INGOT'S RAINBOW ... A Position Trading Strategy

[blackdog]

Hi
Anybody got any thoughts on Aud/USD daily chart
Long trend weekly/monthly up
But close of stochs below 76.4 on daily forming.
big bear candle on daily
maybe 100pt drop to fib 61.8 and red support line
SL 0.9020

[Cdawg]

hey Blackdog,
Thats a nice tight rope formation and could be a nice ride. Though according to the simple rules, you would be trading against the LT trend which appears to be still going up.

Though i seem to recall one of Ignots post that when you have such a nice tight formation, your in for a "mother of a trade".

Good Luck Mate

Originally Posted by micrapip

cosgrove,

where in the world are you? I'm in Toronto canada so EST GMT+6 or -6 (I can never remember..) same time as NY

I'm in your timezone, too, in Niagara Falls, Canada. We're at GMT -5.

[cosgrove]

I'm in North Carolina (east coast of US). School is making it rough on checking trades =P

Big euro candle down hit my trailed stop unfortunately. I wanted to leave one lot in there to ride it out.

Follow-up to blackdawg's post: Saw a bounce off of some previously drawn support after that big bear aussie candle (which wasn't too far off from your original 61.8 guess I don't suppose). Weekly is fishnetting sideways, I would stay out for now.

[micrapip]

So I finally setup MT4 and based on the indicators these are the trades I entered...

G/U @ 1.9744 -46 pips
E/G @ 0.7430 +1 pip
G/C @ 2.1723 -36 pips
A/U @ 0.8844 +104

Net pips for the day +23

Just wondering since this is my first day with this system can anyone comment on the deals I entered? Good... Bad... Why...

Cheers

Micrapip

[cosgrove]

Did you enter long or short on your trades? I just went long on GU, I don't know about how good of a trade it will be though. Weekly stochs are oversold and flat, strong downtrend on the daily with price, but we had a long signal. Probably should have stayed out.

[micrapip]

G/U @ 1.9744 -135 pips long
E/G @ 0.7430 -68 pip short
G/C @ 2.1723 -151pips long
A/U @ 0.8844 +45

I guess we will wait and see... also I have to get out of the short term mind set... which is why I guess for the wide stops

[Cdawg]

Hey everyone,

What strategy are you guys using to exit the trades? I mean if you set a 250 pip SL, are you entering a TP at +500 (R:R 2:1) or do you monitor the trades as they are going to tell you when to get out?

I'm basically trading off the daily charts and looking at the weekly and monthly for the LTs. And so far i have not been setting a TP, just watching it every so often.

Thoughs ideas??

[cosgrove]

micrapip,

G/U, see above post.

I wouldn't short the E/G anytime soon with that MASSIVE price uptrend staring us in the face on the daily.

I didn't have a G/C long signal on my charts, missed it by 0.5 today, but I wouldn't take it even if it does signal, as the previous signal was a valid short, and this "long" signal would be the first exit sign of that short if you don't count the ST stochs pulling away from the rope.

I wouldn't have done anything with the aussie since the weekly stochs are fishnetting (screenshot in post 164).

Cdawg,

here's what I posted back in #111:

Originally Posted by cosgrove

Exit

* You should always exit when the stochastics start to "fishnet"
* You should always exit when the stochastics cross out of the opposite overbought/oversold zone that you sold/bought in. Ex: buy as they cross up 23.6, sell once they go into overbought and come back out, crossing down 76.4.
* Spudfyre explains an exit strategy of always exiting when the lower time frame stochastics cross over the 14 period stochastic in the opposite direction of your trade. He calls this "breaking the wall." I think he explained this on 1h charts though, where price did not stay in overbought/oversold for too long. On daily and weekly charts, it can stay there for quite a while, and you will have the "breaking of the wall" while profit continues to come in. Use this rule at your discretion.

As far as money management goes, I'm going to be trying to take profit every 100-200 pips after the initial exit signal, if that helps any.

For example: I shorted USDCHF back at the end of December, and the first exit signal came today, but I wasn't at the computer to close the trade before the close, so barring any gap on Sunday, I will close out one of my lots at +416p profit. The other two will still sit there, and the stoploss is now 160p away, because of how I moved it a few days ago when I was sitting on even more profit on the trade. Hopefully the pair will continue downward and I will collect ~600p from closing the second lot. The last lot I will trail until it gets stopped out.

Feel free to ask questions and/or critique my method, as I just came up with it and haven't tested it yet.

[cosgrove]

How's everyone doing?

Had a few signals today on the aussie and euro but I didn't take them because the aussie's weekly stochs were fishnetting and the euro's weekly stochs are pointing down.

Will be interesting to see what happens tomorrow.

That G/U trade a few days ago turned into a disaster =P It'll have to break out of this downtrend on the daily for me to go long anytime soon.