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B.S. Trading with Kenneth Lee

  • #4,541
  • Oct 11, 2012 7:52am Oct 11, 2012 7:52am
Hey C-12

I take it you're pretty aggressive with your trade management.
Have you got a particular way of managing your trades?

This is something I seem to battle with.

Thanks
  • #4,542
  • Oct 11, 2012 7:57am Oct 11, 2012 7:57am
Quoting Red or Black
Hey C-12

I take it you're pretty aggressive with your trade management.
Have you got a particular way of managing your trades?

This is something I seem to battle with.

Thanks
Yeah I use Luktom's order management for MT4 so I can get my stop to entry + 1 pip after around 5 - 6 pips.

I've found that 1 minute S&D levels usually just move quickly but these bigger supply levels are like the titanic, eventually it will give way though.

Main thing = Account preservation.
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  • #4,543
  • Oct 11, 2012 8:07am Oct 11, 2012 8:07am
Cool thanks for the prompt reply.
What about when trading larger levels? Or do you only trade the 1 min levels?
They're a little quick,lol.
  • #4,544
  • Oct 11, 2012 8:12am Oct 11, 2012 8:12am
Quoting Red or Black
Cool thanks for the prompt reply.
What about when trading larger levels? Or do you only trade the 1 min levels?
They're a little quick,lol.
I don't really trade the larger levels as they come since they need much larger stops and patience.

I prefer to wait for a confirmed rejection on the higher TF and then drop down to a M1 to find fresh levels.
  • #4,545
  • Oct 11, 2012 8:27am Oct 11, 2012 8:27am
Quoting C-12
I don't really trade the larger levels as they come since they need much larger stops and patience.

I prefer to wait for a confirmed rejection on the higher TF and then drop down to a M1 to find fresh levels.
Thanks for the reply. Look forward to learning from you guys.
  • #4,546
  • Oct 11, 2012 8:34am Oct 11, 2012 8:34am
Quoting TraderinSD

2) We are trading in the direction of the overall trend. Odds Enhancer = Are we trading with the overall trend?
1. The direction of a trade is determined by of HH/HL and LH/LL as I see. But on what TF it's better to look for it, when trading the 30M/1H charts. Daily or 4H?
2. What period of time is enough to say that this is a downtrend or an uptrend? The proper question, how much candles to watch to determine it?
Quoting TraderinSD
http://www.forexfactory.com/attachme...1&d=1349917170

This screen shot shows a great TP area for the 30M short. Candles 1,2 and 3 show a solid fresh Demand level.

I'm not saying that 3 candles is the magic number but I like to see between 2 and 4 ( as a general rule ). That's just me but, this fits in with what is considered god levels = A short amount of time, then a strong move away from this type of area. Levels are not alway picture perfect but this may be a good start if you are having difficulty....
1. On this chart there is, as I see, another demand zone,1.02273-1.02190. It has only 1 basing candle, a good R:R ratio, 5 green candles out of the level. Was it a level for you?
2. On the determined level, the price went through the lower line of the zone for a little. Sam Seiden in his articles from time to time says that a stop-loss order should be a few pips lower/higher from the level. I usually place stop-loss orders closer to the zone (may be that's why I am stoped out quite often) but if this is a usual practice for you to place a SL-order higher/lower from the zone, could you say, how much trades in percantage were the ones, when the price action broke through the level but then "did it right" and got the zone, where you were going to exit.

Thank you for the answers!
  • #4,547
  • Oct 11, 2012 8:48am Oct 11, 2012 8:48am
Damn I'm bored, markets lately is like watching grass grow.
  • #4,548
  • Oct 11, 2012 9:29am Oct 11, 2012 9:29am
Quoting Peter_FX
Damn I'm bored, markets lately is like watching grass grow.
yep me too just playin call of duty black ops but here is a chart am watchin eur,usd 30 m
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  • #4,549
  • Oct 11, 2012 10:31am Oct 11, 2012 10:31am
Chart
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  • #4,550
  • Oct 11, 2012 10:33am Oct 11, 2012 10:33am
Quoting C-12
Yeah I use Luktom's order management for MT4 so I can get my stop to entry + 1 pip after around 5 - 6 pips.

I've found that 1 minute S&D levels usually just move quickly but these bigger supply levels are like the titanic, eventually it will give way though.

Main thing = Account preservation.
hey C-12,

which version are you using? ive tried running the 1.6.1 version but the face doesnt smile, it doesnt work. Maybe my broker blocked it?

I think its really handy to trade that way with supply and demand, especially on lower timeframes: after 5-6 pips get to BE, set a higher target >30 TP and let it ride... i always wanted to have a tool that does that manually for me

do you have an earlier version?
  • #4,551
  • Oct 11, 2012 10:47am Oct 11, 2012 10:47am
Quoting Infest
hey C-12,

which version are you using? ive tried running the 1.6.1 version but the face doesnt smile, it doesnt work. Maybe my broker blocked it?
Mine's the same version. Not sure why it doesn't work. I know you can't have multiple charts of the same pair open with it, maybe that?

Here are my modified settings:

extern string ________STOP_LOSS ;
extern int default_sl_level = 60 ;
extern int default_trailing_stop = 0 ;
extern color sl_color = Orange ;
extern int sl_style = STYLE_DASH;

extern string ________TAKE_PROFIT ;
extern int default_tp_level = 200 ;
extern color tp_color = DarkGray ;
extern int tp_style = STYLE_DASH;

extern string ________BREAK_EVEN ;
extern bool use_be = true ;
extern int default_be_level = 60 ;
extern int be_offset = 10 ;
extern color be_color = Brown ;
extern int be_style = STYLE_DASH;

extern string ________CANCEL_LEVEL ;
extern bool use_cl = false ;
extern int default_cl_level = 100 ;
extern color cl_color = Purple ;
extern int cl_style = STYLE_DASH;

extern string ________CLOSE_PART ;
extern bool use_cp = true ;
extern bool cp_size_or_percent = false ;
extern string cp_levels = "60";
extern string cp_lots = "50";
extern color cp_color = Pink ;
extern int cp_style = STYLE_DASH;
double cp_lvl[] ;
double cp_lts[] ;
int cp_size = 0;
  • #4,552
  • Oct 11, 2012 11:14am Oct 11, 2012 11:14am
Quoting romant
1. The direction of a trade is determined by of HH/HL and LH/LL as I see. But on what TF it's better to look for it, when trading the 30M/1H charts. Daily or 4H?
2. What period of time is enough to say that this is a downtrend or an uptrend? The proper question, how much candles to watch to determine it?


1. On this chart there is, as I see, another demand zone,1.02273-1.02190. It has only 1 basing candle, a good R:R ratio, 5 green candles out of the level. Was it a level for you?
2. On the determined level, the price...
Romant

1. The direction of a trade is determined by of HH/HL and LH/LL as I see. But on what TF it's better to look for it, when trading the 30M/1H charts. Daily or 4HR
Answer: You would like to see your Daily's, 4Hr and 30M all acting the same way... But remember to look at a broader picture. A macro view vs. a micro view. For a 30M short the best is when the preceding PA to your chosen Supply level has LH's and LL's. From there you would see the Drop-Base-Rise back into the Supply level. Then you would take the short from that Supply level. This way you are trading with the trend... I prefer the 30M a KL uses... Because the 1Hr and 30M are so close I believe the 30M is the better choice. In staying with the 30M you will begin to see the structure of the trade more clearly. This is critical... More around in different TF (in the beginning) is not the best IMHO.

2. What period of time is enough to say that this is a downtrend or an uptrend? The proper question, how much candles to watch to determine it?
Answer: I do not believe it’s a period of time as it is a matter of PA... Are we seeing HH's / HL's or LH's / LL's...? Are we seeing them in the Daily, 4HR and 30M...? Has price taken out a previous swing high or swing low on the higher TF to indicate a potential change in direction?

There are only two time issues I look at: 1) Picking levels... How much "time" did price stay "at that level" before it move away in the manner we look for? 2) How much "time" did price stay away in the drop-base-rise or rise-base-drop pattern from our chosen level?


1. On this chart there is, as I see, another demand zone,1.02273-1.02190. It has only 1 basing candle, a good R:R ratio, 5 green candles out of the level. Was it a level for you?
Answer: No... I will be able to give you a more descriptive reason later this evening.
2. On the determined level, the price went through the lower line of the zone for a little. Sam Seiden in his articles from time to time says that a stop-loss order should be a few pips lower/higher from the level. I usually place stop-loss orders closer to the zone (maybe that's why I am stopped out quite often) but if this is a usual practice for you to place a SL-order higher/lower from the zone, could you say, how much trades in percentage were the ones, when the price action broke through the level but then "did it right" and got the zone, where you were going to exit.
Answer: There are two questions here. 1) Picking the right level first will help solve the issue of getting stopped out. It’s going to happen. Your job is to minimize it and maximize your profits. KL speaks to this in his PDF’s. Please review again. Also reviewing Sam’s videos again and again. I know it’s time consuming but it is well worth it.
Good trading to all

TSD
  • #4,553
  • Oct 11, 2012 11:59am Oct 11, 2012 11:59am
Thanks, TraderinSD.
BTW, another question. When the level is forming, what price action has more quality, the 1st one or the 2nd? (The case with huge several big candles one by one isn't mentioned)
Attached Image
  • #4,554
  • Oct 11, 2012 12:38pm Oct 11, 2012 12:38pm
Just an example to show that every bounce has its reasons. Even the not-so-good 1.0222 level still gave some pips.

http://i48.tinypic.com/2u5rvjp.jpg
  • #4,555
  • Oct 11, 2012 1:35pm Oct 11, 2012 1:35pm
Quoting romant
Thanks, TraderinSD.
BTW, another question. When the level is forming, what price action has more quality, the 1st one or the 2nd? (The case with huge several big candles one by one isn't mentioned)
If liquidity is the same then trade 1 represents a large amount of orders going in at once vs trade 2 which would represent more gradual entry. But since we'll never really know what the order book looked like it's best to just accept that they were both really big moves in 1 direction and based on your study and experience you know that once price returns to the drop point there's a good chance it will drop again.

I personally would like to see them both not favoring one over the other.
  • #4,556
  • Oct 11, 2012 6:04pm Oct 11, 2012 6:04pm
Quoting C-12
Chart
A big Thanks to KL. Also for C-12 and TrendSD for helping out.

C-12

You seem to have good success with M1. Which time frame do you look for Trend direction when trading on one minute?

My apologies if this was already addressed.

Thanks
Thanks to Rocky!
  • #4,557
  • Oct 11, 2012 11:31pm Oct 11, 2012 11:31pm
Quoting TraderinSD
Romant

1. The direction of a trade is determined by of HH/HL and LH/LL as I see. But on what TF it's better to look for it, when trading the 30M/1H charts. Daily or 4HR
Answer: You would like to see your Daily's, 4Hr and 30M all acting the same way... But remember to look at a broader picture. A macro view vs. a micro view. For a 30M short......
Attached Image (click to enlarge)
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Your question: 1. On this chart there is, as I see, another demand zone,1.02273-1.02190. It has only 1 basing candle, a good R:R ratio, 5 green candles out of the level. Was it a level for you?

Answer: NO..The darker blue area is the 1.02273-1.02190 area you are asking about. As previously stated I would not consider this to be a Demand area. The lighter blue area below is the correct area... I would suggest you review KL's PDF regarding picking areas. He is very specific. See how there was a small candle prior to this large move up. It precedes the move. Several candles before indicate that price is moving sideways from the previous up move... The rise-base-rise pattern. This is an excellent pattern to use in picking levels. Note: it does not always happen this clearly but it is a good start when looking.

Notice how price returned to this area. Because this was a counter trend trade one must take care in trading these levels. I like to see clear reject of an area when counter trend trading. This was about as text book as it gets. (IMHO )

What I see: 1) See how price clearly rejects with a strong pin bar. 2) Because I am waiting for clear rejection I will not have a resting order. 3) Your entry is going to be outside of the level. 4) We have HH's and HL's preceding. 5) Where is price in relation to the base early or late...? I prefer late...Why?? Let’s review one of the Odds Enhancers... Has price stay away from the level we picked for a good amount of time... Yes... Add this to the HH's and HL's existing inside the base pattern...With good price rejection...How is price acting inside the level?? KL speaks to this as well.

Odds are good for a higher risk trade. Stop on this trade would have been 10 pips @ 1.02115... Remember I got in late which happens when you are waiting for PA to give clear rejection... I did not set my stops right away.. not a smart thing to do.. Thankfully price went in my direction.

For those still new to this method... PLEASE DO NOT take these types of trades until you are VERY comfortable with picking levels and taking trades on the 30M with the trend...

There will be plenty of time to be aggressive later on down the road.

Hope this helps

Good trading to all

TSD
  • #4,558
  • Oct 11, 2012 11:34pm Oct 11, 2012 11:34pm
Quoting Good Lookin
If liquidity is the same then trade 1 represents a large amount of orders going in at once vs trade 2 which would represent more gradual entry. But since we'll never really know what the order book looked like it's best to just accept that they were both really big moves in 1 direction and based on your study and experience you know that once price returns to the drop point there's a good chance it will drop again.

I personally would like to see them both not favoring one over the other.
Agreed

TSD
  • #4,559
  • Oct 12, 2012 12:50am Oct 12, 2012 12:50am
Quoting Nritv
A big Thanks to KL. Also for C-12 and TrendSD for helping out.

C-12

You seem to have good success with M1. Which time frame do you look for Trend direction when trading on one minute?

My apologies if this was already addressed.

Thanks
I'll be honest and say the most important thing on this time frame is the quality of the level.

I do a top down analysis first thing in the morning for a general idea of trend but I'm really useless at making directional predictions.

I trade what I see by marking off my levels and then wait for the reaction to my level.

One thing I do stress about on the M1 is sharp trade management. Around 1/2 of my trades end up with a break even stop out, but it's fine since there are so many trades to take.
  • #4,560
  • Oct 12, 2012 1:15am Oct 12, 2012 1:15am
I want to share my trade management technique which is absolutely vital to success on the M1, and probably for other timeframes.

1. Place order with a 6 pip stop loss.
2. I take profits at 6 pips and move my stop to entry + spread (no questions).

Now once you've done this you are effectively in a free trade so you can be as creative as you want to be. You can either trail the stop or set a final TP.

The important thing here is steps 1 and 2.

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