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Trade What You See - Almost Naked Trading

  • #2,621
  • Oct 29, 2010 7:16pm Oct 29, 2010 7:16pm
Quoting pierre23
Saturday morning here, logged on and realised my TP's were just too big..

EURUSD got to +130, then with the help of the negative high impact USD news it went back up to hit my stop +5.

USDCAD saw a max of +25 before going back and hitting -10 SL.

I'm not bothered with the USDCAD but I really shouldnt have let such a good profit from the EU turn into a small one. Couldnt do much while sleeping though.. perhaps trailing stops will come into play or just smaller TP's.

Looking forward to next week!
Steve Hopwood has developed an EA for trade management called the Multi Purpose Trade Manager. It has a pretty strong functionality, and can let you be a bit more precise about how to exit a trade (or a group of trades) when you aren't at the computer. The link to it is on his signature block. The guide for it is pretty self explanatory.

For the trades you are talking about, you could, for example have had it set a stop loss at a particular point when the trade was in your favor (say set the stop at +25 when the trade hit +40), and from there you could have it do trailing stops or jumping stops, etc...

It's a very nice, and flexible, piece of work. It's not a substitute for a brain (though it might be better than my brain, sometimes), but it's much better than simply using stop loss, take profit, or trailing stops.
  • #2,622
  • Oct 29, 2010 8:31pm Oct 29, 2010 8:31pm
Quoting duffypratt
Steve Hopwood has developed an EA for trade management called the Multi Purpose Trade Manager. It has a pretty strong functionality, and can let you be a bit more precise about how to exit a trade (or a group of trades) when you aren't at the computer. The link to it is on his signature block. The guide for it is pretty self explanatory.

For the trades you are talking about, you could, for example have had it set a stop loss at a particular point when the trade was in your favor (say set the stop at +25 when the trade hit +40), and from there...
Thank you for your suggestion, however I dont use MT4 to trade, only use it for my charts, so I'm not able to use any EAs etc with my trading.

I dont normally like using trailing stops at all anyway (or even pre-determined stops, eg. when you said you can make it change your SL to +25 when trade is in +40 profit). Ideally I would like to see PA before changing any of my targets and stops. But one cant be in front of the charts the whole time

I dont usually have a problem with my stops and targets, high levels of support and resistance areas usually do nicely. I just went overboard with the last EU trade lol

thanks anyway mate
  • #2,623
  • Oct 30, 2010 11:36am Oct 30, 2010 11:36am
Good morning (Saturday a.m. here). Those wanting to explore gap trading with LawGirl Sunday open (Pacific time) may want to read Roundrock's posts on the "Gap Trading" thread (Trading Systems) dated October 10 and 22, 2010, and also Jack Wasp's post on October 30.
  • #2,624
  • Oct 30, 2010 11:49am Oct 30, 2010 11:49am
Quoting mary4x
Good morning (Saturday a.m. here). Those wanting to explore gap trading with LawGirl Sunday open (Pacific time) may want to read Roundrock's posts on the "Gap Trading" thread (Trading Systems) dated October 10 and 22, 2010, and also Jack Wasp's post on October 30.

Thanks Mary..do you have direct links to these posts?
  • #2,625
  • Oct 30, 2010 11:53am Oct 30, 2010 11:53am
Quoting lawgirl21
Thanks Mary..do you have direct links to these posts?
I think I found it.
http://www.forexfactory.com/showthread.php?t=176854
  • #2,626
  • Oct 30, 2010 12:03pm Oct 30, 2010 12:03pm
Quoting lawgirl21
I think I found it.
http://www.forexfactory.com/showthread.php?t=176854
Just read Jack Wasp's post..excellent. I would add USDCHF and GBPUSD as pairs to watch. Thanks again, Mary
  • #2,627
  • Oct 30, 2010 2:04pm Oct 30, 2010 2:04pm
vukovi21...
Minimum size gap...The size of a gap is a traders preference thing. The gap range needs to be enough for you to make a profit, some tradrers are satisfied with a 5p profit, others want to see a 10p or 15p profit range before they will take the risk.

Gaps happen all the time, you just don't see them on large time frame charts and the gaps that do happen are very minimual. The gap traders watch for in the 4x occurs when the market opens Sunday, after the Friday close. It's a trade that happens once a week, during the week the 4x market trades twenty four hours a day and the gaps are minimual.

Quoting vukovi21
LG what would you say is the minimum gap size? i read that if its less than 15pips its not worth it,any thoughts???? and isnt it the only time that gaps occur in forex sunday/monday opening????thanks again for everything
Listen to the whispers.... You may learn something
  • #2,628
  • Oct 30, 2010 2:11pm Oct 30, 2010 2:11pm
Good point, gives more validity to the move and gives the user the confidence that they have drawn the line correctly.
Quoting gspe
Hi,
the line you draw is also a TomDemark Line that is a good line for Breack Out if next candle open below this line
Listen to the whispers.... You may learn something
  • #2,629
  • Oct 31, 2010 6:47am Oct 31, 2010 6:47am
Quoting lawgirl21
Just read Jack Wasp's post..excellent. I would add USDCHF and GBPUSD as pairs to watch. Thanks again, Mary
You might also want to watch this webinar as it explains the difference between novice gaps and professional gaps.

http://www.fxstreet.com/webinars/ses...2-58e60f5d5814

Wish you success with your trading!
  • #2,630
  • Oct 31, 2010 7:54am Oct 31, 2010 7:54am
Quoting bbakker
You might also want to watch this webinar as it explains the difference between novice gaps and professional gaps.

http://www.fxstreet.com/webinars/ses...2-58e60f5d5814

Wish you success with your trading!
Thanks so much, BB...and much success to you as well! Thanks too for the info..will watch it as soon as I can.
  • #2,631
  • Oct 31, 2010 8:02am Oct 31, 2010 8:02am
This is what we are looking for in opening PA. Last week the AUD pairs gapped up on open and filled, to continue in the direction of the gap on the next candle.

AUDUSD H4 Chart

Notice that the opening gap was over 50 pips above the Friday close. PA came down to filled in that price, then continued up. I was in that trade and made around 40 pips on that candle.

Gap trading is not long term trading. Get in. Get out. Don't let greed rear it's ugly head!
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  • #2,632
  • Oct 31, 2010 8:04am Oct 31, 2010 8:04am
AUDJPY

Pretty much the same as above.
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  • #2,633
  • Oct 31, 2010 8:05am Oct 31, 2010 8:05am
Just a reminder that UK moved from BST (GMT+1) to GMT overnight. US don't move until 7th Nov so time difference between London and NY is only 4 hours this week. Frankfurt open also moved back one hour. (Europe in general moved).
  • #2,634
  • Oct 31, 2010 8:08am Oct 31, 2010 8:08am
Same thing here. If you are making a decision as to which pair/s to place a trade on, be mindful of spreads. For example, AUDNZD's spread is 14 on FXDD on the weekend so I would not trade that pair.
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  • #2,635
  • Oct 31, 2010 8:22am Oct 31, 2010 8:22am
looking at the current prices and the ones closed on friday,i think we could expect something with EURUSD,a hope for a good 40 pips gap..

one question: on what TF are you concentrating when the market opens??

thanks... good gapping to you all
  • #2,636
  • Oct 31, 2010 9:22am Oct 31, 2010 9:22am
LG Good Morning,
Jack Wasp states in his Oct 30 post that his theory on gaps is ...buy if the gap is down and sell if the gap is up with a min. distance of 13 pips.
It looks like you are doing the reverse....
Can you clarify that please....And your theory if you would...

Have a great day....

whip
  • #2,637
  • Oct 31, 2010 9:51am Oct 31, 2010 9:51am
Quoting hiredwhip
LG Good Morning,
Jack Wasp states in his Oct 30 post that his theory on gaps is ...buy if the gap is down and sell if the gap is up with a min. distance of 13 pips.
It looks like you are doing the reverse....
Can you clarify that please....And your theory if you would...

Have a great day....

whip
I think u misunderstand whip. LG does exactly the same. Only difference is possibly her min gap criteria(?)
By definition, there really is only one way u can trade a gap ie to (hopefully) fill it.
  • #2,638
  • Edited 12:46pm Oct 31, 2010 10:23am | Edited 12:46pm
Quoting hiredwhip
LG Good Morning,
Jack Wasp states in his Oct 30 post that his theory on gaps is ...buy if the gap is down and sell if the gap is up with a min. distance of 13 pips.
It looks like you are doing the reverse....
Can you clarify that please....And your theory if you would...

Have a great day....,

whip
LG did the same thing. LG's charts are H4 charts, while the one on Wasp's post is M30 chart. On H4 charts you wouldn't see the down moves to fill the gaps very clearly, just long tails of the green H4 candles. But if you zoom in into M30 you would see the down moves.
  • #2,639
  • Oct 31, 2010 11:06am Oct 31, 2010 11:06am
Good morning everyone. This is my first time stopping by here and I am quite amazed with the amount information. Thanks to all of you for your contributions!

Here are a couple of bits of information about gaps that may help you out in preparation for tonight's potential trades. As I mentioned in the Gap forum I found the best performing pairs to be the USD/JPY, GBP/JPY, EUR/JPY, and the EUR/USD from 9/27/09 until present. I would caution against the GBP/USD. For example from 9/27/09 thru 4/25/10 that pair won 7 times and lost 9 for a net loss of 2 trades whereas the other pairs had these results over that time period:

USD/JPY - 10/2 (83%)
GBP/JPY - 13/7 (65%)
EUR/JPY - 15/1 (94%)
EUR/USD -14/4 (78%)
GBP/USD - 7/9 (-13%)

Please note that I stopped tracking the GBP/USD at that point. It may have come back for a Hail Mary after that date but I doubt it. The cable is good for several types of trading but not so much this one. The EUR/GBP was also lackluster. I only glanced at the USD/CHF and it didn't seem to do too well but I'll go over that one and a couple of other pairs. I'll post the results when I finish.

Also note that there could be variations between brokers due to their GMT offset. I think it should even out in the long run though.

Here is a link that was posted in the Gap Trading forum that will give you an idea of opening prices so you can be prepared when your broker opens.

http://www.oanda.com/currency/real-time-rates

As far as a little background on why I chose 75% of the gap for TP and SL points, this quote should sum it up for you: "Always take your profits too soon. The bulls make money and the bears make money, but the pigs never do." That hangs on my wall in front of my desk. I don't scalp but I absolutely hate to see profits turn to break even or worse into a loss. After 12 years of trading I have given up on chasing the home run trades and instead go for a much smaller move. It fits my personal trading psychology. This will be different for everyone. Trading psychology is by far the most important aspect of trading as I have painfully learned. You can have the best system in the world but if your mindset is off you will lose. Sorry, I have a problem with rambling on and on! Anyways, good luck to everyone this evening! Trade well and prosper.
  • #2,640
  • Oct 31, 2010 12:46pm Oct 31, 2010 12:46pm
[quote=Jack Wasp;4135266]Good morning everyone. This is my first time stopping by here and I am quite amazed with the amount information. Thanks to all of you for your contributions!

Hey Jack,
Thanks for de great contribution. ur advce will be taken seriously. have a great trading week all.
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