It's time to buy gbp/usd? | Forex Factory

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It's time to buy gbp/usd?

  • #1
  • First Post: Nov 13, 2006 1:37pm Nov 13, 2006 1:37pm
Hi, everyone, anyone here think it's time to go long on cable?

We already crossed 1.9000, from yesteday we have go down something like 140pips and i think now it's gonna be a good time to get long on it, cause we gonna have a support on .75 and a bing one on .50 and another one at .21 so i'm gonna take the following strategy, i'm gonna go long on 1.9009 with 1lot , then i if the trend still goes down i'm gonna cover my position with 2lots at 1.9089 then 1.9078 with 4lots, 19068 with 8 and finally 16lots at 1.9058 all with 20pips tp.

I used this kind os strategy when the markets are situiable for it, not all time, and i can say that the accurancy fot it is great, never been on loss trading with this strategy

Sorry by the english.
  • #2
  • Nov 13, 2006 1:41pm Nov 13, 2006 1:41pm
wow!!!!! all I will say.... Just don't understand the basis of your trading strategy.. But good luck..
  • #3
  • Nov 13, 2006 2:02pm Nov 13, 2006 2:02pm
  •  iya
  • | Joined Oct 2006 | Status: always protect yourself | 129 Posts
The strategy is called doubling down and it works well if you have unlimited resources.

Good luck, you will probably need it!
  • #4
  • Nov 13, 2006 2:17pm Nov 13, 2006 2:17pm
Quoting ggarbuio
Hi, everyone, anyone here think it's time to go long on cable?

We already crossed 1.9000, from yesteday we have go down something like 140pips and i think now it's gonna be a good time to get long on it, cause we gonna have a support on .75 and a bing one on .50 and another one at .21 so i'm gonna take the following strategy, i'm gonna go long on 1.9009 with 1lot , then i if the trend still goes down i'm gonna cover my position with 2lots at 1.9089 then 1.9078 with 4lots, 19068 with 8 and finally 16lots at 1.9058 all with 20pips tp.

I used this kind os strategy when the markets are situiable for it, not all time, and i can say that the accurancy fot it is great, never been on loss trading with this strategy

Sorry by the english.
Interesting, we have had a sharp move down today and on the M15 we could be forming a flag overnight. When we have a flag I generally expect and continuation of the same magnitude as the flag pole!! Lets see.
Pipped to the post.
  • #5
  • Nov 13, 2006 2:28pm Nov 13, 2006 2:28pm
Quoting ggarbuio
Hi, everyone, anyone here think it's time to go long on cable?

We already crossed 1.9000, from yesteday we have go down something like 140pips and i think now it's gonna be a good time to get long on it, cause we gonna have a support on .75 and a bing one on .50 and another one at .21 so i'm gonna take the following strategy, i'm gonna go long on 1.9009 with 1lot , then i if the trend still goes down i'm gonna cover my position with 2lots at 1.9089 then 1.9078 with 4lots, 19068 with 8 and finally 16lots at 1.9058 all with 20pips tp.

I used this kind os strategy when the markets are situiable for it, not all time, and i can say that the accurancy fot it is great, never been on loss trading with this strategy

Sorry by the english.
Stupid question but.. do you mean cover at 1.8989 with 2 lots, 1.8978 etc?

Yes folks, you dont need to lose trades. People dont believe it but the 1,2,3,4,5,6 average strategy or 1,2,4,8 protects against all losses. The problem would only come if there is a big trend that is unexpected such as the EURO in 3 weeks goes back down to 1.18. Also as was mentioned earlier, you need just about endless resources. Means for most of use the first position needs to be .10c
The market is my nation. Traders, my family. Hello, brothers and sisters!
  • #6
  • Nov 13, 2006 2:51pm Nov 13, 2006 2:51pm
so once your position with 20 lots hits the 20 pip target, wat do u do with the losing positions

Quoting ggarbuio
Hi, everyone, anyone here think it's time to go long on cable?

We already crossed 1.9000, from yesteday we have go down something like 140pips and i think now it's gonna be a good time to get long on it, cause we gonna have a support on .75 and a bing one on .50 and another one at .21 so i'm gonna take the following strategy, i'm gonna go long on 1.9009 with 1lot , then i if the trend still goes down i'm gonna cover my position with 2lots at 1.9089 then 1.9078 with 4lots, 19068 with 8 and finally 16lots at 1.9058 all with 20pips tp.

I used this kind os strategy when the markets are situiable for it, not all time, and i can say that the accurancy fot it is great, never been on loss trading with this strategy

Sorry by the english.
  • #7
  • Nov 13, 2006 3:42pm Nov 13, 2006 3:42pm
Its not called doubling down (thats a choice in blackjack when you only get one more card), what this guy is talking about is commonly referred to as the Martingale strategy, and yes, some people have used it in gambling. In blackjack, like forex, your odds of losing 5 or 6 times in a row are low. The problem is, when it does happen (and it will) then you get screwed. The good part is, you "always" win.

The strategy that I employ is not altogether different, but I average my positions if I am losing, and thereby I can modify my position to somewhere that the price is more likely to return to. This also requires that trade with smaller amounts relative to my account size but thats not a problem for me, I let the pips do most of the work, not putting 16 lots on a 20 pip trade (that would be silly, IMHO).

Dollar cost averaging (the real term for the strategy I use) is something that people normally talk about with stocks, and I have tried to start conversations about it on here, but nobody seems to want to talk about it. Its really a perfect strategy for forex, since the price fluctuates in such wave-like moves all the time. A long term strategy and a short term strategy rolled into one, it allows you to capitalize quickly when you are right and also compensates when you are wrong (although it takes longer). My whole style is built around position averaging or dollar cost averaging, whatever you want to call it.

Thanks to all the people who closed out their trades when they hit their arbitrary s/l - my growing retirement fund really appreciates it.
  • #8
  • Nov 13, 2006 3:48pm Nov 13, 2006 3:48pm
Personally I dont see any damage on charts, if you look at 4 hr chart, the trend is still up; if there is no followup selling tomorrow in jap/EU tomorrow session than we will see full recovery and a final attempt tp 192 before going any lower.Having said that I m sell Eur/usd from 128.07, I dont have any equity left to trade gbp/usd anymore.
fxtrada.com
  • #9
  • Nov 13, 2006 4:28pm Nov 13, 2006 4:28pm
wow on a 140 pip move that would take alot of resources. I normally try to space them 20-25pips and I don't usually double them up. I figure mine is dollar cost averaging and as the price goes lower I increase my profit target so 1.9000 would be set for 20 pips but 1.8980 would have a target of 30 pips and 1.8960 would have a target of 40



Quoting ggarbuio
Hi, everyone, anyone here think it's time to go long on cable?

We already crossed 1.9000, from yesteday we have go down something like 140pips and i think now it's gonna be a good time to get long on it, cause we gonna have a support on .75 and a bing one on .50 and another one at .21 so i'm gonna take the following strategy, i'm gonna go long on 1.9009 with 1lot , then i if the trend still goes down i'm gonna cover my position with 2lots at 1.9089 then 1.9078 with 4lots, 19068 with 8 and finally 16lots at 1.9058 all with 20pips tp.

I used this kind os strategy when the markets are situiable for it, not all time, and i can say that the accurancy fot it is great, never been on loss trading with this strategy

Sorry by the english.
  • #10
  • Nov 13, 2006 6:45pm Nov 13, 2006 6:45pm
this reminds me on the martingale EA like 10point3 or terminator
  • #11
  • Nov 13, 2006 10:21pm Nov 13, 2006 10:21pm
My strategy i'ts something like that, but i make this to enter on the trades:

when we ahve a trend up or down i take the highiest price or the lower one an them i count how many trades that i would need to open if i use a pipset of 12 and a tp ou 30 then when i reach 10trades i open my first one, i have made a backtest manually huihauihauihauia yes i toked a lot of time to do it hehehehe i have make the backtest by 2003 to 2006 and the maximum trades that have been necessaries was 16, so if i ahve a 10K account i can enter with 0.10 and doubling the lots if necessarie with a tp of 30, thats not a all day strategy but one strategy that u can use to get some pips at some days
  • #12
  • Nov 13, 2006 11:37pm Nov 13, 2006 11:37pm
Quoting Americantek
...

The strategy that I employ is not altogether different, but I average my positions if I am losing, and thereby I can modify my position to somewhere that the price is more likely to return to. This also requires that trade with smaller amounts relative to my account size but thats not a problem for me, I let the pips do most of the work, not putting 16 lots on a 20 pip trade (that would be silly, IMHO).

Dollar cost averaging (the real term for the strategy I use) is something that people normally talk about with stocks, and I have tried to start conversations about it on here, but nobody seems to want to talk about it. Its really a perfect strategy for forex, since the price fluctuates in such wave-like moves all the time. A long term strategy and a short term strategy rolled into one, it allows you to capitalize quickly when you are right and also compensates when you are wrong (although it takes longer). My whole style is built around position averaging or dollar cost averaging, whatever you want to call it.

Thanks to all the people who closed out their trades when they hit their arbitrary s/l - my growing retirement fund really appreciates it.
Would you mind to elaborate abit about forex DCA ? I use this method for my stocks but this is the first time I heard people using it for forex.
Do you buy 1000 units every 3 hours for example ?
  • #13
  • Last Post: Nov 14, 2006 7:55am Nov 14, 2006 7:55am
Quoting luqmanz
Would you mind to elaborate abit about forex DCA ? I use this method for my stocks but this is the first time I heard people using it for forex.
Do you buy 1000 units every 3 hours for example ?
Well its not time-based if thats what you are getting at with the 3 hour thing. I'll give you a brief example:

I go long on cable at 1.9000, 1 lot. So now my position is 1 lot at 1.9000 - easy right?

Now lets say price moves to 1.8900 but I have reason to believe that it will recover, at least somewhat. So I open another trade, long at 1.8900, 1 lot. Now my position is at 1.8950, 2 lots. Even if price only comes back up to my first entry point at 1.9000, I have made 50 pips X 2 lots. If it keeps going to where I originally targetted, say 1.9100 then I have made double the profit with less than double the risk (since my risk was ADJUSTABLE and my profit was fixed).

This is an ultra basic example and doesn't get into how I would react differently to different markets, if the price were moving fast, slow, news coming up, weekend, etc etc all factor into how much and when I adjust my position. It also doesnt factor in the spread or anything like that - its just an overly simple example to make it easy on me early in the morning! I will tell you that normally my first adjustment (when I do have to adjust, which usually I don't) is not more than 100 pips away. My money management strategy is such that I can do this quite safely. I'm on my FIRST account, as in I'm not one of these guys who subscribes to the theory that your first account or two just gets blown for "tuition".
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