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EurAnalysis Kindergarten 24 replies

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EurAnalysis

  • #64,601
  • Jan 6, 2013 8:22pm Jan 6, 2013 8:22pm
Quoting EuroTraderJD
The loss that occurred on 2/14 was due to my laptop touch pad executing a premature trade. The last loss before that was 10/ 2011.

All trading systems work until they dont. The only constant is money management. Once this is mastered a trader can weather any storm the market places in front of them. And no I am not that good and dont have an "inside" with the Man upstairs. I dont use SL hence no losses thus I rely on my MM software.
What would be a good source to learn about money management?
  • #64,602
  • Jan 6, 2013 8:41pm Jan 6, 2013 8:41pm
Quoting Covux
What would be a good source to learn about money management?
It depends upon your trading style and psyhie. I am accustomed to draw downs but could not accept death by a thousand stop losses. Most traders use SLs which didnt work for me.

I learned from the school of blown accounts and mental demoralization. When I realized I loved trading more than greed I was on my way. That is when I grasped the concept of "its a walk to wealth and not a race to riches (ruin)". Notice my signature. "trade smaller than rational because the market is irrational" Learn it, Live it, LOVE IT.

My position sizing is an inverse pyramid (bigger at the top and smaller at the bottom of the price range) because the larger trend for E is down. When I say range I mean 1.2xxx to 1.4xx.

You must be a player at all price levels. Also you must avoid a price plop (too much size at a certain price range). I have a sub account where I trade long and a main account where I trade short. 70% of my capital is in the main account and 30% in the sub (long) account. Sounds like a lot but my software calculates position size based on the current price of E, account size, and where my last open position is.

My leverage is 50:1. For pos size I have a short @ 1.21ish using 0.13% of account size. At 1.3035 that size was 1.51% of account size.
Trade smaller than rational because the market is irrational...
  • #64,603
  • Jan 6, 2013 8:46pm Jan 6, 2013 8:46pm
Also having longs helps me mentally when my shorts are under water. The greatest trading tool is your mind. Keep a firm grip on it..
Trade smaller than rational because the market is irrational...
  • #64,604
  • Jan 6, 2013 9:00pm Jan 6, 2013 9:00pm
For longs the inverse is true. Larger at 1.2xxx and smaller at the top of the bigger E range 1.4xx
Trade smaller than rational because the market is irrational...
  • #64,605
  • Jan 6, 2013 10:53pm Jan 6, 2013 10:53pm
Quoting EuroTraderJD
For longs the inverse is true. Larger at 1.2xxx and smaller at the top of the bigger E range 1.4xx
I like your style EurotraderJD!

Mine very similar. SL's aren't my cup of tea. Time always is on my side. Small drawdowns are preferred, but not always necessary.

Is your MM software proprietary only for you?
  • #64,606
  • Jan 7, 2013 12:40am Jan 7, 2013 12:40am
Quoting EuroTraderJD
It depends upon your trading style and psyhie. I am accustomed to draw downs but could not accept death by a thousand stop losses. Most traders use SLs which didnt work for me.

I learned from the school of blown accounts and mental demoralization. When I realized I loved trading more than greed I was on my way. That is when I grasped the concept of "its a walk to wealth and not a race to riches (ruin)". Notice my signature. "trade smaller than rational because the market is irrational" Learn it, Live it, LOVE IT.

My position sizing is an...
IMHO

Yes, absolutely it depends upon traders mental strength and ability to view Long term benefit on the investment. People who want earning from forex for daily bread and butter should try partial close or exit upon % of winning method, that will secure daily profit and money for bread.

My view is, where you need money on daily basis and dont have the capital for keeping losing position which eventually eats up your free margin for trading, then keeping the losing position after certain calculated % is not good.
  • #64,607
  • Jan 7, 2013 5:38am Jan 7, 2013 5:38am
Hey Everybody...
What's going on? Nobody posting today?
OK. Let me start this trading week.
I know it’s mainly EURO thread, but I really can't find any good opportunity on EURUSD.
Let’s have a quick view on Aussie…
Good RR makes me to take the risk and go SHORT for few pips.
Any comments before any major moves are made?

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Read Charts - Not Papers
  • #64,608
  • Jan 7, 2013 6:06am Jan 7, 2013 6:06am
Quoting halkins
Hey Everybody...
What's going on? Nobody posting today?
OK. Let me start this trading week.
I know it’s mainly EURO thread, but I really can't find any good opportunity on EURUSD.
Let’s have a quick view on Aussie…
Good RR makes me to take the risk and go SHORT for few pips.
Any comments before any major moves are made?

Attachment
H4 engulfed and staying way above LO levels for now, so not expecting it to move down for now... May be 0525'ties will give a chance to short it..
69
  • #64,609
  • Jan 7, 2013 6:15am Jan 7, 2013 6:15am
Quoting Likerty
H4 engulfed and staying way above LO levels for now, so not expecting it to move down for now... May be 0525'ties will give a chance to short it..
Hmmm.... I partially entered. Will see how things develop.
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Read Charts - Not Papers
  • #64,610
  • Jan 7, 2013 6:15am Jan 7, 2013 6:15am
And here's a quicky review on Eurodollar from fxbootcamp

Inserted Video
Read Charts - Not Papers
  • #64,611
  • Jan 7, 2013 6:24am Jan 7, 2013 6:24am
Quoting halkins
Hmmm.... I partially entered. Will see how things develop.
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0506 looks interesting - it has some fibos in it + TL from friday highs and now - H4 high which may act as a trigger for spike up
69
  • #64,612
  • Jan 7, 2013 6:32am Jan 7, 2013 6:32am
Quoting chodd22
I like your style EurotraderJD!

Mine very similar. SL's aren't my cup of tea. Time always is on my side. Small drawdowns are preferred, but not always necessary.

Is your MM software proprietary only for you?
Yes for the present time. I am working on a .NET version that will run on the Internet in between development projects. If you send me a PM with your email address I will let you know when you can test drive it.
Trade smaller than rational because the market is irrational...
  • #64,613
  • Jan 7, 2013 6:41am Jan 7, 2013 6:41am
Quoting rekon67
IMHO

Yes, absolutely it depends upon traders mental strength and ability to view Long term benefit on the investment. People who want earning from forex for daily bread and butter should try partial close or exit upon % of winning method, that will secure daily profit and money for bread.

My view is, where you need money on daily basis and dont have the capital for keeping losing position which eventually eats up your free margin for trading, then keeping the losing position after certain calculated % is not good.
I hear you my FX commrade. However there are those like me who do not use SL. For account growth I am in and out of the market scalping if a trade goes ITM. If not then I let it ride until it does. MM is just one side albeit one of the most important sides of a trading plan. MM enables me to ride it out without taking losses only to have retrade hoping to make it up.
Trade smaller than rational because the market is irrational...
  • #64,614
  • Jan 7, 2013 7:01am Jan 7, 2013 7:01am
Quoting EuroTraderJD
I hear you my FX commrade. However there are those like me who do not use SL. For account growth I am in and out of the market scalping if a trade goes ITM. If not then I let it ride until it does. MM is just one side albeit one of the most important sides of a trading plan. MM enables me to ride it out without taking losses only to have retrade hoping to make it up.
EuroTrade, I also trade without SL. Nice to see few more on the same boat. I completely agree with you that one's trading style is best tailored for their mental set up. Trading without SL, you have to focus more on MM and position size. I don't keep losers for long but scale them down as soon I feel the underlying trend has changed. I scale up if price goes in my way and scale down if it goes opposite.

Interesting discussion !!

GLGT !
  • #64,615
  • Jan 7, 2013 7:13am Jan 7, 2013 7:13am
Quoting vishalshan
EuroTrade, I also trade without SL. Nice to see few more on the same boat. I completely agree with you that one's trading style is best tailored for their mental set up. Trading without SL, you have to focus more on MM and position size. I don't keep losers for long but scale them down as soon I feel the underlying trend has changed. I scale up if price goes in my way and scale down if it goes opposite.

Interesting discussion !!

GLGT !
I am glad to hear that I am not alone and that others have their interesting variations. Yes it does make for a good discussion!
Trade smaller than rational because the market is irrational...
  • #64,616
  • Jan 7, 2013 7:49am Jan 7, 2013 7:49am
Quoting EuroTraderJD
I am glad to hear that I am not alone and that others have their interesting variations. Yes it does make for a good discussion!
I think there's an entire thread in FF dedicated to the SL/NoSL discussion.

I'm also on the No SL bandwagon. It's all about the entry price and position size coupled with extreme patience. The rest comes easy over time.
Those who say it cannot be done should not interrupt those who are doing it
  • #64,617
  • Jan 7, 2013 8:11am Jan 7, 2013 8:11am
Quoting PipTrapper
I think there's an entire thread in FF dedicated to the SL/NoSL discussion.

I'm also on the No SL bandwagon. It's all about the entry price and position size coupled with extreme patience. The rest comes easy over time.
trading volatality.trick is to know position size.
Allah has permitted trade and has forbidden interest [koran]
  • #64,618
  • Jan 7, 2013 8:26am Jan 7, 2013 8:26am
Quoting PipTrapper
I think there's an entire thread in FF dedicated to the SL/NoSL discussion.

I'm also on the No SL bandwagon. It's all about the entry price and position size coupled with extreme patience. The rest comes easy over time.
AMEN
Trade smaller than rational because the market is irrational...
  • #64,619
  • Edited 5:45pm Jan 7, 2013 8:45am | Edited 5:45pm
Something about rate cut will take it to 1.2880. What ECB might or might not do is another matter. Until something good or bad hit the news - flat on E/U.
  • #64,620
  • Jan 7, 2013 9:07am Jan 7, 2013 9:07am
Inserted Video
Those who say it cannot be done should not interrupt those who are doing it
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