What's your basic logic/philosophy for trading in simple words? | Forex Factory

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What's your basic logic/philosophy for trading in simple words?

  • #1
  • First Post: May 27, 2013 2:22am May 27, 2013 2:22am
For me, I normally check the charts for D1, H4, H1 and M30. I'll open position if all they trend to the same direction especially there's breakout in M30. And I close position using trailing order. For MM, i risk at most 3% for each trade. Most of my profit is made during strong trend, so I do love it. But unfortunately I don't have a quantitative system now, purely on eyes observation. I monitor all the currency pairs using the same methond. Still far away to build the solid system...

No details exposed, so feel free to share yours...
  • #2
  • Edited May 28, 2013 2:06am May 27, 2013 4:27am | Edited May 28, 2013 2:06am
Trade risk not price.
Always place the wrong trade; Right is wrong, wrong is right.
  • #3
  • May 27, 2013 5:31am May 27, 2013 5:31am
Quoting cogito
For me, I normally check the charts for D1, H4, H1 and M30. I'll open position if all they trend to the same direction especially there's breakout in M30. And I close position using trailing order. For MM, i risk at most 3% for each trade. Most of my profit is made during strong trend, so I do love it. But unfortunately I don't have a quantitative system now, purely on eyes observation. I monitor all the currency pairs using the same methond. Still far away to build the solid system... No details exposed, so feel free to share yours...
So you are a trend trader.
The question is, how well are you doing? Are you making profit consistently?

Quote
"But unfortunately I don't have a quantitative system now, purely on eyes observation."
Then you are probably trading price action (PA) without realising it.
If you are doing ok, resist the temptation to over complicate your trading.
Examine every trade and see if you can spot anything that may have helped to avoid the losing trades, but take it slow.

Personally, I prefer to trade just PA and concentrate mainly on the trend in the TF I am trading, but if I am trading lower than H1, I will use the hourly trend to help with my decisions. Below H1 there is too much market noise to rely on the trend
Please Do Not PM Me With Coding Enquiries
  • #4
  • Edited 8:26am May 27, 2013 5:57am | Edited 8:26am
My philosophy today is to trade mechanically. After years trying all sorts of systems, and trying to control my emotions, I finally found that the best is to spend my time writing the best possible EA, and letting it trade for me.

Now It trades for me 24/7 and I just spend some hours per week checking that it trades my rules and the rest thinking how I could improve it.

For me, as I'm not disciplined, it's the best way!
Simplicity is the Ultimate Sophistication.
  • #5
  • May 27, 2013 6:05am May 27, 2013 6:05am
Just make sure you go long when I go short
  • #6
  • May 27, 2013 6:29am May 27, 2013 6:29am
Analyze currencies separately, don't try to analyze a currency pair.
If a currency is stronger than the rest, it makes no sense to buy anything else.
If a currency is weaker than the rest, it makes no sense to sell anything else.
Study the causes of price movements, not the effects.
si hoc legere scis nimium eruditionis habes
  • #7
  • Last Post: May 27, 2013 8:14am May 27, 2013 8:14am
2 logic information you can get from price action chart. Other information I don't think is useful after years of study and done many analysis project.
1. Trend
2. S/R

Trend has it advantage in bigger time frame, it will only be end after a period of time, maybe a few week, or a month. For S/R, price is either moving inside the area or break out. So these give you a good probability reference to setup a system
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