Need help making a plan for Monday and the rest of the month

Hi guys,


I'm very new to this but I stumbled into a good trade, shorting NAS100 on OANDA. I added to my position as the index dropped and I've made a good profit.

I've never followed stocks, forex, indices, etc., before, and I've certainly never witnessed a correction candle by candle. I have no idea what the market might do next. Do corrections usually play out over only 2 days?? Is this a normal correction or something a bit more extreme?

I want to protect my winnings without giving up my position incase there's further falls to come. I was thinking I could open some SPX500 long positions on Monday and if the NAS100 retraced, I could keep adding SPX500 long positions to 'balance' the retracement. Seeing as the two indexes move pretty similarly. So overall I would maintain the balance of my account until I know for sure what the heck is going on?

Does that sound risky? Is there a better way to hedge/protect winnings without closing a position? Any ideas, input, about either this trade or how corrections usually play out, would be much appreciated!

Cheers, Luce

I don't think it is a normal correction. As it is already in news that FED are soon going to increase the interest rate and they have given hint it is going to happen soon. Thats why it is falling. Don't know how long will it fall. All I can say you follow your strategy. And if you strategy says close it then close it. And if you are trading without any then it might be a difficult question. As it doesn't matter to me whether price is going up or down, I know when to close it doesn't matter if after closing it even moves more towards my direction.

Hi Cyyber, sorry I didn't reply earlier - I was a bit busy

My very rough and amateur hedging system worked (sort of). I had a few scary moments where one index/instrument would hit a circuit breaker but the other was still trading, but it was better than nothing. By using one index to hedge another when the momentum of my first trade stopped, I could 'balance' my account while the market was undecided. Then I could just add to the 'winning' position when the market started trending again. Then I could cancel all positions when I had made enough $, and repeat the process. I'm sure it's a very messy system, but I ended up making a 1156% profit over the last few days!

Bahahaha, taking all of it an sticking it in the bank. I'll leave a little bit in my account to play with and help me learn. But maybe not until things settle down. This trading stuff is crazy.

Well thats great if you already made big numbers in your account and your idea of adding more position when the market will start trending is good and solid that works most of the time. Since you already have big numbers in your account so you can take risk to add more numbers in your side.

Best of Luck.

Hey guys

Put on some bob marley and trade like this if you want to.

2 Bollinger bands and no other indicators although you could add ema's etc to give you an edge if you wanted.

It is very straight forward, relaxing way to trade and works well on higher time frame and lower time frame for scalping although I trade 4 hour chart so I still get a life away from the computer.

2 Bollinger bands, 1 Bollinger bands setting period 100 deviation 2 and another Bollinger band set at 100 with a deviation 3.

When price hits deviation 3 wait for price to close back out of deviation 2 in either bullish or bearish it does not matter and look to take it to mid line, simples

I use 1/5th of my trade size as first position and I don't close if price goes against me because I know it will always go back to mid line, if price jumps back in between the two deviations don't close your first position and wait for price to once again close back out of deviation 2 at a later time and place your second postion, price always wants to recover and will always go back to the mid line at the very least.

Obviously expect a drawdown so don't go silly on your trade size but its always good man, so don't be afraid.

You can also Stack orders spaced at 100 pips apart on the 4 hour looking for it to settle back toward the mid line which it always does but I would not advise stacking orders on any lower time frames.

Another indicator does same job and that's the keltner channels setting 40/2 and 40/4 same rule applies wait for price to close back inside deviation 2 and take ride that baby back to the mid line.

Also if you want to sit at your computer and get square eyes you can add 15 ema 30 ema and 60 ema. So while the price isn't going your way trade the trend and catch the high or lows been broken using ATR (average true range) setting 4 to give you the next high or low move when previous high or low gets broken.

The ATR setting 4 is really accurate for next pip move above/below the previous high or low which ever the trend is.

Remember there are about only 10 or something institutions that shift the money and it creates immediate havoc which people buy into hoping to get a huge profit then price suddenly turns so fast you can not alter things and have a screen full of confusing orders and it is just hell, don't waist your money for them, be smart and wait for the move to be over and flow down stream gently back to the mid line on a raft made of weed.

Put it on your screen guys and see the magic.

Good luck fellow traders.

Haha, Hippiedog, I'm definitely going to give your system a try, maybe minus the weed because I have a toddler to look after

Two questions about your system. When you say:


Do you look for a candle to close on/outside the 3rd deviation, or just hit the line it during formation. And second question, when price moves back to the second deviation from the third, are you looking for it to close on the second, or waiting for the first candle that's totally inside the second deviation?

Oh and a random third question: are you trading now? Or are you going to wait for a few weeks until things aren't so crazy?

Hey MadLu

Yeah the markets were a bit WO the past few days and im sure a few unfortunate people out there have lost a lot of there savings and investments sadly.

But yes I am trading, although I have decided to trade micro rather than standard lot as a precaution for the next week and I have stacked orders at 100 pips.

Here are my current positions on currencies with the entry's as of today to help you see where I get in on the 4 hour chart using the Bollingers as stated.

I missed a few of the 1st entry's as I was busy but it has done me a favour by looks of things.



EUR/USD 1st entry 1.4000 2nd entry 1.4977 SELL
EUR/GBP 1st entry 0.73156 SELL
USD/CHF 1st entry 0.94311 BUY
CAD/CHF 1st entry 0.710 BUY
GBP/JPY WAITING FOR Opportunity coming up soon.
GBP/CHF 1st entry 1.4760 BUY
USD/JPY 1st entry 119.9 BUY
EUR/AUD 1st entry 1.60 SELL
AUD/CHF 1st entry 0.677 BUY
AUD/USD WAITING FOR Opportunity coming up soon
GBP/AUD 1st entry 2.187 SELL
AUD/JPY WAITING FOR Opportunity coming up soon
EUR/CAD 1st entry 1.52 SELL

MadLu go easy though, clearly uncertain times and I have a massive account and can afford for each of these all at once to slide over 1000 pips against me hence why I have gone for micro sized position rather than my standard lot but I am still having a great day so far.... but we see what happens over the next week, what happens happens right, no point loosing my head over it... But hopefully if you apply my entry to your charts along with the Bollinger's which I am currently using you will see where I take them and why.

I do sometimes get in a little earlier if I have to go and tend to my garden but to start with yes wait for candle to totally close inside the second deviation and price must have hit or crossed 3rd deviation prior to it closing inside second deviation and you taking the trade, If price in one candle move goes into second deviation but closes back in-between 2nd and 3rd deviation sit tight that's not your entry signal yet, price must close inside 2nd deviation heading toward mid line, if it goes against you that's why I use 1/5th to get in again. for me it shows a clear choice in the markets. It often does jump back up or down after hitting the mid line on the 1 hour and 2 hour chart but I don't care really I just stay with it and wait for it to hit mid line on 4 hour, the old hare and the tortoise story.

Thing is as you probably have found out, been a trader is the equivalent to being a doctor in a hospital dealing with 1000 new virus each day with only 3 or 4 medicine's available to cure them all which is impossible, only for another 1000 new virus to happen the next day, there is no certain thing other than price is either going to go up or go down at some point and you have to sit tight and wait for that moment you recognise it will happen, although it can clearly be done it is still very difficult to determine at what point will that happen during the day and I am not going to sit at my computer all day waiting for that to happen, pro traders lose all the time but when they win they win big, so I just chose the really oversold or really over brought option taught to me by my trader friend on wall street... and it works well for me so I am happy and I hope it works for you

I think if you are starting a new account go easy though and apply some stops where you feel appropriate for your trade size and account size.


If you are investing on indices that creap slowly up and down etc consider this as well, ema 15 ema 30 and ema 60, Example of a buy: Get in as price makes new high, 15 must be above 30 and both 15 and 30 must be above 60 which indicates up trend and close when price retraces to ema 30, stop loss at ema 60 to begin with. Its ok, not a killer strategy but hey it works for long term investing starting on a 4hour to get in looking to keep trade open on daily then possibly weekly and so on. For a Sell same rules but reversed.

One other thing MadLu, 1 position regardless of the size I split it in two, this will help you recover should you ever feel threatened by the market so you can get a little profit from half your position and let the other half ride on or at very least break even.

Hope you understand

HippieDog, you are a gem!

This is great info. I've been using Bollinger Bands but only the standard (20,2) and using it to try to follow price action all the time on small time frame charts, rather than picking entries and exits on bigger ones. It kept me tied to my computer, which hubbie and toddler didn't appreciate. I'll start out slow/small with your method and hopefully free up my time again to do more fun things. (Fun for them I mean - I quite enjoy watching candles).

Do you usually take profit at the centre line, or wait and see if the price moves through it? Or is that where you might take profit on half of your position and let the other one ride?

I take it you have been doing this for a while? Do you have an opinion on the whole 'bond bubble bursting, world ending, global recession' thing?

I hate to keep asking the same questions, but just so I can cement your system in my head, I'm looking at AUD/JPY 4 hour chart now. Have you made an entry yet (last candle started outside 2nd but closed inside), or are you waiting for the current candle to finish (one whole candle completely inside 2nd)?

Hey MadLu

I'm glad you like it, yes the entry needs to be as candle closes in-between 2nd deviation and midline and not between the 2nd and 3rd deviation.

So if you want you can exit your first half at 60 ema and then if prices retraces past your first possition and you need to open a second position you can then stack orders.

Also a lot of traders do not like doing what I am about to say as they don't understand how to make money from it but you can also buy sell this strategy, in a buy opportunity you could buy 3 sell 1 and exit 1/3rd of your buy at 60 ema wait and see and then close all at mid line if it moves directly to it or if price retraces stack your orders for the midline and take profit on your sell every 100 pips or 50 pips with stacked sell orders to weight your drawdown same rules for a sell opportunity but reversed.

The whole global thing isn't worth worrying about or id never work again, unfortunately if you are making money in forex somebody out there is losing money so the whole hippie way is help people and create a balance in your life but that's just me. Take at look at charts as far back as you can and ever since time began they were worrying people but it has always been ok. I guess it depends if you are investing or day trading. Its different for different people.

Global news can have a dramatic effect on currency and if you keep position open over the weekend like I do then it is advised to get on your platform as soon as markets open sunday evening, always be prepared for the worst case scenario MadLu, life favours the prepared.

I hope you get a push on the AUD soon, remember these trades can last a while although I have so far seen some good moves.

GBP/JPY and GBP/USD looking good for set ups.

Madlu as you get on with this strategy you should be able to compound you account nicely ( if you don't know about compounding fores youtube it ) and as time goes on you will most likely get in before the price touches 3rd deviation and get out before price touches midline but to give a new strategy to somebody who does not know it I want them to see the whole strategy first. There is never an absolute apart from price going up or down remember that, above 70% win you doing well although you will do very well with this