What is the consensus for this? As I have seen - 650m and -500m consensus figures. Either way it usually moves 20+pips.
Forex rules
- #3
- Nov 23, 2006 12:14pm Nov 23, 2006 12:14pm
- Joined Mar 2004 | Status: Magic Man | 3,220 Posts
great analysis man! i may have to step away from the turkey today to trade this one
Relax and be happy.
Do you think a straddle with 5 pips each side & a 5 pip trailing stop is too tight?
But you need to IMHO come up with a different exit plan.
A 5 pip trail might not be a bad way to go once you can lock in 10 or 15 pips and then just trail it tight but to start out that way might not allow enough room. The market...even in a good move...can go up and down 5 pips in a heart beat.
I have found that even a starting 10 pip trail has taken me out of very nice moves way to early. So I don't trail until I lock in profits and then it is usually 10 pips.
But DO NOT trade with my style!!!!! Identify your own Style. Plan your trade and trade your plan without deviation and you will succeed.
DC
I hope you have a great trade today.
"There is MORE Happiness in giving than receiving"
- #12
- Edited 3:06pm Nov 23, 2006 2:55pm | Edited 3:06pm
your straddle is not bad (I personally don't go closer than 10)
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so if it has a bid of .6710 i can put my short order at .6705 and if it has an ask of .6715 i can put my long order in for .6720.
my orders execute as market once the price is hit so i'm guaranteed in. but if i try and manually enter by the time i see the bar move and press the button, i feel like i've missed most of it. i know news trading is hard. the best thing would be to have some expensive data feed pass realtime signals to an automated order application. but i guess sometimes things need to done the old fashion way. it's a matter of resources.
as far as the trailing stop, i see your point. but if i anticipate a total move of only 30 pips i'm giving a lot up. 5 pips for the straddle, ~8 pips slippage, ~5 for the spread to exit and however many pips my trailing stop is.
so:
30
-5
-8
-5
-10
---------
~2 pips = not much
at least i think that is how it works .
anyway. i'll post follow-up how it goes with this trade. i'd be interested to know how the rest of you do.
