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Silent Service Method

  • #4,441
  • Aug 7, 2009 5:00am Aug 7, 2009 5:00am
Quoting VitaminBeer
Is anyone else on this?
I know it's Big Friday, but since the pairs are not related to the US I was hoping that maybe this might just have a chance
I would not normally open a position so late in the week either but it looks too good to pass up, maybe that's my emotions being afraid to miss out.
Hi VitaminBeer,

I'm more conservative with this pair right now. Until it can shake that PA box around the 50% retrace area (from around 79.5 to 80.5) I'm either looking to play the swings and box levels or wait for "the obvious" move from it.

Thanks for the heads-up though! I've been tracking so many pairs this week that my head's starting to spin and I got distracted from it; one of my favorite pairs.

Soca
  • #4,442
  • Aug 7, 2009 6:53am Aug 7, 2009 6:53am
Quoting hel13rock
I'm still short UsdCad but not much is happening, it's been up and down. I was expecting a bit of a break downwards. [...] If there's a sharp move either direction caused by the news I'll either be stopped out or get a good result.

Anybody else still short this pair?
Hey hel13rock,

I shorted the Loonie @ about 1.0840, off a Daily chart's down trendline area ... getting poised for the U.S. Unemployment, after Canada's gave it a boost up.

S/L above 1.0880 with heavier selling pressure likely around 1.870. Looking to get to 1.04 sometime next week, if this bird can get the shove-off, we'll see...
  • #4,443
  • Aug 7, 2009 7:41am Aug 7, 2009 7:41am
Looks like I got bit in the ass on the A/J
Good ol' Fridays
  • #4,444
  • Aug 7, 2009 7:46am Aug 7, 2009 7:46am
It's looking a bit of a turkey at the moment but you never know...
  • #4,445
  • Aug 7, 2009 8:16am Aug 7, 2009 8:16am
Loonie bin trade: Out @ BE

Forgot to consider in my analysis: them birds ain't swans

I'll look to catch'em on the other side of the fence, round the handle @ 1.0750 or so - down. Otherwise above 1.0850 up, in either case, with conviction.

Til next time,
Soca
  • #4,446
  • Aug 7, 2009 8:23am Aug 7, 2009 8:23am
Quoting VitaminBeer
Looks like I got bit in the ass on the A/J
Good ol' Fridays

You will have this when there is a major shock to the market. The jobs report printed a much better number than expected.....

I got my short GBP/USD stopped out, for a gain thankfully. It's now back to where it was before the announcement an hour ago.
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  • #4,447
  • Aug 7, 2009 8:24am Aug 7, 2009 8:24am
Soca
sounds like a turducken
  • #4,448
  • Aug 7, 2009 8:24am Aug 7, 2009 8:24am
I have to go work for a very difficult woman today.....but when I get back, I intend to make several videos for the forum over the next day or two. Also will make a new one for the blog.

Chris
  • #4,449
  • Aug 7, 2009 8:51am Aug 7, 2009 8:51am
Went long yesterday @ 1.8386 and somehow, and i say somehow.....NFA help me make some pips......i am waiting for a pullback to take another long...to ride the TREND to 1.8500.......see chart below...................
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  • #4,450
  • Aug 7, 2009 9:31am Aug 7, 2009 9:31am
Quoting kodflakes
CW I know your pretty busy right now but when you get a chance can you explain FX options?
Kodflakes,

As of this week, there are now a total of 9 fx options you can trade with your equities broker. All of these options are dollar denominated, so if you let the option expire, you get USD (there is really no underlying like equity options where if you are exercised you receive shares of the underlying stock).

Depending on which currency options you are trading, e.g ALL ISE currency options use the USD as the base currency. The symbols are as follows:
AUX (USD/AUD), CDD (USD/CAD), EUI (USD/EUR), BPX (USD/GBP), and SFC (USD/CHF). THe new pairs that were added recently are the mexican peso, new zealand dollar and the Swedish krona (Sorry I don't know the symbols).

However, these same options are offered by a different exchange as the World Currency Options (WCO) and their symbols are different. Also with the WCO, the USD is not the base currency. The symbols are, XDA (AUD/USD), XDB (GBP/USD), XDC (CAD/USD), XDE (EUR/USD), XDM (MXN/USD), XDN (JPY/USD), XDS (CHF/USD), XDZ (NZD/USD), and XD... (I don't know the symbol to this one, swidish krona/USD).

So as you can see from the composition of the pairs, the prices will be different between two similar pairs. For instance, a XDE Sept 143 Call is at 2.26, while the similar EUI Sept 70.5 PUT is at 1.32. But you will still get a bigger move in your option for an equal pip move in the underlying currency pair with the XD... options than the ISE options.

These are trade the same way as the equity options. That is, you can buy/sell calls/puts. I play simple puts and calls, no calendar spreads, iron condors and other complicated option strategies.

Like equity options, I think most of the fund managers probably use these as hedging vehicles. For instance, if you are long EUR/USD, you could also long the EUI Call or long the XDE Put just to protect the downside of your spot position.

You can also get more information about these options at www.ise.com/fx. On the left, go to products traded and select Fx Options. They also have a lot of recorded webinars you can take a look at. Also take a look at http://www.learningmarkets.com

I hope this helps. I am guessing you didn't want me to explain option greeks and stuff. Also, the forex options I play have nothing to do with binary options.

Cheers,

kulu
  • #4,451
  • Aug 7, 2009 10:20am Aug 7, 2009 10:20am
Thanks for the explanation Kulu but it doesnt really help but that is due to the little experience I have with other markets.

There is an interesting weekly forming on GU right now, I know its not over but rather close and something I will be watching for next week. Here is a gravestone doji that usually shows sign of a top. I have a resistance area at 6700 which you cant see because of the current price. Taking a fib from this big move shows that it has touched the 50 and broke back well below. So as long as the week closes basically like it is, I will look for a short in the zone between the 50 fib and 6700
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  • #4,452
  • Aug 7, 2009 10:56am Aug 7, 2009 10:56am
Quoting clockwork71
..................I got my short GBP/USD stopped out, for a gain thankfully. It's now back to where it was before the announcement an hour ago.
Hi Chris

Not sure if I missed it, but could you post your reasons etc for taking this trade. I didn't get much in the way of PA on my feed, see attached.

Oh, and I'm not trying to get into the whole feed times thing at all. Just would like to see your thought process.

cheers

TonyH
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  • #4,453
  • Aug 7, 2009 11:14am Aug 7, 2009 11:14am
Hey silent hunters
I had a great trading week spotted some good trades got out of some bad ones before they went to the stop made a great %. So thanks CW my trading has started to become what I have really wanted it to. So im shutting down for the weekend and hope everyone else had a great week.
  • #4,454
  • Aug 7, 2009 12:38pm Aug 7, 2009 12:38pm
I had a general Q about the SS Method and how it pertains to people trading different assets classes w/ different brokers. Obviously the focus is Forex, but for those of you (Esp Clockwork) trading Stocks/Commodities as well do you size your position based on your total value across all accounts, or do you only use that asset class' share of your assets.

So lets say you have Forex Broker 1 with $5k, Forex Broker 2 with $5k, and Stock/Option/Commodity broker with $10k, would you size your forex trade to risk 0.5-1% on $5k (1 forex acct), $10k (both forex accts) or $20k (all investable risk assets)?

Perhaps this is a dumb question but its one that i struggle with from time to time. Hopefully it wasn't covered earlier (i must admit that the first 150-odd pages of this thread, i read a few months ago so they aren't as fresh in my memory).

Thx for the insights as always.
  • #4,455
  • Aug 7, 2009 1:32pm Aug 7, 2009 1:32pm
I'm sure Chris will respod to your Q but here's my input.

Long time ago, when I was running a Trading Room of 6 Traders, I implemented the 30/8 rule.

30/8
No more than 30% exposed to the aggregate of Markets.
No more than 8% OF THE 30% exposed to any individual Market.

30% * 8% ~ 2% of Fund.
This was long before E-Trading and the popular 2%/Trade Max was norm.

Why did I do that?
Because it worked.

Capital Preservation is just as important as Increasing Cargo...
  • #4,456
  • Aug 7, 2009 4:51pm Aug 7, 2009 4:51pm
Quoting InfinitySL
I had a general Q about the SS Method and how it pertains to people trading different assets classes w/ different brokers....
You can do it either way - but I tend to trade teach account as it's own thing. Now that I consolidated all my trading to IB, it's no longer an issue.

And by the way - it's not a dumb question at all.

Chris
  • #4,457
  • Aug 7, 2009 4:54pm Aug 7, 2009 4:54pm
Quoting ajhill
Hi Chris

Not sure if I missed it, but could you post your reasons etc for taking this trade. I didn't get much in the way of PA on my feed, see attached.

Oh, and I'm not trying to get into the whole feed times thing at all. Just would like to see your thought process.

cheers

TonyH
It's right there on your chart.......take a look, a pinbar at 1.70.....wasn't the most beautiful pinbar.... BUT.....look at this chart: You always want to look at the big picture too.
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  • #4,458
  • Aug 7, 2009 4:57pm Aug 7, 2009 4:57pm
Quoting kodflakes
Hey silent hunters
I had a great trading week spotted some good trades got out of some bad ones before they went to the stop made a great %. So thanks CW my trading has started to become what I have really wanted it to. So im shutting down for the weekend and hope everyone else had a great week.

  • #4,459
  • Aug 7, 2009 4:59pm Aug 7, 2009 4:59pm
Quoting Bemac
I'm sure Chris will respod to your Q but here's my input.

Long time ago, when I was running a Trading Room of 6 Traders, I implemented the 30/8 rule.

30/8
No more than 30% exposed to the aggregate of Markets.
No more than 8% OF THE 30% exposed to any individual Market.

30% * 8% ~ 2% of Fund.
This was long before E-Trading and the popular 2%/Trade Max was norm.

Why did I do that?
Because it worked.

Capital Preservation is just as important as Increasing Cargo...

I have never done it this way - but this sounds like a winner to me.
  • #4,460
  • Aug 7, 2009 10:34pm Aug 7, 2009 10:34pm
Can anyone point me in the direction of a good position size calculator please? I've tried www.forexcalc.com and http://www.earnforex.com/position_size_calculator.php but they give me different answers when I put in a GBPCHF trade.

All suggestions much appreciated.

Cheers
Simon
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