True...but don't lose it trying to get more than there is.
name of the game is chase the trend
: did anyoe notice the cable is now CARRY trade
TEB
- #721
- May 15, 2007 9:15pm May 15, 2007 9:15pm
- Joined Jan 2007 | Status: Trader | 5,864 Posts
name of the game is chase the trend
: did anyoe notice the cable is now CARRY trade
TEB
[quote=Spudfyre;
One of the most difficult things to beat in trading stochastics is that "panic" that you will enter too late. Trades are lost almost always on too early an entry. This is the hardest part of using stochastics because you get to a point of anticipating their moves before they happen...and it burns you. To trade stochastics requires a zen garden next to your computer
[/quote]
"Lost oppurtunity is better than Lost Money".
Heard someone say that once, and it has stuck in my head since then. Pity, I had not heard it 1 year earlier.
I also agree to an extent to the concept of 10-20 pips per day. But I think a better gauge would be % of daily range. Since each pair has its own characteristics, and its own daily range, if you can grab a certain % of that range, it might be a better result. This is where the concept of trading 2 lots comes in, or scaling out of a position. I have had the privilage of being in a room with a few pro-traders, all trading at more than $400 per pip. Not once had I seen them take the first profit point as their entire position. They always scaled out for profit.
However, 10-20 pips per day, consitently, is all one needs to make a very decent living out of forex. But if there is more for the taking, the trader should be prepared for it.
On another note, Spud, have you stopped looking at the Elasticity, Convergence, Tighting of the two stochs on the same window? I finally managed to get around to putting them on my charts last night, and WOW. With proper trade selection, it seemed to have a very good success rate. Whether it was the 4H or the 5M time frame - when both stoch converge in the 80/20 zone, after a period of elasticity, and move in tandem, with the close of the trigger candle being in the direciton of the trade (ie red for short and blue for long), the success rate is very good.
Ran out of time last nite, to check Teb's and your idea of having a higher tf as a cover chart, and only take trades in this direction etc. Will do it tonite.
Would love your feedback on it as well.
Regards,
K.
One of the most difficult things to beat in trading stochastics is that "panic" that you will enter too late. Trades are lost almost always on too early an entry. This is the hardest part of using stochastics because you get to a point of anticipating their moves before they happen...and it burns you. To trade stochastics requires a zen garden next to your computer
[/quote]"Lost oppurtunity is better than Lost Money".
Heard someone say that once, and it has stuck in my head since then. Pity, I had not heard it 1 year earlier.
I also agree to an extent to the concept of 10-20 pips per day. But I think a better gauge would be % of daily range. Since each pair has its own characteristics, and its own daily range, if you can grab a certain % of that range, it might be a better result. This is where the concept of trading 2 lots comes in, or scaling out of a position. I have had the privilage of being in a room with a few pro-traders, all trading at more than $400 per pip. Not once had I seen them take the first profit point as their entire position. They always scaled out for profit.
However, 10-20 pips per day, consitently, is all one needs to make a very decent living out of forex. But if there is more for the taking, the trader should be prepared for it.
On another note, Spud, have you stopped looking at the Elasticity, Convergence, Tighting of the two stochs on the same window? I finally managed to get around to putting them on my charts last night, and WOW. With proper trade selection, it seemed to have a very good success rate. Whether it was the 4H or the 5M time frame - when both stoch converge in the 80/20 zone, after a period of elasticity, and move in tandem, with the close of the trigger candle being in the direciton of the trade (ie red for short and blue for long), the success rate is very good.
Ran out of time last nite, to check Teb's and your idea of having a higher tf as a cover chart, and only take trades in this direction etc. Will do it tonite.
Would love your feedback on it as well.
Regards,
K.
- #725
- May 16, 2007 12:27am May 16, 2007 12:27am
Thanks Spud thats great, A little help with establishing the trend for the day. It is 06-00bst GBP/USD,
Daily chart the 5/3/3 Turned just above 20 pointing UP now at 50.
14/3/3 Turned below 20, pointing up now at 37,
4 hour chart both the 5/3/3 and the 14/3/3/ are above 80.
The 1 hour chart very much like the Daily both comimg up from the 20 level.
Do I read that as an UP trend for the day but with a possible pull back first?
I really do appreciate your help.
Daily chart the 5/3/3 Turned just above 20 pointing UP now at 50.
14/3/3 Turned below 20, pointing up now at 37,
4 hour chart both the 5/3/3 and the 14/3/3/ are above 80.
The 1 hour chart very much like the Daily both comimg up from the 20 level.
Do I read that as an UP trend for the day but with a possible pull back first?
I really do appreciate your help.
4 Hr is your main signal when it breaks 20. You definitely don't want the 4H above 80 or below 20 entering a trade. You then want at least one other or two is better time frames to be somewhere in the 20-38.2 zone headed up.
If you are using the 1H, better to wait for it to close. Having said that, the 1H is made up of 4 x 15M or 2 x 30M periods. Both of these give you the information of the partial 1H....so say they are both headed up and low in the low zone then it is probably pretty safe to enter before the 1H closes as long as it appears to be headed up.
One of the most difficult things to beat in trading stochastics is that "panic" that you will enter too late. Trades are lost almost always on too early an entry. This is the hardest part of using stochastics because you get to a point of anticipating their moves before they happen...and it burns you. To trade stochastics requires a zen garden next to your computer
- #726
- May 16, 2007 5:18am May 16, 2007 5:18am
- Joined Jan 2007 | Status: MTF Stochastics and Volume/Price | 1,133 Posts
- #727
- May 16, 2007 5:23am May 16, 2007 5:23am
- Joined Apr 2006 | Status: Metatrader Programmer | 1,422 Posts
I'm still studying everything that is in here, but trying to keep this thread focused on the simple ways to win and not get everyone confused.
- #728
- May 16, 2007 5:26am May 16, 2007 5:26am
- Joined Jan 2007 | Status: MTF Stochastics and Volume/Price | 1,133 Posts
- #736
- May 17, 2007 12:55am May 17, 2007 12:55am
imho, what you suggest is useful to know, but I still think an EA is not worth the effort. As I am sure you know there is no "set it and forget it" program. All profitable trading robots require regular intervention by a skilled trader.
Instead of an EA to trade for you how about one that just gives alerts. Then the trader can make his own judgements about whether to enter or not.
I haven't found an EA that can be written to cover all the nuances of Stochastics. The meaning of the word stochastic is randomness. If we try to tune an EA to notice these nuances then you risk high drawdown. If we tune it to take only the pure technical setups you miss many other opportunities.
Personally I have a drawndown threshold of 20%. Since establishing this negative limit I have seen my trading improve dramatically. Beyond 20% is out of my comfort zone esp. with my hard earned pesos.
I think that what we should be focused on here is beefing up our skills with stochs which is what Spud has done masterfully from the beginning.
ok, no EA, I get it. - #737
- May 17, 2007 10:46am May 17, 2007 10:46am
- Joined Jan 2007 | Status: MTF Stochastics and Volume/Price | 1,133 Posts
I trade for a large financial institution and personal accounts and have access to some powerful programs purchased or developed by me. I have tested this and other strategies at length. The EA for MTF stochastic's will reveal high win % (75% to 92%) and drawdowns of varying degrees (25% to 75%)depending on the stop loss and take profit paramenters you utilize. As the author has defined if you take small pip gains the win% goes up dramatically. The issue with this and all good trading plans is how you handle the money management and the psychology of investing. If you do in fact produce an EA just remember there are BIG issues with the backtesting of MT4 to the fact that most professional traders in this forum only rely on the EA to give them approximate estimates, then only live forward testing is good enough to satisfy the "real results" statistics.
That's about it.You hit the nail on the head...good money management and using the tools at hand only one's brain can properly decipher.
If we could trade on EA's alone there wouldn't be much of a market...would there be?
- #738
- May 17, 2007 12:24pm May 17, 2007 12:24pm
- | Joined Apr 2007 | Status: Little and often makes much. | 178 Posts
Hello all,
We've setup a new live trading room... using software from tradingrooms.com. It's free and has some great features (chart sharing, etc). The room is MTF Traders, no password required, and is open to any and all MTF traders. Great place to see live what we learn here!
Spud, would love to see you and TEB there!
We've setup a new live trading room... using software from tradingrooms.com. It's free and has some great features (chart sharing, etc). The room is MTF Traders, no password required, and is open to any and all MTF traders. Great place to see live what we learn here!
Spud, would love to see you and TEB there!
