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Trading Made Simple

  • #3,201
  • May 19, 2011 8:27am May 19, 2011 8:27am
Quoting Incrediblle
My chart looks so different then yours.
zoom out
  • #3,202
  • May 19, 2011 8:28am May 19, 2011 8:28am
Quoting dean
I COMPLETELY agree. Thats one thing that concerns me about this. Most are putting stop losses behind the last swing high candle which can be say 40 or 50 pips on the one hour chart, but taking 20 or 30 pips. I know this method seems to have a high strike rate but even so....a few losses and your account will gradually dwindle. THis is why I am trying (along with drifter) to come up with some sort of drawdown figure on our trades so we can have a fixed SL with a decent RR. I mean TP of 25 and SL of 25 is cool as long as our strike rate is up around...
That is something that has been bothering me too Dean. To give the trade enough room for this strat, I am finding the RR is really not good. If you reduce the SL, then your percentage of wins goes right down. Havnt found the answer either.
  • #3,203
  • May 19, 2011 8:28am May 19, 2011 8:28am
Quoting Incrediblle
My chart looks so different then yours.
Mine looks the same as yours (except it's fallen a few more pips)
Now trading live
  • #3,204
  • May 19, 2011 8:33am May 19, 2011 8:33am
Is it just me, or have valid trades been incredibly hard to find on the 1hr today?
  • #3,205
  • May 19, 2011 8:35am May 19, 2011 8:35am
[quote=dean;4630046] THis is why I am trying (along with drifter) to come up with some sort of drawdown figure on our trades so we can have a fixed SL with a decent RR.
quote]


Im using 30 SL or high/low of colour change (which ever is less) as my hard stop. Hasnt been hit yet, although i usually get out at BE if my TP 15 isnt hit in the first few hours.

looking back on my BE trades, i should have stayed in all of them as none went against me and eventually went to 15 pips and beyond.
I guess trade selection is just as important as r:r
  • #3,206
  • May 19, 2011 8:38am May 19, 2011 8:38am
Quoting dean
I COMPLETELY agree. Thats one thing that concerns me about this. Most are putting stop losses behind the last swing high candle which can be say 40 or 50 pips on the one hour chart, but taking 20 or 30 pips. I know this method seems to have a high strike rate but even so....a few losses and your account will gradually dwindle. THis is why I am trying (along with drifter) to come up with some sort of drawdown figure on our trades so we can have a fixed SL with a decent RR. I mean TP of 25 and SL of 25 is cool as long as our strike rate is up around...
Yep totally mate. Because we're not aiming at fixed levels with this method I find it tricky to set hard SL and PT's. Usually just aiming for closest S/R for PT and then putting SL so trade is 1:1 or if the entry is right on top of support (long) or below resistance (short) then going for 2:1. Not willing to take anything below 1:1.
I think maybe it'll just take screen time and enough trades using this method to be able to really get tight entries, meaning lower SL and better R:R.

Let me know what you come up with
  • #3,207
  • May 19, 2011 8:42am May 19, 2011 8:42am
on 1hr time frame 20 pip sl shud be reasonable.
Trade responsiblypatience is the key/Swing trader
  • #3,208
  • May 19, 2011 8:44am May 19, 2011 8:44am
[quote=33drifter;4630110]
Quoting dean
THis is why I am trying (along with drifter) to come up with some sort of drawdown figure on our trades so we can have a fixed SL with a decent RR.
quote]


Im using 30 SL or high/low of colour change (which ever is less) as my hard stop. Hasnt been hit yet, although i usually get out at BE if my TP 15 isnt hit in the first few hours.

looking back on my BE trades, i should have stayed in all of them as none went against me and eventually went to 15 pips and beyond.
I guess trade selection is just as important as r:r
Yes dont get me wrong.....trade selection is just as important...in fact hone your trade selection and your RR increases. The concern is...as traders we will ALL have a bad run at some stage....its a given.....and if your RR is poor you will go backwards quickly. My cousin is in the commercial side of this game and although its different to us....the banks wont enter a trade with an RR any less tha 3:1
We arent that lucky but for me, I would feel more comfortable if my TP was equal to my SL at least. I note you are recording your trades drifter. Put an extra column in and once you exit your profitable trades, drop down to your one minute chart and pinpoint where you entered and see what your max drawdown was and mark it down for each trade. I am starting to do the same. That way in a couple of weeks you might find you have your selections sorted and your SL could be 20 along with your TP. THen you have a simple set and forget.....enter and walk away. THis is my aim
  • #3,209
  • May 19, 2011 8:45am May 19, 2011 8:45am
Quoting Incrediblle
on 1hr time frame 20 pip sl shud be reasonable.
I just can not get to the point where 20pips is enough SL. It frequently goes against me for 25+ pips before turning in my direction.
Whats your secret?
  • #3,210
  • May 19, 2011 8:48am May 19, 2011 8:48am
Quoting ken911
Is it just me, or have valid trades been incredibly hard to find on the 1hr today?
there are none....the GU trade mentioned earlier doesnt look to be valid on my charts either
  • #3,211
  • May 19, 2011 8:48am May 19, 2011 8:48am
Quoting nhen
Yep totally mate. Because we're not aiming at fixed levels with this method I find it tricky to set hard SL and PT's. Usually just aiming for closest S/R for PT and then putting SL so trade is 1:1 or if the entry is right on top of support (long) or below resistance (short) then going for 2:1. Not willing to take anything below 1:1.
I think maybe it'll just take screen time and enough trades using this method to be able to really get tight entries, meaning lower SL and better R:R.

Let me know what you come up with
Lets work on this together....see the post I just put up for drifter....maybe you could do the same if you dont mind. Between us sure our trade selection may be different but we should be able to come up with similar SL's???...maybe oh and I mainly trade the hourly.....what do you guys trade??
I will send you and drifter mt record spreadsheet so you know what I am talking about if you like??let me know
  • #3,212
  • May 19, 2011 8:50am May 19, 2011 8:50am
only a matter of time til you blow account number five!
  • #3,213
  • May 19, 2011 8:50am May 19, 2011 8:50am
[quote=33drifter;4630110]
Quoting dean
THis is why I am trying (along with drifter) to come up with some sort of drawdown figure on our trades so we can have a fixed SL with a decent RR.
quote]


Im using 30 SL or high/low of colour change (which ever is less) as my hard stop. Hasnt been hit yet, although i usually get out at BE if my TP 15 isnt hit in the first few hours.

looking back on my BE trades, i should have stayed in all of them as none went against me and eventually went to 15 pips and beyond.
I guess trade selection is just as important as r:r
without harping on it mate.....my point is...at your RR, if you have a losing streak of say 3 trades in a row...at your RR you need 6 winners just to get back to even (assuming your TP is fixed)
  • #3,214
  • May 19, 2011 8:52am May 19, 2011 8:52am
Quoting rascal
only a matter of time til you blow account number five!
who?
  • #3,215
  • May 19, 2011 8:52am May 19, 2011 8:52am
on a 1hr. chart using a 40-50 pip SL is common.
  • #3,216
  • May 19, 2011 8:59am May 19, 2011 8:59am
Quoting geo123
on a 1hr. chart using a 40-50 pip SL is common.
40/50pip SL is probably right on this stategy, but the Reward just isnt there for that amount of risk.
  • #3,217
  • May 19, 2011 9:09am May 19, 2011 9:09am
[quote=dean;4630173]
Quoting 33drifter
without harping on it mate.....my point is...at your RR, if you have a losing streak of say 3 trades in a row...at your RR you need 6 winners just to get back to even (assuming your TP is fixed)
Totally agree, im working towards the 1:1 before i step up to full lots. I suppose my point was more about the SL values. 30 pips hasnt been hit yet. Im hopeless at set and forget so im taking note of BE trades too, so far i havent lost a trade with this system

P.S. nice setup on swissy H1 but i missed it while i was writing this
  • #3,218
  • May 19, 2011 9:09am May 19, 2011 9:09am
Quoting ken911
Is it just me, or have valid trades been incredibly hard to find on the 1hr today?
yes, but the market has been in a tight range this whole week ! i look back on my Euro 1 hr. chart and this week gives me whiplash compared too previous weeks >>
  • #3,219
  • May 19, 2011 9:13am May 19, 2011 9:13am
[quote=33drifter;4630228]
Quoting dean

Totally agree, im working towards the 1:1 before i step up to full lots. I suppose my point was more about the SL values. 30 pips hasnt been hit yet. Im hopeless at set and forget so im taking note of BE trades too, so far i havent lost a trade with this system

P.S. nice setup on swissy H1 but i missed it while i was writing this
Sorry about that mate....I actually got on that trade.....while you were writing
no losers eh??? thats fantastic! well done. How many have you entered and how many per day do you enter??
  • #3,220
  • May 19, 2011 9:13am May 19, 2011 9:13am
Quoting ken911
I just can not get to the point where 20pips is enough SL. It frequently goes against me for 25+ pips before turning in my direction.
Whats your secret?
coz may be u take entry too early...
Trade responsiblypatience is the key/Swing trader
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