isn't suppose to be buy stops?
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For my style of trading I'd prefer to set up trades when the current price is below where most of them will be placed - I don't like the idea of building up liability as they are triggered on the way down. As I understand it that means using Buy Stops as in the example I posted.
I am relatively new to Forex and totally new to the ideas that FX4live is promoting. I am eager to learn from him and from people like you are much more experienced. I'd therefore be very grateful if you could put me straight.
Thanks
DislikedAre you sure you are correct? I think it depends where the current price is - at least it is with North Finance the broker I am using.
This is how they deal with pending Buy Orders:
- Buy Limit — buy provided the future "ASK" price is equal to the pre-defined value. The current price level is higher than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having fallen to a certain level, will increase;
- Buy Stop — buy provided the future "ASK" price is equal to the pre-defined value. The current price level is lower than the value of the placed order. Orders of this type are usually placed in anticipation of that the security price, having reached a certain level, will keep on increasing
For my style of trading I'd prefer to set up trades when the current price is below where most of them will be placed - I don't like the idea of building up liability as they are triggered on the way down. As I understand it that means using Buy Stops as in the example I posted.
I am relatively new to Forex and totally new to the ideas that FX4live is promoting. I am eager to learn from him and from people like you are much more experienced. I'd therefore be very grateful if you could put me straight.
ThanksIgnored
Dislikedjr2007,
Thanks for your interesting post.
Please can you explain the principle behind your system in a little more detail? I presume it has something to do with the inverse relationship between EURUSD and USDCHF but I don't get the advantage at the moment especially as it seems to go against the carry trade advantage on both. Or maybe I am misunderstanding everything!
Also a couple of charts would be helpful to understand your variation from fx4live's system. I am confused about which way things are going!
Many thanksIgnored
DislikedAnswering my own question here...
Duh! I've just worked out that the reason for your chosen long/short directions is simply they're the prevailing long term trends!
Stupid me or what!Ignored