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Trading for Freedom

  • #1
  • First Post: Apr 21, 2011 5:29pm Apr 21, 2011 5:29pm
Hello all,

Atlast I have decided to come out of hibernation due to the many PMs I received over time.
I am doing well since my last post.
I have become more mature trader over time.
I trade conservatively with various brokers and enjoy trading my own accounts.
I am not here to prove anything or to generate any trade signals.
i will not entertain any request to share my live statements.
But I will post my demo trades here which will be taken simultaneously with my live trades.
Today I am going to discuss one strategy which I found stable with market upheavals.
I do not use Demarker indicator any more as I find this strategy better than before with reliable signals.
I still trade on longer time frames H1, H4 and above.
My trades usually last for several hours to days or even months.
I am not in hurry to get rich quick.
I will first post a screen shot here.
I will explain the strategy in subsequent posts.
Due to my schedule I may not be able to answer your queries in time.
Constructive criticisms will be welcome.
Please avoid any unnecessary posts to keep this thread relevant.
Attached Image (click to enlarge)
Click to Enlarge Name: ey.gif Size: 22 KB
  • #2
  • Apr 21, 2011 5:33pm Apr 21, 2011 5:33pm
First trade:
Eur/Jpy B @ 119.309 2 lots

SL & TP open
  • #3
  • Edited 6:31pm Apr 21, 2011 5:41pm | Edited 6:31pm
1. First insert the RSI + MA indicator in your chart window.
Please use the settings I am using.
2. Now watch the red line--this shows the strength of the trend.
Blue line is the MA which is the signal line.
3. Safe trade--red line crosses 50 level. now watch for the blue line to cross the red line and then come back up ( in case of long). Some times, blue line may not cross the red line. When the blue comes close to the red line and then richochets to wards the direction of the red line this is your entry signal.
4. Now you can use SL to the previous swing low or use PSAR for determining SL.
I do not use any SL, as I also employ averaging and hedging strategy.
I will come to this part later, as this is the money management part.
5. TP should be when red line changes the direction and drops below the 50 level. If the red line is way above 80 level ( as in case of Eur USD now), and then it trends down sharply below 80 level, that can also be your exit or atleast take part profit.
When you close your long position, this should be your short signal as well.

I am attaching the indi below:

Enjoy!
Attached File(s)
File Type: mq4 RSI+MA.mq4   5 KB | 926 downloads
  • #4
  • Apr 21, 2011 5:55pm Apr 21, 2011 5:55pm
This is very very important to succeed in forex market.
Please do not overleverage even if you are in a long winning streak.
If you want to make a living, then you need to take this like any day job.
You need to survive the drawdowns you are comfortable with.
as a principle with this strategy, I use 1:4 leverage, that is, if you have 1000usd in your account, trade 4000 units worth of currency each time.
This way, even a 250 pips drawdown will not take more than 10% of your account balance.
Now, with this strategy I do not use any stop loss.
I initially enter a position, then I will gradually build the more and more position till the long term trend changes.
For example, I just bought eur jpy at CMP ( above).
Suppose, this pair goes in retracement. then I will be watching when blue line crosses above red line again.
All these trades will be based on H4 time frame for now for simplicity.
You can trade any time frame, but H4 trades yields hundreds of pips worth the risk we are willing to take.
Anyway, once the blue line crosses above red line ( as long as red line stays above the 50 level), then I will buy another position same quantity as the first one.
This way we will average maximum 5 times, not more than that.
The exit strategy remains the same.
For sudden forex moves, we will have a opposite hedge position ( limit order) set at 500 pips below the initial position.
This is where the hedging comes in.
Suppose the pair keeps going down even after you have taken 5 averaging positions.
This case, you need to open a hedge position equal to the total position you built with averaging.
This is getting more complex here, but this is not difficult once the market unfolds over time.
our goal is to hold the hedge position till the market turns around signalled by the red line.
This does not happen often, but this helps you to stay in market and also collect pips when the position goes against you completely.

Enjoy!
  • #5
  • Apr 22, 2011 7:41am Apr 22, 2011 7:41am
Shorting Eur cad @ 1.3862 ( 1 Lot)

TP and SL open
chart attached.
Red line flattened over 50 turning down, blue line crossed down.
PA also supports this trade.

Enjoy!
Attached Image (click to enlarge)
Click to Enlarge Name: ec.gif Size: 19 KB
  • #6
  • Apr 25, 2011 6:02pm Apr 25, 2011 6:02pm
I am adding another short to Eurcad current position.

Eurcad S at 1.3908 ( 1 lot)

Enjoy!
  • #7
  • Apr 26, 2011 10:33am Apr 26, 2011 10:33am
Fabulous to see you back, personally I don’t like indicators, but I can certainly see merits in using it as confirmations. I have had excellent results trading PA. This is perfectly illustrated by your system, pin bar coincided with 50 cross and bullish outside bar coincided with 50 cross (see image)…

I am also using order flow to help see where the institutional orders are sat, again I don’t really see this as the golden bullet, but rather an overall mkt structure, a map if you will. http://orderbookfx.com/


Again great to see you back..
Best
RS


PS I hope you dont mind if i pitch in occasionally?
Attached Image (click to enlarge)
Click to Enlarge Name: aud.usd 26.04.11.gif Size: 12 KB
  • #8
  • Apr 26, 2011 10:42am Apr 26, 2011 10:42am
Thanks Revstar for dropping by.
That is a good trade on AudUsd.
I will take a look at your journal and also the orderbook.
This is one of the startegies I am trading.
I am using RSI little differently.
You can try the indicator I posted above--reduces whipsaws--otherwise PA plays a major role in selecting a trade.
I do not use stop losses as i explained above. My leverage is very conservative and I am happy with what I have achieved so far.
I am glad you are doing well.
Best,

Quoting Revstar
Fabulous to see you back, personally I don’t like indicators, but I can certainly see merits in using it as confirmations. I have had excellent results trading PA. This is perfectly illustrated by your system, pin bar coincided with 50 cross and bullish outside bar coincided with 50 cross (see image)…

I am also using order flow to help see where the institutional orders are sat, again I don’t really see this as the golden bullet, but rather an overall mkt structure, a map if you will. http://orderbookfx.com/


Again great to see...
  • #9
  • Apr 27, 2011 5:22am Apr 27, 2011 5:22am
Quoting mysticgenie
First trade:
Eur/Jpy B @ 119.309 2 lots

SL & TP open

EurJpy partial profit taken at 120.70 ( 1 lot closed). +140
Rest at breakeven.

Enjoy!
  • #10
  • Edited 8:06am Apr 27, 2011 7:55am | Edited 8:06am
Nice trade MG!

I also joined the party, loaded up with smaller positions and hedge circa 500 pips away. PA the signal bullish candle and support of the 150. all posiitons at BE + a few..

I also took GU and gold, AU still running... happy days

RS
Attached Image (click to enlarge)
Click to Enlarge Name: eur.jpy p2 27.04.11.gif Size: 16 KB
  • #11
  • Apr 27, 2011 8:18am Apr 27, 2011 8:18am
Quoting Revstar
Nice trade MG!

I also joined the party, loaded up with smaller positions and hedge circa 500 pips away. PA the signal bullish candle and support of the 150. all posiitons at BE + a few..

I also took GU and gold, AU still running... happy days

RS

Great Revstar--Rock on!
  • #12
  • Apr 28, 2011 8:40am Apr 28, 2011 8:40am
EurJpy added 1 lot buy at CMP 120.74.
The SL of previous remaining lot moved to 119.50 (+20).

Best,
  • #13
  • May 6, 2011 12:15pm May 6, 2011 12:15pm
hey MG, have you had time to catch any of the recent action?
RS
  • #14
  • May 6, 2011 3:57pm May 6, 2011 3:57pm
Quoting Revstar
hey MG, have you had time to catch any of the recent action?
RS

Dear Revstar,
Thanks for your enquiry.
I did well this week. Some grand move in Eur pairs.
My EurCad trades are in money now.
I took a short in EurAud at 1.3850 ( 2 lots). Closed 1 lot at 1.3400 ( +450).
rest at SL 1.3700 ( +150).
I was very busy this week wit h trading and also my practice. Hence, could not post in time the last trade in this account.
I also scalp on 1 Hr timeframe which also worked out well.
My EurJpy 1 lot stopped out at 119.50.
Another lot still holding.
have not activated the hedge yet--will watch next week where Euro goes.
I hope you were also able to catch some of the moves.

Have a great weekend,
  • #15
  • May 6, 2011 4:06pm May 6, 2011 4:06pm
I can't believe I've only just noticed this thread!! I've been wondering how you're doing now after coming across your other thread from a couple of years back http://www.forexfactory.com/showthread.php?t=56670 .....brilliant trading. Glad to see you're doing ok and look forward to more posts.
  • #16
  • May 8, 2011 5:02am May 8, 2011 5:02am
Quoting mysticgenie
I am adding another short to Eurcad current position.

Eurcad S at 1.3908 ( 1 lot)

Enjoy!
How do u trade it? would be nice to have few words from you
  • #17
  • May 10, 2011 6:36pm May 10, 2011 6:36pm
Quoting mysticgenie
1. First insert the RSI + MA indicator in your chart window.
Please use the settings I am using.
2. Now watch the red line--this shows the strength of the trend.
Blue line is the MA which is the signal line.
3. Safe trade--red line crosses 50 level. now watch for the blue line to cross the red line and then come back up ( in case of long). Some times, blue line may not cross the red line. When the blue comes close to the red line and then richochets to wards the direction of the red line this is your entry signal.
4. Now you can use SL...

Hi Mystic. Glad to see you back.

Couple of comments:
1) I believe you mispoke about the blue line which in fact is the "RSI(14)" line, not the MA line. The smoother red line is the "MA" line. At least that's what I get when I add the SMI+MA indicator as posted.

Am I correct? Is your description about how each of the red/blue lines move still correct with respect to your signals?

2) What timeframe chart are you using this indy on? H1 ?

3) FYI, U.S. brokers don't allow hedging of open positions (i.e can't be both long and short the same currency in the same account). No matter to me as I would just close a position in severe loss rather than complicate it by a hedge.
  • #18
  • May 10, 2011 8:27pm May 10, 2011 8:27pm
tag
  • #19
  • May 11, 2011 8:16am May 11, 2011 8:16am
Eurocad 1 lot closed at 1.3670 ( +192).
Another lot stop at 1.3800 ( +100).

Eur Aud 2nd lot closed at CMP ( +600). I am not counting this as I did not post the trade when taken.

New trade EurJpy buy at CMP 116.40 (2nd lot).

Best,



Quoting mysticgenie
Shorting Eur cad @ 1.3862 ( 1 Lot)

TP and SL open
chart attached.
Red line flattened over 50 turning down, blue line crossed down.
PA also supports this trade.

Enjoy!
  • #20
  • May 11, 2011 8:19am May 11, 2011 8:19am
Quoting pips4life
Hi Mystic. Glad to see you back.

Couple of comments:
1) I believe you mispoke about the blue line which in fact is the "RSI(14)" line, not the MA line. The smoother red line is the "MA" line. At least that's what I get when I add the SMI+MA indicator as posted.

Am I correct? Is your description about how each of the red/blue lines move still correct with respect to your signals?

2) What timeframe chart are you using this indy on? H1 ?

3) FYI, U.S. brokers don't allow hedging of open positions (i.e can't be both long and short the same...
Please read again. I use RSI 9, MA 5 setting.
red line is rsa, ma blue line ( this the ma of RSI period).
Trades are taken on 4h and daily time frame.
1H may be used for intraday scalping.
Thanks for your interest.
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