If you made some good profit off the EURUSD trade, both buy and sell, I would hold onto the GBPUSD trade for now. I wouldn't hold it over the weekend though.
Added another short position on EJPY @ 116.187, so now I have 2 lots short with an average entry price of 115.73
The AUDNZD long is reaching the target, let see if it fills today. So far up about 20 pips.
Well, there goes the EJPY down. Right now sitting about 45 pips profit on each lot. Have order to get out of 1 lot @ 115.07 and when triggered I will bring stop down to b/e, locking in 63 pips. The target for the second lot will be between 114.50 and 114.75.
ANZD, have order to get out at 103.89 for about 40 pips profit. It gapped up on the opening last night but didn't have order in. Will place order locking in a couple of pips as this pair seems to be range trading and has a negative bias. Trade was taken to go from support to resistance, which it hit, but as stated order was not in.
The "little project" on GJPY might have a very good chance of working. The resistance seems to have settled between 138.30 to 138.70 for the near term, with support coming in the low 136's. Let's see how markets open up after the Labor day Holiday.
Which reminds me about my strategy and why I think it works. I was refer by one of the readers of this thread to another thread from Graviton, which deals with multiple entries and multiple time frames. It is very interesting, even though it is a bit heavy for me (I like to keep it even more simple than the way I have it now) AND from what I was able to gather, the guy talks about adding to a winning position, never adding to a losing position, so while it is a good thread, its not exactly (at least from what I read) what I'm doing here.
I would like to ask questions and have people think about it and respond if they wish.
WHAT KIND OF TRADER ARE YOU? I dont mean a trend follower, contrarian, that type of trader. I mean when it comes to time, what kind of trader are you?
Please correct me if I'm wrong, but I think there are 4 types of time traders:
1) Scalpers (few minutes in the market, in and out, getting a few pips)
2) Daytraders (might take a trade a leave it open for 30M, 1 hour or more)
3) Swing traders (more than 1 day to weeks)
4) Long time traders (I would say no less than 6 months or so)
Now, I think about this, what type of traders are BIG TIME $$$$? I dont mean banks, I mean people like W Buff, G Soros, and many others like them. Do I, you or anybody thinks that if they are going to buy or sell millions of $$$ of say the US$ or the EUR, do they place the whole order at one set price and that is it? Even if the volume was there, even if the market could absorb the whole order at one price, do they go all in at one price? I dont think so. Again, correct me if I'm wrong.
Now, scalpers can't or shouldn't have say, 3 entry levels for one position, as most of them look at very short term charts and it would not be very smart to keep adding to a losing position just to get a few pips out of the market. The R:R will be very disadvantageous.
Now come the day traders and swing traders. The line between them is not clear cut, specially with forex since it is a continuous market. Easily what was intended to be a day trade can turn into a swing trade (e.g. market didn't reach neither stop or target, news have come into the market that made you change TP to capture more pips, etc). I dont see anything wrong with turning a day trade into a swing trade. But even inside a day trade even if market is going against you, there are other opportunities to average up or down and come out favorably or at least with not so much loss as it would have happened with 1 trade with a SL and a TP. JUST AS LONG AS THE CONDITIONS FOR THE 1ST ENTRY ARE STILL VALID!!!!
And that is what I try to do with my trading. I trade both futures and forex. With my forex account I have it where my lot size ALLOWS me to enter at multiple places and I am a swing trader most of the time in my forex account.
With my futures, unfortunately, my account size DOES NOT fit the lot size (except for the micro lots), so its one entry, one SL, 1 TP. But boy oh boy, have I been stopped out many times, just to see it go in my direction WITHOUT ME.
That is why I'm a believer of entering at multiple areas. The size of your account AND the size of the lot or instrument you trade dictates how many entries can you have. Check out the chart below for the ES and notice that the trade goes beyond a day trade and it is a multiple day trade now.
Now, to answer both type of traders, those of you saying: yes, this could work and HELL NO, this guy is nuts, I will say: Is it going to work 100% of the time? NO WAY!!! Nothing does.
Does it work sometimes??? I ask you to go your favorite instrument and just "play" it for the last year or so. Look at your losing trades and see IF by adding to it at APPROPRIATE LEVELS (not anywhere, but at levels that could work) it would have made the OVERALL result of your trades a positive one. Unless you went long on GBPUSD minutes before it dropped with the brexit vote ( and who in their right mind would be buying or selling with such important event coming up unless you got millions to spare or had insight info) you will see that it works a very high percentage (I would venture to say at least 90% of the time) IF YOU HAVE: 1) the patience to add at appropriate levels, 2) the money to withstand the drawdown and 3) you entered at a level and a direction that is supported not only in your main chart, but higher charts.
So that is my take, I want to use the approach that I think top $$ uses when entering the market and apply it to short term trade.
Looking to go short GAUD, but still not the time. There were no signals last night. Market has been quiet for a while, should start picking up volume soon.
got out of 1 lot short EJPY at 115.07 (had order there, so it got triggered) for 66 pip profit. The other lot short I'm looking to get out around 114.73 to capture 100 pips, but will be bringing stop to around 115.20 to at least capture 50+ pips.
Trailing stop on EJPY never got triggered. Lowest it has been was 114.69, so I have placed stop loss @ 114.99 which will guarantee 74 pips profit and a TP of 114.60 which if triggered will be 113 pip profit.
Well, I'm out of my EJPY short at 114.59 for 114 pip profit on my second lot + 66 pip profit on first lot = a combined 180 profit.
As far as the GJPY "little project" shown on Post 690, there is nothing else to say. The low a few hours ago was 135.79 which when accounted for the spread of about 4 to 5 pips depending on broker, and an average entry of 136.48 on 3 lots, the maximum profit achieved up to this point would have been a combined 180 pips or a bit better (136.48 average entry - 135.88 average exit). Not bad when nobody wanted to touch the JPY long.
Nothing too much on the horizon for me just yet in terms of signals. Some possibles are below though:
GBPUSD - I am waiting for the gap to be filled on this pair before looking for possible selling opportunities around the 1.36720 area. For now standing by.
EURUSD - There are a couple of possible levels to trade from but nothing that fantastic in all honesty. The levels are not defined clearly enough for me. We have come into an area of daily demand so am more inclined to be buying in the near term. You could look at a buy limit @ 1.12108, SL @ 1.11890. You could also look for a quick trade with a sell limit @ 1.12927, SL @ 1.13210. Like I said though these are not the best levels but could definitely still work.
GBPAUD - Possible buy limit @ 1.73150, SL @ 1.72610. Price could come down to 1.72975 so you could adjust the buy limit to this which would minimise the risk. It could miss this entry though.
EURJPY - You could see a good bounce in price after hitting 113.358.
Only 1 signal tonight:
Short GBPJPY near the 137 handle with a target that will be determined IF price bounces from current levels to hit the entry short.
I'm also placing an order to buy EURGBP @ 8371 looking for a restest of recent highs above 8500
Ollie, can you post the time when you entered short EAUD and when you got out? I can see in the chart where you got stopped out of the trade but not where you exited.
According to the chart you should have gone short at around 8:37 am this morning, since your post with the signal was at 3:42 am. so you took half off when it dropped a couple of minutes later to 1.4613?
Thanks
richard
That is right Richard. I was asleep when it happened in all honesty but I run a program that you can set to take half your lot at 1:1 and set a limit order before I went to bed. And my broker has good spreads but takes more commission. I'm not sure the exact figure it grabbed the 1:1 but it happened quickly. My entry was hit within a pip or two which worked out well.
I changed what I wrote above as it was abit confusing. Essentially a net profit of 0 on euraud
