nice charts, custos. I missed the initial short at the top of the run due to my pending order getting canceled somehow overnight (tws...ugh), but managed the first line flip. your last two lines seem very aggressive. do you scale-in on those or lower size? i know personally i'd regret losing a big sum on such small s/r levels (relevant to the hourly tf).
- #6,762
- Jun 5, 2010 1:52am Jun 5, 2010 1:52am
- Joined Dec 2006 | Status: Trader | 3,852 Posts
Great trade Custosand thankyou for explaning with chart ...that was certainly helpful.
As a full time trader how many hours would you endup spending in your trading laboratory.? What sort of daily routine you are following?
Actually since I trade, I work much more than I did before, but I enjoy that work. I actually don't see it as work, it's fun for me to trade and test out ideas.
Well, and hours spent in the trading laboratory: 3 to 4 hours each day during the week and 8 hours per day on the weekend. Maybe I am overtesting, but anyways, since it's fun for me, I don't really care.
- #6,766
- Jun 7, 2010 5:07am Jun 7, 2010 5:07am
- Joined Dec 2006 | Status: Trader | 3,852 Posts
As the pairs switch from trend to range and vice versa therefore if you select one pair for trend only and another for range then the pair which was trending earlier starts ranging, and given its a valid setup ....would you still trade it ?
If I am understanding it correctly then this strategy is what I was mentioning earlier i.e. change from trend to range trading depending upon how the currency cross is behaving?
I think to make the most pips one would have to adapt between trend trading and range trading as the tide change.
BTW...sorry for the delay ... i got busy in a medical situation in my family.
well, the thought here is to stick to one strat for one pair. As I said, it is impossible to know in advance when a pair starts trending, that's why I thought of that.
well, the thing is I am not sure if it is wise to adapt between trend trading and range trading. By the time we agree it is in a trend it will start ranging again, and by the time we agree that we are in a range it will start trending again. So not quite sure what the best is here. Maybe I am overdoing it
So when it does start ranging you would just take the range bounces only with the trend direction.
Uptrend just buy at range support. Downtrend vice-versa.
I think that IMHO is the simplest way to keep it.
Then again each to their own.
One thing that truly helped me see it from a different perspective was Brv and his "stacking bricks". Which in essence IS a trend. Although if you look at it in reality its just boxes/ranges stacked on top of each other.
if that makes sense... lol
pip
- #6,770
- Jun 7, 2010 5:35am Jun 7, 2010 5:35am
- Joined Dec 2006 | Status: Trader | 3,852 Posts
yeah, I am getting into range trading now as well. Let's say, range trading is a lot of times more consistent in terms of daily / weekly profits.
With range trading, at least the way I do it, other principles apply. You cannot have tight stops as with trend trades. What I do is to widen my stops in order to allow the market to develop itself. For example, I go short at a resistance. Price breaks through that resistance. Now with a tight stop loss I would already have lost. But more often than not the market will test the S/R level now from above, allowing me to reverse my position at almost 0 loss and take the new ride to the upside. This only works with a wide stop and a negative R:R.
I know, it is counter-intuitive that a strategy with a negative R:R should work in the long-term, but it does and gives me more consistent profits (almost daily), than my previous sniper strat did. I like consistency
And I don't care anymore about historical significance. The most recent reactions are important for that strat.
Having said that, I also like trend trading, and I am at the brink of combining those two strats now.
Just need to develop a way that one doesn't interfere with the other.
With range trading, at least the way I do it, other principles apply. You cannot have tight stops as with trend trades. What I do is to widen my stops in order to allow the market to develop itself. For example, I go short at a resistance. Price breaks through that resistance. Now with a tight stop loss I would already have lost. But more often than not the market will test the S/R level now from above, allowing me to reverse my position at almost 0 loss and take the new ride to the upside. This only works with a wide stop and a negative R:R.
I know, it is counter-intuitive that a strategy with a negative R:R should work in the long-term, but it does and gives me more consistent profits (almost daily), than my previous sniper strat did. I like consistency
And I don't care anymore about historical significance. The most recent reactions are important for that strat.
Having said that, I also like trend trading, and I am at the brink of combining those two strats now.
Just need to develop a way that one doesn't interfere with the other.
Hi Custos,
With this do you mean you are also range trading a lot now? Or is this just an experiment?
How do you manage your stops trading this way?
Also with regards to s/r are you only taking into account the most recent reactions without looking back for historical significance?
Just a bit confused here sos :-/
Cheers
pip
yeah, I am getting into range trading now as well. Let's say, range trading is a lot of times more consistent in terms of daily / weekly profits.
With range trading, at least the way I do it, other principles apply. You cannot have tight stops as with trend trades. What I do is to widen my stops in order to allow the market to develop itself. For example, I go short at a resistance. Price breaks through that resistance. Now with a tight stop loss I would already have lost. But more often than not the market will test the S/R level now from above,...
i must say that makes a lot of sense (trading ranges) since i do agree with you and markets (supposedly) DO range aprox. 70% -80% of the time.
I was reading through brv's pdf (again lol) and he does give me the impression that this is precisely what he does sort of.
Also i imagine that doing this you dont actually need that many pairs to make consistent %'s each week.
Which in essence....Less Is More.
Could you post me another example of you doing this please?
I saw your eur/usd charts but they do confuse me a bit still... :-/
Also with regards to historicall significance. Are you only ignoring this (and using the most recent reactions) for your intraday range/swing trading?
Or do you also apply it to 4h+ charts this concept?
cheers
pip
- #6,773
- Jun 7, 2010 6:18am Jun 7, 2010 6:18am
- Joined Dec 2006 | Status: Trader | 3,852 Posts
hmm...
i must say that makes a lot of sense (trading ranges) since i do agree with you and markets (supposedly) DO range aprox. 70% -80% of the time.
I was reading through brv's pdf (again lol) and he does give me the impression that this is precisely what he does sort of.
Also i imagine that doing this you dont actually need that many pairs to make consistent %'s each week.
Which in essence....Less Is More.
Could you post me another example of you doing this please?
I saw your eur/usd charts but they do confuse me a bit still... :-/
Also...
Applying this to h4 and above is possible. However, with those higher time-frame charts we have a problem, a time-zone problem. m1 to h1 is the same all around the world. The h4 and d1 however, can open and close very differently all around the world. That is a problem for identifying breaks of S/R levels, since you are never sure, is this now really a close? Or just a close in my time-zone? If you wanna apply that on those higher time-frames, then I recommend you getting charts in GMT.
attached is the eur/aud chart. Here you can see the S/R levels I marked...
For me personally i find it aggressive, but not due to the strategy. Mainly due to my experience and risk aversity (psychology).
I agree with range trading along with trend trading.
Something ive been looking at (dont take my word for sure) is that when we range on (for example) 1h chart we can drop down to 15m - 5m and notice how we trend in blocks of ranges (bricks). that is something im appealing to although like i said i might very well be wrong.
If im right in essence its similar to what your doing but dropping down timeframes and seeing smaller ranging blocks *within* the main timeframe range if that makes sense.
Could i be right with this observation or is it just me thats noticed it?
cheers again Custos. Your insight and sharing is truly appreciated.
pip
yeah, I am getting into range trading now as well. Let's say, range trading is a lot of times more consistent in terms of daily / weekly profits.
With range trading, at least the way I do it, other principles apply. You cannot have tight stops as with trend trades. What I do is to widen my stops in order to allow the market to develop itself. For example, I go short at a resistance. Price breaks through that resistance. Now with a tight stop loss I would already have lost. But more often than not the market will test the S/R level now from above,...
Thats the way to do it: scale-in or widen stop at key s/r's, and reverse if the s/r confirms a flip. Sure, not every s/r will flip nicely...but no strat is perfect
Ive read your comments and you seem very experienced.
If you dont mind may i ask you a question with regards to sl?
when you say widen your sl at key s/r levels, how wide is wide enough?
does it depend on how wide the range your trading into is?
Do you place it behind the next s/r area you would potentially trade aswell?
hope this makes sense.
cheers