That’s Jaquille’s contribution to the mmtt thread. Not a bad idea, the lines represent the past two candle high low, rather than the last one candle high low that I’m looking at. Also he’s looking at M5, and is more of a scalper. Although goes for the big pips if the market offers them. So to make a long winded paragraph short, lol, Yep looked at it and like mmtt for sure, but definately trying to keep things simple.
I wasn’t sure whether to try and trade my daily hi low on monday. I haven’t set up any pending orders yet. Remember my stats on the first post didn’t filter out NFP or any other day like Monday’s or Fridays. So not sure how Monday morning price will behave. Maybe just watch and see this time.
For me on Monday I dun use Friday high low. Instead I look at weekly high low. Maybe you can do that. Weekly high low is something to look out for and add to your setups since you focus on daily high low.
Trade Management Structure & Risk Management Structure is the challenging part.
TalonD finds that out right now.
The usual approach, as drilled into the heads of the majority, is set TP & set SL regardless where price is & what day & what time of the week it is.
The essence of trading HiLo’s is momentum.
Thrust for going LONG & trading a Hi breakout.
Downward draught for going SHORT & trading a Lo breakout.
It doesn’t matter what HiLo it is.
It applies to Session, Daily, Weekly HiLo’s ect.
Trading a breakout requires -
evidence that it is likely to occur
confirmation that [B]IT IS[/B] occuring
the preferred trigger & filter chosen like IB, Open’s ect.
safe STOP placement
Trading breakout’s [& all other trades] requires Order Placement structure & Management.
That should be part of your Trade Risk Strategy you are going to use.
Every trade needs a Risk Strategy especially in a set & forget type scenario.
I have given you enough hint’s now to think about.
I am not going to serve it up to you because everybody needs to do their own work in this regard because that’s how people develop & progress as a trader.
Trading a breakout requires -
1- evidence that it is likely to occur
2- confirmation that [B]IT IS[/B] occuring
3- the preferred trigger & filter chosen like IB, Open’s ect.
4- safe STOP placement
In the event of 2, is 1 needed? Is 1 there so you know to look for 2?
Those questions are nothing more than try to confuse the mind.
Any experienced trader will not fully leg into a trade without confirmation.
Event 1 is used as feeder to test the waters & event 2 is the confirmation to leg in with the remainder of planned positions.
That’s what’s called “adding to a winner”.
Your questions are implying that one is exclusive of the other.
That’s legging into a trade fully commited with all planned positions & getting burned if the trade turns against the trader.
For today, I was looking at last week’s weekly high and low. But today was in such a narrow range that there was no trade for me. We’ll see what tomorrow brings.
G/U
Today was a good day. Both orders triggered and both winners. Looks like a classic textbook fakeout breakout. And one of those 10 percent of candles that break both ways. But yesterday was in sucha a narrow range all day you could just about see it coming.
I’ve no comment on the system that you’re working on here simply because I’ve not tested it nor traded it (and probably wont because I’m finally doing alright with what I have). My contribution here is related to stops and TP levels as this appears to be a small issue for you at the moment if I read things correctly.
What I’ve been doing for a good while now is closing out one half of the position when my TP has been reached and then immediately moving my stop to BE on the remainder of the position. My TP’s are set to either 50% of my risk or 100% of my risk (I’m currently using 100% of my risk as this in effect means that I don’t need to move my stops when my TP has been reached i.e. if my stop is hit after my TP has been hit it will in effect be a ‘scratch’ trade). Simply working like this has changed my results dramatically. Yes: sometimes your TP will not get hit and your entire position will be stopped out and sometimes a ‘stirling’ trade will eventually turn to a ‘scratch’ trade after a few days but it’s sure nice to not LOSE equity as frustrating as this may be sometimes.
The above being said: your system is totally different to mine in the sense that I must use the previous swing high or swing low for my stops so I’m not sure how YOU would calculate risk i.e. my risk is calculated as the difference between my stop and my entry price (obviously) except that, as I said, my stop will always be the previous swing high or swing low.
One other idea came to mind while I was typing the above: what about using ATR to calculate your TP e.g. your TP is 50% of the ATR reading or something like that. This might lend itself well to your type of system??? You could possibly even use ATR to calculate your stops e.g. 10% of the ATR reading??? At least using THIS method you’re not ALWAYS going to be placing your stops at the same fixed offet from the high or the low as everyone else (just vary the percentage for ‘uniqueness’)!!! The actual ATR lookback period could probably be optimised i.e. the shorter the period the more responsive ATR will be (obviously).
I did post something relating to the above in the forum for new traders (it started with ‘Article:’ and actually there are two posts on the subject of stop order placement).
Anyway: just trying to help and provide some ‘food for thought’.
Regards,
Dale.
Edit:
Sorry but another thought for you. What about using say 50% of the previous day’s daily range as your TP??? Sometimes this will be HUGE and other times it won’t equate to much but still: if you manage to somehow get most of your trades to be profitable or BE then you’re already in a good ‘spot’.
Another edit:
Sorry but YET ANOTHER thought for you. What about trading your system as a ‘true’ stop and reverse system i.e. your stops will always be placed at a level where your loss will be no more than 2% of your account. In almost all instances this will mean (if you’re not overtrading) that your stops will be W-A-Y away from the highs or the lows and your stops simply repersent a ‘worst case scenario’. If the stops are not hit then you simply stay in the trade until you get an opposing signal based on your entry rules at which time you’ll simply stop and reverse the trade. The ‘plus’ of this method is that you will stay ‘in’ on the extended moves. The drawback though is that because you’re not using TP’s there is a good chance of ‘whipsaws’ ‘eating away’ at your account. This you would have to test of course. Essentially (if you think about it): you’re actually trading a 2-day price channel really and if you call up a 2-day price channel indicator you’ll quickly be able to see whether or not you’re going to get ‘whipsawed’ ‘every other day’ or not.
Sorry but YET ANOTHER edit:
I guess you could also try using RSI and only taking long trades if RSI is rising (and has not reached it’s upper limit of 70) and only taking short trades if RSI is falling (and has not reached it’s lower limit of 70). In my experience: RSI is a W-A-Y better ‘momentum’ indicator than the ‘pure’ or ‘standard’ momentum indicator. Again: a short RSI period may be of benefit to you. Other indicators that could be of use to you may be ‘Chande’s Momentum Oscillator’ or ‘CMO’ (some say it’s preferable to RSI) or even the CCI indicator. I know you’re system is simple and based on PA and I know that you’d like to KEEP it simple. I’m just making these suggestions in the hope that they may ‘filter’ your trades and this may improve your overall results.
Used: I see that fulcrum line youre referring to but I don’t know the fundamentals like you do for sure. If fundamentals is the right word. You seem to know what the big boys are up to.
Dale: Lots to read and think about. I would definately like to get better controll of trade management. I don’t really like the pending orders, set and forget it strategy. The orders so far have beeen triggered during first half of London session and I’m sleeping through it.
In order to do partial trades and really get things under control, I’ll have to rearange my schedule.
It has got nothing to do with with fundamentals.
GBP / UK fundamentals & news are used as a driver & trigger do get that order flow moving.
It has all got to do with money flow.
The big boys have taken their GBP short positions months ago.
Once they get to their target & if they do so; they will swing it around again.
Again, it’s got to do with money flow.
It’s always this most important question: Where does the money flow?
.5526 prev. day Hi & .5445 prev.day Lo.
.5573 today’s Hi & .5390 today’s Lo.
How much did you get?
if you want to test on MT4 i have a trade manager, all you have to do is set your TP level(s) and SL level(s) and a couple other factors and then open a trade. the rest will be done by the trade manager
yeah, I knew fundamental was the wrong word for it but I kind of knew what you meant anyway.
I got 20 both ways. Could have been more I know but that was my TP and it happens when I’m not in front of the computer. But like I said, that’s something I’m working on. Just can’t do it all at once in one day or I wouldn’t be any good at the day job.
If the GBP shorts manage to punch price through .5341 last weeks Lo it might get interesting this week.
There are another four scheduled high impact GBP/UK news items this coming Thu/Fri. Plenty of trigger opportunities for the GBP shorts to launch another assault.
Not far below present GBPUSD price is a significant technical price marker.
Unless the shorts looking for another spook attack on the brave Longs like they did up there above .5700.
