THE JOY OF CANDLESTICK TRADING - Part 2

[concept]

Hey Tymen, I just got a question when it comes to using multiple lots on Dealbook.

I am trading 2 standard lots for my first entry using UML/UMS and then I will enter another 2 standard lots to improve on my 1st if it is possible.

My question is, how do I close out of one my amounts to let the other run to see if i can make some extra profit. I cannot seem to close them out individually.

[damo989]

Originally Posted by concept

Hey Tymen, I just got a question when it comes to using multiple lots on Dealbook.

I am trading 2 standard lots for my first entry using UML/UMS and then I will enter another 2 standard lots to improve on my 1st if it is possible.

My question is, how do I close out of one my amounts to let the other run to see if i can make some extra profit. I cannot seem to close them out individually.

The way i do it is, right click on the chart your using and click sell at xxx.xx (the price it currently is) and just sell 1 amount. Hope that helps.

If there is an easier way to do it Tymen please let us know.

[tymen1]

A warm welcome to Gasanvill, Wrtm 19, O99016mh, Husky 1, Carraroe , my good local fellow from Perth (just up the road), namely Damo 989, and Concept.

[tymen1]

Originally Posted by o990l6mh

Very interesting, may I ask where that pie chart comes from?

A bakery!!

No, it came from a website (I cannot remember exactly) I think to do with Fibonnaci ratios.
They had obviously done a fairly comprehensive survey of customer statistics by noting who was trading, who was no longer trading and who was really making it in forex.

The statistics line up exactly with everything else I have read about forex drop out rates.
This website had no particular agenda and I believe the pie diagram to be totally accurate.

[tymen1]

Originally Posted by husky_1

I know the starc band code for MT4 took a few minutes for me to find.

Here is the code for those that need it. Copy and past the code into a ......., then finally it should appear in metatrader.

Absolutely excellent work Husky_1 !!

You are a lifesaver for those people working with MT4.

The Starc bands are essential for the Advanced level.



It is now very important that I give you a few changes for the parameters......

extern int MA_Period=13; change to =6

extern int ATR_Period=21; change to =15

extern double KATR=1.5; NOT SURE ABOUT THIS ONE


If you are working with MT4 and understand some programming then here is the GFT Dealbook script :
You can compare it and set your parameters correctly.


indicator STARC_Bands;
input factor = 1;
draw line_mid("Mid SB"), line_upper("Upper SB"), line_lower("Lower SB");
vars tmp(series);
begin
line_mid := sma(close, 6);
tmp := factor * mma(truerange(), 15);
line_upper := line_mid + tmp;
line_lower := line_mid - tmp;
end.


As you can see, the script is a lot simpler than MT4.

[tymen1]

Originally Posted by carraroe

Hi Tymen,
You could become every forum member's favourite teacher!!

That would be nice.

I try to do my best to make complicated things simple.

[tymen1]

Originally Posted by damo989

Good to see ya back tymen. Followed you through the first thread and i will be following this one very closely.

You should get a lot out of this thread Damo989.

The Starc bands were only just touched on in the first thread.
Here they will be dealt with in detail and a much greater understanding will be given.
Hopefully this will improve every Advanced level user's trading greatly.

[tymen1]

Originally Posted by concept

Hey Tymen, I just got a question when it comes to using multiple lots on Dealbook.
...............
My question is, how do I close out of one my amounts to let the other run to see if i can make some extra profit. I cannot seem to close them out individually.

Damo 989 has made a good atempt at answering your question.

I will just add a little.

When closing (exiting), you must click on the Direct Deal ticket.
For all other program users, this is an at market order.

If you have entered 2 standard lots, then simply enter 1 standard lot in the lots window provided.
Then when the price hits xxx.xx as Damo 989 said, go click!

Let me add a picture to make things clear.........


By tymen1 at 2009-02-24


This is a 5 minute starc band chart showing the Bolllinger bands and Starc bands.
Please note that my Direct Deal Ticket (DDT) is set up in mini lots (10,000)whereas yours is probably set up in standard lots (100,000).

[tymen1]

And now to look at the strategy B for the Intermediate level.

The only difference between this level and the Basic level is that here you get a better entry than just the open of the candle after the pattern.

This better entry is got using the Starc bands.

We do not enter at the open of the candle but wait instead and watch the starc bands to see if we can get a better entry.

In most cases this is successful even if only by a few pips.
But even 1 pip better is good.

You may not get the best entry with the Starc bands, but this does not matter.
The aim is to get a better entry than the Basic level.

[tymen1]

Now here is strategy B for the Intermediate level.

It is identical to the Basic level stategy B.
The only difference is the better entry.



By tymen1 at 2009-02-24



Lets go thro the numbers.........


Description:

1) PCI set.

2) Traditional Basic entry point - no action taken (look only).

3A + 3B) Waiting - at this point we see if price action is going in out favour. (look only).

4) A good entry on the Starc bands - better than Basic (use 5 min chart).

5) 10 pips into profit - enter 2nd amount.
PCI immediately moved to 1st entry point for break even.




Results

If the profit target is reached it will be reached with 2 amounts, that is, maximum profit.

If it backfires, you will lose 1 amount of 10 pips.



The Advantage

The stop loss at the very beginning is for 1 amount only.
The take profit is for 2 amounts.

In that way you have firmly increased the risk/reward ratio.



Final Conclusion

Strategy A is designed to increase the win/loss ratio.
Strategy B is designed to increase the risk/reward ratio.
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