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Trading Major Lines

  • #1,121
  • May 21, 2011 9:12am May 21, 2011 9:12am
Quoting vilas
If this hapens to you often, you are very good but short on Lady Luck's Favours ! Why not put in a TP at 60 - 80 pips ? When the pips are safely in your pocket, you can enter the same trade again ! Taking a wine-bottle to Lady Luck won't do any harm !
Hope my 2-cents worth will help !
The reason we do not take profit at 60-80 pips (or even 170, like Nomasks NZD/USD BE trade posted earlier) is because this is our mindset:

- We'd rather a position die at break even then taking profit before the major (or minor, if you must) lines. In the case of EUR/USD, that would mean 1.35, 1.40, 1.45, and 1.50.

-60-80 pips in the bag sounds nice, but what if that position goes on to fulfill it's weekly momentum (per this method) and nets you 500-1000 pips? Nomask has already stated that with a .02% risk per trade, one run of 1000 pips added 20% to his starting capital. That's .02, not 2%. If it were 2%, that same position would have added 200% to his capital when he cashed it out. (Note: I'm not suggesting this amount of risk)

-Back to the 60-80 pips example: If you cash out at 60 pips and then reenter, then you have a GREATER CHANCE that your position will die at breakeven on the retrace. This is exactly what we're trying to avoid.

-To summarize, get an entry in at low risk (5-10 pips SL) on the 5 minute chart and let it run awhile, move it to break even and then forget about it. If it runs for 1000 pips toward the intended direction, then cash it out if you want.

I'm not trying to be argumentative or abrasive toward you (or Tania), but this is the entire point of Nomask's methodology. To talk about signals or "when to take profit" are conflicting with the original poster's method. If there is anything we are "supposed" to get from this method (or Graeme's) it's that multiple position on the "long term" will net you many more pips for much less risk. Did you think a risk:return of 1:200 was possible? It is with the ideas from this thread. I invite you to check out the Equity Millipede thread, as well, of which Nomask was a great contributor. Graeme has multiple positions riding long term (monthly) trends and they net him thousands of net new pips PER WEEK. Nomask (and Graeme) show what can be accomplished by looking at the "big picture".

I hope this clears some things up. I wish you all the best in your trading.
  • #1,122
  • May 21, 2011 9:37am May 21, 2011 9:37am
Quoting jasonc1213
The reason we do not take profit at 60-80 pips (or even 170, like Nomasks NZD/USD BE trade posted earlier) is because this is our mindset:

- We'd rather a position die at break even then taking profit before the major (or minor, if you must) lines. In the case of EUR/USD, that would mean 1.35, 1.40, 1.45, and 1.50.

-60-80 pips in the bag sounds nice, but what if that position goes on to fulfill it's weekly momentum (per this method) and nets you 500-1000 pips? Nomask has already stated that with a .02% risk per trade, one run of 1000 pips...
Very well written

TS
Haste not to Enter AND Haste not to Exit !-TradeStar
  • #1,123
  • May 21, 2011 9:55am May 21, 2011 9:55am
Hi everyone, i'm new on trading.

I've read a big part of the thread, and i still have some questions :

- what's a break even ? I've made some research on google. I understood that it is the price which gives you no loss.

- how to set it up ?

I'm short on E/U since 1.5000 and i dont know how to move my SL.
  • #1,124
  • May 21, 2011 10:00am May 21, 2011 10:00am
Just showing a quick TEST run on GU under trending conditions: indeed, I was able to bank +1300 pips in 7 weeks by just letting it run (with SL set at BE a couple hours after entering).

NOT TRAILING your stop is key to attaining the thousand pips goal.

Amazing method!
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  • #1,125
  • May 21, 2011 10:08am May 21, 2011 10:08am
thanks all for keeping this thread alive, in as much as i have wanted to be regular here but my side projects has kept me away.
which pair are to keep an eye on as to the coming week that suit the Nomask's method.
thanks.
  • #1,126
  • Edited 10:50am May 21, 2011 10:32am | Edited 10:50am
Quoting jasonc1213
The reason we do not take profit at 60-80 pips (or even 170, like Nomasks NZD/USD BE trade posted earlier) is because this is our mindset:

- We'd rather a position die at break even then taking profit before the major (or minor, if you must) lines. In the case of EUR/USD, that would mean 1.35, 1.40, 1.45, and 1.50.

-60-80 pips in the bag sounds nice, but what if that position goes on to fulfill it's weekly momentum (per this method) and nets you 500-1000 pips? Nomask has already stated that with a .02% risk per trade, one run of 1000 pips...
I agree with what you have posted - the method of Nomask is Unique - if you can take the heat (MM), then it is THE WAY.

I also do not feel that you have been intentionally abrasive - you simply did not want to get distracted from your line. My intention in defending T was a matter of "practicality" and "live and let live approach". As I mentioned, the best way for a Poster to aquire immunity from critics is to hide behind Iggy and this is what I have been trying to point out.

Another point, one needs to focus on what one intends to do and disregard other viewpoints. Same with the unpleasant posts you have faced. Why bother ?

As to "Let it Run" principle, I HAVE absorbed this from here, thanks to Nomask and others on this thread.


Happy Trading.
  • #1,127
  • May 21, 2011 10:44am May 21, 2011 10:44am
Quoting tradista
Just showing a quick TEST run on GU under trending conditions: indeed, I was able to bank +1300 pips in 7 weeks by just letting it run (with SL set at BE a couple hours after entering).

NOT TRAILING your stop is key to attaining the thousand pips goal.

Amazing method!
So, I was right in spotting you as NOT a Rookie ! Good Trade. I remember I had a trade during this period from 145.++ or thereabouts but I had cashed in earlier (risk for me is bigger, hence the precaution).

This is the point I absorbed from Mr. Nomask---------LET IT RUN ...

Here is to next 1000 pip Trade to ALL !

  • #1,128
  • May 21, 2011 7:36pm May 21, 2011 7:36pm
Based on hindsight from last week, this week I will be looking at the 4H and 5 min to take good set-up chances in the follwoing directions*
GBP/JPY -Long
USD/JPY-Long
EUR/USD-Short
GBP/USD-Short

I find my hindsight works best if I keep it as simple as possible and don`t worry to much about the correlations between the pairs..
  • #1,129
  • May 21, 2011 8:27pm May 21, 2011 8:27pm
Quoting jasonc1213
The reason we do not take profit at 60-80 pips (or even 170, like Nomasks NZD/USD BE trade posted earlier) is because this is our mindset:

- We'd rather a position die at break even then taking profit before the major (or minor, if you must) lines. In the case of EUR/USD, that would mean 1.35, 1.40, 1.45, and 1.50.

-60-80 pips in the bag sounds nice, but what if that position goes on to fulfill it's weekly momentum (per this method) and nets you 500-1000 pips? Nomask has already stated that with a .02% risk per trade, one run of 1000 pips...
Totally agree. I guess all turns out as per each individual needs. In my case, I'm more inclined to have 2-3 relaxed trades a week, and be able to pocket 150-200 pips a week. Then compound. Of course after building more confidence targeting the 1000 pips would be just great!!!, playing golf while watching on your handset how you build your equity wouldn't hurt!!! LOL.

Cheers
  • #1,130
  • May 22, 2011 12:15am May 22, 2011 12:15am
Quoting cfabian
playing golf while watching on your handset how you build your equity wouldn't hurt!!! LOL.
Amen brother!
  • #1,131
  • May 22, 2011 2:28am May 22, 2011 2:28am
Best looking pairs to me this week are USDJPY, GBPJPY for longs and EURGBP, AUDUSD for shorts. USDCHF hasn't touched a major line but I may trade this pair extra cautious.
Twitter: @zusch_ -- Preselecting trending pairs, stocks on a weekly basis.
  • #1,132
  • May 22, 2011 3:52am May 22, 2011 3:52am
Thanks for the heads-up on the EUR/GBP-- that`s not a pair I normally look at it and I will definitely be following it next week.
BTW, what`s putting you off looking for shorts on EUR/USD if I might ask?


Quoting zusch
Best looking pairs to me this week are USDJPY, GBPJPY for longs and EURGBP, AUDUSD for shorts. USDCHF hasn't touched a major line but I may trade this pair extra cautious.
  • #1,133
  • May 22, 2011 5:49am May 22, 2011 5:49am
Quoting gssintokyo
Thanks for the heads-up on the EUR/GBP-- that`s not a pair I normally look at it and I will definitely be following it next week.
BTW, what`s putting you off looking for shorts on EUR/USD if I might ask?
I'm waiting for a strong close beyond 1.4. I would be surprised if we didn't chop around a bit around 1.4 because it is a major number and the October/November 2010 highs (old resistance becoming support). Seems like a logical place for us to bounce to the upside. I suppose I will trade it if I see a very clear setup similar to how I plan to trade USDCHF this week.
Twitter: @zusch_ -- Preselecting trending pairs, stocks on a weekly basis.
  • #1,134
  • May 22, 2011 9:49am May 22, 2011 9:49am
Quoting vilas
I had cashed in earlier (risk for me is bigger, hence the precaution)
Why is your risk bigger? Aren't you applying nomask's method as is or did you adapt it a bit to suit your particular style?

Quoting vilas
This is the point I absorbed from Mr. Nomask---------LET IT RUN ...

Here is to next 1000 pip Trade to ALL !

  • #1,135
  • May 22, 2011 10:46am May 22, 2011 10:46am
Quoting tradista
Why is your risk bigger? Aren't you applying nomask's method as is or did you adapt it a bit to suit your particular style?



This was from before I came to TML (which is recently) and the positions were large: can't wait very long in such cases. TML is ideally suited for LT trade and MM : what to do in between ? For that matter I trade more than one system !

Today, I gave a lot of time to reading FF and find everyone is struggling to find Trend - finding trend is not that difficult, managing positions is because of MM problems - small number positions, small profits, large positions are something else.

At present I am destabilized because of DBFX - this would have hit many TML traders - got to take a perspective on what is best way forward. While TML is no doubt very good, I just see the possibility of extracting more juice by switching in between. This is not to say that others should follow - this is a bit risky as Jason pointed out in his post. TML would be great for someone who plays small and keeps to it.

Tks for comment.
  • #1,136
  • May 22, 2011 11:31am May 22, 2011 11:31am
Quoting zusch
Best looking pairs to me this week are USDJPY, GBPJPY for longs and EURGBP, AUDUSD for shorts. USDCHF hasn't touched a major line but I may trade this pair extra cautious.
My concerns with EURGBP is the inverted hammer on weekly chart and support @ .8575 coinciding ith downward trendline from 2008(weekly chart)
  • #1,137
  • Edited 12:23pm May 22, 2011 11:56am | Edited 12:23pm
In my mind, USD/JP is the best pair to consider for next week(Long). I think USD/CAD, NZD/USD and AUD/USD pairs need more time, maybe 1 or 2 weeks to form trend more clearly. I will try to stay away from these pair moves, watching them, and consider for another long entry with USD/JP
@gssintokyo: thanks your sharing, it's really helpful to me.
  • #1,138
  • May 22, 2011 5:23pm May 22, 2011 5:23pm
Quoting cfabian
Totally agree. I guess all turns out as per each individual needs. In my case, I'm more inclined to have 2-3 relaxed trades a week, and be able to pocket 150-200 pips a week. Then compound. Of course after building more confidence targeting the 1000 pips would be just great!!!, playing golf while watching on your handset how you build your equity wouldn't hurt!!! LOL.

Cheers
Maybe because I didn't get a feel of cashing in any significant amount yet, I am still learning to control my appetite for taking the "hundreds" while they're at hands rather than wait for the "thousands"... I know, its against our rules here

From what you wrote, I take that even though you could let it run, at some moment you will close the position or do you simply trail the stop till it is hit ?
  • #1,139
  • May 22, 2011 5:47pm May 22, 2011 5:47pm
Quoting vilas
TML is ideally suited for LT trade and MM : what to do in between ? For that matter I trade more than one system !

At present I am destabilized because of DBFX - this would have hit many TML traders - got to take a perspective on what is best way forward. While TML is no doubt very good, I just see the possibility of extracting more juice by switching in between.
Do you have LT positions opened with DBFX? I hope everything works out for you and the other FF traders during the transition to GC.

I kind of agree with you on the “in between” issue. I understand that, for me, TML is the absolute primer method to trading trending markets but I do see lots of pips running around during range-bound periods that I wouldn’t mind extracting from “while the trend is forming”. Didn't find a system that suits me for that... I guess one step at a time is the way!

Cheers.
  • #1,140
  • May 22, 2011 5:55pm May 22, 2011 5:55pm
Quoting zusch
Best looking pairs to me this week are USDJPY, GBPJPY for longs and EURGBP, AUDUSD for shorts. USDCHF hasn't touched a major line but I may trade this pair extra cautious.
I'm watching these:
USDJPY and GBPJPY look like they are consolidating to me.
EURGBP and AUDUSD seem like they are forming an up-trend... still, not sure if we need to wait a couple more weeks for confirmation.
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