Strat's Long Term Stress Free Trading | Page 543 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Strat's PASR Long Term, Stress Free Trading 18,592 replies

M5 PASR Trend Trading Strat 95 replies

What you need for trading: indis, a strat & good music 27 replies

Another way to stress free, mechanic long term trading 29 replies

Short Term / Medium Term / Long Term? 3 replies

Attachments: Strat's Long Term Stress Free Trading
Exit Attachments

Strat's Long Term Stress Free Trading

  • #10,841
  • Mar 21, 2010 9:11am Mar 21, 2010 9:11am
Quoting strat
Thank you Nicola.

As everyone who has read the thread from Post # 1 knows, Nicola and I go back a long way (in trading terms). She was my inspiration for starting this thread and helping others to trade my method.

She was my first student and took to my method and trading like a duck to water but not content to stop there she has managed to blend funnymentals with the technicals in a way that makes you very proud.

Having you back on here and in my trading life again is worth far more than my pip hauls on EURAUD, EURCAD, GBPAUD and GBPCAD combined....
Great to see you back Nicola! Thanks for the continued wake-up calls Strat! You remind me of a great mentor of mine back in school.

My trading patience has improved, I'm seeing great results and my account is almost positive again.

I was wondering if any of the other traders on here use a pyramid style of easing into a trade. I have been experimenting (paper trading) with controlling losses by using volatility (similar to how the turtles did it) to ease your way into a full position (2%) off of each PA given to us by the market in a trend.

Now the moment of truth: Strat would you say that I'm letting fear dictate my asset allocation (I feel I'm still fighting this gremlin) or is this a legitimate way of controlling losses and increasing profits in the long haul. Dont' be gentle; It may be time for me to start doing sessions with the man in the mirror. Thanks. Cheers.

John
Finally out of the shadows.
  • #10,842
  • Mar 21, 2010 10:43am Mar 21, 2010 10:43am
It seems everyone sees the current move/trend, none of them are in it and are trying to find somewhere to POSITION THEMSELVES AGAINST IT.

Just in case I didn’t make myself clear, if there is a trend, everyone seemed to be looking for it to end and trade in the opposite direction.


Thank you Strat
This is exactly my problem - I see the trend and then look for PA to get in against it.
Right........back to post 1 for me.

Thanks for the boot....
  • #10,843
  • Mar 21, 2010 10:52am Mar 21, 2010 10:52am
Hello new students on this thread,

I´m also new here and had a lot of questions(still have some) I encourage you to check the attachment list and read the pdf´s you will find a lot of info that will ask the basic questions you may have, another source of info is Strat´s first post, there you will find all the rest(text AND images). Take some time reading and understanding the stuff. The first mistake new wannabe traders (like myself) do is the hope of getting rich quick, you look at the 700 pages of this thread and don´t want to wait, you want the money now, that´s lack of patience one of the ingredients of certain ruin, believe even if you find the perfect system(i don´t think this is a "one size fits all" thing) you will lose money if you don´t understand every single aspect of it and stick to the rules. This kind of advice has been placed in a lot of other threads and you will read it again and again, there´s a reason for it, think about it.

I wish you all all the best and a nice new learning week.
  • #10,844
  • Mar 21, 2010 10:53am Mar 21, 2010 10:53am
Hi All,

NZDUSD:

I think Nzdusd is at important level to watch for PA base on Weekly trend and Worker price action so far up to this point.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: nzdusdw.03-21-10.gif Size: 20 KB
Click to Enlarge Name: nzdusd.03-21-10.gif Size: 20 KB
  • #10,845
  • Mar 21, 2010 12:58pm Mar 21, 2010 12:58pm
As many of my posts indicate, I have to know why and how something works. We accept that PA works but I want to know why. How do you find out how something works? You take it apart.

I've broken many things trying to find out how they work but I've also learned more than most. Gotta break a few eggs to make an omelet, so to speak.

I've been looking more closely at what Strat has been saying that buyers and sellers were doing on any given candle. For those like me who have to understand the mechanics of something before they will ride in it, this is for you.

February 16 and 17 was PA at resistance to go short. In particular, a BEEB (or close enough for us).
Below is a 15 minute chart of Feb, 16 and 17 (no, I'm not trading 15 minute charts) to show the contents of those 2 bars.

On the 16th we were still in an uptrend. Price opened on support and sellers tried to drive price down but ultimately there were more buyers than sellers. However, there were not enough buyers to take it any higher and you can see where the buyers simply ran out of money.

On the 17th there was a feeble attempt to drive price up but there were simply not enough buyers interested in it at that price. With nothing left to hold it aloft, sellers drove price down the entire day to where it closed.

What's important to note here is the opens and closes and what the buyers and sellers actually did. The total movement of price was about the same BUT...and here's the important part...on the 16th, there were buyers actually buying, which you can clearly see. On the 17th there few buyers and then you can see where there were NO buyers.

This is what happens when you encounter a BEEB. It's the overwhelming lack of buyers that create this candlestick pattern. Because it occurred at resistance and at a swing high, you know what to do next.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gbpusd.gif Size: 16 KB
Click to Enlarge Name: daily.gif Size: 17 KB
  • #10,846
  • Mar 21, 2010 1:46pm Mar 21, 2010 1:46pm
Quoting gaf
I was wondering if any of the other traders on here use a pyramid style of easing into a trade. I have been experimenting (paper trading) with controlling losses by using volatility (similar to how the turtles did it) to ease your way into a full position (2%) off of each PA given to us by the market in a trend.
I don't scale into trades but I will add to them on pull backs if a market is trending.

I do scale out of trades. Hanging in too long is my worst habit, I don't think it is greed, more that I get a positional bias when I am in a trade. So I take 1/2 off and then 1/4 off as the trade progresses. Sometimes its hard to do it if it looks like its going to go way further but time has taught me that this way keeps me profitable. It also helps me psychologically to not move my stop because its effectively paid for so I am able to ride the bumps better.

I also know someone who puts it all on and then scales out his stop losses so if a trade goes against him he takes it off in parts and then adds it back if it goes in his favour.
  • #10,847
  • Mar 21, 2010 3:41pm Mar 21, 2010 3:41pm
I found Strat's thread a week or so ago, among others that I've read and studied are J16, Jacko, Peter Crowns, Fozzy, 4hr MACD method, DanUK, and Igrok. I guess this makes me king lurker. I need to set the record straight. This is the thread I want to learn from and contribute to. Anyone reading this, newer than I, should know that after a little better than 4 years of struggling through all the BS going around, this is one of the finest educational threads there is. With this said I'd like to invite you to critque my analysis.

USD/CHF Pros:
weekly R @ 1.0570 4/27/08
turned support 12/28/08
weekly hammer 3/14/10 in confluence with 50% retrace from weekly cycle low 1/10/10 to weekly cycle high 2-14-10
again in confluence with weekly bounce off of BOSS 20
closed above daily 50.

Cons:
below daily 20
below BOSS 50
overhead resistance @ 1.08082
and again @ 1.0862


Back to the Path, I've got a lot of reading and understanding to do. I will see you when I get here.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usdchf d.gif Size: 15 KB
Click to Enlarge Name: usdchf w.gif Size: 16 KB
T
  • #10,848
  • Mar 21, 2010 4:03pm Mar 21, 2010 4:03pm
Quoting Rednose
Hello new students on this thread,

I´m also new here and had a lot of questions(still have some) I encourage you to check the attachment list and read the pdf´s you will find a lot of info that will ask the basic questions you may have, another source of info is Strat´s first post, there you will find all the rest(text AND images). Take some time reading and understanding the stuff. The first mistake new wannabe traders (like myself) do is the hope of getting rich quick, you look at the 700 pages of this thread and don´t want to wait, you want...

Good post Rednose!

As soon as i realized this is not a sprint to get rich as quick as possible i started to become a more patient and disciplined trader.

I really like the analogy that Strat used earlier comparing learning to trade to an Apprenticeship. This really makes sense to me as my day job is an Electrician. I went through a 4 year program (2yrs of full time school and 2yrs of training with a journeyman in the field) to obtain the required training hours to be eligible to take the journeyman state test and become a journeyman myself.

So for me i am looking at this as just another apprenticeship to my new career that may take me 4+ years and i am ok with that.
  • #10,849
  • Edited 5:07pm Mar 21, 2010 4:20pm | Edited 5:07pm


Im reading strats mantra everyday before I trade to remind myself not to become complacement with my discipline.
Quoting CrudeCraig
Good post Rednose!

As soon as i realized this is not a sprint to get rich as quick as possible i started to become a more patient and disciplined trader.

I really like the analogy that Strat used earlier comparing learning to trade to an Apprenticeship. This really makes sense to me as my day job is an Electrician. I went through a 4 year program (2yrs of full time school and 2yrs of training with a journeyman in the field) to obtain the required training hours to be eligible to take the journeyman state test and become a journeyman myself....
Annoying Precision
  • #10,850
  • Mar 21, 2010 4:21pm Mar 21, 2010 4:21pm
Quoting CrudeCraig
Good post Rednose!
Thank you.

Quoting CrudeCraig
As soon as i realized this is not a sprint to get rich as quick as possible i started to become a more patient and disciplined trader.
It took sometime for me to realize it and I´m still fighting that Gremmlin.

Quoting CrudeCraig
I really like the analogy that Strat used earlier comparing learning to trade to an Apprenticeship...So for me i am looking at this as just another apprenticeship to my new career that may take me 4+ years and i am ok with that.
I started about an year ago and I believe it will have an "open end"....
  • #10,851
  • Mar 21, 2010 4:48pm Mar 21, 2010 4:48pm
I like the looks of this to the long side.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: eurgbp03212010line.jpg Size: 89 KB
Click to Enlarge Name: eurgbp03212010.jpg Size: 97 KB
  • #10,852
  • Mar 21, 2010 5:16pm Mar 21, 2010 5:16pm
Quoting elitejets
Someone has to stay and stop you all buying USDJPY!
Some funnymentals.

March is the end of the fiscal year in Japan. For 8 out of the last 10 years the yen has strengthened in the last two weeks of the month because yen profits are being repatriated to Japan for year end accounting. It is a massive flow and it does affect the currency. This is a real phenomenon and you can google "yen repatriation" if you want more reading on the subject.
You may have noticed this past week how this affected yen pairs, particularly in the asian session. This...
Glad you are back. Good to see you again
  • #10,853
  • Mar 21, 2010 5:31pm Mar 21, 2010 5:31pm
Hi Strathttp://cdn.forexfactory.com/images/icons/icon7.gif

Put simply, the Daily time frame when the markets are not trending is BORING. Many will tell you it is BORING even when the markets ARE trending.

This is very true. Over the year now that I have a privilege to follow the Path of Learning I have discovered how boring trading is when you follow your rules. In the beginning I was frustrated at the inability to enter the trades where other traders were in already, but as the months passed I just stopped as the real opportunities eventually accured.

Trading is boring on the higher timeframes, but here where the profits lie when the PASR happens.

Happy tradinghttp://cdn.forexfactory.com/images/icons/icon14.gif
Jideck
  • #10,854
  • Mar 21, 2010 5:38pm Mar 21, 2010 5:38pm
Quoting tmanbone
I found Strat's thread a week or so ago, among others that I've read and studied are J16, Jacko, Peter Crowns, Fozzy, 4hr MACD method, DanUK, and Igrok. I guess this makes me king lurker. I need to set the record straight. This is the thread I want to learn from and contribute to. Anyone reading this, newer than I, should know that after a little better than 4 years of struggling through all the BS going around, this is one of the finest educational threads there is. With this said I'd like to invite you to critque my analysis.

USD/CHF Pros:
weekly...
Welcome!

Your analysis seems sound, i would recommend joining your two R levels into one though at the 1.0880 level. On a weekly line chart 1.0880 seems more significant to me.
  • #10,855
  • Mar 21, 2010 5:59pm Mar 21, 2010 5:59pm
Quoting Alexandra
I like these posts actually - Strat has identified the huge problem in which traders see the trend and try to use PA to justify an entry the other way. The biggest challenge in Forex is to "see" the new move relatively early and climb aboard. Anyone can see it after the fact. Using the monthly chart is a major feature, as you show on your last 2 series of charts.
Thank you for that Alexandra. I am trying hard to see 'behind the candles' and this tends to lead - or seems to others to lead - to anticipating in the dangerous way of jumping before things are clear.

Really what I am trying to do is anticipate moves so that I am then ready to take advantage of them when/if they happen. Anyone can do it after the event.

Anyway......... thanks for the encouragement to keep posting such stuff.
  • #10,856
  • Mar 21, 2010 6:45pm Mar 21, 2010 6:45pm
Quoting CrudeCraig
Welcome!

Your analysis seems sound, i would recommend joining your two R levels into one though at the 1.0880 level. On a weekly line chart 1.0880 seems more significant to me.
I appreciate you. Thanks,
T
  • #10,857
  • Mar 21, 2010 7:05pm Mar 21, 2010 7:05pm
Quoting gaf
Great to see you back Nicola!...
There is no “one size fits all” on this and each trader will develop his own style and method depending on his risk tolerance and trading personality.

What is critical and very important is satisfying and silencing the Little People as soon as possible.

Thos who have read the thread know my emphasis is 95% trading psychology and 5% technical skills.

Identifying and entering a trade is the easy bit. From then on, is where it starts getting tough especially for those new to trading.

Having a PLAN and trading the PLAN, helps to keep the Little People in their place. Nevertheless, they are there waiting to pounce and control.

We are, or should be, (those still playing games excepted), doing this to MAKE MONEY. There is no greater reward or satisfaction than TAKING PROFIT (no matter the size) on a trade. This thrills the Little People and lets them go back in their corner leaving us to trade in peace and quiet.

To this end, I recommend everyone enter trades with at least 2 positions. This does not mean twice your MM allocation. It means divide your regular one trade into two trades thereby halving the size on each.

Place the 2 positions with the normal SL but set a TP (Take Profit) for the 1st position. This should be a very realistic TP not some “dream” figure. A good TP is just under the ATR (Average Trading Range) of the pair being traded.

If you don’t know what the ATR of your pair is, click on the ATR in your indicators folder and set it to “1”. This will give you the current daily range.

When that PRICE is reached you have just taken profit. It is in your account. No-one can take it back.

Now, depending on where that PRICE is relative to SR and swings, you could move the SL of your second position to that PRICE meaning that it is now at break even and you have a “free” trade.

So with 2 positions, you get a profit and a free trade if you manage it correctly. This will keep the Little People quiet (until they start asking about the “free” trade but that’s another story!)

A few posts back I showed an example of this I did for our Ryan so study it, learn it and use it.

Don’t worry about the missed pips on the 1st position if the 2nd goes on to make good pips – that 1st position is there to keep the Little People happy which is far more important than leaving pips on the table.
15 YEARS OF PASR ON FOREX FACTORY!
  • #10,858
  • Mar 21, 2010 7:07pm Mar 21, 2010 7:07pm
Heres an ebook from jackos thread on developing a Trading Plan. Good Read
Attached File(s)
File Type: pdf T2W_Trading_Plan_Template_2005.pdf   160 KB | 877 downloads
Annoying Precision
  • #10,859
  • Mar 21, 2010 7:42pm Mar 21, 2010 7:42pm
Quoting strat
There is no “one size fits all” on this and each trader will develop his own style and method depending on his risk tolerance and trading personality....
I would like to try this MM strategy.

you don’t know what the ATR of your pair is, click on the ATR in your indicators folder and set it to “1”. This will give you the current daily range.

Could anyone provide more info on how to get this information? I clicked the ATR indicator, but not sure what to set to "1".

Cheers.
  • #10,860
  • Mar 21, 2010 8:13pm Mar 21, 2010 8:13pm
Quoting pipfx
I would like to try this MM strategy.

you don’t know what the ATR of your pair is, click on the ATR in your indicators folder and set it to “1”. This will give you the current daily range.

Could anyone provide more info on how to get this information? I clicked the ATR indicator, but not sure what to set to "1".

Cheers.
Double click on "Average True Range" in your Indicators folder.

This should open up the "Properties" box. Go to "Parameters" if not already opened at that.

In the "Period" box, delete whatever is there and enter "1"

In the "Style" box, click on the arrow and enter "None"

Click "OK"

This will produce a window at the bottom of your chart which says "ATR(1) and a number. The number is the current daily range in pips.

Reduce this window so that all you see is "ATR(1)x.xxxx or delete it after use
15 YEARS OF PASR ON FOREX FACTORY!
3 traders viewing now