Trade with a demo account for several cycles until you understand and/or master the system.
We only go long GJ because of positive interest. We try to get longs as low as we can. We know that everything must return to its origin and certain price levels are like bridges where price will cross BOTH ways at A minimum
at least once. We will return to 251. We will return to 180 too. GJ price travels in cycles (circles) and channels. SMA's at 21 55 89 144 268 and other key Fibinocci numbers as well as Fibinocci retracements and/or extensions provide levels of support and resistance besides the obvious psychological numbers of 204 204.50 205.00 and others like .80 .20 .40 .60
but these smaller numbers more rarely come into play with the beast GJ as its average daily range is generally larger than any other pair..
We but long as price moves down so it looks like we are buying into a losing position, We are ATM and have drawndown (unrealized). We hold them until they yierld a profit. We use NO stop loss orders. When we buy long we set a TP target and when it is hit our trade is automatically sold and pips banked.
We get in with one order at market referred to as our "loss leader".
It really doesn't matter where we get this order price wise, but we oBVIOUSLY
if we are going LONG we dont want to buy long at resistance! or at the top of a long bull run up, that has STALLED. From this loss leader we get long every 10 pips down. So loss leader at 207.60. But normally we buy on the 9's and sell on the 0's but any number will do. This is more for tracking.
Now depending on market and range and momentum and volumne and all that we analyze some charts and decide we only have so much margin so we are going to go every 20 pips down, or start getting long after a 50 pip move down.
Key with this system is smart margin management where you use 1-3% of your margin. Using any more than this exponentially increases your risk in a large move down. The idea is NOT to get sold out after running out of margin.
This will work but you cannot get too greedy or too impatient. You are always scalping in range for 11 pips or so and always selling longs when they hit TP targets. All orders are set 100% with TP targets and NO STOP LOSSES> So yield is 100% profit on all trades. YOu have to understand the sometimes severe drawdown and master smart margin management.
YOU MUST have a broker that doesn't stick you with FIFO.
monthly interest on margin used to hold trades open is about 30% a month.
Some brokers pay this as interest and some pay it by lowering your averaged trade amount (by lowering your effective price on all your trades at rollover).
So if you hold GJ at say forex.com every day at rollever say you got long at 204.00 today, after 5 when it rolls over you will be long at 203.97 or something, so for one week of rollovers you go down quite a bit and KEEP going down as long as you hold the trade. Eventually the pound will come back. Its LT trend, historic LT trend is UP, LAtely it has been down.
BUT down has turned around recently and I thinkw e have moved quite a bit up from 192.60.
Its pretty simple. If you have any specific questions ask them.
Get a demo account and start trying stuff.
Quote:
Originally Posted by wseyle
I am sorry. I have been thru all of the posts in this thread, and I cannot figure out what your GBP/JPY strategy is.
Perhaps I am stupid, I don't know, but I am looking for plain English instuctions. 
Thank you
Anewbie |
Strategy
Slow to Learn
Back in the Saddle
Linear Mode
