The Really Useless System

I have found a nice article here. Is about price action trading benefits and taking the higher time frame benefits. Has some explanations on the link in the left side.

There are advantages and disadvantages in the 5 min chart and daily chart:
The 5 min chart is like "going to work to make money", almost each day you can find 2-10 trade. A TP of 10 pip is the danger there because of the spread, but you can close position at night and sleep well.

The daily chart trading need more patience, I can read on forum: the trader is payed to wait. Like a sniper: take a position and let the price come to you, if is not coming than you don't run after price.

The beginner traders ( like me?!) want to earn money in Forex, the experienced ones want to make good trades. - it is a post in this site. The rich people think in long term, Not sure what of this 2 is a long term benefit, because, making good trades and using the 1-2% risk is personal satisfaction, not the way to get rich. Wanting to earn money maybe leads to lose the control of greediness and use over leverage, but this should be the reason why are in this business: to make money.

I have explored Oanda's site to see if they answer for a technical / product use question ( bot they don't have at priority list ) and I have found a statistics page: Top 100 Forex Traders Statistics. 24 and 1 week option.

24h EUR/USD
Average Trade Duration: 0.8h - that is the 1-5 min chart
Realized PL Per Unit: 7.5 PIP , can't believe....

7 days:
Average Trade Duration: 3.9h (15 min-1h chart)
Realized PL Per Unit : 11.8 PIP

-maybe it use the week-en data, I should look inside the week at this tool once more.

Where is the SL for those shorts?! I think it will be a SL hunting Monday-Tuesday

If the rich people think in long term, let me try me too:

I have switched the timeframe at Oanda chart to 1 week. I can't understand a few candles and on those I would bet in wrong direction, for sure.


As I have observed in micro, nano whatever trends: if a top, bottom price level is multiple times are touched or almost touched than at 3rd , 4th time is taken out.

In this chart ( from May 2011 ) we can see a downtrend. 250-300 pip movement in a week I would expect, if want to move somewhere.

I should enter in this trade at 1.2900, not so early again , but maybe I wil miss the opportunity.
Hopefully if it will be a winner trade, than I will hold it a bit more, than usually.

After reading this page I am thinking how I was profitable at all!!!

I will develop a trade system based on 4h or daily charts asap.

I was sure any trade robot can't be good as a human, but the robot has the advantage of be online all the time and have no emotions.

I have asked my broker to lower my max leverage to 1:30 maybe 1:10 is enogh but let me hedge if I want! and a little extra buff

One element of the Holy Grail is the patience, I am starting to be very sure.
It seems is enough to "know" a few cases, when you can be sure 90-95%, if you trade only a few times / month an result in a profit it is still better than be stressed days with watching charts or be employed or both.

Not need to trade all the time.

Wait for a consolidation in a lower timeframe ( 4h ) and go with a bias on high timeframe(daily weekly) direction, and stick with position, until is no sigh at high timeframe to close it. Those case are with Risk 1 Reward 6 -on those case can be applied the golden rule: "cut your loses and let the profit run". At 5 min chart not so often.

Even mathematically proved for myself in long term I should use leverage based on win:lose success ratio and it should be a lot higher than 1% it will have effect on emotions: happiness on winning position, but if is heavy leveraged, than no sleep, because of fear to not become a losing one. Loser trades let it go and move a bit, but if isn't coming back, than search for exit point or just instant exit. It is sad to see how I lost 2-3 week results ( even if is still in profit the balance)

One of the webpages reminds me, what I learnt -and forgot- a few years ago: enter in higher timeframe. Don't use tight SL, because that will kill the account! Let the SL say when the entry it is not valid anymore. If it went on your direction and is another entry, than move the SL where it should be now.

Jesse Livermore used to scale in: in 3-4 trades, but after that didn't built up the position size and is dangerous, when the trend is turning.

I should start with 1-3% risk, then when the SL moved to BE or some profit add another 1-3%.

Not sure yet how to deal with TP and with pullbacks.

Entering and Exiting often isn't a smart way.

Pullbacks can be sign of end of the trend and I should exit, but can be a trend continue sign too.
Here is the leak in my "system". I don't know how to handle properly in long term, need to figure out, learn from others mistakes.

There is a nice 30 rule here

"This biz is about 20% skill & 40 % money management & 40% managing yourself & your emotions."
I am not sure on those percentages, but in my experience that money management has around that importance as the skill.
With trade skill if you can pick up trades 95%:5% win lose ration ( extremely good) with a bad money management or just doesn't increasing the account optimised, or even is going in negative! -even with that high win rate!

Managing myself and emotions, well, I have a weakness here. I think he refers to other post, which was like that: "traders are payed to have patience" - for entry and exits, or cut your loses and let the profit run, not exactly the inverse, what Idid in few past months: TP asap and let the losers come back - isn't a good feeling when a winner trade turn around and become a looser one, that was my reason to close it at first sign of weakness, or an imaginary sign. -need to change it.