Dale, when you are talking about trading the SI with stops (instead of stop and reverses) I think I understand but I just want to make sure.
First you have to figure out how many pips= one point change in the ASI. I did this by finding the difference between the close on friday and the close on thursday, and then finding the difference in ASI values.
So, close on friday for eur/jpy= 159.24 close on thurs= 159.83
159.83-159.24= 59 pips
ASI on friday= 40 ASI on thursday= 54
54-40= 14
So 59/14= 4.214 This means for every 4.214 pips change, eur/jpy's ASI goes up or down by one point, seem correct so far? So if I am going 60 points against my most favorable ASI (which was friday) then I take the close on friday and add to this 60*4.214 and get my stop. This makes sense to me, but instead of using the close to calculate the stop from, should I use the high or low of the day?
As you might of guessed (or seen from the markets today) my three SI trades (gbp/jpy, eur/jpy, chf/jpy all short) are now all in the red, but the ASI for today will not go 60 points against for any of them, so that means I am still going to be in the trades. I hope the big gains against the JPY were just corrections and that the downtrends will resume..
Also, I think I am ready to switch over to Delta, but I had a few questions about them..
Is the minimum balance still $500 for a mini forex account? 200:1 leverage?
Also, what is the smallest lot size you can buy with a mini account? The one thing I like about Oanda is that you can buy any amount (3000, 5000, 7500, etc.) of a pair and seeing how if I only open an account with $500 and I have to trade mini lots (10,000) I will never be able to have more than one or two trades open based on the money management strategies.
|