Multi-Lot Multi-Timeframe Position trading

sorry seems like mixed up the videos.
this one is more relevant where Dan talks about the finances:

right. thought so too.

Ha! I love those TED talks. Very eye opening. Thanks for the link!

Let's back up a bit and talk about learning how to lose. After all, my cat could walk across the keyboard and accidentally put on a winning trade. But I bet my cat doesn't know what to do when it turns around into a loser.

I just entered a GJ long for an example. It looks like this right now, just a few pips ahead:



This trade will either go up or down, so call it a 50/50 shot. If it goes up, I'll ride it, but if it goes down, I'll attempt to cut my loss very short and try again, right here in front of the whole world.

Well, it went up a little bit. It really would have been more interesting had it gone down, but this can happen as well. I'm now up about +9 pips I'll set the stop at BE and I have a free trade. I can do this all day, or until one doesn't retrace the entry.



Oops, it came down a little just as I was posting it. Do I care? Hell no. It can do this 10 times before price doesn't retrace back over the entry and I wouldn't care. This is an absolute minimum risk way to trade. If price goes against me right after I enter, I want to exit quickly with just a few pips loss. If it goes my direction and then turns back and retraces over my entry, I'll exit break even. Only if price does not retrace back over my entry will I stay in the trade. Trading like this, I can afford to take a dozen losses and break evens and just one good entry will make a nice profit for the exercise.

Well, just as I wanted to use that one for an example, it didn't want to cooperate. It's still going up I'll come back to it later. I'll pick another pair for an example on how to lose. Here is an EJ long trade on the M15:



The goal is to exit quickly if it goes against me right after entry.

OK, it has moved against me a few pips. I've set the stop at 9 pips, but I wont let it run that far.



Price only went against me about 4 pips, plus 1 pip spread. The goal is to exit before it hits a stop. This is how I consider trading without hitting stops to be effective. I have a stop, I just never hit it. I exit before hitting a stop. It's very good for trading discipline.

Price dipped down to 5 pips loss, then recovered a bit. I reduced stop to 8 pips. That means I need a really quick finger to exit on a turn down and not hit the stop.

Finally, price turned down and I exited for a 6 pip loss, plus 1 pip spread, so a total loss of 7 pips, but I didn't hit a stoploss!

Meanwhile, GJ is still going up and is still set to exit at BE. I'll try another, Long AJ.



So, I'm about 7 pips down at the moment. I lost one EJ long entry, I am set to BE on GJ and I'm just trying a third on AJ long.
If AJ long gets a few pips ahead of the entry, I'll set it to BE. There is a good chance then, at least 50/50 that it will retrace over the entry and stop out BE. I don't care how many BE's I get. 2, 5, 10, 100. They don't matter to me. All that matters is that I cut losses extremely short and let profits run, and I'm doing that, so all is well and fine.

been scalping all day today, over 30 trades and overall slightly down - 0.6%
i will switch to my swing trading and concentrate on fewer pairs.

Yes, I can't get ahead scalping. The robots are killer at that, but I would not make a good robot.

AJ just climbing a bit above entry now. If it gets up just a few more pips I'll set it to BE and have two free trades running for the cost of 8 pips. Of course, these trades aren't selected at random, I'm using my entry criteria to select them, but the point is to demonstrate how to lose better than my cat could. Here I am, just a hair above entry. Getting close to setting this one to BE.


And AJ turned and went back down to the entry, so I exited BE. Here:

So, what was the point of this little exercise? Three entry attempts. One went against me right from the start and I exited -7 pips including spread. One went up a little and retraced back to the entry and I exited BE. One kept going past the entry and I set it to BE and it's still going, up +18 at the moment.

That's about average. 1/3rd goes against me from the start and I exit with as small a loss as possible, 1/3rd go up and then come back to entry and I exit BE. 1/3rd go in my favor right after entry and keep going. I let those run for profit. I had a stop on all three, but I never hit a stop. Stops tend to take us out at a point of minimum profit. My goal is to never hit another stop. I'm not there yet, but I'm trying very hard. The conclusion is, we need stops to protect our account, but we don't need to hit them. At least, not very often.

The point of the exercise is to demonstrate with live trading how to lose better than my cat could. I took three trades. Only one was good, but I only lost 7 pips in three attempts. It's an extreme example, but the point is, cut losses VERY short and quick. Of course we want to let profits run, but that's easy. We can do that while taking a nap, which I'd do if the darned maid wasn't banging pots and pans in the kitchen like a noisy kid.

Good posts G!

I closed a few hundred pips yesterday and re entering today.

Here's my USDJPY

Daily shows still a good uptrend potential with all 3 stochs up in overbought on 30 Oct at the blue vertical line.

Drill down to the H4 chart to confirm the same. Then drill down to the H1 for entry when the same occurs again. The large candle on the 31st was my new signal to exit and take profit and that I did taking away above 500 pips from multiple trades over that 1 day! The H4 has never had the black stoch drop back below the overbought line so no "official" exit signal. Nor did price ever drop to below the low of previous 2 candles which is where my stops are located.

Drilling down to the H1 chart you can see my entry at the 1st green up arrow. My signal being all 3 stochs up into overbought was 2 hours earlier but I didnt log on until later so I placed an order at the high of the most recent candle and it triggered later that hour and shot into profit immediately. It then fell away to play around just above BE. Right now you can see the black stoch dropped but turned up again last hour. I have a conservative 2nd trade order placed as the high of 2 higher candles working back in time. I am waiting for the black stock to close 2 periods pointing back up, or into overbought, or price to move up and trigger my order to enter my 2nd trade here.

Like G I will keep this chart tracked in here to help others get some ideas.

GREAT thread Graviton! Hardly wait to finish it. Will come back.

may I have your template, sir? it looks so nice!...

Its just 3 stochs loaded into the same window. Remove the 2nd line so only the K line is showing for all 3.

5,3,3 make red
15,3,3 make blue
45,3,3 make black

In the USDJPY H1 chart I posted earlier I mentioned the new order in place at 2 candle high until the black stoch moved back up into overbought or even just up for 2 periods in a row. It did that the previous 2 hours so I moved my order down to a 1 candle high or if I want to be more aggressive I could enter at market.

Remember the Daily was up in overbought and the H4 was up in overbought so the bias is long so I am looking for entries on the H1 to add to my long trades. Waiting for black stoch to move back above overbought line is ideal but because it fell below but no low enough to cross the 50% line and then turned back up for 2 periods it tells me long movement is back on, especially seeing as now all 3 stochs are pointing upwards. Lets see how it progresses.

lol just realised some JPY news in 10 mins so this could go either way. :/

really really awesome exercise G ! love the way you show us how we should be losing. feels like im totally gambling before.

News was an overall BOJ announcement throughout the day so not much affect in 1 particular instance.

My 2nd trade triggered a few minutes ago and immediately moved into +14 profit with the original trade now in +50p! H1 is only for entry and so I go back to H4 to manage exit with 2 candle low for stops or large candle for manual exit or black stoch closing below overbought line. H1 will only be used now for a possible 3rd trade because afterall "winners add to winning trades"!

Below you can see the entry on the H1 and how it now looks on the H4 with the stop in place.

For my 3rd trade on this pair I will look for a pullback on the H1 as an example to enter.

Got similar situation on EURJPY and USDCAD and am up +342p for the day so far.

Multi Lot Multi Timeframe trading in action!

Oops. Didn't go quite according to plan. Waiting for a pullback can sometimes mean you miss good solid moves because you wait for red candles when the move currently in play is a multiple blue candle move! So I placed an entry order at 40p above the 2nd trade just in case as a last resort. Well 30 mins into that hour it triggered and by the end of the hour was already at +25p!

The beauty of multi lot multi timeframe trading as Grav put it is that you are getting higher accuracy in your entries but also you are milking that sucker when you get it right!