he, alone, was to blame for his losses in the zero-sum game
Trade Any Market - Based on Daily Chart, What's Your View?
Hey guys, Im a junior member, i cannot post my own thread but my question somewhat relates to this thread. My question is, i am focusing on becoming a day trader. I have made small trades in the past basically scalping. I plan on investing $200 a trade and focusing on trading 3 currencies. Does 40 pips per trade sound reasonable if i am able to spot a trend? Im still trying to develop other strategies, i would appreciate if someone can help out Cheers!
I have customized my fib tool to allow it to simply measure stoploss/take profit targets for me based on signals i may want to take on my charts...that is only one part of it. In order to figure out lot size, you must now figure out point value.
I have a tool that calculates all this for me, but it's part of my membership to the forex guys warroom.
To calculate point value manually, you can do this:
Step 1
Open a demo account.
Step 2
Once youve opened the demo account, open a demo trade with one full lot on the market that you would like to test.
Step 3
Set your trade display as points.
Go down to the trade window at the bottom of the screen and right click on the open trade to bring up the appropriate menu. Select the Profit menu, then select as points.
Step 4
Take a screenshot and save it.
http://warroom.theforexguy.com/wp-co...12/step-41.png
Make sure the screenshot shows the trade point value and the total profit. You need these two values to work out the point value.
You can take a screenshot by pressing SHIFT + PRINT SCREEN and then opening up a graphics program like Windows Paint and pasting the screenshot into it by pressing CTRL + V. These directions work for a windows computer; I am not sure about Macs.
The purpose of taking the screenshot is so that you can compare the two values without them fluctuating from the trade movement.
Step 5
Divide the total trade $ profits by the amount of trade points.
Dividing these two values will tell you what one point is worth at one full lot.
If we have -3 points with a -$15 dollars total, then every point is worth $5.
-$15 / -3 points = 5
The $5 is the point value at one full lot. Thats the information we need to be able to complete the lot size calculation.
I know its long and painful to do, but once you know the point value for that specific instrument, write it down on a notepad for future reference so you dont have to go through the procedure every time for that particular market.
CALCULATING THE LOT SIZE
Once youve obtained the data needed, the calculation is quite simple.
First, here is the formula:
(($/R)/PV) = Lot sizing
$ = Dollars you want to risk in the trade
R = Stop loss distance in points
PV = Point Value
For example, lets say you wanted to risk $100 on an AUDJPY trade. The stop loss distance needed was 500 points and the indicator was displaying a point value of 1.0072.
In this case, the first thing you would do is divide $100 by 500 points.
= 0.2
Then take that result and divide it by the point value of 1.0072
= 0.198
Most brokers can only take up to two decimal points for lot sizing, so 0.198 will be rounded back up to 0.2 anyway.
So that was ($100/500 points)/1.0072 = 0.198 lots (rounded up to 0.2)
***i copied the above from the forex guy for purposes of explaining how to calculate lot size manually (which i hope he won't mind that i did!), because i use his tools, i never do this myself and wouldn't know how to explain to someone else how to do it.
Hopefully this is a help to you...
{quote} i mean how to filter false BO. This the way that i trade fibs level> i use weekly to avoid the noise.The big picture. 2.i use the 4 hour chart to enter my trades,base on my weekly fibs. 3 If i see a bounce from 886 level ,i get in. In my las set up,price is bouncing and tested the 886 twice ,and failed to close below it Sideway market from my weekly point of view. You can trade this market if you see that price action cross or touch the 886 level using the 4 hours chart ,but the price fail to close below the 886 level or close back above...
I don't know if you would consider this a filter, but perhaps some additional rules to consider before getting in to the trade. I don't know much about fib levels so unfortunately, I can't comment on that, but here's what I am seeing when I look at EU using price action analysis...
Weekly chart analysis...
Daily chart analysis...
- #29
- Edited 2:34pm Nov 24, 2015 12:06pm | Edited 2:34pm
- | Joined Nov 2014 | Status: Trader | 34 Posts
{quote} Good job. you are good reading price action. can you please explain your entry and exits rules and what is your specific system? thanks
i trade price action, don't really use indicators. what i am looking for is:
A.) no sideways or messy market conditions,
B.) established higher highs and higher lows / lower lows and lower highs (stair-stepping, trend conditions present),
C.) i look at the daily chart mostly for signals (my favorites are reversal candles or inside bar combos), but sometimes use the 4-hour chart for more aggressive entry
D.) always enter on a retracement during the trend
E.) i analyze EMAs and support and resistance to give me an idea of whether price is moving strongly or likely to falter
my exit is simple, i aim for about 3X my risk (i always use a stop-loss)
i have a pending order on AJ...here is my analysis on it. If it doesn't pull back to my marked entry point, I will enter long at the break of yesterday's candle high. If i happen to be looking at the charts when it happens. I may need to increase my stop-loss a little in this example, I think I may have made it too tight, but it gives a general idea.
By the way, I did not decide to open a trade on the break of the high on Monday last week, I sat back and did nothing...on Friday price dropped back down and my trade was automatically triggered to open (long) on AUDJPY. So, almost a week later, I am in the trade. I am in at a good entry price and have a small risk (stop loss), it is halfway to my target at the moment. But, technically this trade breaks my entry rules, since there was no signal getting me in the trade on Friday (my signal was on Monday of last week)...but still with an entry at a retracement and following the trend, I think it will more than likely end up a winner. Ideally though, I should have cancelled the order when i decided not to do a breakout entry - rather than leaving it open.
- #40
- Dec 1, 2015 11:00pm Dec 1, 2015 11:00pm
- Joined Apr 2009 | Status: Live and learn. | 25,231 Posts | Online Now
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