Quote:
Originally Posted by vnmonica
I've been using 1/5/10min-MAC, 12/26/9 and Slow Stoch, 15/3/3
On 30min and 1hr/2hr I use the above as well as RSI Signal, 4/9.
Most of my trades are about 8-15 pips.
I've tried using 15/4hr, but I hate waiting that long for the ideal setup, and I get nervous when I'm in a winning position that it'll suddenly turn and I'll begin losing some. I can use my system with us/jpy, eur/jpy, eur/us and gbp/us (some days), us/chf, and a few others. But mostly us/jpy lately.
Would you mind sharing your system? and when you decide to get out of the trade? How do you set your stop-loss on short time frames?
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I have never really traded on 1-min time frames. The lowest i ever went was 15-min and i still found that demanding.
Be very careful with short time frames, especially when you start getting below the 15-minute level. At those levels market movement represents nothing but random noise, which is why you are probably having trouble setting appropriate stop losses. Generally, a good way to place stop losses is beyond previous swing highs/lows. This way, you are placing the stop according to what the market is telling you and not some randomly located place. However, i doubt the usefulness of that stop-loss approach on the 1-min -- again, because it represents random noise.
To resolve your problem, you might consider expanding your time horizon to get a bird's eye view of the market from a longer-term perspective, at least 60-min, to help you determine support and resistance, swing highs/lows. An idea you could test would be to still time your trades based on 1-min chart but use the longer time frame to strategize your directional bias and your stop loss placement, based on support/resistance.
For instance, do you think it would be a high probability trade if you took a short trade off the 1-min chart, when the 60-min chart clearly shows the market sitting on top of significant support? Of course not!
The further you step back from the market the better perspective you will get.
I understand that you are impatient and can't stand waiting for things to develop on longer time frames, but that mentality is likely to lead you to overtrading and other psychological traps. By waiting for the higher probability set-ups, you will filter out many losses. Just ask yourself what'd you'd rather have? More trades, more losses or less trades, more winners. At least that is the intended outcome of being more patient.