Fib Retracement Trading...

[tonymand]

Originally Posted by kagein

ok im gonna run through a few of the trades i took this week, most were off fibs, the rest i used fibs and trend lines. This is gonna take a while my software doesn't have the fancy arrows or writing tools so excuse the poor illustrations

ok.

image 1. this was the usdcad....i saw this just after i work up. i placed a limit order right above the 38% fib line, closed once i hit 20 pips.

Image 2. didnt use fib lines at all. placed a limit order above the first line of resistance level. placed the second resistance line as guide as where to close if the market ran away with it self. price action respected that resistance line.

image 3. i was waiting for a retrace to the 61% level, but once i saw a hammer forming i placed an order just above the previous candles closing price.


had to use fxcm demo charts, they're clearer than mine are.

So this is quite a different approach to fibs than that used by Daedalus as you are trading against the main trend in a couple of the cases. Taking a quick profit is therefore wise. Is your stop also about 20 ie you're looking for an R of 1?

[kagein]

yeah your quite correct, last week i was going against the main trend. Most of my loses were for that same reason. i wont be doing that next week though.

if im in for a 20 pip profit my s/l is 10 pips and 40pip target, 20pip s/l

[tonymand]

Originally Posted by kagein

yeah your quite correct, last week i was going against the main trend. Most of my loses were for that same reason. i wont be doing that next week though.

if im in for a 20 pip profit my s/l is 10 pips and 40pip target, 20pip s/l

OK, it will be interesting to see how that pans out long term. Thats what attracted me to Daedalus and his ideas in the first place especially with an R above 1. Look forward to your continuing updates

[metalhead trader]

Originally Posted by daedalus

And in case you were wondering 20 pips a day with 100 lots is a cool 4.8 million a year.

If im not wroung isnt that only 480,000. i think you mean a 1,000 lots.

[daedalus]

Originally Posted by metalhead trader

If im not wroung isnt that only 480,000. i think you mean a 1,000 lots.

20 Pips a day X 20 Days a month = 400 Pips X 12 Months = 4800 Pips A year X 10.00 / Pip (Std 100k size) = 48,000.00 / Contract X 100 Contracts = 4,800,000

[Dahlia]

Originally Posted by daedalus

5. I'm actually a full time college student (i'm a senior in my last semester). I take night and online courses so I can trade during the day. However this semester I have to take a Monday/Wednesday morning class at 8:30... It was hell this morning. I might take my laptop with me and trade in class...

Daedalus,

Thanks for the answers to my many questions. Your answer to one of them got me curious, and I hope you don't mind if I go off on a tangent for a minute: You said that you might take your laptop to class. Do you have wi fi in class? How are you getting connected in class? I'd love to take my own laptop to work, but I'd have to steal wi fi from some anonymous internet provider. I hear that Verizon can provide wireless connection, but according to Tradestation, using that kind of connection is not advised for trading their platform. And I don't want to use my employer's LAN directly, as I'm sure my employer would frown on that I'd love some ideas on how I can trade at work, and it would start with being able to connect away from home. Thanks!

Dahlia

[tonymand]

Originally Posted by Dahlia

Daedalus,

Thanks for the answers to my many questions. Your answer to one of them got me curious, and I hope you don't mind if I go off on a tangent for a minute: You said that you might take your laptop to class. Do you have wi fi in class? How are you getting connected in class? I'd love to take my own laptop to work, but I'd have to steal wi fi from some anonymous internet provider. I hear that Verizon can provide wireless connection, but according to Tradestation, using that kind of connection is not advised for trading their platform. And I don't want to use my employer's LAN directly, as I'm sure my employer would frown on that I'd love some ideas on how I can trade at work, and it would start with being able to connect away from home. Thanks!

Dahlia

Not sure why wifi connections would cause Tradestation a problem. I have had them from Vodafone and now Telstra (Australia) and have had no problems either with charting or use of my platforms. I also occasionally use them at work but the main use is so I can use my laptop as a backup if everything else fails

[daedalus]

Originally Posted by Dahlia

Daedalus,

Thanks for the answers to my many questions. Your answer to one of them got me curious, and I hope you don't mind if I go off on a tangent for a minute: You said that you might take your laptop to class. Do you have wi fi in class? How are you getting connected in class? I'd love to take my own laptop to work, but I'd have to steal wi fi from some anonymous internet provider. I hear that Verizon can provide wireless connection, but according to Tradestation, using that kind of connection is not advised for trading their platform. And I don't want to use my employer's LAN directly, as I'm sure my employer would frown on that I'd love some ideas on how I can trade at work, and it would start with being able to connect away from home. Thanks!

Dahlia

Yea, we've got WIFI in our business building so i've just used that before. I think tradestation frowns upon using WIFI in general for a connection, but I've been trading everyday for over a year now on a wireless connection from my laptop and a wireless linksys router in my house with no issues.

I've also looked into doing the whole Version/Sprint wireless internet options but i've yet to really have a need for them. (One of my dreams is to buy a boat in san diego to live aboard and trade from the boat, but until i do that, i don't need the wireless cards).

I'm sorry i'm not a lot of help. If I were you, i'd try and use your employers LAN (if it doesn't take up your time at work - whats the harm?), and if not try the verzion/sprint options. I'd feel better about going with them than an anonymous internet connection.

[kagein]

do you only look at 61% retracements?

[tonymand]

Dale - I couldnt resist this. My 1000 post. Didnt have anything vital to say so just thought I'd say hello and see if I disappear!