- #1,622
- Edited 9:29am Mar 8, 2014 9:09am | Edited 9:29am
- Joined Jan 2012 | Status: Trader | 717 Posts
I learned a lot of this from Mac D...
I would place a standard (no thinking required) group of buy stops, ( 15p, 15p, 50 p take profits, 5 p between tp and next entry). If this were early in your trading shift, you could walk away and come back in about four hours and more than likely say, "Ooh, it made me How much?). If you had five or six such windows, you would be look and 5 or six as many opportunities. If you balance the buy only biases and the sell only biases you would in usual practice be seeing no more risk than with just the one window. Somebody prove I'm wrong. my experience does not say so.
Start at oh, say 0.54500.
Or, if you feel really sanguine, just enter an immediate buy ( if market is open) and go from there.
Watch for screamers and nekkid trades. Other people call this scalping, but if the trade doesn't pan immediately out. I would just wait. The Moving averages indicate that more pushes upward are coming in the near future.
I have this chart on my computer screen as well : The buy order is already in place.
For a push up on this EurCad:
either:
eurusd is up and usdcad is up
or:
euraud is up and audcad is up
or:
eurgbp is up and gbpcad is up
or:
eurjpy is up and cadjpy is down.
or news events or market opening fights or something else can also push.
Think about this: When the parents are pushing and the m.a.s are in favor, the economy involved is prospering and the news will usually surprise to the upside.
It is a non-linear process similar to an avalanche.
Were Fibonacci alive today, and not stuck in Leonardo Da Vinci's time he would have a field day.
I try to understand Math concepts, but leave the computation to people with better abilities in that field.
Kudos to Mac D
Yes this is a price-action oriented system.
PS: just for grins:
the eurusd is a child of the usdaud and euraud
if the usdaud is rising and the euraud is falling. it would be really really weird for the eurusd not to fall...
so if you see this happening, it might be fun to put a sell on the eurusd. After all, you will have it on screen to monitor the parents of the child you are trading.
But wait there's more...
- #1,624
- Mar 8, 2014 1:31pm Mar 8, 2014 1:31pm
- Joined Oct 2012 | Status: Trade Small, Win Big | 4,988 Posts
Okay, a completed flower bed?
If you are good at something, never do it for free--Joker
Right away I see you have improved on the my idea by numbering each window. Why didn't I think of that?
-- if you doubt your lines of S/R (and your moving averages are in some stage of transition, Make the space between your pending trades larger:
Alternative: Wait until the price crosses the S/R line and check for pushes. If they are there, enter accordingly. Simplest is to use the 15, 15 ,30 scheme, but if you wish to get more aggressive. you can use wider take profits, or set them at round numbers ( I was taught that people set stop losses at round numbers and market makers go look for them where they cluster there) the market will seem attracted to those numbers and give you your profit more readily there. Real real aggressive: let the take profit overlap the next entry so sometimes you double up on the pair for a short while. Risk to reward goes up for a short while, but the time should be short, and then back down again.
You don't have to mess with change lot size forth and back again. Mistakes there can get you in quick trouble and you want to be free to see things.
If you wish to get less aggressive, widen the gaps between take profit and the next entry (to give the market a chance to change its mind without dragging you into it, or set it beyond the next S/R line. or even don't put one on at all. You can wait until you see the market move the way you like and then enter.
You can be very flexible. My experience ( some of it unfortunate) is that you can support .02 lots per $1000.00 USD, plus .01 lots. with this system. You can go down in size if you are trying something questionable, but don't go over: Without stop loss you will get in hot water too quick. With stop loss, you will draw down your balance too quick.
You can use the chart I download to check for parent pushes on each of these windows. With a little practice it only takes seconds a window.
I think it will not be long before you are trading in all the windows, rolling in virtual money and ready to go real time.
I think it is a plus with this system that you do all the heavy thinking and planning before the market begins. After that it is just a matter of reacting in well defined ways.
If you are at the screen at all. Sometimes I think that the only reason I come to the screen at all is because I get bored letting the system do all the work for me.
Okay, I'm going to go number all of my screens now....
-- if you doubt your lines of S/R (and your moving averages are in some stage of transition, Make the space between your pending trades larger:
Alternative: Wait until the price crosses the S/R line and check for pushes. If they are there, enter accordingly. Simplest is to use the 15, 15 ,30 scheme, but if you wish to get more aggressive. you can use wider take profits, or set them at round numbers ( I was taught that people set stop losses at round numbers and market makers go look for them where they cluster there) the market will seem attracted to those numbers and give you your profit more readily there. Real real aggressive: let the take profit overlap the next entry so sometimes you double up on the pair for a short while. Risk to reward goes up for a short while, but the time should be short, and then back down again.
You don't have to mess with change lot size forth and back again. Mistakes there can get you in quick trouble and you want to be free to see things.
If you wish to get less aggressive, widen the gaps between take profit and the next entry (to give the market a chance to change its mind without dragging you into it, or set it beyond the next S/R line. or even don't put one on at all. You can wait until you see the market move the way you like and then enter.
You can be very flexible. My experience ( some of it unfortunate) is that you can support .02 lots per $1000.00 USD, plus .01 lots. with this system. You can go down in size if you are trying something questionable, but don't go over: Without stop loss you will get in hot water too quick. With stop loss, you will draw down your balance too quick.
You can use the chart I download to check for parent pushes on each of these windows. With a little practice it only takes seconds a window.
I think it will not be long before you are trading in all the windows, rolling in virtual money and ready to go real time.
I think it is a plus with this system that you do all the heavy thinking and planning before the market begins. After that it is just a matter of reacting in well defined ways.
If you are at the screen at all. Sometimes I think that the only reason I come to the screen at all is because I get bored letting the system do all the work for me.
Okay, I'm going to go number all of my screens now....
Okay, a completed flower bed? {image}
Do all your windows, set pending trades in them all.
When you do get rich, remember the poor!
Two caveats:
1. Never put a pending trade on the wrong side of the fastest moving average.
2. When the M.As indicate the pair is headed the wrong way, never leave or put a pending trade on the wrong side of the middle moving average.
I have thus far this month four trading days into the month closed 11 trades in profit that were started last month. They would have been losses, had I injudiciously used fixed stop losses. {image} That chart cannot be true. Can it? Can it?
A beginner sets a 1:1 risk-reward ratio:
- 100 pips StopLoss
- 100 pips TakeProfit
An experienced trader sets a 1:4 RR:
- 100 pips StopLoss
- 400 pips TakeProfit
You mentioned that you don't use StopLoss, so in the end it means you are using your Free Margin as StopLoss. Features of this trading method would be:
- low free margin: you can hardly open other trades with high lot position sizes. Even if you've become a professional yourself, the 10,000 euro is still locked as it's waiting to go up (but will it? On forex day?)
If you are the trader that stops the trade manually at -60 pips then you could still call it (manually) stoploss. If you're a scalper and only take 20 pips profit, and take out your trades at -60 pips then it would be a 3:1 risk-reward ratio. In this way if you trade like this I prefer adding a word in the English dictionary alternative to 'StopLoss'. The new word is 'LetLoss'. StopLoss refers to stop losses, your method refers to Let Losses Be
This is another way of trading and as you've probably understood, this method could be profitable. How much? I'd say 95% of the people would be unprofitable.
Join our skype group.
5% makes profit on ForEx. But are you one of the 5%? You know that 95% loses their money. I'd say 3% doesn't win, doesn't lose so that makes 2% the big winners. They consist of: - ForEx teachers: yes REALLYYY, trust me, I make money so will you now pay for my webinars? - your broker: yes another client, so how can I help you? Oh YOU want to make money, YOU? Yea but of course, if you take us as a broker you'll be set for life! - marketeers: don't let this opportunity slide by and start forex now with 100 euro bonus. Once you've signed you could 'try'...
More important than me. How about yourself? I have heard those statistics before. The only reason you even read my posts is your hope, that somewhere, somehow, there is a way you can make money yourself on the forex. Am I right?
You know what to do if I am.
I re-iterate: if someone claiming to be me ever asks you for money they are imposters.
Do with this what you will
- #1,633
- Mar 8, 2014 3:43pm Mar 8, 2014 3:43pm
- Joined Aug 2012 | Status: Love for all; Hatred for none | 3,566 Posts
Love for all; Hatred for none.
I have closed my weekend with 209 Pips. I follow the pips every week because i have weekly target (100 Pips). {image}
Do you use fixed stop losses?
95% of the people in the forex use stoploss according to the pundits. ( I am setting up an illustrative straw man).
95% of the people lose.
Hmm....
- #1,635
- Mar 9, 2014 12:49am Mar 9, 2014 12:49am
- Joined Oct 2012 | Status: Trade Small, Win Big | 4,988 Posts
If you are good at something, never do it for free--Joker
- #1,636
- Mar 9, 2014 12:50am Mar 9, 2014 12:50am
- Joined Oct 2012 | Status: Trade Small, Win Big | 4,988 Posts
{quote} Well done. Obviously you are not one of the 95% who lose. May you continue to prosper. Do you use fixed stop losses? 95% of the people in the forex use stoploss according to the pundits. ( I am setting up an illustrative straw man). 95% of the people lose. Hmm....
If you are good at something, never do it for free--Joker
- #1,638
- Mar 9, 2014 4:39am Mar 9, 2014 4:39am
- Joined Aug 2012 | Status: Love for all; Hatred for none | 3,566 Posts
{quote} Well done. Obviously you are not one of the 95% who lose. May you continue to prosper. Do you use fixed stop losses? 95% of the people in the forex use stoploss according to the pundits. ( I am setting up an illustrative straw man). 95% of the people lose. Hmm....
Love for all; Hatred for none.