Sonic R. System

Daniel,

I know. my question was a little bit provocative. I wrote some stuff I'll publish later. If you have any comments I'll be happy. TAH is the reference here and I think he's a great trader too. I invite you to develop your method/style of trading because everybody is different.

The Stop Loss (part 2/2)
========================

To complete my previous message about the stop loss... I forgot to add the following:
My SL is always static because I don't touch it normally. I touch it only when the trade goes in my direction and then break-even and so on because I get a free ride (but I have already reduced the load - some target profits have been already hit for example). The SL should stay far from the fire if not it will be hit even if the trade goes in my favor. I have a risk:reward 1:1 at least. If I risk 20$ I should make at least 20$. If not you loose in the long term and your bottom line will suffer. It's mathematical proved. Of course you cannot always win but you have to make your efforts to do it. Many traders at the beginning, close the trade when they are a little bit in gain and then loose a lot of money when the market goes againt their position. This is human because we don't want to fail. You have to admit that sometimes you make errors. There's no other way.

The Load
========

The load is another important thing. Because on FX you can easily leverage (with Oanda you can have 1:50). you have the power but...then the margin alert will come and your account is gone. www.myfxbook.com (I'm not promoting and the service is free) provides an utility to calculate the risk of ruin. There are also many good books about Money Management. If you are interested I can suggest some of them.
Some traders enter the markets with low loads and it's okay so they can manage hundreds pips of stop loss. It also depends on the timeframe. Making too much small gains (This is because I hate the Asian session). The odds of success are lower because the space is less. I make money at LO (I'm talking about the EU...I don't know about other pairs because I only do the EU).

Hedging
=======
Hedging is another important tool we can take advantage. Hedging means (wikpedia definition): A hedge is an investment position intended to offset potential losses/gains that may be incurred by a companion investment. In simple language, a hedge is used to reduce any substantial losses/gains suffered by an individual or an organization. In more simple words...if I have position and the market is going against me Ibuy with the same load in the other direction. I use to hedge a lot because on lower TM it happens frequently there's no defined trend. Then I wait and decide when to free the orders. I'm not loosing (I'm paying double spread to the brokers) but I can take other trades in the meanwhile. I don't stay paying hoping the market will go again in my direction before the market will hit my SL.
I have a couple of accounts Oanda and another broker. Oanda doesn't permit hedging with mt4 but I discovered you can open other subaccounts and having multiple instances of MT4 you can achieve hedging.
I attached a couple of charts explaining some different scenarios on the eu 5M. They are just for reference. THere different strategies according to the scenario and the SL changes accordingly. A mental/dynamic SL is feasible but I think it needs experience because you need to read the market and decide. It takes times.I'll suggest to start from the simple things.
I wrote this thing in the train at high speed. I'm sorry if it's not clear.I'm available in the forum or via private messages to clarify or answer questions.

Have a good trading week !

Umbro

The standard MT4 chart zoom (#3 out of 6 choices, narrowest to widest candles) shows 4 hours between time marks in the time scale at the bottom of the chart. There is a "Chart shift" inverted triangle in the upper right portion of the chart (see pics.). You can see this triangle when the Chart/Properties/Colors tab has assigned a color to the "grid" , but it will still not appear in pictures of the chart. You can move this triangle to the left to reduce the number of candles on the screen. This does not reduce the size of the candles. It only shifts the chart to the left so that fewer historic candles are showing, and so that a wider empty space appears to the right of the current candle. To keep our charts clean and clear, we do not assign a color to the "grid", and so you will not see this Chart shift triangle on your Sonic R. templates by TAH.

Only by changing the zoom on the chart do the candles change width and does the time between the marks on the time scale change.

Tradeathome
Could you please explain what you mean by 'pumping and dumping' and how this is related to volume?
Many thanks

enigma4x

truth on the table ...

Pump and Dump, Torpedo and Buy.....same issue, just different direction. The market (big players in the market) maneuver the price with the intent of off-loading it's positions, and possibly then going for the reverse position, all while the rest of the market gets suckered in by the strength of the first move.

How is this related to volume? Just look at the volume on different TF charts and you will see that in the pump senario the highest volumes tend to be at the ending, highest prices. In the torpedo senario, the highest volumes tend to be at the ending, lowest prices. Typically, this is real easy to see on the M1 chart. So, using the pump as an example, the player drives up the price not as a buyer but as a seller. And when the price tops off, the volumes remain among the highest throughout the maneuver as the player continues to sell at the top of the move, while everyone else still thinks the price is going higher, and is therefore buying. This enables the player to close longs at a higher averaged price, which is the primary purpose of the maneuver. But possibly the player can even start loading up on shorts in the area of the new highs attained and continue shorting to drive the price right back down, which could be the start of an even bigger move down.

This is not an unusual occurrence in the market. Look into history on any pair and you will see that before big moves in one direction, there frequently are such moves in the opposite; a pump and dump before a big run back down, or a torpedo and buy before a big run back up. The opposite moves are not part of the primary maneuver. With the pump and dump the price goes up, and as it does the price manipulator is selling to close longs. With the torpedo and buy the price goes down, and as it does the price manipulator is buying to close shorts. That is the end of these primary maneuvers. And sometimes that is the end of any further significant PA, but sometimes a bigger reversal move soon follows.

Don't get sidetracked by this. What is important is that we "....let the market decide." and that we "...let the Dragon and PA show the way." as per Master Sonicdeejay's wise recommendations.

Price is now 1,283 at 200MA level. if we successfully crash next level 1.2800 we'll be able to reach 1.7350 probably. Tomorrow it's another important day because of the US elections. Any opinion before the market will show the hands ?

I believe this may be a fake setup if price break previous high, GU is very bearish at this time. Support zone is 1.604x

Hi Hansma, woluld you share your zigzag / high-low indicator please?

I think this the perfect day for mega-fakeouts on the eur. I suppose on other pairs too. I'd like to play the Spain Unemployment Chng. in about 1 hour.

I suppose the masters are in vacation today. good choice...probably.

If the bears will sustain the push towards 1.28 I expect to go down further ...

Look like GU prepare for a shot.

update : fail*

Level 1.28 as been broken I have an entry under the formation I indicated. I use the M5 to show better. I already banked 32 pips before DS1 leaving a 40% on the table. The entry you see it's not a convential sonic setup but for correctness I wanted to publish. We now need to crash DS1 1.17840.

DS1 is going. We risk to have nice runner today.

I casheout another 20% because DS1 is taking time. I left the remaining on the the table with a trailing stop a little bit more up 1.28 and now enjoy the free ride. I wanted to show this because on Sunday I wrote a lot of things
about how I trade. I wanted to show the anatomy of a trade in realtime hoping it will be of interest/help for someone. Today I was a lucky.Taking a trade it's not just make an entry and wait for the pips coming (at least for me). For me, it's about having expectancy, read the market...that's the most difficult thing and takes time like watching the movie every day for a period of time. Don't loose the hope. If you make a mistake, wash and rinse...Have a good trade ! Sorry for the intrusion...I took the opportuinity because the Masters are probably in vacation. I hope I didn't disturb anyone.

UsdCad enter long
EP 0,9970
SL 0,9936
TP 0,9997

this condition is fundamental vs technical
we'll see who's the winner

UCad: Entered trade #2 short, per attached. SL remains mental. Same TP1.

hi Mr.TAH
you frequently use H1 TF or M30 TF to analysis wave.
but sonicdeejay say trades on the M15TF
can i know your argument please
thanks