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Ramblings of a Forex Junkie

  • #3,641
  • May 24, 2013 8:07am May 24, 2013 8:07am
Glad I am not trading today I would be .
  • #3,642
  • May 24, 2013 9:41am May 24, 2013 9:41am
Questions concerning Moneymanagement.
SP said stop loss is related to ATR.
What is your ATR Period you use? Is there difference concerning the timeframe?
And one naive question: Any help for calculating the Position Size? For Example: 2% risk represents 2k of your acount and you determined (how?) that you will use a 15 pip SL. Could you explain the math behind?

Respect for the work put in SP.

Thanks
Demo only
  • #3,643
  • May 25, 2013 1:34am May 25, 2013 1:34am
2000*2%=40 $
15 pips = 0.0015
40/0.0015=26 666
26 666= 0.27 Lot

example for Long
you buy 26 666 * 1.2928 = 34 473.8
SL is touched 26 666 * 1.2913 ( 1.2928 -0.0015) =34 443.8
P/L = 34 443.8-34 473.8 = -40 $
  • #3,644
  • May 25, 2013 2:14am May 25, 2013 2:14am
Quoting Redsunfx
2000*2%=40 $15 pips = 0.001540/0.0015=26 66626 666= 0.27 Lot example for Longyou buy 26 666 * 1.2928 = 34 473.8SL is touched 26 666 * 1.2913 ( 1.2928 -0.0015) =34 443.8P/L = 34 443.8-34 473.8 = -40 $
Thank very much. I understand now.
Any advice for the period of the ATR one should use? Is there a difference concerning periods between M15/M30/H1/H4?

Appreciate your help.

Thanks again
Demo only
  • #3,645
  • May 25, 2013 4:21am May 25, 2013 4:21am
Quoting mmaker
You are too nice. You shouldn't have replied to a lazy question. He can google or search this forum for tons of information on position sizing, even his broker will have that explained on their site FAQ. Position Size/Risk Calculator?{quote}
Quoting Xhale: I am new to forex trading... Sep 28, 2012..
  • #3,646
  • May 25, 2013 5:34am May 25, 2013 5:34am
Quoting mmaker
You are too nice. You shouldn't have replied to a lazy question. He can google or search this forum for tons of information on position sizing, even his broker will have that explained at their site FAQ. Position Size/Risk Calculator?{quote}
"SHE can google...","HER broker" . Thank you mmaker.
Demo only
  • #3,647
  • May 25, 2013 12:27pm May 25, 2013 12:27pm
Quoting bg_sunny
{quote} "SHE can google...","HER broker" . Thank you mmaker.
The details are in the thread but I basically use two stop sizes. For price action type entries like express trades or NFP I use bar size price action stops. For trading levels I use the appropriate ATR. For a day trade I want the ATR for a week so I use five day ATR which I smooth with a five period EMA. If I am trading a weekly high or low I will use a four week ATR with a four period EMA to get the month's ATR.
  • #3,648
  • May 25, 2013 9:17pm May 25, 2013 9:17pm
Quoting Seneca pilot
{quote} The details are in the thread but I basically use two stop sizes. For price action type entries like express trades or NFP I use bar size price action stops. For trading levels I use the appropriate ATR. For a day trade I want the ATR for a week so I use five day ATR which I smooth with a five period EMA. If I am trading a weekly high or low I will use a four week ATR with a four period EMA to get the month's ATR.
Nice! Thanks SP. Out of 100 times selling a weekly high, how many times would you say it brakes through (=not respecting the range) and stops you out? (Talking about the majors).
One more thing: can you explain the reason why you use a EMA to "smooth"?

Merci
Demo only
  • #3,649
  • May 27, 2013 10:11am May 27, 2013 10:11am
where is everyone?. just thought I would have a quick visit. last week I only trade e/j on the japan and uk open all went to plan. Same thing today japan then uk , I wish every day was like today nice and easy. we had a bank holiday here in uk so after closing down the uk open trade . went out and even had the boat out wayhay we actually had the sun out. look after yourselves
SEE LINE,TRADE LINE..PRICE HAS TO GO SOMEWHERE,,, PRICE WILL GO SOMEWHERE.
  • #3,650
  • May 27, 2013 12:09pm May 27, 2013 12:09pm
Quoting billytt
where is everyone?. just thought I would have a quick visit. last week I only trade e/j on the japan and uk open all went to plan. Same thing today japan then uk , I wish every day was like today nice and easy. we had a bank holiday here in uk so after closing down the uk open trade . went out and even had the boat out wayhay we actually had the sun out. look after yourselves
Remembering fallen friends today.

http://www.nsa160.com/Wall/cw2_egnor.asp

http://www.nsa160.com/Wall/cw4_wolcott.asp

http://www.nsa160.com/memorial_wall.asp
  • #3,651
  • May 27, 2013 12:32pm May 27, 2013 12:32pm
Quoting billytt
where is everyone?. just thought I would have a quick visit. last week I only trade e/j on the japan and uk open all went to plan. Same thing today japan then uk , I wish every day was like today nice and easy. we had a bank holiday here in uk so after closing down the uk open trade . went out and even had the boat out wayhay we actually had the sun out. look after yourselves
Didn't have the courrage to stay in for more then a RR 1:1 when buying the last week close of EURGBP after uk open.
happy pips all of you!
Demo only
  • #3,652
  • May 27, 2013 1:19pm May 27, 2013 1:19pm
Quoting bg_sunny
{quote} Didn't have the courrage to stay in for more then a RR 1:1 when buying the last week close of EURGBP after uk open. happy pips all of you!
no point closing at 1/1, just delaying losses
tradewith60
  • #3,653
  • May 27, 2013 7:24pm May 27, 2013 7:24pm
Hey SP. Haven't been around here lately but it's not because of anything I've found on your thread.

I just wanted to say that ever since you pointed out previous days hi/lows, my trading has improved significantly. Even though living in Central US, I can not do London or pre London, I've adapted use of some of your teaching to fit nicely on NY M15 charts.

Anyone that comes this way (Ramblings), pay attention! This is a wealth of Xlnt observations.

Thanks SP,
Darryl
  • #3,654
  • May 28, 2013 10:58am May 28, 2013 10:58am
I don't know how Psychofant/2ii2c/Bring.M.Home got the vouch from Seneca Pilot.
Quoting Psychofant
{quote} Hello mmaker, You are half right. My twin brother and I have fun on some of the trading forums. Trader's Lab is another one for us. He posts some and I post some.Not Jekyll and Hyde, but think Myer Lansky and Lucky Luciano. I just received some excellent advice from a friend.He advised that making trouble on forums is ultimately counter-productive even though it's fun at the time.We agree so we won't continue and I'm sending this reply to finalize this thread and put it all to rest. We think we are smarter than most and trade better than...
No longer trading forex. Looking for full time job.
  • #3,655
  • May 28, 2013 12:35pm May 28, 2013 12:35pm
OK looks like the crew left the buillding but since your answers were really really good and helpful before I will ask my next question anyway...

What is the reason we are still trading forex and not futures?

I was able to come up only with two reasons why forex is better than futures trading but at the end both of those are fairly "weak" in terms of serious trading. (Day trading that is of course)
One would be that forex is the only place I can trade with really small amounts of money. I can work with a 100$ or 1000$ account and risk every time 2$ and learn how to trade.The other one is that forex I can trade virtually from anywhere (car, beach, restaurant, street... you name it) because the MT4 platform requires very small band width. I tried futures but in order to even log in to my trading platform I had to be sitting at home with at least a medium or better quality internet connection and band width.

On any other aspect I think futures trading is superior.
It's better regulated.
It has "real marketplace" so volumes can be measured.
And MOST IMPORTANTLY the spread is always (or almost always) around 1 or 1.5 pips/ticks.
(as far as I remember there is no actual spread but the market and broker expenses you have to pay for each entry and exit sum up for something very similar to a 1 or 1.5 pip spread in forex)

As you can see I'm really not that experienced in futures trading but I'm still asking the question. Why the heck we all waste our time with forex when we can daytrade futures with the numbers much closer to our side ... i.e. easier to win... (mosly because of the low "spreads")

Yes you need more money because even on the "mini"s , the smallest contract is 1 full lot (i.e 1tick/pip = 10$)
Yes it's a bit harder to open an account because they don't let you unless you have at least 75000$ net worth.
But from the pure trading perspective I think it's much better for us - the traders.
Liquidity ??? Nahhhh, not until let's say 50 or more full lots. (That's way more than enough for me...)

What am I missing ?
Thanks
"Always be yourself " Batman
  • #3,656
  • May 28, 2013 2:26pm May 28, 2013 2:26pm
Quoting rdsl
OK looks like the crew left the buillding but since your answers were really really good and helpful before I will ask my next question anyway... What is the reason we are still trading forex and not futures? I was able to come up only with two reasons why forex is better than futures trading but at the end both of those are fairly "weak" in terms of serious trading. (Day trading that is of course)One would be that forex is the only place I can trade with really small amounts of money. I can work with a 100$ or 1000$ account and risk every time...
Higher liquidity in spot forex
tradewith60
  • #3,657
  • May 28, 2013 2:29pm May 28, 2013 2:29pm
Quoting rdsl
OK looks like the crew left the buillding but since your answers were really really good and helpful before I will ask my next question anyway... What is the reason we are still trading forex and not futures? I was able to come up only with two reasons why forex is better than futures trading but at the end both of those are fairly "weak" in terms of serious trading. (Day trading that is of course)One would be that forex is the only place I can trade with really small amounts of money. I can work with a 100$ or 1000$ account and risk every time...
The best bang for the buck with a central market and ability to contain risk is within the options market. Please don't expect me to begin to go into how to trade options here. The discussion and questions would never end.
  • #3,658
  • May 29, 2013 3:57am May 29, 2013 3:57am
Thanks Chris,
Guess i'm going to go and read some books about options.
When i was in Vegas people said that playing craps is the most complicated game ever, and only the "pros" are doing it.
Sounds very much like what i've heard about options trading.

Yup, I love craps, and it took about an hour to learn it.
Lesson taken ...
"Always be yourself " Batman
  • #3,659
  • May 29, 2013 4:20am May 29, 2013 4:20am
Quoting Seneca pilot
{quote} The best bang for the buck with a central market and ability to contain risk is within the options market. Please don't expect me to begin to go into how to trade options here. The discussion and questions would never end.
Hey Chris,
Do you ever use options contracts to hedge your spot trades or anything fancy like that?
Time hides Nothing
  • #3,660
  • May 29, 2013 5:56am May 29, 2013 5:56am
Quoting CindyXXXX
{quote} Hey Chris,Do you ever use options contracts to hedge your spot trades or anything fancy like that?
I don't trade binary OTC options as they are somewhat rigged. I trade mostly SPX,RUT, and NDX. I am only trading exchange traded options.
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