Using you as a model, you engage the market on your terms at the levels you decide are important (ie strategy). What entry set ups you then use are a different matter and probably of relatively less importance. I have the latter not the former.
Exactly. We wait for the market to issue the green light, we never, ever jump the lights – very important! To a degree, yeah the entry/exits rate lower down the list of priority. Trade management & strict risk measures are the be all & end all in my book.
Essentially I prefer trading trends. The multiple timeframe strategies therefore suit me. I find the best entries at the European or London open and I have a small number of favoured pairs.
Then that’s where your focus should lie in the interim.
Get a good handle on those preferences & work your risk & trade management models around those set ups which stimulate your trading senses. Trading is all about familiarity & comfort zones. You should be able to trade your set up’s blindfold.
You should also be able to switch your screens on, haul up your pairs & very quickly assess whether the environment is suitable for you to come out to play. If it’s not, you switch off & go do something else until it tips you the nod.
Great traders know the meaning of, & adopt discipline as a major ingredient of their everyday work practices.
Good traders have an awareness of it.
And the rest can’t even spell it!!
In terms of strategy then, at the Europe open and for up to a couple of hours after, I should look for the best trending pair within my area of competence and if an appropriate set up occurs trade it.
And if not, pack up & go spend time with your family (see above).
I am currently excited about the 3 ducks as my set up and break of a key level my entry signal. If no trade is obvious I should take the night off.
Hmmmm, a pattern seems to be appearing here?!!
If this does not produce the 2 or 3 trades per week that I am looking for then I might look to use an IB, round number or other strategy which can equally well work in a ranging environment.
Sure, nothing wrong in having a plan B. Just ensure you’re looking to trade for the correct reasons & not merely to satisfy a craving.
Remaining ‘flat’ is also a position in the markets!
I think this is the start of having a strategy, a rationale if you will for engaging the market and within that using whichever of my tools that suit the conditions at the time.
Agree. Eventually, when you’ve assembled a small, reliable set of tools & you know exactly when & how to use them, they’ll serve you well for as long as you wish to work these markets.
The major advantage of utilizing discretionary models is that you’ll be best placed to operate in the ever changing market conditions. Markets don’t stand still. The FX market has grown & changed rapidly the past 3-4 yrs, & will continue to grow & stretch with all the influx of different participation.
Price action will be your axis. It will continue to signal your green lights, no matter how volatile they become. The contents of this article certainly compound that view.
Bloomberg.com: Worldwide
There will be much more of this occuring in future, & the trader who keeps his cards close to his chest, stays on his toes & trades what he see's not what he thinks, will eat well & plentiful
Linear Mode
