Multi-Lot Multi-Timeframe Position trading

This is the way it looks on the H1. Note the sl has been moved up so there is no real risk in the trade anymore. I have pips in my pocket and I'm just waiting for the retracement to end to put the next lot on.

Oops, was entertaining guests and missed my re-entry a bit, but here it is on the M1 as the RSI re-crossed the 50% line indicating a re-entry since the M5 never crossed below. If it had, I would have had to wait for it to clear above the 50% line as well to re-enter.

Thanks DanC. I'll put up another chart before bed. Now I have to get back to my guests.

And here is the EJ long on the H1 after the bottom lot has been taken off for profit and a new lot has been added on top. If you want to trade more, you just don't take the bottom lot off and put one on top for the next cycle, so you are trading three instead of two. If you want more profit, you just increase the spacing between new lots. Note that the SL has been moved so there is no risk on this trade and I have already pocketed the pips from the first lot. No matter what happens tonight as I sleep, those pips are mine. This cycle is repeated over and over as long as the trend lasts, adding more lots and increasing the spacing between lots slowly as the trade progresses.

This wasn't my best trade of the day, GJ was actually much better, but since I chose this one early on to use as an example I'll stay with it. Now with a pocket full of pips and knowing there is absolutely no risk riding at all, I'll rest easily as I sleep. Often, I make my best pips sleeping

Any questions? Comments?

This on the newswires just now:


Mario Draghi is facing renewed pressure to implement quantitative easing after banks borrowed less than estimated in the European Central Bank's first targeted-loan offer.
The Frankfurt-based ECB lent 82.6 billion euros ($106.5 billion) to euro-area banks at a fixed interest rate of 0.15 percent in its targeted longer-term refinancing operations today. That was below all predictions in a Bloomberg survey, which gave a range of 100 billion euros to 300 billion euros.
Spanish and Portuguese bonds rose, indicating that investors are betting the ECB president may ultimately resort to large-scale purchases of government debt as he strives to avert deflation in the euro area. Draghi has signaled he wants to boost the institution’s balance sheet to as much as 3 trillion euros from 2 trillion euros.
Bloomberg


And this:


Land prices in Japan's three largest metropolitan areas increased for a second year and residential prices in the cities increased for the first time in six years as low interest rates lifted demand for properties.
The price of land in Tokyo, Osaka and Nagoya gained 0.8 percent on average in the year to July 1 from a 0.1 percent increase a year earlier, the Ministry of Land, Infrastructure, Transport and Tourism said in a report released yesterday. Declines in nationwide land prices, which have been falling for 23 years, narrowed to 1.2 percent, matching the decline six years ago, the report showed.
Property demand has picked up in the world's third-largest economy as the Bank of Japan eased monetary policy, while expectations for increased building of infrastructure ahead of the 2020 Olympic Games in Tokyo are contributing to the recovery. Real estate prices have risen about 20 percent since Prime Minister Shinzo Abe took office about two years ago, according to an estimate by Deutsche Asset & Wealth Management.
Bloomberg

I love it when a plan comes together

Hello Graviton,
Greetings from Uganda East Africa. Have been following your thread on the side with some few here on ff but i really like your style.You get a whole picture of the market and your trades are supported by both TA & FA. I believe trading is a skill and flexibility is key.Your charts and system are very simple and you dont have a fixed TF you trade....u compound everything.
I have learnt alot from you in the last 1 month and please keep up the good work of sharing your valuable experience and advise. Your explanations are detailed and i always dont have to ask..coz everything is clear. My forex journey is been so challenging and lost money here and there untill i decided to first study it and develop the skill for over 6 months and later go back to live trading.Am glad i found your thread and it has helped me to figure out why,when and bias of direction my trade.
Started studing back in April 2014 and hope to start trading live in January 2015 with $2500. My tartget for the start is to trade it for 3 mths compounding it witha monthly target of 10%....haha here $250 can atlst pay a few bills and with consistency...i hope to add more funds and do it fulltime.
Sorry about getting personal, but do u trade forex just to complement your other incomes or its your main income? and if so...whats your day like? how often do you check charts, financial reports or news...just curious...just want to emulate you if you do forex seriously as thats my longterm goal...
Thank you for your generous thoughts and May God Bless You and you Family

Kind rgds,
Frcs

My first trade according to your system...Any Comments? All TFs lining up, and the currency metre agreein at the moment...SL is near previous lower high...(At daily Open)

And those two lots stopped out overnight, but I still have the 74 pips in my pocket profit from the oldest lot that I closed. And that's a trade start to finish. It would have been nicer to watch if it had run a little longer to follow more action here, But frequently, the market isn't nice, so we always have to be prepared for that. That's a wrap for me this week. Questions comments?

Hi nogames2014,

CAD has news coming up in less than an hour. Personally I would have waited to see if the setup still existed through the news as the market can easily jump the 50 pips to your stop temporarily if the news comes in against you. I don't worry much about news releases once I'm established in the stack of trades but I do try to avoid them on the initial trade which is where all of my risk is.

Thanks fx_malloc.....didnt realise there were red cad news. Will do next time..thanks once again..Appreciate0

Looks like a good entry to me nogames. Keep us posted on your progress. Taking off for the day, Be back later.

Nogames, this is my main income. I dabbled and studied for about 10 years, then traded part-time in stocks, commodities, futures and options for about 20 years, and I've now been in currencies for about 10 years.

I wake up early every day and I can't wait to see what the markets did overnight. I have a home office that is designed for this. It's on it's third round of re-design and I think I have it right now. I put a pot of coffee on and while it's brewing I open up my screens. I have a comfortable desk and a VERY comfortable office chair. I run 2 - 24 inch HD screens off an i7 and one off an i5 computer. It only takes a few minutes to take a quick glance at what the market did overnight and then my coffee is ready. I turn the business channel on my TV in the background so I can watch market news and catch headlines as I work. I do a quick scan of headlines on several news feeds and look at the Economic calendar. I then adjust any existing trades that need it, adding lots, taking them off for profit, adjusting stops, and then I do a complete scan of all timeframes of all my pairs. That doesn't take long, just flipping through the timeframes of each of the 24. If I see any candidates that are trending in the same direction on 8 or 9 timeframes, I note them for further study. Sometimes there are none and sometimes 6 or more. Those are then evaluated according to the methods I've discussed here and I take any that pass all my tests. I'll bail out of any that go against me too far and too fast because one risk of this system is it can put you in right on the peak price sometimes, just before a deep retracement. So I don't let any new trades run too far against me and that requires that I watch them a bit right after I put them on.

By then it's usually about lunch and I have a good lunch and come back for more study of the markets. I usually find a theme I'm interested in and will drill down into it, like everything I can find about cutting losses short, or something like that. I'll watch trades off and on and study and monitor the markets till the close of NY and I'll scan all the pairs again. Then it's dinner, some more study, and adjust any trades that I need to before bed. I repeat that Monday through Thursday. I take a lot of breaks during the day to read or walk in the gardens or even a nap now and then. I now take about every other Friday off to spend with family and friends. Early Saturday morning I sip coffee and run the numbers from the previous weeks trading, W/L R:R ratios, average win, average loss, max drawdown, etc. Then the rest of the day is an off day and I take most of Sunday off. I'll typically check markets before bed Sunday night here when Asia opens but I rarely take trades then because I like each market to have a round at things before I step in.

That's pretty much my routine. I see your ECad short is ahead about 40 pips. Congrats! Be patient and take your time. It's better to move too slow with this thing than too fast. Have a great weekend!

G

Cheers to your success, Graviton.

Given your experience, and assuming you were trend-following since before and through the 2007-8 financial crisis, I'm interested to know your thoughts on trend-following over your decade of trading currencies. A lot of diversified trend-following CTAs have had a challenging time in the last few years following 2008. As you may already know, they trade multiple products in many asset classes across multiple time-frames. One of the factors is the lack of trends, or so they say the one-factor regime of being risk-on or risk-off (up until recently). Rates and FX are the most liquid products CTAs can trade and are usually a big source of returns. So central bank interference and the lack of volatility in FX could also be to blame for trend-followers' woes.

What has been your experience in finding trends, before and after the crisis? Was it really that bad for trend-following in 2009-2013? Thanks for your thoughts.

Yes, in general trends seem to be about half as long and as deep now from what they used to be prior to 2009 and it seems the trends are getting smaller each year. No doubt central bank intervention attempting to stabilize currencies after the financial collapse has had a lot to do with that. A good example of that can be seen directly on the monthly chart of the EUR/CHF which has been stabilized by the SNB to almost a flatline since 2011. But there are still currencies moving in large trends, like the USD/JPY that has moved up in a steady uptrend of 3,500 pips since 2012.

I often get the impression that many of the traders in the large investment firms aren't really that good. Either their risk controls are so strict, they can't really take full advantage of a trend when they are in it, or they have no reasonable risk controls and sustain huge losses trying for that big one time bonus. An amazing number of so-called traders working for the CTA's don't really know how to trade. They just follow the instructions given to them by their boss. If their boss makes 30% for the firm in a year taking reasonable risks he is hailed as a hero. I laugh as such paltry returns. I think an independent trader can do much better, but of course, it takes a lot of time that most people don't have.

Thanks Graviton....too much expeience for you there The eurcad trade wsnt meant to be as news were ard the corner..a mistake......but wanted your thoughts about it as it had met all your conditions.news went my way upto ard 58 pips but it retraced to 20 pipsand decided to close it as the 15 min rsi went above 50 level as well after the 1 min and 5 min.Since it was friday and no much volume i didnt follow it to replace that closed lot when market turned down again...will try to post my trades next week according to your system..
Its good you pointed out that in some cases price has reached its peak when conditions are met but how big should a retracement be for us to take the loss....gues thats a risk mgt qn but i hope to use the 15 min rsi cross of 50 level for this.
Thank you once again for your detailed explanation abt your normal day and am glad you are already doing my longterm goal.
Hv a nice weekend

Well, you made a profit the first time using this method then, yay! I also often close out my trades at the end of the week. This week I made about 2X my minimum target for the week, so I just took profit on all except one position trade. I know some of these trades would do well over the weekend, but on the occasion that some news comes out, they can open with a big gap against me causing a big drawdown. Slow and steady wins the race. These days, once I make my target profit for the week, I start thinking about enjoying the weekend or doing something else.

The markets kinda stink today. That's typical for a Monday. Often I won't take any trades until every market has had a turn at price. I know of traders that take no trades on Monday at all. Monday is a study day for them and they start their trading week on Tuesday.

Do you re-enter positions that are still in a trend on Sunday nights and no big-gap has occurred?

Graviton,

Nice work and very, very good explanations of theory, thought process and execution.

I've been working in a very similar fashion since early August, but had a dismal q1-q2 due to issues...mainly only due to trades too large (and/or held too long) against account size.

Scaling into trades compounds the growth so well, I can't see why (or how) people can trade effectively without doing it. Regardless, it's not for everyone, so hopefully those that don't are comfortable with their single trades.

I will be adding more, but felt you deserved some feedback for a very positive thread.