. A LONG, LONG time. Especially (if) someone is “front running” their own trade...
Hi Timetells

One minute is a long time I agree however if we choose to trade of a M1 footprint chart, we can see them build volume within the candle so get a feel for what they have planned.
The data on a footprint say in a big one minute candle would contain data bid/ ask numbers every five to ten seconds so we can see an imbalance action occurring and be able to decide which way the market may be moving (candle by candle).
Again the mystery is always going to be that liquidity density, that is hidden from us most of the time.

On the GBPUSD, I will post a footprint of the action here when I am trading later to see what happened. The DOM of course is never saved and only relevant during live trading. It does seem at least 33% of limit orders are fake and used for building density to block price movements or just confuse all traders of their intent.
Trading thin liquidity at the boundary of the charts
  • #972
  • May 24, 2021 6:41pm May 24, 2021 6:41pm
Quoting TraderTim125
{quote} Real V's Fake Volume Hi ryuru, I am very much aware of the common argument that tick data is decentralised etc and can't be used but I have to respectfully disagree with your statement. There was a research paper published about 10 years ago by a guy named Caspar Marney. This paper set out to prove that this commonly held assumption is wrong. I personally validated Marney's research findings myself a couple of years ago and found his claims to be correct. In the process I also discovered a few other interesting things about volume and order...
Hi TraderTim

Like I have said before, forex candles bleed higher or lower and have longer wicks that futures pair but let’s get to the real live chart.
In a week of following futures volume data and using it as signals from which to trade spot FX on, I would only ever lose one trade out of 300 trades in a whole week IF THE SIGNAL remained true.

Of course signals often fail but that is the only reason I normally lose.

Remember I make live calls in a live trading room just like the rest of the others in that group do as well, so I am transparent in my facts.

Cheers
Trading thin liquidity at the boundary of the charts
  • #973
  • May 24, 2021 7:17pm May 24, 2021 7:17pm
In regards to outsourced data - it's really very simple, in fact it couldn't be any simpler....

Gain access to outsourced data.

Process said data for around six months. This will give enough forward time to allow all participants (big and small) to be involved.

Then map the market with the aid of that data in the format and context of said data.

Then go out into real life and see what participants are involved in trading other markets, particular emphasis on those markets that keep transparent (enough?) records of involvement. This involves some hard work and "effort" but if done well, gives real life data that is NOT available anywhere else. Fact of Life. Along the way you can learn how business is done on this planet and then appreciate "why" different participants do what they do.

Day trading or not. This is how a legitimate realistic trader does it because they know the powers that be are in control of how things change. Only shallow thinkers commit to sources where they have no control. There is no longevity in it. And definitely no understanding of how the world works inside it either.

Of course this is just years and years of experience talking here. But maybe I should just make up an opinion and make everyone believe that right here and now is all that matters.

There's no overall backbone to predominant use of any data. The data doesn't make decisions the person does and that will never change.

The delusion is - "If I'm making money now, why should this course of activity and action ever change?"

This is why people are such cowards, hiding behind terminology and information, but day trading or trend trading, it's all the same.

If you're still fighting with this idea then you need a different way to learn. Otherwise stubborn thinking takes over.

It all becomes rather obvious and disturbing once you step back and take the position that majority of people are just plain wrong about so many things........ and the evidence is all around them to see.

Day trading is a great way to find out how full of crap both you and other people really are in real life.


Peter
Real Trading is not gambling.
  • #974
  • Edited 7:35pm May 24, 2021 7:20pm | Edited 7:35pm
Quoting RickM
{quote}Hi Timetells One minute is a long time I agree however if we choose to trade of a M1 footprint chart, we can see them build volume within the candle so get a feel for what they have planned.

Hi RickM,

Cheers for that. If no GBPUSD data from yesterday becomes available no probs honest.

I received a PM from a trader yesterday (who is not a regular, I hadn’t ever seen them here anywhere on FF before) and they kindly went into detail for me regarding arbing (but in relation to another post I made, not this one).

So where I mentioned earlier about ‘front running’ from Futures to Fx could also just be arb’ing, but I must state I DO NOT know, I’m just postulating (though that might just be the millisecond HFT action which looks to be the same exact timing that Ryu mentioned earlier).

When I mentioned the one minute candle, and said it was a long time, this was not to reflect on your own possible usability of the smallest candle we get on mt4. You have done some excellent work with cross platform-volume in my eyes.

If you’ve found your place in among the “futures & fx” vols Rick, to grab something then that is a great personal achievement, well done and all the best.
  • #975
  • May 24, 2021 7:56pm May 24, 2021 7:56pm
Quoting RickM
{quote} Hi TraderTim Like I have said before, forex candles bleed higher or lower and have longer wicks that futures pair but let’s get to the real live chart. In a week of following futures volume data and using it as signals from which to trade spot FX on, I would only ever lose one trade out of 300 trades in a whole week IF THE SIGNAL remained true. Of course signals often fail but that is the only reason I normally lose. Remember I make live calls in a live trading room just like the rest of the others in that group do as well, so I am transparent...
Different Perspectives
Hi Rick,

We seem to be talking here totally at cross purposes.

The tests I did the other day were just on closing prices. Any reference to candle wicks in this context is therefore irrelevant.

Look Rick, I'm a trader to. I just also happen to be a quant which from past experience gets right up the noses of a good many traders because I look for and often find explanations for things that many traders don't understand and/or can't explain. There are also many statements like the one about spot Fx volume being useless that get repeated over and over again. The end result is that vast amounts of false or misleading information becomes deeply ingrained in the collective trading consciousness which helps to make the average retail trader easy pickings for the "big guys".

What I hear you saying is that your system works well for you and you are happy with. That is good. I have no argument or problems with that. I know quite a few good traders. Regrettably, my own trading abilities, are often somewhat lack lustre by comparison but that is another story and something I am working on.

From my own observations and experiences, trading has both an objective and subjective component. It will probably remain this way until we all become cyborgs or something equally reprehensible.

My passion in life however is and always has been in trying to figure out how things work. At the moment, one of my interests is market structure and order flow. These forex factory forums appears to be a good source of information about this relatively obscure subject. I am slowly working my way though it.

I greatly appreciate your contribution to my store of knowledge.

And this bloody GBPNZD trade in front of me is bobbing up and down going nowhere. I think I will get out of it, go to the gym, and try again around the start of the London session.

Regards
Tim
Don't Guess Test
  • #976
  • Edited 10:45pm May 24, 2021 9:39pm | Edited 10:45pm
Quoting TimeTells
That final short move started at 11:32 chart time, on one minute candles. My question Rick & Ryu, and only if the futures volume data is still available, is what do you guys ‘make’ of that GBPUSD move from 11:32 to 11:38 chart-time in regards to the FUTURES volume data. Was there an ‘influx’ of new futures volume or nothing really any different in the volume at all? If that data is not available, no probs at all. It won’t affect how I trade. Just my curiosity.
Attached Image (click to enlarge)
Click to Enlarge Name: 2547defb7597c1d7b2e5bc221805c99a.png Size: 21 KB

I'm trading reversals using ea, so it check several things to make the decision.
Main direction from 1h tf was long, swap rates for longs are bigger. The price was lower the daily open, out of the range (lower), it was stochastic found, big volume and big delta. I mean that delta or vol itself can't tell you what position to open. It is just a part of the puzzle.

I have to say that I'm trading only 1m, so I can't tell you how that volume and data can be used on higher TFs.

Regarding "decentralization" as I have said many times before I came to forex from crypto and there are the same global fake found. If you will execute big order on one exchange immediately at the same millisecond the same volume taking exchange turnover % will be executed on other exchanges. I don't know how they cheat us but I know that it can be exploited and used. For example you can pull the trigger with lower vol on low vol exchange and execute big trade on other.

Quoting TraderTim125
I don't think that is correct. Based on some quick and dirty tests I did a couple of days ago they appear to be approximately correct but certainly not exactly. My findings, which I reported on a previous post on this forum, indicated that futures volume was actually more correct (better correlated) with tick volume than price was but again not exactly. This finding quite surprised me.
Attached Image (click to enlarge)
Click to Enlarge Name: 4b3aa437c2366a33034ddb90ed0a9e62.png Size: 37 KB


I don't know may be it is possible to use that spot forex tick volume data, but I have found it unusable. But futures vol data is very clear in comparison.

Since I'm not so experienced and fast like RickM, I'm trading mostly reversals with robot on 1m tf. And entries are sequences. It must be sequence found to enter the trade. So that vol&delta from CME helps a lot to skip low vol sequences. And the same time tick volume from spot forex can't be used for that purpose since it is meaningless.

Attached Image (click to enlarge)
Click to Enlarge Name: 5f7c7a6ba622ebed2f31662be5ef647a.png Size: 49 KB
Observer effect
  • #977
  • May 24, 2021 11:07pm May 24, 2021 11:07pm
Quoting ryuryu
{quote}
{image} I'm trading reversals using ea, so it check several things to make the decision. Main direction from 1h tf was long, swap rates for longs are bigger. T

Hi ryuryu,

Cheers & thank you for your chart.


I traded the short action just before your angled diagonal upward blue arrow on your 1st chart.


But first I had a pre-target to watch at 1.41622 which was hit just after the Frankfurt open.

Which, for me then (I figured) the short of pre-NY had begun.

At London open, what I call a 1hr “fake long” (just a phrase I use for myself) began to offset all the 'sellers' who entered a bit early at Frankfurt.

I then waited till ‘after’ the longs exhausted & price returned back to the Frankfurt open price (1.41574).


Soon after I entered a Sell and had a target (set at 1.41360) to reach as my TP (was around 20p, tho I only caught 13p of that move lol).

Price then flashed lower again after I closed & then bounced back quickly (your blue diagonal arrow “buy” area) to a 1hr candle close at about where I originally exited my TP.


So I was wondering if any increased Futures volume had come in on that earlier downwards engulfing candle, which on the 1min charts lasted about 7 minutes.

Vol isn’t something I trade (as I have only mt4 tick data) but I was curious to know what happened with the futures volume around the time that I entered my sell, until the drop finished (inc the flash lower).


Your angled blue arrow reversal AFTER the drop would have been a great trade area also for reversal traders long.

I once mentioned to a trader that both buyers AND sellers can profit during the same period (but of course, both can also lose too lol).

all the best


(ps, everyone should check the current swaps. Most are all negative now, both longs AND shorts, any past advantage thinking of trading in the direction of best swaps is pretty much past history - bar one pair I think I remember, which I do not trade anyway).

.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSDH1 frankfurt open london fake.png Size: 20 KB
  • #978
  • May 24, 2021 11:38pm May 24, 2021 11:38pm
Quoting TimeTells
Your angled blue arrow reversal AFTER the drop would have been a great trade area also for reversal traders long.
Hi TimeTells!

There were no shorts allowed for GU yesterday at all. Because of my rules. So robot was searching only for longs.
Robot is trading on green arrows. But there must be some sequence found. For example it must reverse candle found first. So reverse candle + arrow = ok.
Or, it must be big delta found first, or big delta & volume.

As you see on screenshot there was buy signal higher. But it was no sequence found.

Also I'm not using hard TPs, in fact my GU long was very quick, it was closed at the nearest dashed line and gained only 0.03% as I remember.
Attached Image (click to enlarge)
Click to Enlarge Name: 96df3bc6455ca27dcb5cc0c2482cf1e0.png Size: 28 KB

Since we are talking about futures data vs spot I can't use spot volume data for that purpose, because if you can see the charts above tick forex spot data is... strange. In fact I'm using only delta, not both. Because if delta is very big the volume is big too. No need to have both data.
Observer effect
  • #979
  • May 25, 2021 12:24am May 25, 2021 12:24am
Quoting ryuryu
{quote} Hi TimeTells! There were no shorts allowed for GU yesterday at all. Because of my rules. So robot was searching only for longs.
Quoting TimeTells
{quote}I once mentioned to a trader that both buyers AND sellers can profit during the same period (but of course, both can also lose too lol).

And I was predominantly looking for shorts.
(tho I don't set any direction in concrete until I find the market is deciding)



And right here. We may have the real Brutal Truth of Day Trading. For any new traders.


Whether to buy OR sell and at what point on the chart ... if BOTH can trade to TP.


10,000+ threads on FF. Each with their own methods and indis and entries and exits.


The brutal part for any new trader might well be ... where to even begin.


all the best to all
  • #980
  • May 25, 2021 12:33am May 25, 2021 12:33am
Quoting TimeTells
{quote} {quote} And I was predominantly looking for shorts. (tho I don't set any direction in concrete until I find the market is deciding) And right here. We may have the real Brutal Truth of Day Trading. For any new traders. Whether to buy OR sell and at what point on the chart ... if BOTH can trade to TP. 10,000+ threads on FF. Each with their own methods and indis and entries and exits. The brutal part for any new trader might well be ... where to even begin. all the best to all
Hi TimeTells

Here is my Chart and the action and the key signals were the Volume resistance lines telling us to Sell. These are formed by Absorption where Buyers are unable to move price upwards due to Selling pressure.

The volume at the bottom was 8 times normal levels over the average GBPUSD M1 candles so that is also very important.

Another point and one strategy I spend my day doing is Selling on Bid imbalance (yellow numbers) or Buying in Ask imbalance (white numbers)

The basic no lose strategy should always be - TRADE AGAINST COLLAPSING VOLUME on M1
Mix that with Buy or Sell when Absorption blocks movement and always wait till the Bids & Asks flips.

The spot FX moved the same way except there was a longer wick at the bottom of the lowest candle.

Has the penny dropped on the use of volume yet LOL


Cheers
Attached Image (click to enlarge)
Click to Enlarge Name: my chart.png Size: 373 KB
Trading thin liquidity at the boundary of the charts
0 traders viewing now