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Trend Trading Chart Thread

  • #1,541
  • Jun 15, 2010 3:43am Jun 15, 2010 3:43am
Quoting mud3210
im considering to use a 400 pip stop loss because i noticed the recent price reversal does happen within 400 pips, but then again maybe it depends if your profit target is 3 times your stop or more.. and how much you are comfortable to lose when u enter the trade.

I am still a newbie, so... Im not absolutely sure if I am right to think this way, but anyone who disagrees can also let me know why, thanks



bez3000: so that means u change your stops manually? you don't use the trailing stop? i havnt figure how to use trailing stop... so i...
I am looking to manage my stops as Dan has shown us. I place them above the last swing high (in a down trend) then leave them alone, only when price retraces again i might move my stops but i might not. The way i think Dan manages them is to have a worst case stop above the last swing high but he will manually stop a trade out if for instance the TL is broken or the trend starts making higher highs in a down trend, signaling the trend could be coming to an end. In which case close the trades manually so the SL is only for emergencies (can't get to computer, get run over etc.....lol)

Hope this makes sense.
  • #1,542
  • Jun 15, 2010 3:47am Jun 15, 2010 3:47am
those are pretty big stops. just make sure that 400 pips equates to 1-3% of your account, else you will have tense times.

Quoting mud3210
im considering to use a 400 pip stop loss because i noticed the recent price reversal does happen within 400 pips, but then again maybe it depends if your profit target is 3 times your stop or more.. and how much you are comfortable to lose when u enter the trade.

I am still a newbie, so... Im not absolutely sure if I am right to think this way, but anyone who disagrees can also let me know why, thanks...
  • #1,543
  • Jun 15, 2010 3:53am Jun 15, 2010 3:53am
Quoting coolshades
Bez,

usdchf and audusd, what are these, long/short? and off which levels? wld appreciate a chart thks.

i am not in any trade right now. waiting. my euraud got stopped out at 190 points but that was not enough to make up my usdcad losses.

i missed taking the short of eurcad as posted earlier. if anyone has taken, then they must be sitting pretty.
No problem.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: audusd.jpg Size: 255 KB
Click to Enlarge Name: usdchf.jpg Size: 277 KB
  • #1,544
  • Jun 15, 2010 4:10am Jun 15, 2010 4:10am
ok.. might still stay out myself. what sls for both?

Quoting bez3000
No problem.
  • #1,545
  • Jun 15, 2010 4:21am Jun 15, 2010 4:21am
Quoting coolshades
ok.. Might still stay out myself. What sls for both?
audusd sl @ 8700
usdchf sl @ 11255
  • #1,546
  • Jun 15, 2010 4:30am Jun 15, 2010 4:30am
Quoting bez3000
I am looking to manage my stops as Dan has shown us..
Thanks bez ~

Quoting coolshades
those are pretty big stops. just make sure that 400 pips equates to 1-3% of your account, else you will have tense times.
suppose 400pip = $400.. and if i am suppose to use only 1% of my account size, doesnt that mean i would need to deposit $40000 before i can start trading?

I still do not understand why we can only use 1-3% of our account size to trade. can't we just put the monies in our own bank first and deposit like only $2K with the broker and use 50% of this?

and wat is 'sls'?
  • #1,547
  • Jun 15, 2010 4:55am Jun 15, 2010 4:55am
if you have a 1k in your trading account and want to trade with a stop loss of 400 pips (sl = stop loss, sls = stop losses), then if i was you and i wanted to trade with say 2 % risk that means my stop loss VALUE should be = $20. so therefore if i have to have a 400 pip stop loss, my pip value should be $0.05 that means i have to trade 0.05 lots.


Quoting mud3210
Thanks bez ~


suppose 400pip = $400.. and if i am suppose to use only 1% of my account size, doesnt that mean i would need to deposit $40000 before i can start trading?

I still do not understand why we can only use 1-3% of our account size to trade. can't we just put the monies in our own bank first and deposit like only $2K with the broker and use 50% of this?

and wat is 'sls'?
  • #1,548
  • Edited 5:51am Jun 15, 2010 5:11am | Edited 5:51am
thanks for replying coolshades
  • #1,549
  • Jun 15, 2010 5:17am Jun 15, 2010 5:17am
if you trade 1 lot, then pip value is 1 pip = 1$. you can work out everything backwards from that.

1-3% risk on a trade is moderate risk. if you want to trade with higher risk, its totally upto you but i can guarantee you will have tense times.

Quoting mud3210
is this correct then?:

Account Value,______Stop loss,_____Risk,__________pip value,____lots
a) $1,000,__________400 pips,______2% = $20,_____0.05,_______0.05
b) $10,000,__________400 pips,_____2% = $200,_____0.5,_______0.5
c) $40,000,__________400 pips,_____1% = $400,_____1,_________1
  • #1,550
  • Jun 15, 2010 5:33am Jun 15, 2010 5:33am
the usdchf is a massive stop. i guess that stop = s/r line below the last swing low, cause the swing low was at 136 ish.

can i ask what % risk goes into those stops.

Quoting bez3000
audusd sl @ 8700
usdchf sl @ 11255
  • #1,551
  • Jun 15, 2010 6:57am Jun 15, 2010 6:57am
Quoting coolshades
the usdchf is a massive stop. i guess that stop = s/r line below the last swing low, cause the swing low was at 136 ish.

can i ask what % risk goes into those stops.
The 200 pips SL represents about 4% of my account.
  • #1,552
  • Jun 15, 2010 7:12am Jun 15, 2010 7:12am
ok.. so long as you are comfortable with those stops and risk %.

sorry if i sound patronizing or lecturing..
Quoting bez3000
The 200 pips SL represents about 4% of my account.
  • #1,553
  • Jun 15, 2010 8:24am Jun 15, 2010 8:24am
Quoting bez3000
The 200 pips SL represents about 4% of my account.
Have you considered lowering the position size in view of the such large SL?
  • #1,554
  • Jun 15, 2010 10:09am Jun 15, 2010 10:09am
Quoting MktScape
Have you considered lowering the position size in view of the such large SL?
Hi I understand what you are saying but I always trade using around 4-5% per trade so this is normal for me
  • #1,555
  • Jun 15, 2010 2:22pm Jun 15, 2010 2:22pm
Quoting coolshades
i think if we get to 2800 then i would reckon we should start thinking of a trend change. what do you reckon commander?
Hi guys,

Sorry I haven't answered your questions lately... I think I've found the problem with trading longer term: it's so bloody boring that it's kind of made me want to avoid all talk of trading and hence not much activity at the Factory! I know some people say this is a good thing but for me I have to admit it is killing my enthusiasm!

Anyway, I just wanted to quickly answer the above question... to put it short and sweet... I agree! The fact is that so many (in the news) are now talking of the end of the Euro it's starting to make me think that the recovery is about to begin!! Lol!

I will hopefully be back to properly address the recent questions but for now I think I need to find some kind of intraday trading method to challenge me a bit! Any suggestions welcome... I prefer something based on support, resistance and price as opposed to indicator based!

Regards,

Dan
  • #1,556
  • Jun 15, 2010 2:25pm Jun 15, 2010 2:25pm
Quoting DanUK
Hi guys,

Sorry I haven't answered your questions lately... I think I've found the problem with trading longer term: it's so bloody boring that it's kind of made me want to avoid all talk of trading and hence not much activity at the Factory! I know some people say this is a good thing but for me I have to admit it is killing my enthusiasm!

Anyway, I just wanted to quickly answer the above question... to put it short and sweet... I agree! The fact is that so many (in the news) are now talking of the end of the Euro it's starting to make me think...
Hi

I also had losses on EU and AU. Pity but whatewer, part of the game.

Why do not you go back to your method on the 4H??? That is intraday and would work on the short term trends well.
Kind Regards zol
  • #1,557
  • Jun 15, 2010 3:59pm Jun 15, 2010 3:59pm
My e/u AH trend hit 100 pip SL today, I think Jacko is feeling it at the moment,
he has had a very unlucky year so far.
I will be watching e/u at around 1.2500.
I am taking some time out.

CP
  • #1,558
  • Jun 15, 2010 4:21pm Jun 15, 2010 4:21pm
Konichiwa from Japan guys

Have been holidaying in Japan for the past week with my gf.

Japan is truly a very nice country & i get to meet a fellow trader too

My goal is to travel around the world to meet like-minded trader & exchange culture as well as trading ideas

Would love to visit UK & see u someday my dear Commander as well as others from here too and if anyone of u is coming to Singapore do drop me a note so we can arrange a meetup.

It's been a rough week for us trend traders. I was hit also on AU & UCAD.

With all these talk on SL i realize it pretty much a very subjective issue. Why?
Becos it a TOTALLY affect your psychology & stress level when u r trading a STANDARD account with 200-300pips versus either a micro or mini account... I also notice that so of you guys trade a few pairs with large SL but to put things in perspective if these were standard accounts then it would burned a hole in your pockets... Which is why Jacko trade 1 pair and i think the most we should trade is probably 3-4 pairs on a STANDARD account. Would love to hear comment(s)/feedback(s) on the issue.

Btw i am eagerly for Commander to update on his half year report card soon

A-Ri-Ga-TO Guys
Sylar
"Thinking Heart & Feeling Brain"
  • #1,559
  • Edited 8:08pm Jun 15, 2010 4:40pm | Edited 8:08pm
Quoting DanUK
Hi guys,

Sorry I haven't answered your questions lately... I think I've found the problem with trading longer term: it's so bloody boring that it's kind of made me want to avoid all talk of trading and hence not much activity at the Factory! I know some people say this is a good thing but for me I have to admit it is killing my enthusiasm!

Anyway, I just wanted to quickly answer the above question... to put it short and sweet... I agree! The fact is that so many (in the news) are now talking of the end of the Euro it's starting to make me think...
Hi Dan,
I have been an avid reader of your thread .... really appreciate all the guidence you extended to the wanna be traders.

I understand your position with respect to being bored one the longer timeframes. Along with keeping your main strategy intact you can test playing a lower TF such as H1 or lower.

You can try S/R based range trading or trade on 15M trend using the H1 trend direction. I think the same confluence based strategy should work on the lower TFs however you might want to try it first on the Demo.

Cheers.
  • #1,560
  • Jun 15, 2010 6:07pm Jun 15, 2010 6:07pm
Is it me or has Jacko deviated from the basic premise of selling when the px hits the falling trend line?

As waiting for the px to hit the falling trend might not yield an opportunity for months on end, the last number of trades seem to have been more discretionary.
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