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Weekly and Monthly TF trading - Wow!

  • #1
  • First Post: Jan 21, 2010 4:28pm Jan 21, 2010 4:28pm
I moved from 4 hourly to daily trading and then moved from daily trading to weekly and Monthly trading.

I see weekly and monthly trading is more profitable, less stressful.

Why higher TF trading is more profitable?
  • #2
  • Jan 21, 2010 4:53pm Jan 21, 2010 4:53pm
I used a weekly time frame to determine the trend, a daily time frame to get an entry zone, a 30 minutes charts to get a strong move, a 5 min chart to confirm, a 1 min chart to find an entry point and finally a 10 sec chart to judge the quality of the entry point.

And that's far more profitable than trading on just one time frame.


That being said, what made a difference for you is most certainly the fact that you reduced your leverage/the amount you trade.
  • #3
  • Jan 21, 2010 5:20pm Jan 21, 2010 5:20pm
yup I agree, big time frame = small whipsaw

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Candle Kroll Stop
  • #4
  • Jan 21, 2010 10:36pm Jan 21, 2010 10:36pm
High timeframe trading is more profitable for a few reasons.

1. The moves are larger - a breakout upwards will be hundreds of pips and not a few dozen which smaller timeframes experience.

2. A trader has more time to examine the trade and spends days planning. This allows ample opportunity to fully understand the entry and exit and formulate an exact course of action.
  • #5
  • Feb 6, 2010 3:27pm Feb 6, 2010 3:27pm
Does anyone trade the weekly open cross?

http://i50.tinypic.com/30vnkn7.gif
  • #6
  • Feb 6, 2010 3:42pm Feb 6, 2010 3:42pm
Quoting Intensity
And that's far more profitable than trading on just one time frame.
Something baffles me. A year is made up of 12 months. A month is made up of a weeks. A week is made up fo 7 days. A day is made up of 24 hours. An hour is made up of 60 minutes. A minute is made up of 60 seconds. That being said, how can you trade one time frame without trading them all? Aren't time frames like a zoom lens on a camera? Zoom in to see the minutes and zoom out to see day, weeks, months? Seems like a matter of how much time you want in your picture. No matter what chart you are looking at when you enter, the market is going to make the same moves on all charts.
  • #7
  • Feb 6, 2010 4:24pm Feb 6, 2010 4:24pm
Quoting tjfxtrader
Something baffles me. A year is made up of 12 months. A month is made up of a weeks. A week is made up fo 7 days. A day is made up of 24 hours. An hour is made up of 60 minutes. A minute is made up of 60 seconds. That being said, how can you trade one time frame without trading them all? Aren't time frames like a zoom lens on a camera? Zoom in to see the minutes and zoom out to see day, weeks, months? Seems like a matter of how much time you want in your picture. No matter what chart you are looking at when you enter, the market is going to make...
They will make the same moves... the difference though is that your position and expectation is different depending on what time frame you are "using"; i.e. the target from a 5 min trade setup is likely to be different to the target from a weekly trade setup.
  • #8
  • Feb 6, 2010 5:13pm Feb 6, 2010 5:13pm
Quoting DanUK
They will make the same moves... the difference though is that your position and expectation is different depending on what time frame you are "using"; i.e. the target from a 5 min trade setup is likely to be different to the target from a weekly trade setup.
Doesn't having an expectation cause loss? After your entry, either you set the SL and TP and wait to see what happens or you set the SL and move it according to what the market does.
  • #9
  • Feb 6, 2010 5:33pm Feb 6, 2010 5:33pm
Quoting tjfxtrader
Doesn't having an expectation cause loss? After your entry, either you set the SL and TP and wait to see what happens or you set the SL and move it according to what the market does.
Why would having an expectation cause loss? Surely a SL, TP or Trailing Stop are all expectations to some extent. It is having unreasonable expectations that may cause loss.
  • #10
  • Feb 6, 2010 7:31pm Feb 6, 2010 7:31pm
There can be no arguments about timeframes,different strokes for different folks,there are no ideal or perfect timeframe,it's all in the hands of the beholder.The best time frame is always the one that makes you good money.Some people lives in the kitchen they can stand the heat while others loves the food but can't take the heat.All timeframes are dependant on each other,longer timeframe shows established trends,but that same trend started on the smaller time frame first.Just remember that all trends starts and end in the kitchen,the smaller timeframe first.To me weekly and monthly charts are for investors and not traders and 60m. and under charts are for traders.But always remember the timeframe that makes you good money is your best timeframe.
  • #11
  • Feb 6, 2010 7:44pm Feb 6, 2010 7:44pm
Yes, but for instance you personally might enter a short position based on a daily TF and make 300 pips. On the other hand someone else might make 800 pips on the same pair on the smaller TF because they were entering both short and long trades while you were staying short the whole time.

Quoting tjfxtrader
Something baffles me. A year is made up of 12 months. A month is made up of a weeks. A week is made up fo 7 days. A day is made up of 24 hours. An hour is made up of 60 minutes. A minute is made up of 60 seconds. That being said, how can you trade one time frame without trading them all? Aren't time frames like a zoom lens on a camera? Zoom in to see the minutes and zoom out to see day, weeks, months? Seems like a matter of how much time you want in your picture. No matter what chart you are looking at when you enter, the market is going to make...
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  • #12
  • Feb 6, 2010 7:50pm Feb 6, 2010 7:50pm
I see daily candles and try to figure out how it stacks up within monthly trend.

Each month i have observed- there are 2 main trends in forex market apart from congestion zone.

For 1-2 weeks, the price is bullish/bearish and after hitting Resistance/support, the price changes its course for next 1-2 weeks.

I try to capture the main trend in the market by observing daily candles.

Right now in pairs like eur/usd, aud/jpy, aud/usd there was a hammer candle (friday close) made on the monthly support 1 line.
  • #13
  • Feb 6, 2010 8:16pm Feb 6, 2010 8:16pm
Antonioforex are you your brother's keeper,do you trade for yourself and another person on different timeframe? I will repeat the timeframe that you make the most money on are your best timeframe,you can twist and turn it all you want it still remain that the timeframe you,you,you, (not somebody else ) make the most money on are your best timeframe.I guess english is really the hardest language to understand.You made 300 pips on your timeframe,the other person made 800 pips on their timeframe.
What's the big deal do you have the other person trading psychology?Do you want to trade like that other person?Do you have the same size bank account as that other person?This is the most foolish reply I have ever read.Remember we are not talking about trading method or system,just timeframes.Iguess you got your marbles wrong.
  • #14
  • Feb 6, 2010 8:39pm Feb 6, 2010 8:39pm
Higher timeframes are good for market outlooks. If a trader whats to know what side to trade on .... all he/she has to do is look at a Yearly chart. Quarterly charts a good as well.
  • #15
  • Feb 27, 2010 10:11am Feb 27, 2010 10:11am
The answer to this always seems to be whatever suits your trading style. Helpful as the sound of a single hand clapping!

As I see it, PA wobbles up and down in whatever timeframe you look at it. I cannot see that it is in any way more stable and predictable whether in a miniute or a monthly TF. There is, of course, the issue that spread is much more significant over shorter TFs, especially with some pairs and brokers but, over longer TFs firstly you cannot be on the spot all the time to keep an eye on things and, secondly, you cannot avoid wapping great moves because of news items.

From some quarters there seems to be a bit of sniping against scalping as not real trading but if I can quickly get in and out of a trade and then get on with my life without worrying what is going on with a trade when I am not there, this seems rather less stresful.

And another thing.

We pay a lot of attention to what happens towards the close of the candle, say H4. However, this is almost entirely arbitrary since an H4 candle on one brokers platform will differ completely to anothers simply because of the different offset applicable to that broker. There are, however, more significamt times such as opening and closing time for major markets - best just to keep clear of them altogether IMHO.

Am I missing something?

Someone out there please convince me of the merits of trafing longer timeframes.
  • #16
  • Feb 27, 2010 11:22pm Feb 27, 2010 11:22pm
nope. i think you have pretty-much covered all the major points. well done with that because a lot would not see the points you have made until someone came along and slapped them upside the head.

there are likely merits to longer timeframe trading, but so far no one has slapped me upside the head to show me. there is plenty of opinion out there about stuff like this, including mine, and not all of it is relevant (including mine).
Congratulations ScalaFX for coming out of the closet!
  • #17
  • Feb 28, 2010 12:48am Feb 28, 2010 12:48am
Quoting Lessformore
Antonioforex are you your brother's keeper,do you trade for yourself and another person on different timeframe? I will repeat the timeframe that you make the most money on are your best timeframe,you can twist and turn it all you want it still remain that the timeframe you,you,you, (not somebody else ) make the most money on are your best timeframe.I guess english is really the hardest language to understand.You made 300 pips on your timeframe,the other person made 800 pips on their timeframe.
What's the big deal do you have the other person trading...
What Antonioforex was attempting to do was clarify/respond to tjfxtrader's comment about the market making the same move on all charts. And it was a perfectly appropriate response. Perhaps over 3 days the market does go up on both a daily and a smaller time frame chart, but during those 3 days someone trading the smaller time frame (and thus smaller movements) may make considerably more, because the market does not go up in a straight line. Surely you should know this...

Perhaps you just misread who the response was directed towards?....or perhaps English really is the hardest language to understand? Regardless, it was certainly not the most foolish reply....
  • #18
  • Mar 1, 2010 1:02am Mar 1, 2010 1:02am
Quoting tjfxtrader
Something baffles me....

i entirely second this. a move is a move is a move. you are just looking at a broader view. it is entirely the same thing. and just because it is a longer timeframe doenst mean it isnt stressful. imagine sitting in drawdown for weeks as compared to a regular trade that is in drawdown for a few hours. much more stressful. it definitely plays on your emotions. my longest trade was six months on a six million dollar account. scared the s*** out of me before actually going into profit and winning. talk about stressful when you are watching a trade stay in the negative for a couple weeks.
  • #19
  • Jun 6, 2010 9:50am Jun 6, 2010 9:50am
How much was the drawdown in dollars?
  • #20
  • Jun 6, 2010 6:56pm Jun 6, 2010 6:56pm
Quoting kingfisher
I moved from 4 hourly to daily trading and then moved from daily trading to weekly and Monthly trading.

I see weekly and monthly trading is more profitable, less stressful.

Why higher TF trading is more profitable?
Because the house edge is lower when you trade higher timeframe.
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