The Dollar Cost Averaging Pivot Point Trading Method

On the Demo Side:

Got all my penders set up (which are based on the 4H 3-Level ZigZag Semaphore indicator).

Current equity: $54,533
This Month's Goal (Percent): 6.0%
This Month's Goal (Dollars): $57,805
Distance to Goal (Dollars): $3,272
Next Compounding Increase (In Lots): To .14 lots
Next Compounding Increase (Dollar Level): At $56,000

Taking a EUR/JPY short from 141.256 on the live account as a range trade with a TP at 139.50 (the next lowest Zig):

Rather curiously, the 3-Level ZigZag Semaphore places a "3" Zag at 137.050, so that will be the TP for the demo ... .

(Now wonders if the live and demo accounts paint the ZigZag differently ... .)

EUR/JPY short at 141.256 SL fixed at 141.156, making it a no risk proposition.

EUR/CAD short hits TP for 166.9 pips:



Current Open Positions

EUR/JPY Short at 141.256/TP 139.50/SL 141.156 (no risk proposition)
GBP/CAD Short at 1.80512/TP 1.78900 (in the green, but price still a bit tight to set an in-the-money SL)
USD/RUB Short at 40.361/TP 40.000 (long-term carry trade)

Current Usable Margin 94.09%/Usable Maintenance Margin 88.17%

At the risk of getting in FF trouble for pushing commercial content, I believe in giving credit where credit is due. ... So thanks to DailyFxPlus for that particular trading idea, which I would have missed otherwise ... .

Well, there are three parameters to the ZigZag indicator: Depth (12 as the default on the Trading Station platform); Deviation (Default: 5), and Backstep (Default: 3).

The 3-Level ZigZag Semaphore indicator I am using in MT4 uses the exact same parameters ... . Now that I compare and contrast the MT4 and Trading Station ZigZag's, it looks like they're exactly the same, so I don't know what I was gandering at before ... . Lol.

EUR/JPY short stopped out for 10 pips :



Which is okay ... . May look at a short again higher up the ladder.

So, it's kinda broken out of its range for now ... . 143.60 next stop?

On the Live Side:

Current Open Positions

GBP/CAD Short at 1.80947/TP 1.78900
GBP/NZD Short at 2.06194/TP 2.00150
USD/RUB Short at 40.361/TP 40.000 (long-term carry trade)

Notes

Not much exciting happened today. A leg was added to the GBP/CAD short in light of a data bounce experienced by Cable.


Current Usable Margin 92.75%/Usable Maintenance Margin 85.50%

On the Demo Side:

Made some minor tweaks (adding penders where appropriate) ... .

Hi ZebraSquirl!
Very clear your explanation, Thanks a lot and keep up your great trading.

Thanks ... . My positions are looking a bit tattered today though ... . The beginning of the month always seems to be a bit of an odd time ... .

On the Live Side:

Current Open Positions

AUD/NZD (1 Leg) Short at 1.12755/TP 1.11500 (SL Set at 1.12655/No Risk Proposition)
EUR/AUD (1 Leg) Short at 1.44054/TP 1.40700
EUR/CAD (2 Legs) Short at 1.42688/TP 1.40550
GBP/CAD (4 Legs) Short at 1.81549/TP 1.78900
GBP/AUD (1 Leg) Short at 1.84303/TP 1.79000 (SL Set at 1.84203/No Risk Proposition)
GBP/NZD (1 Leg) Short at 2.06194/TP 2.00150 (SL Set at 2.06193 (Break Even)/No Risk Proposition)
USD/RUB (7 Small Legs) Short at 40.840/TP 40.000 (long-term carry trade)

Notes

A bunch of stuff executed overnight.

The AUD/NZD is kind of a second attempt to short the pair from the top of its arc and 2014 high. The previous attempt (which I was not particularly excited about), I set a stop at +10 pips, and the position stopped out, so this is kind of a second attempt.

CAD weakness (I assume) caused all of my extreme 4H ZigZag entries in GBP/CAD to execute, and the pair is now arguably at the top of its short term range.

I'm kind of surprised that my GBP/NZD short is still hanging in there; it appears, however, to be going somewhat sideways, so I've moved the stop to break even.

My USD/RUB short carry trade (which added a leg at the top of its current trajectory) continues to accrue good positive swap, but price is not being particularly cooperative if I want to exit the position in short order.


Current Usable Margin 85.55%/Usable Maintenance Margin 71.08%

On the Demo Side:

I've tweaked a few of the penders, but didn't add anything really.

What I did do is delete out the USD/JPY longs for now. I'm frankly more interested in a EUR/JPY short at current levels than a USD/JPY long, but the way I've got the EUR/JPY short penders set up is to take a short at virtually this year's extremes, which naturally may not come to pass. That being said, I think it's probably work keeping an eye on the pair for a short opportunity, but things need to settle a bit post-Abe bombshell ... .

GBP/NZD live side short position SL moved to +10 pips (2.06094) ... .

Going to take a discretionary EUR/JPY short from this level (142.561); TP 139.50 ... .

EUR/AUD short at 1.44054 SL fixed to BE at 1.44053 (no risk proposition).

.... and now to +10 pips at 1.43954 ... .

Now if my EUR/CAD and GBP/CAD shorts would cooperate ... .

... and stopped out ... . Will reload ... .

EUR/AUD short topped out at +10 pips ... will reload.

AUD/NZD short manually closed for 111.6 pips (close enough to TP before hitting the hay ... .):

And my last no risk proposition (GBP/AUD short) stopped out for a small profit ... . Sometimes you get follow-through; sometimes you don't.