Trading is as simple as ABCD

NZDUSD trade was opened earlier.
5/15 TMA upper band was breached.
Possible continuation here since NZDUSD has been bullish short term.
Decided to wait for 1min TMA center to turn back to green before going Long



NZDUSD closed using "recovery" trade, continuation did not take place as anticipated.



Profit = (-9) pips

NZDCAD trade was opened earlier.
5/15 TMA upper band was breached.
Possible continuation here since NZDCAD has been bullish short term.
Decided to wait for 1min TMA center to turn back to green before going Long



NZDCAD closed using "recovery" trade, continuation did not take place as anticipated.



Profit = (-15) pips

Today activities:

AUDJPY = 21 pips
EURUSD = 06 pips
EURUSD = 20 pips
GBPJPY = 05 pips
NZDUSD = -09 pips
NZDCAD = -15 pips

Total Profit = 28pips

It's as simple as putting a stop loss on a trade. You probably wouldn't argue if I said most people can do that. How did you determine that stop loss? Was it a set number or support...pivot....fib? How far against me does the trade have to move before I KNOW that I am wrong? I risk 2-5 percent based on the risk assesed before the trade. If that stop loss is a major number or support break then I rcover all the way to 20 pips after that so I guess you call it a mental stop. I usually recover trade at the 25s...50...75.....20 pips past the mental stop. So I like to split my 2-5 percent into as many recoveries I need to get to my mental stop.

Recovery Positions

As mentioned by XxLessoxX recovery positions are not part of Clive's system.

For me the use of recovery trade seems easier when trading with the short term trend direction.
If the short term trend is bullish then I can enter a Long position (Like was the case with NZDCAD and NZDUSD).
If the position moves against me, then there are "support" technical areas that were created during bullish movement.

These support areas/zones can be used to place recovery trades, as price may "bounce" up from those areas.

Then there are times when price does not respect those areas enough, this is expected.
For me, I close the entire position when the price reaches the target 5min TMA band.
In the case of NZDUSD and NZDCAD you would notice that they were closed for a loss when price reached the 5min TMA "upper" band, because they were long positions.

I mentioned it a few times, and I will mention it again ......
Do not over-leverage and use good money management.

I try to use max 3% of account balance on each trade.
Because of this I can have 10 or more recovery trades at "support/resistance" areas for a currency and still not worry.

I believe in the trading philosophy ... "Trade Small - Trade Often".
I can get into a number of trades with small positions, and even if some do not pan out I usually still end up profitable.
This can be seen in todays activities posted earlier, where NZDUSD and NZDCAD did not work out.

This is my take on it ... others may differ ... but that's OK.

An interesting discussion on these "recovery trades" , although its not my system I did go through a phase of not taking any losses what so ever by a similar system.

Very briefly...

I would not place a stop at my usual 20 pip emergency but when a trade went against me and broke my level then I would take the opposite trade eg hedge, so locking in for example a 15 pip loss. Then I would just watch the CCI swings and everytime it went oversold or overbought I would sell or buy it but instead of going to BE at 3 pips I would bank it, I would repeat this over an hour taking 2 , 3 maybe 5 pip winners until I had banked my 15 pips that I had hedged.

Once I'd banked 15 pips I'd close my 15 pip hedge and carry on.

Did this on a regular basis , worst case if I got fed up would be I'd close out the hedge and take my loss...Very rare...

The reason I stopped doing it was it would sometimes take too long as the pair I had hedged would not be moving very strongly whilst other pairs would be shooting about and easier to trade so I would just take a 10 pip loss and go find the new strongest trender to trade and make up my 10 pip loser, much easier than struggling to clear a hedge from something not trending...

Mand you with hindsight and thinking about it now , I could just leave the hedge and wait for when the pair was trending strongly and do it then. Hedges can stay in place for as long as you like so just go back when it sets up better to remove it..

When I was doing this I would often think to myself, "Why wait for a loser to come along before doing this technique?? Why not just trade that way fullstop... Just keep taking small profits as they all add up...???

If you look back at CCI signals they really are awesome places to enter a trade and just take a few pips here and there, not difficult just takes a certain mindset to do it repeatedly and if one goes against you say 15 pips just hedge it until the pair starts behaving itself again...

I must admit its a lot easier to catch 3 to 5 pips than these runners we all dream about.

When you think about it trading is a high probability game and nothing else so how many 3 to 5 pip moves are there everyday compared to these 30 to 50 pip moves?? Bloody hundreds and thousands of the things, must be much easier to catch 10 times 5 pip winners than one 50 pip winner????

Just a thought...

I prefer hedging and picking little pips at the turns of the cci as a recovery strategy than checking for rebound on R and S. Clive,please check the last post on page 387 where i quoted you and asked some questions
,expecting ur response. THAT poast of mine is at post 7740

GBPAUD setting up for a buy off of the hrly lower band ...

I'll answer when i get a chance my friend...

Because To answer one of your questions, THIS IS THE TIME TO BE TRADING MARKET OPENS......

Another good sell setup on GBPJPY hrly higher band...



Sorry wrong chart before...

in we go...

Might be a bit early but at BE so lets see....

Below its hrly lower band good looking buy setup if it pulls back for our entry

Nice colour change , bit late entering but a bit rusty....

Looking at my dashboard this EURCAD trade is against the 5 , 15 and 1 hr trends so should I bank?? Or does it mean this is very strongly oversold??? So i should hold for the 15 min upper band at least???



I'm just gonna hold on the middle band, when it goes red I'll get out...

Another nice colour change but I'm late again....

We're getting there....

Much better entry...

Following the sell signals on both GBPJPY and AUDJPY,over 20 pips made.

Signal!signal!! signal!!!,Price has breached the upper band of the h1tma on usdjpy i mean