Buy sell line trading | Page 73 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Difference between buy/sell stops & buy/sell limits 34 replies

how to change buy to sell, sell to buy for EA 1 reply

the buy/buy or sell/sell currency broker?? 5 replies

I am looking for EA to put Buy Stops, Buy limits, Sell limits, and Sell Stops. I will 0 replies

hwo to get rid of teh Buy line and Sell line 2 replies

Attachments: Buy sell line trading
Exit Attachments

Buy sell line trading

  • #1,441
  • Jun 8, 2012 3:46am Jun 8, 2012 3:46am
Quoting California
Bernanke's lack of strong hints as to further money printing turned the risk trade off Thursday, leaving many downside reversal bars on the charts of stocks, averages, and fx pairs.

There are more D1 setups for Entry 2 than we have seen in some time. Some have triggered, and I have attached three of them, two Aussie and one Kiwi. Others are still setting up and may trigger on Monday.

Best trading to all

California
May I ask how do you set up your target levels? Is it next level of s/r or just the size of your stop (1:1 r:r)?
Thank you
Twitter @raitchev
  • #1,442
  • Jun 8, 2012 7:17am Jun 8, 2012 7:17am
Daily setups type#2:
Swissy hit my target overnight
Cad bringing to break even
Nzd has hit the halfway mark to 1 to 1
Aud still open
Gold daily hit target next day.

Watching the usd/jpy 4hr charts for a possible type#2 entry...we have an hour before this one closes.The 50sma is flat so this would be up to the trader if this candle closes in the top 25%.

This is all on ny close charts.
  • #1,443
  • Jun 8, 2012 8:50am Jun 8, 2012 8:50am
Quoting raitchev
May I ask how do you set up your target levels? Is it next level of s/r or just the size of your stop (1:1 r:r)?
Thank you
Raitchev

For now, it is 1:1. This works because the win rate is 60%-69%, depending upon the pair. However, I prefer using reward:risk of at least 1.5:1 or 2:1, so over time I will test various combinations of r:r to determine the optimal R multiple.

A profitable trader will spend more time thinking about money mgt and less time thinking about entries and how he can tweak results with different indi's, etc.

The holy grail is money mgt. And doesn't this make sense? It should, because most traders don't spend the time on this.
  • #1,444
  • Jun 8, 2012 9:43am Jun 8, 2012 9:43am
Quoting tex123
Daily setups type#2:
Swissy hit my target overnight
Cad bringing to break even
Nzd has hit the halfway mark to 1 to 1
Aud still open
Gold daily hit target next day.

Watching the usd/jpy 4hr charts for a possible type#2 entry...we have an hour before this one closes.The 50sma is flat so this would be up to the trader if this candle closes in the top 25%.

This is all on ny close charts.
nice Tex!
tradewith60
  • #1,445
  • Jun 8, 2012 9:51pm Jun 8, 2012 9:51pm
I see no Entry 2 setups on D1 (NY close) for Monday. A number of the pairs appeared to set up, however the snapback in risk assets on Friday prevented a number of pairs from closing in the upper or lower quartile of their daily range on Friday. As you know, this negates any potential entry, since the Entry 2 requires the signal bar to close in this manner.

Having more than one strategy under one's belt comes in handy because it makes it easier to be selective with your trades when you know you will have a steady supply of them on a near-daily basis.
  • #1,446
  • Jun 9, 2012 8:47pm Jun 9, 2012 8:47pm
This is really a great system. I always have to tell myself to be patient and wait for setups though. I jump in early and lose about 20 pips only to get a valid entry later and end up reclaiming my lost pips and another 30 or so. would have been a really good trade without the earlier pips to make up. It is a big problem that i need to address and just have faith in the system and wait for setups. Its what I really need to work on at the moment. How do others manage this problem if anyone else does it?
  • #1,447
  • Jun 9, 2012 9:22pm Jun 9, 2012 9:22pm
Airgead

Dr Alexander Elder in "Trading for a Living" makes the analogy that trading is like a three-legged stool, in that all three legs must be solid, otherwise the stool will collapse. The three legs are strategy, money management, and psychology (discipline).

One thing I might suggest is for you to do some backtesting of the strategy. This might give you the confidence and will allow you to realize that "playing by the rules" of the strategy can provide you with the rewards you seek.

Pick one pair and just look at all the setups that occur going back several years. If you want, you can use the F12 key to advance the chart one bar at a time. Write down where you would enter and exit each trade. An Excel spreadsheet is good for this. A few hours of backtesting may not be the most fun way to spend an afternoon, but if this is your hard-earned money you are putting at risk, it can be the best investment you make.

It would be nice to see you overcome this issue now instead of later, as I have seen some traders struggle with this same problem after having traded for ten years or more.

In the meantime, congratulations on seeing some success with the strategy. Most forex traders do not get this far, so pat yourself on the back.
  • #1,448
  • Jun 11, 2012 1:56pm Jun 11, 2012 1:56pm
Quoting California
Airgead

Dr Alexander Elder in "Trading for a Living" makes the analogy that trading is like a three-legged stool, in that all three legs must be solid, otherwise the stool will collapse. The three legs are strategy, money management, and psychology (discipline).

One thing I might suggest is for you to do some backtesting of the strategy. This might give you the confidence and will allow you to realize that "playing by the rules" of the strategy can provide you with the rewards you seek.

Pick one pair and just look at all the setups...
I have a question regarding stop placement.How you place you stops?Do you place stop for every trade you take fixed stop.For example 50 Pips for every trade.Or your stop getz varied based on trade.For some trade 50 some trade 100 some trade 200 pips?
  • #1,449
  • Jun 11, 2012 2:06pm Jun 11, 2012 2:06pm
Quoting airgead
This is really a great system. I always have to tell myself to be patient and wait for setups though. I jump in early and lose about 20 pips only to get a valid entry later and end up reclaiming my lost pips and another 30 or so. would have been a really good trade without the earlier pips to make up. It is a big problem that i need to address and just have faith in the system and wait for setups. Its what I really need to work on at the moment. How do others manage this problem if anyone else does it?
If your issue is waiting for set ups, move to a smaller tf...

Remember, to small a tf your win rate will be affected so you need to adjust r/r accordingly...

It was slow today, so i was trading m15... im always flexible with timeframes
tradewith60
  • #1,450
  • Jun 11, 2012 6:08pm Jun 11, 2012 6:08pm
Quoting bedayan
I have a question regarding stop placement.How you place you stops?
For longs, s/l is placed below the low of the signal bar. Reverse for shorts.
  • #1,451
  • Jun 11, 2012 9:04pm Jun 11, 2012 9:04pm
Quoting 60minuteman
If your issue is waiting for set ups, move to a smaller tf...

Remember, to small a tf your win rate will be affected so you need to adjust r/r accordingly...

It was slow today, so i was trading m15... im always flexible with timeframes
Thankyou for your advice. Im trying to be patient and keep a journal of my trades and hope this helps me to stick to the rules.
  • #1,452
  • Jun 11, 2012 10:48pm Jun 11, 2012 10:48pm
Quoting California
For longs, s/l is placed below the low of the signal bar. Reverse for shorts.
Hi 60minutemand/California,
I understand your stop placement.But my question is do you use fixed stop for every trade or variable stop?
For example if you take five trade.Then money manage ment wise.
each trade you take 50 pips stop loss.1:2 risk reward you will see account grow.
But if you take variable stop then it will effeect you net profit.Suppose one trade you take 50 pip stop and next trade 100 pip stop and you put 1:2 risk reward and your first trade winner and next trade is looser.So your net profit is zero.But if you put fixed stop 50 pips for both trade then you 50 pip in profit.Imagine all this case its used one standard lot.

So do you take this into consideration?

Regards,
Bedayan Chakrabarty.
  • #1,453
  • Jun 11, 2012 11:00pm Jun 11, 2012 11:00pm
Quoting bedayan
Hi 60minutemand/California,
I understand your stop placement.But my question is do you use fixed stop for every trade or variable stop?
For example if you take five trade.Then money manage ment wise.
each trade you take 50 pips stop loss.1:2 risk reward you will see account grow.
But if you take variable stop then it will effeect you net profit.Suppose one trade you take 50 pip stop and next trade 100 pip stop and you put 1:2 risk reward and your first trade winner and next trade is looser.So your net profit is zero.But if you put fixed stop...
Hi Bedayan

As far as stops go they can be always different but your position size determines how much your loss and win amount will be which can be the same on all trades even if stops and targets are variable
  • #1,454
  • Jun 12, 2012 8:50am Jun 12, 2012 8:50am
Quoting pipexplorer1
Hi Bedayan

As far as stops go they can be always different but your position size determines how much your loss and win amount will be which can be the same on all trades even if stops and targets are variable
Yes, Bedayan, I employ the stop/loss method that I believe pipexplorer1 refers to. I risk the same amount (0.5%) on every trade as a percentage of my account.

For example, if my account is $5,000, then I am risking $25 on every trade. If I am trading mini-lots, where 1 pip = $1, and there are 25 pips between my entry and my s/l, then I will want to trade 1 mini-lot. On the next trade, if there are 50 pips between my entry and my s/l, then I will trade 0.5 mini-lot. But the % of my account that I risk on every trade remains the same.

This is just my opinion: Limit your risk on a trade to no more than 1% or 2% of account balance. 3% might be the maximum for an aggressive trader, but 4% or 5% I think is insane, to put it bluntly.

Here is why: Most strategies will have a period in which there are five or more losers in a row. Using 4% or 5% risk would result in a 20% or 25% drawdown. This can taint the psychology/mindset of a trader such that the trader will act differently and perhaps be afraid to pull the trigger on a trade. A trader must never act differently from one trade to the next. He or she must approach every trade with the same cool and detached demeanor so that he is indifferent to the outcome of the trade. Becoming too emotional over the outcome of every trade is a sure sign that a trader is risking too much as a % of his account.

When you demotrade, it is easy to use a higher risk % because it is not real money. When you begin trading real money, you will have a better understanding of the optimal risk %. Once the mindset is tainted, it can many times be the kiss of death for a strategy, and the trader will throw it out and look for another strategy. The problem with this is that the strategy may have been an excellent one, but you will never know because you threw it out when all it did was have five losses in a row, which most will have at some point.

Again, if there is a holy grail, it is money management.
  • #1,455
  • Jun 12, 2012 9:04am Jun 12, 2012 9:04am
Quoting California
Yes, Bedayan, I employ the stop/loss method that I believe pipexplorer1 refers to. I risk the same amount (0.5%) on every trade as a percentage of my account.

For example, if my account is $5,000, then I am risking $25 on every trade. If I am trading mini-lots, where 1 pip = $1, and there are 25 pips between my entry and my s/l, then I will want to trade 1 mini-lot. On the next trade, if there are 50 pips between my entry and my s/l, then I will trade 0.5 mini-lot. But the % of my account that I risk on every trade remains the same.

This is...
Definitely well said California !
#### Follow me at @LioH_ on Twitter ... ####
  • #1,456
  • Jun 12, 2012 9:29am Jun 12, 2012 9:29am
Quoting lhDT
Definitely well said California !
Im in agreement with you both too...

The better I get at trading the less I risk... moving toward 0.5% per trade now... less pressure to win, less pressure to close early and less pain when you have a bad spell..
tradewith60
  • #1,457
  • Jun 12, 2012 10:31am Jun 12, 2012 10:31am
Hi 60mm

Firstly thank you for showing us this strategy. I finished reading the thread last week and have just started trading it this week. I’m trading both the 1 hour and 4 hour charts at the moment. Only one trade so far today on the 1hr, which hit 1:1RR (shown below).

Just had a few questions if you don’t mind.

When trading the 1 hour do you ever look at the 4 hour(or 4 hr look at daily) to look agreement in the trend etc?

Do you use pivots? As you can see I have them on my charts, but I’m already finding that they seem to be getting in the way of what would have otherwise been a good trade to take?

With your current Risk Management are you now aiming for 1:2 RR. If so, do you move your stops to BE when 1:1 RR is reached? I watched the FXevolve video on risk management, great video. Had thought I knew about risk management, but now realise I didn’t know that much at all

And lastly, would you ever take a trade like the one below where the slope of the MA is in the wrong direction?

Cheers

Trek
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2012-06-12_EURNZD.png Size: 17 KB
Click to Enlarge Name: 2012-06-12QUS.png Size: 16 KB
  • #1,458
  • Jun 12, 2012 10:33am Jun 12, 2012 10:33am
The Proper Way To Calculate Your Forex Position Sizing by Steve Primo.

http://www.fxstreet.com/webinars/ses...8-e86888a90f6a
  • #1,459
  • Jun 12, 2012 10:55am Jun 12, 2012 10:55am
Quoting California
Yes, Bedayan, I employ the stop/loss method that I believe pipexplorer1 refers to. I risk the same amount (0.5%) on every trade as a percentage of my account.

For example, if my account is $5,000, then I am risking $25 on every trade. If I am trading mini-lots, where 1 pip = $1, and there are 25 pips between my entry and my s/l, then I will want to trade 1 mini-lot. On the next trade, if there are 50 pips between my entry and my s/l, then I will trade 0.5 mini-lot. But the % of my account that I risk on every trade remains the same.

This...
Thanks for the input.That really helps.I am having one more question.
So anytime your total open trade having 0.5% risk?Becaue if you take each trade 0.5% risk and if you have 5 open trade your total risk is 2.5%.
  • #1,460
  • Jun 12, 2012 11:07am Jun 12, 2012 11:07am
Quoting Trekker
Hi 60mm

Firstly thank you for showing us this strategy. I finished reading the thread last week and have just started trading it this week. I’m trading both the 1 hour and 4 hour charts at the moment. Only one trade so far today on the 1hr, which hit 1:1RR (shown below).

Just had a few questions if you don’t mind.

When trading the 1 hour do you ever look at the 4 hour(or 4 hr look at daily) to look agreement in the trend etc?

Do you use pivots? As you can see I have them on my charts, but I’m already finding that they seem to be getting in...
Hi Trekker, welcome...

1. I always look at the daily tf mostly for an overview of s/r levels and main trend.... I use s/r a lot, takes time to learn and use but every trader should be aware of it at some level. I dont need all the tf's lined up though... might work but i dont think it is a deal breaker.

2. I never use pivots, or anything else really... only s/r.

3. my current risk management is built around this idea... I am prepared to accept a low win rate and lots of stops at b.e in return for the really big wins you get when the trends really move. So as a rule, I do nothing upto 1/1, from 1/1 to 2/1 all i can do is manage risk (move stops up a bit or to break even). From 2/1 up i can close.. but im always trying to squeeze the most out of a move.

i'm aiming for around 50% WL and 2/1 or 40% WL at 3/1.... If you stick at it then you do get some lovely big 5/1 wins, I've even had 10/1 trading intraday on H1

4. The ma is a great safety tool... but, I am also looking at the pattern of swings on the TF im trading, if i can see clear lower swing lows and highs in a downtrend that is a bonus... I score my trends +1 for below the sma and +2 for below the sma and the correct swing pattern...

hope that helps... and good luck... and keep in your mind, its about profits, you can afford to lose trades if you have a decent R/R... and this strategy will put you in line for those wins

one final thing, if i could sum up the perfect trade in a picture... this is it... the slope on the ma, the pattern of swings, the nice steady retrace... shame it didnt trigger next bar... but i would of taken it for sure...
Attached Image (click to enlarge)
Click to Enlarge Name: Screen shot 2012-06-12 at 16.57.05.png Size: 37 KB
tradewith60
2 traders viewing now