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Where can I learn more about Price Action like those in James16 charts? 9 replies

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james16 Chart Thread

  • #85,001
  • Edited 10:53am Jan 9, 2011 10:16am | Edited 10:53am
Quoting Adilius07
Hold on please, I'm thinking. I can feel you really explained everything here.. Thanks!! Will be back after I understand this.
here you go, i just found this looking for some one who can explain this simply

max loss (cash) / stop size (pips) = no. of units. simple!

Although again this is with a margin of 100/1

Inserted Video


jon
PATIENCE... DISCIPLINE
  • #85,002
  • Jan 9, 2011 10:31am Jan 9, 2011 10:31am
Quoting g_j_hook@yah
here you go, i just found this looking for some one who can explain this simply

max loss (cash) / stop size (pips) = no. of units. simple!

at first glance it seems accurate.Although again this is with a margin of 100/1

http://www.youtube.com/watch?v=s1xwqBR1qJc

jon
Thanks Jon
  • #85,003
  • Jan 9, 2011 10:51am Jan 9, 2011 10:51am
Quoting g_j_hook@yah
i am not sure bout that option, it looks good to me.??
1% of $3230 = 32.30 (move decimal back 2 zeros to divide by 100)
we need to know the pip value for the pair you want to trade, so imagine a full mini lot pip value of 1 dollar per pip.
a 43 pip loss would = 43 dollars.
32.50 divided by 43.00 = .7558
position size therefore =
10000(number of units in a mini lot) x 0.7558 = 7558 units.
Remember though that this is on a margin of 100/1 and oandas is only 50/1 so the amount needs to be halved,
7558 /2 = 3779 units

jon

check this out...
I got it I think for eur/usd, but can't get the same for not usd pairs. I have to do bring it to the dollar rate I guess... oh man this is sux really.
I will come back to this tomorrow, can't think anymore
  • #85,004
  • Jan 9, 2011 10:57am Jan 9, 2011 10:57am
Quoting Adilius07
I got it I think for eur/usd, but can't get the same for not usd pairs. I have to do bring it to the dollar rate I guess... oh man this is sux really.
I will come back to this tomorrow, can't think anymore
Hey Adi, for all pairs the maths is the same, only the pip value changes.In the example i posted the 43 dollars would differ as the pip value changes, but the maths is the same.
PATIENCE... DISCIPLINE
  • #85,005
  • Jan 9, 2011 11:18am Jan 9, 2011 11:18am
Hi, adilius07.

I use oanda and this is how i work out position sizes. First you need to know how much of your capital you will be risking and then you need to work out how many units this is for the currency you are trading. (you will be risking $32 so you need to know what the total unit value for $32 is)

We can do this buy opening the Pip/Profit calculator in oanda, selecting the currency and taking note of the numbers down the bottom.

eg if you select usd/CAD as your market then right now 9931 units will make 1 pip = 1 usd. This will always be the case when trading in pairs that end in CAD. If you then select usd/JPY you will see that 8312 units make 1 pip = 1 dollar this will always be the case for pairs ending in JPY. So you can see that the amount of units you need to use changes depending on the value of the last currency in the pair.

for example we know that for eur/USD (and all other pairs ending in USD) $1 of risk equates to 10000 units so therefore $100 of risk would account for 1000000 units. you are risking $32 per trade so this would be 320000 units you are risking per trade (32 x 10000 = 320000).

now all you need to do is divide the 320000 units (which is really $32) by your risk in pips per trade. So if you were risking 43 pips in a trade then you would divide 320000 by 43 giving you 7442 which is the ammount of units you are risking per pip. If the trade then moves against you by 43 pips would would have lost exactly $32.

what i do is make a list of all the currencies and the total amount of units i will be risking for the my current position size. then all i have to do is divide the size of my stop by this number and i have my unit size when trading that pair. very quick and less hassle.

your list would look like;

USD - 320000 units
JPY - 266000 units (divide these numbers by your stop size!)
CAD -317000 units
etc etc.

Hope that helps a little and does not confuse you more ( ;.
  • #85,006
  • Jan 9, 2011 11:33am Jan 9, 2011 11:33am
Quoting Majestic12
Hi, adilius07.

I use oanda and this is how i work out position sizes. First you need to know how much of your capital you will be risking and then you need to work out how many units this is for the currency you are trading. (you will be risking $32 so you need to know what the total unit value for $32 is)

We can do this buy opening the Pip/Profit calculator in oanda, selecting the currency and taking note of the numbers down the bottom.

eg if you select usd/CAD as your market then right now 9931 units will make 1 pip = 1 usd. This will always...

Majestic, thank you very much! This is step by step and I think I begin to understand finally, I will try all this in a moment. Thank you very much!!!
  • #85,007
  • Jan 9, 2011 11:56am Jan 9, 2011 11:56am
Quoting g_j_hook@yah
hi Majestic12, i just want to point out that these calculations are based on a margin 100/1 and are correct but oanda has a max margin of 50/1 so your answer needs to be halved or the risk will be doubled. 7442 unit loss would be about $64 with a 43 pip SL.

jon
Got it. Thank you!!!
  • #85,008
  • Jan 9, 2011 12:15pm Jan 9, 2011 12:15pm
Hi GJ, This was worked out on oanda and i'm pretty sure the risk would work out at $32. i just tried it out on a ticket and it seems to confirm this. Unless i have missed something pretty major. take a look at the bottom of the ticket where it tells you the total risk in dollars and pips.
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  • #85,009
  • Jan 9, 2011 12:17pm Jan 9, 2011 12:17pm
Quoting Adilius07
Sorry for off topic. But I know a lot of you use the Oanda platform. I cannot understand this unit thing of their. I see there is "auto position size adjustment" so can I make it automatically use 1% of total acc. value???

What is the simple formula to calculate this units? I read so much info still don't get it...

Thanks for any help with this.

Like for example. AUD/NZD setup, acc. balance is $3230, My SL is 43 pips. So how many units can I buy with 1% risk? damn how come there is no one readable example on their...
Working with Oanda is very simple. You just forget about the usuall lots, pip value and everything.

1.You just type a random number (eg. 1) UNITS and then set your SL and TP.
2.Then you look down (marked purple) and Oanda automatically shows you how many $ or € you are risking (my account is in €, so it shows €)
3.The next step is to set the correct UNITS number. For example if your account is 100€ the SL should be 1€ (if you want to risk 1%).
So, the SL is set, the TP also, so now you just adjust the Units, so that your risk would be 1%.
And thats it. Hope it helps.

Attached Image


PS: And one last tip; if you want to close half of the position you must set a new order which is the opposite of the first one. (eg. you bought 100 Units of EURUSD and you want to close half. You open a sell order for 50 Units of EURUSD and Oanda automatically close half of your primary position).
  • #85,010
  • Jan 9, 2011 12:18pm Jan 9, 2011 12:18pm
Quoting Majestic12
Hi GJ, This was worked out on oanda and i'm pretty sure the risk would work out at $32. i just tried it out on a ticket and it seems to confirm this. Unless i have missed something pretty major. take a look at the bottom of the ticket where it tells you the total risk in dollars and pips.
yeah I think I just need to get used to this way of calculating size. Doesn't look as scary anymore cool!
  • #85,011
  • Jan 9, 2011 12:24pm Jan 9, 2011 12:24pm
Quoting ppfx
Working with Oanda is very simple. You just forget about the usuall lots, pip value and everything.

1.You just type a random number (eg. 1) UNITS and then set your SL and TP.
2.Then you look down (marked purple) and Oanda automatically shows you how many $ or € you are risking (my account is in €, so it shows €)
3.The next step is to set the correct UNITS number. For example if your account is 100€ the SL should be 1€ (if you want to risk 1%).
So, the SL is set, the TP also, so now you just adjust...



Hello Ppfx, thanks! Yes that is exaclty as I was doing, manually adjusting until I get the correct number, lol, now I begin to understand the logic to set exact amount.

Do you know if I can make it auto with this? Looks so (by the fields) but I cannot get it to work in auto
http://cdn.forexfactory.com/attachme...1&d=1294583829

EDIT: My thinking is this: If they have a field DEFAULT order size % - so don't that mean I enter my SL and the units should be auto calculated? I thought so, it puts some number of units but it is a wrong number!!!
  • #85,012
  • Jan 9, 2011 12:28pm Jan 9, 2011 12:28pm
Quoting ddinnov
Hi all,

I hope everyone had a nice Xmas

I've just totally revamped my MM/trading log spreadsheet and thought I'd post it up for anyone that might find it useful and/or be able to provide any feedback. It's got fancy graphs and everything this time!

I couldn't make it backward compatible with Excel 2003 but I'm hoping the office compatibility pack might get round that.

Please elt me know what you think and I hope someone finds it useful.
Hi ddinnov

Thank you for the Trading log Excel sheet posted back around Christmas time, I like it very much, it's a useful tool for me.

Unfortunately I have problems with the overview page, there must be something wrong with the automated update of the cells (wrong cross reference numbers in my opinion). Please check and correct, if possible.

Thank you.
Imre

PS. I've been learning Forex for a year, found this thread unfortunately only last August. I started learning the whole material, covered the first 2300 pages already. Planning to finish by early March, than restart with the posts selected while reading. I reallly do enjoy this journey and love the atmosphere prevailing the thread. Thanks for all of you making this possible. I hope I can give something in return sooner or later, but still have a lot to learn first, that is not easy especially at the age of 54. I've been demo trading for a year now, with J16 method only since August. I had two profitable months, both of them were the ones, when I was busy with my profession and checked the charts only once daily. So I suffer from the serious disease called overtrading, but I hope I find the proper therapy, soon. Thanks
  • #85,013
  • Jan 9, 2011 12:29pm Jan 9, 2011 12:29pm
Quoting ppfx
Working with Oanda is very simple. You just forget about the usuall lots, pip value and everything.

1.You just type a random number (eg. 1) UNITS and then set your SL and TP.
2.Then you look down (marked purple) and Oanda automatically shows you how many $ or € you are risking (my account is in €, so it shows €)
3.The next step is to set the correct UNITS number. For example if your account is 100€ the SL should be 1€ (if you want to risk 1%).
So, the SL is set, the TP also, so now you just adjust the Units, so that your risk...
I used to also do it this way but i found it was to much about trial and error and can get fiddly if you are trying to put a position on quickly. For me its works better to be prepared and know exactly how many units you are going to risk for each pair and just simply divide this number by your stop size. That way you can get the position on much faster if you need to buy/sell at market for some reason.

However this method is great for peace of mind and double checking you are putting on the correct size.
  • #85,014
  • Jan 9, 2011 12:42pm Jan 9, 2011 12:42pm
Quoting Majestic12
Hi GJ, This was worked out on oanda and i'm pretty sure the risk would work out at $32. i just tried it out on a ticket and it seems to confirm this. Unless i have missed something pretty major. take a look at the bottom of the ticket where it tells you the total risk in dollars and pips.
yeah, your right.sorry my bad. iv deleted the post to avoid confusion.
PATIENCE... DISCIPLINE
  • #85,015
  • Jan 9, 2011 12:45pm Jan 9, 2011 12:45pm
Hi Adilius

the next time you see a trade write down all the reasons not to take it i.e why your assessment maybe wrong

/ or write down the reasons to take the trade in the opposite direction

then decide whether your original call is valid

just my thoughts

Anthony
  • #85,016
  • Jan 9, 2011 1:22pm Jan 9, 2011 1:22pm
Adilius

This may help you to get the position sizing right

http://www.earnforex.com/position-size-calculator

Good luck
  • #85,017
  • Jan 9, 2011 1:34pm Jan 9, 2011 1:34pm
Thank you very much friends, I think I got it. And it is now seems really easy

So for those who will come asking same questions again (maybe 10 years from now, we never know, lol) I made this short .doc file with step by step examples. Hope this will help at least one person

Thank you!!!
Attached File(s)
File Type: zip How to calculate exact risk per trade in Oanda.zip   23 KB | 552 downloads
  • #85,018
  • Jan 9, 2011 1:37pm Jan 9, 2011 1:37pm
Quoting antgal23
Adilius

This may help you to get the position sizing right

http://www.earnforex.com/position-size-calculator

Good luck
Wow that gives me exact the same amount in UNITS as I was doing just now myself!!! Lol, thanks a lot!!! I saw that site before but I thought it is only good for lots... haha, now I got two ways to calculate exact size
  • #85,019
  • Jan 9, 2011 1:40pm Jan 9, 2011 1:40pm
Quoting antgal23
Hi Adilius

the next time you see a trade write down all the reasons not to take it i.e why your assessment maybe wrong

/ or write down the reasons to take the trade in the opposite direction

then decide whether your original call is valid

just my thoughts

Anthony

Thanks Anthony. Yeah, I made a revolution here with my plan on this week ends. I'm gonna nail them now Thanks.
  • #85,020
  • Jan 9, 2011 1:50pm Jan 9, 2011 1:50pm
Quoting Majestic12
I used to also do it this way but i found it was to much about trial and error and can get fiddly if you are trying to put a position on quickly. For me its works better to be prepared and know exactly how many units you are going to risk for each pair and just simply divide this number by your stop size. That way you can get the position on much faster if you need to buy/sell at market for some reason.

However this method is great for peace of mind and double checking you are putting on the correct size.
Yes you're right, but if you do it a often you approximately know how many units to set on which pair with certain SL,...and then you just adjust it a little. At least i do it so.
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