good weekends.im a little confused about d point.
aud-usd H1; is it considered as invalidated harmonic??
aud-usd H1; is it considered as invalidated harmonic??
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Ratios & Harmonics: a Different Way to Trade
- #2,162
- Jan 26, 2013 3:57am Jan 26, 2013 3:57am
- Joined Jul 2010 | Status: Always manage your risk & leverage | 7,339 Posts
not euphoria follower
- #2,167
- Jan 26, 2013 8:47am Jan 26, 2013 8:47am
- Joined Nov 2008 | Status: Trader | 2,141 Posts
Some Weekend thoughts.
I warn everyone, itmight complicate things!
Mr. Pip has, besides amastered pattern recognition, a mastered Price Action capability.
The latter is not easy toachieve...Patterns are simpler.
PriceAction "reading" is a bit of an art.
Having said that , there´s ways of improving without the luck of being so gifted: Ionce read a book from an old , legendary Master of the pits... he...mademillions.
He had 2 Basic rules.
Rule 1: trading is aloosing game .
Rule 2: master yourSystem,and when you hit a winner, add strongly as your Position developsfavourably. (opposite from scaling down)
It makes sense: Goldentrading rule is to "keep your loosers small and winners big."
Adding to winners, makessure when you hit your TP you have a full load, and when you get stopped, asmaller load.
Scaling out makes sure youget a full hit when stopped, and also insures you always hit your TP with asmaller load.
Needles to say thisseverely affects your bottom line.
EXAMPLE:
-Identify a Setup on a 1HChart.
-PRZ area is reached.
-Go down to the 5 min.Chart.
-Divide your Position(lot),in Minimum 5 equal sized parted, lots (that´s why I like non lot Brokers,otherwise you need a big account)
-Pick signals that you knowwell (candle formations, fractals,indies, ....etc...the factory has thousandsof entry Triggers)
-As it advances your way,keep adding till you load a full lot.
-By then you should havetrailed your stop carefully.
-Wait for TP.
-Count your money.
IF you get stopped in thebeginning:chances are, on average, only with 1 to 3 parted lots, makes anaverage looser of 0,4. (aprox.)
EXAMPLE:
100 trades
Position size, full lot(per risk): 10 $ divided by 5 into 2 $ risk units.
50 Winners/ 50 loosers
Av. Winner. 10 $ (1 lot,this is conservative!)
Av. Looser 4 $
50-20=30 $
That gives you a 0,30 expectancy.
Start with some tiny 1000 $
Risk 2% per trade.
4 Trades a day.(granted 4trades is a lot)
20 trades a week.
6 R per week
12 % weekly.
So check this:
10 % weekly compound makesroughly:
97000 $ in 1 year
9 million in 2 years!!
Excel can make you dizzy,but doesn´t lie!
Granted, trading dividing aposition in 5, or even 10 smaller parts is a lot of work!!!!
The tendency is like this:the smaller the time frame entrance, the bigger amount of “parted lots” youmight get stopped on a usual basis, but the bigger the TP result, cause youenter early.
I like this relation:
D setup: enter H
4 H setup: enter 15 m.
H setup: enter 5 min.
5 min setup: enter 30seconds.
Sorry for the long post….thisis what I call MM, more related to position size than to stop trailing .
To avoid cramping the thread I would suggest to keepanswers/critics to the subject to private mails…or very small.
It is really a differentsubject, this thread deals with entry and exit strategies, MM, etc…are left toindividual traders.
Enjoy your weekend.
- #2,168
- Jan 26, 2013 12:26pm Jan 26, 2013 12:26pm
- | Joined Feb 2011 | Status: Trader | 1,204 Posts
Has anyone tried trading harmonics with renko charts? it looks cleaner. For really tight swings, it stretches things out so you can see the harmonic lengths. of course, if the swing is too small, youll use it on the renko cause it looks stretched out, but still!
I gave up on renko charts on metatrader because it kept redrawing it (probably because it didn't have tick data like ninja does), but ninja seems to do it right.
edit: i guess you would miss price action with this though.
I gave up on renko charts on metatrader because it kept redrawing it (probably because it didn't have tick data like ninja does), but ninja seems to do it right.
edit: i guess you would miss price action with this though.
- #2,172
- Jan 26, 2013 6:18pm Jan 26, 2013 6:18pm
- Joined Jul 2010 | Status: Always manage your risk & leverage | 7,339 Posts
not euphoria follower
- #2,173
- Jan 26, 2013 6:23pm Jan 26, 2013 6:23pm
- Joined Jul 2010 | Status: Always manage your risk & leverage | 7,339 Posts
not euphoria follower
- #2,175
- Jan 26, 2013 6:29pm Jan 26, 2013 6:29pm
- Joined Jul 2010 | Status: Always manage your risk & leverage | 7,339 Posts
not euphoria follower
- #2,176
- Jan 26, 2013 6:31pm Jan 26, 2013 6:31pm
- Joined Jul 2010 | Status: Always manage your risk & leverage | 7,339 Posts
not euphoria follower
- #2,179
- Jan 27, 2013 7:55am Jan 27, 2013 7:55am
- | Membership Revoked | Joined Jul 2010 | 9,273 Posts
Hey guys, I know you are much more forward than I! Therefore, I needed your view!
EUR_USD 1 Day
Thanks!
I take this opportunity of thanking Mr. Pip, because I have done done several trades a day! Thing would not happen if not for what I have learned here!
These are the facts of the case. We has a mainswing and a dominant swing. Price at present appears and I use this term very carefully because of market is closed and there is very little pullback by the bears on the daily candle but, there is an area of significant confluence around 1.3485 -91.
This confluence is a 127ext of the main swinga 161 ext of the dominant swing you also have structuct from back in March 2012 and a big round numbe 1.3500. You also have some smaller swing harmonics converging in this area whichis not that big of a deal but certainly adds some extra confirmation.
My only concern at the moment besides the open gap which will likely test this again is that the main swing only corrected just past the 38 which is a very strong bullish indication ana AB=CD of this puts price past this PRZ. My chart is attached.
If you fail to plan, you plan to fail.
Well there are some things going on here which will bee interesting to see how price responds to them.
These are the facts of the case. We has a mainswing and a dominant swing. Price at present appears and I use this term very carefully because of market is closed and there is very little pullback by the bears on the daily candle but, there is an area of significant confluence around 1.3485 -91.
This confluence is a 127ext of the main swinga 161 ext of the dominant swing you also have structuct from back in March 2012 and a big round numbe...
Trade what you SEE, don't trade what you FEEL. Be Smart! - (Webadoi)