(binned per thread starter's request) Trading system replication

What do think... start looking for longs on au?

au h1

London breakout trading:

I would draw it like that. Remember last two highs/lows are the most important, not the lows or highs that are far in history. So the breakout in this case has already completed the target.

Awesome strategy! Count on me. I use to trade same session time as you.

This is my first trade with the strategy. cable some minutes ago. Is it ok?





I'm following you.


TONI

Hey Janpec, one more trade. This time USDJPY:





I love the core of this strategy. I'd like to master it.

thank you very much
TONI

What´s your favourite colour JP ?

LuXing

Hehe that would be difficult one. Red probably. On the charts its red and green.

Yep good trades .

Watching ECAD for possible short.

+12.

Hey Janpec, thank you for sharing your strategy. I trade a similar setup, only difference is that I use heiken ashi candle color change to define my entrance. Its a bit safer, but sometimes you can jump in a little too late. I have some questions to you though.

Although I also trade stocks I don't usually pay attention to the volume. I usually hold them for about 3 months using fundamental analysis. Also, I only have about 5k invested in stocks so I can't really place more than 5 orders/week (last time I checked that was the limit) otherwise it would be considered day trading. If I'm not mistaken you need to have 25k sitting on the account at all times. Do you have that or do you work around that?

Can you please explain the importance of time and volume in your trades in the forex market? I remember reading something about the size of candle vs the volume size indicating a fake move, but I also heard that forex volume is not accurate nor reliable. How do you deal with false breaks? How often do they happen in your strategy based on your experience?

Thank you for your time.

Red & Green it is then. Horribly choppy this one, good to practice Van Gogh stuff.

LuXing

Hey, like you said Heiken candles are late, thats becouse of the nature how they report changes. In breakout trading its extremely important that you are in fast and as precise as possible otherwise you start to decay your RR profile.

Holding stocks for 3 months is not mechnical system, at least not one that has high % reliability to at least keep you in game on long term. Stocks crash all the time and you could easily get gap down open and especially on small account youll be stoped out. For that reason i never hold positions over night. Yes you are right you need larger account to trade stocks than you need for FX. Fx is extremely flexible, stocks are much less, but you can still adapt to it. First thing is what you can do is to only trade stocks that move in larger % moves which gives you ability to purchase less stocks (less equity) to create X amount of profits. In TC2000 you can easily filter stocks by % of moves. Next thing is that you can use options to enter in trades, options increase your leverage by 5 times, but ofcourse you have to learn how to use options correctly. 10k stocks account should be a minimum yes. Another simple option is to trade penny stocks which allow you to use much smaller capital, but like i said never hold over night. There are many ways to use small account in your advantage, but you did good if you realized that commissions are problem, that is the part that i did not realize for long, it was what was ruining the profitability even though that i had profitable system for while.

Time and volume are together related to volatility. Generally volatility will be in snyc with time, meaning Asia session is usualy on low volatility, LO and NY on high relative to eachother. Obvious ofcourse but its important to use that info in your advantage by entering in low volatile market and then using predictable time window for when high volatility should likely occour.
About fake moves i dont know, yes FX volume is tick based volume, it means that it tracks activity rather than size or which side is participating. In stocks volume is much more clean, meaning that green volume is buy orders kicking, and red is sell, as oposite of FX where green just means larger activity on that candle than on previous candle.

False breakout happen all the time, the more liquid the instrument that you trade the more likely they happen (mind that that is only theoretical i have not checked it. Would make sense though, with all the algos and smarter players in market). Its just something that you have to accept and know that you will loose on plenty of trades, at the end all it matters is that you grind it trough to the profitable side.

Nice spread on AU there, what broker are you on?

See my profile ;-)

So, how ´bout those lines. Do I need to cut off my ear just like Van Gogh did ?

LuXing

Nope your ears are safe for now. Lines are ok.

Examples of money/risk managment and volatility adjustment. Simply by following this approach you can drastically reduce the losing day in terms of %, and stabilize the account.

Gold H1, gona look for some longs tomorrow.

GBPUSD M5:

Counter-trend trade.