EURUSD

Just a suggestion... you might want to try focusing on percentages rather than monetary targets. If you start looking at your gains and losses in %, psychologically they'll be easier to deal with when your account reaches a reasonable size.

Brokers are irrelevant. Market-makers are closed on the weekend together with inetrbank market.
Sunday brokers are more like bookmakers

If you all dont mind I am going to repost a reply I gave to another trader. I have recieved a lot of comments and questions from other traders from different forums so rather than do all the typing again I will copy and paste.

Again if you think I am full of stinking crap then just scroll on and NOT TROLL ON.

Thank you!

Posted by lux_interior
hi JD,
Thanks for sharing your MM system. Very interesting.

Thank you it is an honor to share my experiences with you and everyone else who will lend me an ear to hear an alternative way of trading.

Posted by lux_interior
I have been giving it a go and so far no realised losses. Some trades go further underwater than I would have previously accepted but nearly all of them recover within a day or two. I only have one trade that's still underwater (long @ 1.2960), and I'm confident that I will be able to close it without loss soon enough.

You are experiencing what the pyramid method does and what another trader told me yesterday. He was pleasantly surprised.

HOWEVER there are several parts to this theory. If you are not going to use SL then you MUST trade in small position sizes. If you also space the open positions out (no concentration or “price saturation”) this will help minimize the DD. The only way I could do this successfully was to write a program and figure out the algorithm.

There is that nasty word again DD. Nothing is life is free except the air we breath so this is the side effect. Having a sub account in the opposite bias (which is the opposing pyramid) helps tremendously with dealing with the mental aspect of a DD. If you use OANDA like I do you can easily set up a sub account for the same pair and transfer cash back in forth between them.

Due to the random walk theory of the markets prices due gyrate in a broad price range just like they do in a small TF. If you are patient you will be rewarded if you use smart MM. and trade with the trend.

Posted by lux_interior
I'm taking the attitude that a loss only occurs when I choose for it to be loss. Otherwise, it's just a certain amount of my capital that's tied up for a while.

AMEN. If that money was in the bank how much return would you get? Yea thanks to Central Banks not much. And if money was placed into equities it’s a crap shoot (APPL) that it will provide constant risk free returns. (there is no such thing as risk free)

Posted by lux_interior
My broker allows for 30% leverage over the weekend, so for me, my max DD point is 20% - 25% leverage in use. I'm adjusting my position sizing depending on where the price is within the channel. That is, my position size depends on the likelihood of the position recovering if the trade signal turns out to be false. I don't have a precise formula for that yet.

You are getting the hang of it. VERY GOOD! I would go beyond channel perspective and use a monthly chart. For me I chose the range from 1.20 -1.40 for the Euro. For the vast majority of years it has traded in this range. Having a precise formula that works for you takes time. It took me several years and thousands and thousands of dollars to figure out.

Posted by lux_interior
Do you have a certain strategy to recovering losing trades? For example, assuming that the original reason for taking the trade is no longer valid, do you just set the TP level on the trade to break-even so that it closes at the earliest non-loss opportunity?

I never set a TP at BE. At a minimum its BE +2 and I do so manually watching the indos and PA. The reason is there could be some slight slippage which may make this position a loser. I also scalp the 10 min chart so I try to get in and out. This also minimizes my risk. Time exposure to the market is RISK. Very few traders realize this until a winner becomes a loser.

Posted by lux_interior
What about your shorts from 1.21xx? Those have been underwater since last summer, or have you managed to receover them? By, for example, opening another short at a higher price (according to your trading system), merging that with your underwater short and closing when the average price reaches BE.

Yes I still have them but have been going long (in sub account) and short (at higher prices) over the entire range. There is a carry charge but I more than make up for it everyday with scalping wins. ITS BETTER THAN A CERTAIN LOSS by using SL.

Some have said your position sizes are small you don’t make big money. Well HELLO my mantra is “It’s a walk to wealth not a race to riches (ruin). How many of us take a job work 20, 30, 40 even 50 years just to retire with a meager savings and maybe a retirement account. If that approach and time dedication was placed into their trading they would be able to retire MUCH sooner with MUCH more money. Slow and steady wins the race.

Still I will have doubters and that’s OK. Not everyone will love me.


BTW the price is at your 1.2960 congrats!

A cheap clothing store?

http://www.forexfactory.com/attachme...1&d=1363670891

can be a litlle bit more 2975 after that down. very very key level.

It will get there this week, today momentum isn't strong enough.
The gap closure is a very good entry point for shorts - it is also at the top of BB band on the daily chart, and BB is a serious obstacle - it's not that easy to bend it upwards

what do u think max? on EJ i can see a double top as well so i guess we do not close above earlier high of yesterday we will heading down to 120

taken a short entry here @ 2957 SL above the high

..

It needs to reach 123.20s and stay below it, then I will be playing for a level lower than what we saw last few days... Too early to tell...

Between, I added some more shorts EJ, average 123.80 now SL 124.10 TP 120.80 FTB

look closer...... dont forget the weekend.

Cute pic

me too but I have the feeling it's too early..

Alright alright as long as it gives you something to aim for is fine. I sometimes printed the chart then throw a dart at it and set is as my target and it works too.

yes you are right..im not careful today(news on bank holiday-weak point for me)..thank you doggette

JD too long. The summary would be nice

still short bias for me on EJ we have covered the 50% it could stretch to 62% zone 124.2x or with good momentum 78% zone

I trade all those levels short

thats a good one

damn, thanks. I only have that on my old Oanda-account. All the others either gap or well... just gap.