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What Are Your Trading Rules?

  • #21
  • Sep 12, 2009 2:15pm Sep 12, 2009 2:15pm
Quoting The Fool
Sure, of course, and Thank You, but let's not make this an Ichi thread - you have that already.
Sure i totally understand that this thread was not made for Ichi, and i never break the rules , am just explaining a simple way to manage ur deals and ur rules will be there all the time.

let me get to the point

Rules are different from a trader to the other, some use the 20 SL 20 TP or even 50 SL 50 TP, this is the 1:1 risk reward ratio, but for me as a trend follower I only use the first part, the risk part, I ensure that my losses will not exceed 2.5% of my account (the cloud will decide if it is ok to enter or not) and for the reward I leave it to Ichimoku to manage it.

Once I am in a deal I set my stop above or below the cloud following the trend.
Once the position start to unfold I keep moving my Stop with the Ks line ( Blue line ) this will ensure me the Max profit of the deal and stress free following the deal .

Please feel free to ask about anything

Have a nice weekend
Vic
Attached Image (click to enlarge)
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  • #22
  • Sep 12, 2009 2:16pm Sep 12, 2009 2:16pm
Quoting Craig
You must go beyond a vague set of trading cliches such as 'cut losers' or 'sell into resistance' (ask of a definition of resistance and you will get as many answers as people asked), you need a clear, rock solid set of conditions for entry, trade management and trade exit. If at any time you are improvising any of these...
This here is a great post and is true.
  • #23
  • Sep 12, 2009 2:23pm Sep 12, 2009 2:23pm
Quoting Dopey
Ok, this just recently came up and this is a good place to discuss it again.

Even if one has trading rules printed up, memorized, pasted on their screen, tattooed on their hand, etc, one has to follow them. That is self-evident.

The problem is what to do you do to yourself when you don't follow them? .....
OK, Dopey, that is a good point. Let's make it into a rule. Or a constellation of "rules" clustered around the issues of "failure" and "loss"...something like:

- three losing trades in a row, stop trading for the day
- two losing days in a row, skip the next day
- major breakdown in discipline, obvious failure to adhere to Trading Rules (even if it does not result in loss) - stop trading for the day
"If The Fool persists in his Folly he will become wise." - William Blake
  • #24
  • Sep 12, 2009 2:23pm Sep 12, 2009 2:23pm
Require three reasons to enter a trade.
Require one to exit.
  • #25
  • Sep 12, 2009 2:28pm Sep 12, 2009 2:28pm
Quoting Craig
You must go beyond a vague set of trading cliches ....

you need a clear, rock solid set of conditions for entry, trade management and trade exit...
Exactly. What is the harm in having rock solid Rules for entry/exit conditions written down?

If you can not write down what your rock solid entry/exit conditions & trade management rules are, you may be the victim of vague cliches.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #26
  • Sep 12, 2009 2:35pm Sep 12, 2009 2:35pm
Proper Money Management
  • #27
  • Sep 12, 2009 2:37pm Sep 12, 2009 2:37pm
Quoting johnedoe
Did you break your rules again?
http://img411.imageshack.us/img411/7446/90797342.jpg
Now it makes sense! I know why I "cant" follow my rules!


Quoting The Fool
Anybody?
Please show them here.
Don't like my rules because they are too general, right?

Well, since my trading is not based upon statistical probability of recurrence but, instead is forward-monitoring - letting buying and selling forces reveal themselves as the market trades along - this is about as concrete as I get. Market conditions change all of the time and are not just of one or two types.

I care about the influence of the past (i.e. how orders hit the market at various prices) but, not any more than I care about the influence of the future. Because the future ( i.e. where orders will cut loose at the different price levels) is unknown - unknowable! - beforehand: I can't bake my cake in advance. I have to wait as I get the ingredients handed to me real-time.

Consider the words of the famous Forex trader ( ) below:

The future influences the present just as much as the past.
Friedrich Nietzsche

I will now butt out of your thread and wait for the Holy Grail to be posted.

Our NW summer is almost over Fool. Man, it was a hot one this year!

All the best,
Brent
  • #28
  • Sep 12, 2009 2:46pm Sep 12, 2009 2:46pm
1. Take a deep breath before entering your trading room
2. before entering, leave the brain behind - become a person without any opinion - act like a terminator
3. turn on the pc's - open the charts
4. analyze the pairs and timeframes:
first: which are the strongest and weakest currencies
then: is it a trending, more breakout-chances or sideways-moving day
5. beware of important events/news
6. decide if there are good possibilities for trade-setups (it must match with your strategy)
7. if yes, wait for good chances
8. is there a good setup, pull the trigger and manage the trade - follow the trading plan!!

Winning day : analyze the trades carefully cause these are the patterns on which you're making money

Losing day: shut down the pc's and analyze the trades on another day.
Relax, there are no 100% winning days.
  • #29
  • Sep 12, 2009 2:48pm Sep 12, 2009 2:48pm
Here's one of the best rules I've ever heard and I've been using it for years.

Only make changes to your system on the weekends, not on weekdays. If you feel you cannot wait for the weekend, then stop trading for the week.
  • #30
  • Sep 12, 2009 2:52pm Sep 12, 2009 2:52pm
Quoting FXSurfer

Don't like my rules because they are too general, right?

I will now butt out of your thread and wait for the Holy Grail to be posted.
Hi B.,

I didn't comment on what you posted earlier because I did not really understand it. I'm still just a Beginner, and I need a set of simple Rules that a Beginner can live by. Of course, to many seasoned traders such Rules will seem like cliches. But a cliche does not get to be a cliche because it is wrong.

I'm not really looking for help in formulating Trading Rules. But I thought it would be interesting to see if any other traders had some Rules codified and to see what those are. I am reading Steenbarger & Tharp and other materials related to the psychology of trading & the issue of Rules is recurrent.

I guess I am going to be surprised if at least one Trader does not have a set of Trading Rules that they have printed out and taped to the wall next to their trading station, something they are willing to share.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #31
  • Sep 12, 2009 2:55pm Sep 12, 2009 2:55pm
Quoting The Fool
Exactly. What is the harm in having rock solid Rules for entry/exit conditions written down?

If you can not write down what your rock solid entry/exit conditions & trade management rules are, you may be the victim of vague cliches.

If you don't already know what your rules are then it sounds like you're still looking for a viable trading strategy and a trading plan, or in other words the whole package!
  • #32
  • Sep 12, 2009 3:01pm Sep 12, 2009 3:01pm
Quoting Mr-Forex
1. Take a deep breath before entering your trading room
2. before entering, leave the brain behind - become a person without any opinion - act like a terminator

......

Winning day : analyze the trades carefully cause these are the patterns on which you're making money

Losing day: shut down the pc's and analyze the trades on another day.
Relax, there are no 100% winning days.
Thanks, Mr-F. Your rules are good.

Re: your No. 1 & 2: ...when I first started, I had a whole meditative/positive visualization routine worked out that I did before I started trading. Last few months I have been overworked at the dayjob & fell out of that preparation for a good mental state.

My excuse would be..."Don't Have Time" - that's bullshit of course. It only takes 10 minutes or so to get in a better head space so you can be relaxed and focused. Thanks for reminding me of this.

I have a Rule I am working on that relates to good mental preparation & elimination of distractions. Forex Factory is a distraction that is going to have to go while I am doing short tf trading from now on.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #33
  • Sep 12, 2009 3:05pm Sep 12, 2009 3:05pm
Quoting pipmutt
If you don't already know what your rules are then it sounds like you're still looking for a viable trading strategy and a trading plan, or in other words the whole package!

Yes, Pipmutt, of course. You are right.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #34
  • Sep 12, 2009 4:04pm Sep 12, 2009 4:04pm
Quoting artov
This one is important for me: Don't chase the trade, let the trade come to you.
This is a good rule. Price is moving against the direction you wish to trade and the fear to enter is at its greatest. But even this rule has exceptions such as inside bar breakouts which I will occasionally straddle.
Another good rule is "always trade at support/resistance" but even this can be broken if price is trending toward a significant level
Risk management can be well defined and set in stone but rigid rules for entries and exits need to be much less stringent. No two situations in the market are alike. Trading is an artform. There is no "one size fits all" set of rules that will ensure profitability. "Plan your trade, trade your plan" is a trading cliche and only loosely applicable. I follow a process that provides me with a good sense of whats going on in the market.

Rule 1: Identify support and resistence
Rule 2: Identify market conditon/direction
Rule 3: Always check the calender before trading

After that, with my risk per trade at 0.5%, trading is more like a dance with price where I am free to respond quickly to the market flow as it presents itself.
BTC Return This Year: na
  • #35
  • Sep 12, 2009 4:54pm Sep 12, 2009 4:54pm
1) Don't lose money.
2) Follow rule number one.
3) If you do lose money, only lose a little.
  • #36
  • Sep 12, 2009 5:25pm Sep 12, 2009 5:25pm
try this

http://www.forexfactory.com/showthread.php?t=4073
Invincibility lies in the defence, the possibility of victory in the attack
  • #37
  • Sep 12, 2009 7:01pm Sep 12, 2009 7:01pm
Quoting silverheat
try this

http://www.forexfactory.com/showthread.php?t=4073
That's a good link, silverheat - Thank You.
"If The Fool persists in his Folly he will become wise." - William Blake
  • #38
  • Sep 12, 2009 7:42pm Sep 12, 2009 7:42pm
Quoting kawser
I use anti trend to enter trend as it reduces my SL and to make reward and risk ratio higher I made my own policy to enter anti to get the real trend.......
extremely wise advice, and great to read a post form someone who has clearly put in the hard yards.
  • #39
  • Sep 12, 2009 7:52pm Sep 12, 2009 7:52pm
Traders Checklist.
http://www.yourtradingcoach.com/prod.../checklist.pdf

This a bit broader in scope and not so much trading rules, but answering these questions may give you some insight into making your rules / putting together your system.
Don't wish it were easier, wish you were better. ~ Jim Rohn
  • #40
  • Sep 12, 2009 10:09pm Sep 12, 2009 10:09pm
Quoting LasVahGoose
Traders Checklist.
http://www.yourtradingcoach.com/prod.../checklist.pdf

This a bit broader in scope and not so much trading rules, but answering these questions may give you some insight into making your rules / putting together your system.
Thanks, LVG. That is right along the lines of the questionnaire in Ch. 3 of Van Tharp's "Trade Your Way to Financial Freedom". I am reading that now, along with Steenbarger's "The Daily Trading Coach"...

For anyone who is interested in improving your performance as a trader, or in anything you do, Steenbarger's psych materials on self-coaching are very good.

His blog is here:

http://www.traderfeed.blogspot.com/
"If The Fool persists in his Folly he will become wise." - William Blake
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