Follow the big money

In this thread I will share my trading views. I have almost 15 years experience as individual trader, bank FX dealer and risk manager. This helped me to see the markets from different pоints of view. No I can quickly adapt my trading style when the market conditions change.
My trading philosophy is “Follow the big money” which is the modern interpretation of the trend is your friend. The difference is that the trends are not what they used to be and you don’t have t trade only trending markets to be successful.
In general I use the following main strategies:
Spot:

  • trading around strong levels of support (long) and resistance (short). Entries are filtered with quote reading. Today the short GBP/USD positions was closed at 1.6050 because the quotes confirmed the bids at this support (entry was STE).
  • STE (Svetlin’s Trick Entry) - trading with 20, 50, 100 and 200 EMAs. Position and direction of the EMAs show the trend. Entries are at the EMAs. A lot of additional filters applied. Quote reading is the most important of them.
    Options:
  • Directional - every strategies that i trade on spot. Options provide me with much better R/R ratio.
  • Volatility - every predictable change in volatility whether it is cyclical or event driven.
  • Time decay.

How can you close a position today already when Forex Spot Market has not opened yet… just curious…??

Hi srmfx,
welcome to Babypips.

Just to answer JavaPro, your post relates to Friday and is a copy and paste of a post on ff.

Was just wondering if you are connected to fbmtrader?

Thanks for clearing that one up… That makes more sense…

Nice post.Its helpful for traders.

Sorry. Today of course is Friday. I talked about this position.


Yes. It is good summary of my trading style and there is no need to rewrite it. I recently learned that babypips has a good forum. Probably my sharing my experience will be helpful to someone. I have a lot of time to waste every day. Actually trading is the most boring business. At some point you have a couple of rules that you just have to follow day after day, after day, after day…

I found some very useful tricks in you strategy I can adopt and make benefit of it. Do you mean that “Follow big money” is searching for obvious trends and entering at those moments?

Actually yesterday I wrote about this. 'Follow the big money" is my interpretation of “Trend is your friend”. Today markets are not trending well for various reasons. This is the reason why traders must have good knowledge about everything to be competitive and adapt to changing conditions. For example, the volatility of the FX majors is very low the last few months. I don’t have to trade strange crosses, but I can use options to get some leverage or trade volatility.
The “tricks” make the difference between the successful and unsuccessful traders.


STE at 200 EMA. Market is in slow motion today. Large 1.35 on Monday. Initial stop 4 pips is worth trying. Two parts are closed and the risk is covered.

Stop at +1 pip.

Stop at +7 pips


STE at 50 EMA. Stopped - 6p
STE at 100 EMA. 1st part +6.4 p, 2nd part +12.2p. Stop -5.3p


Stop at +2p

Are you a scalper ??

Not exactly.Last part of the position could be closed after hours.

Do you trade the 1 MINUTE time frame?

I trade on 1M charts, but always know where are the support and resistance levels on higher time frames.

Market is lazy today and I trade with binary options. The set up (in this case STE at 200 EMA) is the same as with spot.



STE at 20 EMA. Stop is at +2p.
GBP/USD was better choice.