Multi-Lot Multi-Timeframe Position trading

Thanks for the explanation. Appreciate.

I'm going to read the whole thread again just to get the info into my head.
Regards

Thanks Graviton

So basically you close the oldest trade 1st using a spike in direction of your trade as a good place to close and then wait to re enter again should you entry conditions be met.

At one stage I had 8 trades on the AUDJPY and over 2000 pips in profit but without closing them its all just possible profit at that stage.

You are most welcome to ask questions at any time rew. I'll emphasize again that trading is very risky and you could lose all your capital trying it. These things should only be tried in demo or with the very smallest lot sizes you can find. If they work for you they will work just as well at a penny a pip as a dollar a pip, and then you can save your capital to trade with when you have it down cold.

Best success,
G

Yes, MarshalMax, that's what I try to do. That always assures that I am buying low and selling high, the essence of profitable trading. I've also run many trades on a pair, but big reversals do happen. They must if price isn't going to go to zero or infinity. Trading this method I can take the same large profit, but it's converted from unrealized to realized gains as I go. I'm mostly just using 3-lot trades for examples here, but there is no reason not to skip a profit taking every now and then if the trend keeps running and build up to more. Thanks for the question. Best success in the future.

G

Goodday Graviton and all traders,
Hope you are well. I have a question Sir regarding handling a position and exits....

Incase you have entrered a position, on what conditions will u realise its a bad entry and exit it asap and wait for another signal.Do you use a specific number of pips against entry position just after entering it?or u use the rsi above 50 level and how big retracement do you take?( i know this is a MM thing but just relate it to you sir)

Thanks for your explanation about spacing lots but pliz help clarify this...i understand sometimes u add a lot on aftre 30 pips, sometimes 50...what do u consider here..is it the ATR?

Incase your spacing is right at say X pips, do u add alot even though there is no retacement? or u wait for a retramecent

Assume you have added a new lot, and price goes against you right away...when do you take off the old lot(what retracement level) and if you leave on the new lot...how big should the retracement be for you to exit it as well?(lets assume ur dealing with a low volatile pair of ATR of 40....and maybe spacing u used 30 pips)...wouldnt mind if you also use another example but will be glad if you distinguish both scenarios ;when dealing with a low volatility pair and wen dealing with a high volatility pair)

Thank you Sir in advance. Appreciate your efforts in helping us improve our trading.
Again thanks for the regression indicator it helps but am not so good at visuals...they dont easily confirm to me), i searched a more simpler mtf rsi indicator with alerts called Hitman here on ff...am currently using that and filtering it with fundamentals and currency metre(thanks to your education)
Try it Sir, it will might be of much value....it has 7 options for tf not all, u can pick what you want and change rsi period to 10 as the one we are using...its on this thread http://www.forexfactory.com/showthre...ghlight=hitman
thre is also an ALL RSI indicator somewhre on that thread (after page 2)and a dashboard somewhere all based on rsi...but me i prefre hitman...the all rsi indi...helps show all mtf rsi in a single window(no need to scroll)..its good if you have a big monitor...not me..haha

too much yapping...sorry for cluttering here....

God Bless you all...Green pips to all!

Massive pips while I slept. Spacing is ok now to put a third lot on the EU short. Now just waiting for retracement up to start to end to "sell high". There is only one problem. There always seems to be just one problem, doesn't it? I have a 5% rule. If my account increases by 5% in a week and there is a retracement, I have to take the profit before it drops back below 5% profit for the week and live to trade another day. So watching that also.

Third lot on at the end of this tiny retracement. But 5% rule is in effect for the remainder of the week so I do need to be careful here.

And it looks like this with 3 lots short and the stops adjusted. Now, I wait...

If price moves against me, my rule is to exit all to preserve my 5% gain for the week. Hopefully it won't move against me that much, but if it does, I must follow my rules. I wouldn't be surprised to see ECB Central Bank intervention here to defend the Euro.





Well, 5% rule tripped. I'm flat at +5% for the week. I can re-enter though if all requirements are met again. We'll see.

Also taken out of two lots GBPCHF and two EURUSD both at BE should have added a pip for swaps
still long 2 AUDNZL but they may go at any minute
long USDCAD looking OK
and short Ecad and EG both negative
that 5% rule might be worth investigating, hurting this week and its only tuesday
will EU try that resistance again or is it headed for heaven ?
PA will tell us in the next few days I guess
DT

Hi Nogames. The best trades tend to go positive rather quickly. I tend to bail out quickly if price reverses soon after my entry, but each trader needs to find their own comfortable method. I can always re-enter later if it turns out to be just a short retracement. I watch closely right after an entry as that is where all the risk is. If price goes 20 to 30 pips against me and the M5 rsi crosses the 50% mark against me, I'm on a high alert. Depending on market conditions I might just exit there and take the small loss. That is about half my emergency escape exits. If the 15M rsi crosses the 50% against me also I consider that a significant reversal. If I'm losing 50 pips or more, I would also consider that significant and I'd exit and just take the loss and look for another pair to trade until this one straightens out. Let's face it. We never intended to lose 50 pips right after entry. Something must be very wrong with the entry if that happens. After the moment of entry, everything depends on cutting losses short. If the average bad entry loss is 25 pips vs. 50 pips, and you keep the same w/l ratio, you'd double your r:r ratio, so it's important to cut those bad entry losses short. After making 10 good entries in a row, it's hard to believe you made a bad one, but the market can do anything at any time and you should take the hit quickly and move on. That will greatly reduce the possibility of having entered right on the peak price just before a major reversal starts. If you get very many of these, the entry method needs to be reviewed after you exit. Perhaps market volatility has changed due to news flashes or something like that.

Yes, 5% a week compounded is a huge return. I just figure if I have a shot at a huge return, I should take it. The rule has served me well, but you might need to adjust it to be in-line with your money management. Even 3% in a week is an outstanding week. It's very early in the week though, so I might re-enter if the stars line up right.

Difficult questions because so much depends on your own personal trading style and the character of the market at that moment. Markets an be very dead and 20 pips is an adequate amount to see if a trade is working, or they can be volatile and it might take 50. Once a trade is profitable and all the risk is out, I'll increase stops slowly over time to stay in it as best I can. I really can only try to tell you what I do as best as I can. My live trading charts posted here probably do a much better job of explaining than I ever could in words, but I'll try.

I'll tend to put the second lot on pretty fast, like around +30 pips because I consider that the market has confirmed my entry point as a good one. If price moves against me right after, I want to cut losses short. It depends on your trading style and risk tolerance, but for me, if the total loss is -50 pips or so I will exit all and move on. Usually I'll exit all quicker. Of course, cutting the loss shorter is better and you really could cut the loss almost to zero and try again. It just depends on your risk tolerance and confidence in the trade but the smaller loss is always better than the larger one. Even reducing the loss from 50 to 30 pips makes a big difference in your r:r ratio.

The next lot (lot 3) would usually be around 50 pips and I like to increase the spacing just a little on each one after that. I prefer to use retracements to add lots, but sometimes after big news there is no retracement to use. I trade through most news as it usually goes my way anyway. I suppose that's because there is a whole market out there trying to guess what it will be and some are pretty good at it, so I just follow the market, I don't need to guess and I wont. Somewhere around 1.25 to 1.5 X the previous spacing, I'll just throw another one on anyway even if I have no retracement to use. So if the second went on at +30 and then price moved quickly another 30 pips and kept moving with no sign of giving me a retracement, I'd want to put a third on around 50 pip spacing or so. After that I want to take off and put on with continually larger spacing as best I can, and on a really good trade I'll skip a take off now and then and increase the number of lots running, but that's a really good trade and they are rare.

If price quickly reverses after the third is placed on, I can still close all to take a profit from the trade. I prefer profits anytime I'm given the choice, and this is one of those times. There will always be more trades to take, but this might be my only chance to take a profit off this one. There is no need to worry over missing some of the trade later by taking profit. That's just a pipe dream. It may or may not work out later, and if it does you can always re-enter, but this may be the only chance you have to take out your profit, and that can be made real with the click of the close button. Usually that sort of move would occur after a news event, so when the retracement does come, it might very well be large and quick, like 50% of the previous move or so. When in doubt, always seek to decrease risk, not increase it. It's good to be patient and just let things settle out. One hard and fast rule is once you have 3 (or more) lots on, you should always make a profit off the trade, so you should never take a loss from that position.

I'll try to post more charts as we go along to illustrate these concepts better.

Best success,
G

I closed 2 winning trades after that long EU short candle yesterday also. Felt nice to actually put some real money into my account instead of all the profits being potential because the trades were still open. Basically I decided at the end of each daily candle when I check my stops and look for new opportunities I would also look for large candles closing away from my MAs for places to close with profits. I even drilled down into the 4H and 2H charts to spot conditions where I would normally close manually as the point to get the best price so I think this idea of Gravs will be added to my trading plans. Thanks mate. I closed out over 600pips and it felt good!

That's great MarshalMax! Steady as she goes. Keep risks under control. Really, your kicking butt! I hope everyone here can get on that bandwagon. Keep me posted on how it's going. I've got another trade going on UJ long right now. I also re-entered EU short after it maxed out on the bounce and started to fall again. I just put a second lot on UJ tonight. It looks like this right now:

Once more unto the breach, dear friends, once more...
Re-entered EU short on M15 RSI cross down below 50%

Just noticed AUDUSD big drop short so will look down to Hourly chart for my usual sign of trend weakness of 2 x stochs crossing back above the bottom red. As you can see on the Daily that will not happen soon so trend is still good but on the Hourly its close. Thats when I will close the biggest trade here and then if stochs go back into below bottom red, I re enter short

EDIT: In rereading this I should just be entering a new short right now. H1 chart shows stochs below the bottom red with is my sell confirm on the daily. Green is moving back towards black so may wait another hourly candle. What I want is for green and black to be moving sideways below the red line together.

And yes I did enter AUDUSD short too late! I was convinced the RBA would not allow the price to drop much after that 1st rally but I was wrong. Eventually I thought "stuff it" I need to stop being swayed by fundamentals and just follow my tech system and got in on the 3rd minor rally.

Think I'll give it another go at puncturing that .86595 before I jump on board.
It might take off and leave me here but I've lost too much to these resistance levels in
the last week or so.

I must be reading the Fundies wrong ! I thought the RBA would love the Aussie to be 80 odd with the USD price of iron so low and harvest about to get under way.

lol I would guess my fundies are more wrong. I am not a fundy guy but occasionally bits of news and opinion posts on forums sneak through