Pip Farming

Thanks for the help people.

How come the arrows are missing from your charts now swing..?>

Cheers

scouse.

Last lot of GBP/JPY taken out at +60 on this pullback

A couple of things to think about

-Trading is simple, but it isn’t easy. If you want to stay in this business, leave "hope" at the
door and stick to your stops.

-Amateur traders turn into professional traders when they stop looking for the "next great
technical indicator" and start controlling their risk on each trade.

-Professional traders focus on limiting risk and protecting capital. Amateur traders focus on
how much money they can make on each trade. Professionals always take money away from
amateurs.

-Amateur traders always think, “How much money can I make on this trade!” Professional
traders always think, “How much money can I lose on this trade?”

Many Pips

Well said!!!

I did ask about which pairs you are watching, so forgive me if this is not in your portfolio.

Anyway, it is more of a question of technique, does this show the BUY points after the fractals at 1 and 2 are broken, correctly?

Thanks

Hi Erebus,

You already would have entered with the 'main' position wayyyy sooner.

Those fractals you mention, could be 'sweet spots' where you can add to an existing position, with smaller lot size, and with a Target Profit in mind.. like ST mention already, 50 pips for example.

Erebus,
No problem, I will respond about any pair with this method. I just cant manage 15 or 20
Your understanding and buy(s) are in the correct place.

Now as for how you can actually trade this...I personally like to trade for the larger moves, HOWEVER, I have been using a trade management /exit strategy of late that smooths out my equity curve.

Assume you enter at point 1 with .03 lots for the sake of the math. I would use my stop as normal, the most recent fractal or 100 pips, whichever is less. Lets assume that is 100 pips stop.

I would place a TP on .01 of the position at +50.
If that TP is hit, I would then cut my stop in half to lessen the risk on the remaining position.

So at this point we have 50 pips on .01 (lets assume $.10 for the sake of the math) so you have $5 in the bank. If you move your stop to 50 pips you then have -$10 risk on the remaining 2/3 position...so your overall position risk has been cut from $30 to -$5.

Lets assume that in this case it continues to move on and then pulls back setting fractal number 2. When buy point number is reached, I will add back the .01 that I took off and move my stop to B/E for the first 2/3 plus a few pips to cover costs.

So now lets look at what we have accomplished.
1) we have $5 in the bank.
2) We are approximately 95 pips ahead on .02 and B/E on .01.
3) If it goes all the way back down to lets say entry #1 plus 10 pips to cover costs, what is the net result of this trade?
4) We made $5 on the first .01
5) We made $2 on the remaining .02 for a total of $7
6) we lose about 80 on the last add at entry point # 2 for a total of -$1 or B/E

Now lets assume it goes on another 50 pips:

I will after entry # 2 put a TP at 50 pips for .01 of the position.
I will then move my stop on the remaining .02 to entry point # 2 and let them trade until I get stopped out or a reverse signal

In this case, lets take a look at what we have accomplished:
1) We have the $5 from the first .01 in the bank.
2) We have +100 pips on another .01 so that is $10 (assuming US Clients FIFO) so we have a total of $15 in the bank.
3) we are now B/E on the added .01
4) We have locked in ~80 on the remaining .01

Worst case we will have the $15 in the bank, plus ~ $8 on .01 and B/E on the last for a very nice return

I hope this makes sense to everyone...if not...just ask

EDIT 1: this is exactly what I was talking about in my previous post, managing risk and cutting risk as soon as possible.

Sconcha is absolutely correct. However, if you just started trading this method yesterday or today, you have to start somewhere and pick a fractal to start from

So, I guess BOTH are correct!


Many Pips

Thanks for those great responses, the money management advice is always useful and I sure many are reading this thread but not posting.

As sconcha points out, there must be a point where trades begin, but he didn't tell us where - which brings up the obvious question -

Do you screen for TREND ?

This method reminds me very much of Turtle Trading Method - buying new highs, selling new lows

As you can see on the Daily chart, I have marked the break of highest high for 10 days, looks like a great starting point to zoom into the 4H fractals

Something to think about, regards, John

[quote=Erebus;8011629]Thanks for those great responses, the money management advice is always useful and I sure many are reading this thread but not posting.

Absolutely, any advice will always be welcome, great to hear from experienced traders as everybody has their way of trading

No, I do not screen for trend. I trade this exactly as it is presented in this thread. For example, if I was just starting to trade this today, I would take the next signal and then move on from there.

This attitude goes back to the intent of the MM post I made. Entry accuracy is the least important metric in any trading system in my opinion. the REAL test comes in knowing what to do if it goes against you and how to manage your risk...BUT ALSO...what to do if it moves in your favor. You cannot figure this out on the fly because your emotions too often come into play and you do not make sound decisions. This is where most if not all losing traders screw it up.
I am convinced that you need to have made all of those decisions BEFORE you press the trade button.

Many Pips

You have a point there

I did not said where the trade began on purpose. There is a lot to digest first, and i do not want to put the wagon in front of the horses? Sorry there is a saying like this in my home country

Keep the good work !

Nice thread swing, good luck!!

Thanks 4X.... We are farming some pips in here

Anyone else take this trade? Sometimes gifts come along!

Just a quick post as a learning opportunity. LOSERS ARE A PART OF THIS GAME!! Learn to embrace them and control them!!!

I cannot stress this enough...be GLAD when you take a CONTROLLED loss....preserve your capital and get prepared for the next opportunity.

Look at the E/J chart....I got short on the break of the DBLHC.....I set my stop to 60 pips to control overall portfolio exposure and moved on...this is a very important point! Once my decisions have been made, there is nothing else to watch or think about!! Let the trade unfold

Now on to point number 2...look at the DBHLC I have circled....this may very well give us an early entry into the next up move in this pair, who knows? If it does you can bet I will be along for the ride!

I am attaching the TE for the same account that is MYFxbook account to show what is possible...I will remove it after a few hours as I think it distracts from the overall purpose of the thread.
It goes back to the first of December when I started this account to prove a point

The Pin Tail (circled in green) is that a Fractal?

I took the USD/CAD ...300 pips so far

Very Nice zamboni...make sure and protect a good chunk of those profit pips