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Yet another 50 SMA trading strategy

  • #141
  • May 19, 2009 10:07pm May 19, 2009 10:07pm
Quoting melpheos
Let see how it turns out

Is that a valid trade according to the rules since we want the price to pierce the SMA and then wait for the fractal to form then take the trade which breaks that fractal?

In this case you have take the trade of a fractal that happened the last time when the price went below? Confused
  • #142
  • Edited 10:37pm May 19, 2009 10:23pm | Edited 10:37pm
How come you guys talk about results as percentages? I didn't mean to sound clueless but - could you fill me in on that, a little?
  • #143
  • May 19, 2009 10:41pm May 19, 2009 10:41pm
Quoting Alec
How come you guys talk about results as percentages? I didn't mean to sound clueless but - could you fill me in on that, a little?

Why? well because people who post pips are silly. ok +200 pips.. ya well some people are trading 1 mini lot so thats 200 dollars, yay but the same person could be trading 10 standard lots...

If you are using proper position sizing all that should matter is %, not pips. The same trade with a stop of 20 pips has a different lot size than the trade with 40 pips using proper position sizing calculations.

So if his stop is 2% and he is up 18% then that means his risk is 1 and reward currently is 9 or 9 times risk pips, so if 20 pips was risked 180 pips are currently in profit.
  • #144
  • May 20, 2009 12:51am May 20, 2009 12:51am
Quoting AndsX
Is that a valid trade according to the rules since we want the price to pierce the SMA and then wait for the fractal to form then take the trade which breaks that fractal?

In this case you have take the trade of a fractal that happened the last time when the price went below? Confused
The trade stays valid until a new break of the SMA creates a new fractal in the same direction

Quoting Verto
Why? well because people who post pips are silly. ok +200 pips.. ya well some people are trading 1 mini lot so thats 200 dollars, yay but the same person could be trading 10 standard lots...

If you are using proper position sizing all that should matter is %, not pips. The same trade with a stop of 20 pips has a different lot size than the trade with 40 pips using proper position sizing calculations.

So if his stop is 2% and he is up 18% then that means his risk is 1 and reward currently is 9 or 9 times risk pips, so if 20 pips was risked 180...
I couldn't have explained clearly

If you trade on daily with a 200 pips SL, one could say : whoa that a big SL, but if your target is 600 pips and you are using 0.01 lot you are in fact only risking 20$ (which on a 1000$ account would be .... 2% )

BTW, my trade was a loser because i set my SL too low. I should have picked to obvious one instead of the hidden one :-/**It would be up 2% ATM otherwise.
  • #145
  • May 20, 2009 2:38am May 20, 2009 2:38am
Melphoes, you consider the breakout of A or B in the chart valid or not? Thanks a lot.
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  • #146
  • May 20, 2009 2:48am May 20, 2009 2:48am
Quoting xecret
Melphoes, you consider the breakout of A or B in the chart valid or not? Thanks a lot.
B yes but not A as it is below the SMA (maybe i should make this more clear on the first post)

But B is an "old" break so i'd rather wait for a new fractal.
  • #147
  • May 20, 2009 3:09am May 20, 2009 3:09am
Quoting melpheos
B yes but not A as it is below the SMA (maybe i should make this more clear on the first post)

But B is an "old" break so i'd rather wait for a new fractal.
Thanks melpheos. The first post is clear. What I was thinking was while A was broken, it was already above the SMA.
  • #148
  • May 20, 2009 3:06pm May 20, 2009 3:06pm
Melpheos and Verto, thank you guys, it's good to learn.
  • #149
  • May 20, 2009 3:14pm May 20, 2009 3:14pm
Quoting Alec
Melpheos and Verto, thank you guys, it's good to learn.


Anytime Alec, that is what this forum is all about: learning. There were probably three other people who were wondering the same thing just weren't brave enough to ask.

Don't EVER feel silly for asking a question.
  • #150
  • May 20, 2009 3:32pm May 20, 2009 3:32pm
By the way: AUD/USD - is it a good pair with this system? 'Cause I'm sensing I'll be trying it within the next hour
  • #151
  • May 20, 2009 4:07pm May 20, 2009 4:07pm
Quoting Alec
By the way: AUD/USD - is it a good pair with this system? 'Cause I'm sensing I'll be trying it within the next hour
never tried it.
  • #152
  • Edited 6:01pm May 20, 2009 4:54pm | Edited 6:01pm
I'm in. Short.

Edit:

AND I probably messed up.
  • #153
  • May 20, 2009 7:20pm May 20, 2009 7:20pm
Quoting Alec
I'm in. Short.

Edit:

AND I probably messed up.
If your entry is the line/arrow then it is a valid entry according to system rules.
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  • #154
  • Edited 10:28pm May 20, 2009 10:21pm | Edited 10:28pm
Thank you, yes it was.

The price just happened to reverse direction and (if I understand correctly how to express P/L in percentages) I lost 1%.

Now I'm hoping I can recover with this long on EUR/USD.

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Which... Don't look so good right now. I'll just - let it roll.
  • #155
  • Edited 1:17pm May 21, 2009 3:44am | Edited 1:17pm
I think it's going to be a crappy day :-/

edit : of course the only pairs i was not watching was the GBP pairs...
edit2 : definitly a crappy day, lost 6% and have a short USDJPY doing nothing. 3 losing trade and 2 BE

Back on tracks with a GBPUSD and EURUSD long, and my USDYEN short if finaly doing something. Locked 6% so i will be at worst BE for the day.

I love this strategy
  • #156
  • May 21, 2009 3:35pm May 21, 2009 3:35pm
Well, really crappy night for me. Lost almost every trade I entered. I'm kind of down now.

It was going so well, I was really loving this method. Never before I had had so many winners. What happened last night? Didn't end up at break even at all.

Sorry guys for this downer.

Edit: I think part of the problem may have been the crazy price 'jumps' that occurred earlier.
  • #157
  • May 21, 2009 3:54pm May 21, 2009 3:54pm
Melpheos, did you try your idea of using this strategy in higher time frames, like m30 or h1 maybe?
  • #158
  • May 21, 2009 3:58pm May 21, 2009 3:58pm
Quoting Alec
Well, really crappy night for me. Lost almost every trade I entered. I'm kind of down now.

It was going so well, I was really loving this method. Never before I had had so many winners. What happened last night? Didn't end up at break even at all.

Sorry guys for this downer.

Edit: I think part of the problem may have been the crazy price 'jumps' that occurred earlier.
It was crappy for me too, i just got 3 last trade that brought me to BE otherwise i would be down 6%

Quoting Alec
Melpheos, did you try your idea of using this strategy in higher time frames, like m30 or h1 maybe?
The higher you go, the faster the SMA should be. But i haven't tried it yet on longer TF.
  • #159
  • May 21, 2009 7:43pm May 21, 2009 7:43pm
Quoting melpheos
It was crappy for me too, i just got 3 last trade that brought me to BE otherwise i would be down 6%
Thank you, that's reassuring. And I mean it.
  • #160
  • May 21, 2009 7:48pm May 21, 2009 7:48pm
Quoting melpheos
The higher you go, the faster the SMA should be. But i haven't tried it yet on longer TF.
Regarding that, this is what I did:

On the H1 chart, I found a break of the SMA(20) (the redish one) and the corresponding long signal fractal.

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I found the previous opposite fractal too far so, trying to find an alternative, went to the M30 chart and used the next opposite fractal to define the SL level.

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The distance between them is around 70 pip and I thought 140 pip could be too much to expect to TP, so I chose to go for a 1:1 R/R, apparently not as good as in the M15 time frame.

Does this make any sense? If so, or if not so, please give some of your insight - it might be a step into allowing us to expand the use this strategy to different time frames. Useful?

This one was taken on demo so - no harm in trying. The trade is in progress.
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