The Really Useless Thread

yop all in the hands of berrny

PK the pink bott i am looking for his ass wanna kill him bad

some more shitt from them read sokers

Trading is like walking through a mine field. There are only a few right ways to go, but lots of wrong ways to go; and one step in the wrong direction – kaboom!

One of the most critical things to consider in your trading plan is how you handle your stop loss orders. It is important because, initially, you need to give the trade enough room to work. If your stop is too close from the start, at times you will be out of the trade with a loss that otherwise would have been profitable. Of course, the closer the initial stop is to your entry, the more likely it is to get hit. At the same time, if it is too far away, you’re giving it too much room to run against you.

After the trade is profitable, how much room you give your trailing stop is another critical decision. You need to give some room for pullbacks or you will be out of a trade that keeps on going without you still in the trade. On the other hand, if the market does reverse, you want to get out as close to the end of the move as possible.

The tough part about this is that the answers to these questions are different depending on your trading style (ie. Do you want to trade a few times or many times throughout the day?), what you trade, and how that market moves. Every market is different. It goes back to observing your market very, very closely until you know it extremely well.

Remember, the markets are not random, although they certainly seem that way at first. Behind the markets are real people with a lot more money at stake than we do. It seems to me that over very short price distances, markets appear more random and over larger price movements more consistent and predictable. If we can take a step back from the “noise” of the market and see the big picture, doing so will help us make profitable trades.

I want to share with you two experiences I’ve had at TopStep. On one occasion, I put my initial stop a little too close in the hopes of saving money if I was wrong. If I had given the initial stop one more tick of room it would have been a very profitable trade. On another occasion, using an OCO order without a trailing stop, the Dow mini’s went up nearly a full handle, coming very close to hitting my large profit target, but then coming all the way back down and stopping me out with a loss.

A good rule of thumb is, after a small or moderate profit, bring your stop to break-even; as the profit grows, don’t give back more than 50%.

Many Profitable Returns,

dammmmmmmmmmmmmmmmmmmm we have 70 sokers in the house

WTF one more and thats it thanks to the guys in T L

read bastards


Looking at the table in the previous article, we can see that while correlations do remain similar (for the most part), there are very clear changes that are reflective of macro economic influences and changes in sentiment. Correlations that exist today might not be in place over the longer-term, so pulling out to longer time frames will tend to give a more accurate picture of how each currency behaves in relation to its major counterparts.

Calculating correlations is actually a relatively simple process but these figures are posted in enough areas that making your own tables isn't totally necessary. So now that we know what these numbers are telling us, how can this information be used to structure trades and advantageously manage our total risk exposure?

Using Currency Correlations to Manage Risk

First, it should be understood that one of the most obvious mistakes that even experienced traders often make occurs when multiple positions are opened which have the total effect of canceling each other out. This can occur in instances where two currency pairs with historically high correlation levels are opened in opposing directions (for example, a buy is opened in the EUR/USD while a sell position has already been established in the GBP/USD).

While the argument can be made that there are acceptable reasons for doing this (such as evidence of a trend reversal or a newly visible entry zone that makes the new trading decision difficult to pass up), it has to be remembered that the overall effect of these opposing positions will be roughly neutral (removing the possibility for substantial gains). This will be more obvious when pairs that are commonly denominated (such as the EUR/USD and the GBP/USD) but the correlation tables can help us to identify important relationship in pairs that are not commonly denominated (such as in the EUR/USD and the GBP/JPY).

In other cases, errors can be made when similar positions are taken in highly correlated pairs (such as in the AUD/USD and the NZD/USD) are taken in the same direction (with both being buys or sells). There is the argument that taking the new position can be advantageous if the price levels are different (effectively improving your average price) but in essence, this is roughly similar to holding a double-size position in one of these pairs and in many cases this could violate your risk management plans.

Diversifying your Positions

Another way to advantageously use correlation tables is to view the readings as a means for diversifying your positions. Since pairs like the EUR/USD and the EUR/JPY have high correlation values, dual positions in these pairs can be used to express a certain market outlook (such as a risk averse market environment or a macroeconomic view relative to an individual country).

Keeping risk management planning in mind, positions can be scaled down and split into different pairs to avoid shocks or surprises relative to any single currency. Diversified positions can be opened when there is a potential event risk to be seen that will effect one of the currencies you have bought or sold. While the general direction of the correlated pairs is likely to continue to show agreement, the slight variation in the correlations in the diversified positions will reduce risk levels (albeit to a marginal degree).

Conclusion

For traders looking to balance risk, diversify positions, or to find new currency pairs to express a market view, correlation values can be an important element to consider before new trades are placed. Failing to understand how currency pairs behave in relation to each other can lead to unproductive (mostly neutral) positions or excessive risk exposure that could have otherwise been easily avoided. Given the drastic differences (or similarities) that some currency pairs posses, a proper understanding of these relationship must be present in order to effectively manage multiple trades.

talking to my dam self time for

same over here.....

talking to myself:

whose is buying?

futures pointing up?

AUD & GBP pointing up

DAX at daily highs

bars tarts must know something

waiting for NY .......

edit: EU sitting at 382 retrace of last downswing and previous 2012 low
and DP level

They turned around in h4 in the euro ...1.281x again in play with H4 / NY break out. 1.264x in sight now but for a break to the long side...

sisse

it looks we are waiting for Greece , and the spanish bonds sale are not bad ,

merkozy should be happy at obamoo legs she might give a hint

where the fak u been miss u pink bott

My call is FED more important. EZ circus on the background until the "G4" meeting...we'll see but lunch time here so see u in NY...

sisse

still treating this as a correction

the upswing has stalled for now ,hourly close above 2650 (50 fib)
and I will dye my hair a bullish color

[quote=fxjawn;5773063]workin bro... im not posting anymore while im trading. to many things going on... im already positioned right now since london so i have some free time

ya fekin whore[/quote]


cool



me

enjoy bro, no next door ken bitch moved in

I am getting FED-up over here ..only 2 dustbins

enjoy lunch

yap we are above the 23. close to 38. and fiber loves %50
dont tell me like this

only 1 here

treadmill will get me past the news

NO!!

That is bearish color...

Must be green or blue

I like this

man jon's color is the best