Does anyone run two different set-ups with different time frames?

Beginner Questions
1

Hello all!

I have a full time day job, so I only have a few hours to devote each day to FOREX trading. Basically, 7:00-8:30 AM EST and 8:00-9:00 PM EST.

Because I won’t be able to actively monitor my trades through the day, in the mornings I’m looking at a “Set It & Forget It” set up. I’ll find a pair that had a breakout that began in during the early part of the London session, watch as it continues after the opening of the New York session, join the trend, and capture 20 or so pips by the time the London session closes for the day. My plan is to trade only USD pairs since they will be the most active during the New York session.

In the evenings I want to try a trend following set up, probably a variant of the Double Bollinger Bands set up that Kathy Lien touts so strongly in her two books.

So Day Trading in the morning, and Swing Trading in the evening. My thought, though, is that if I try the trend following set up with USD pairs, even if it’s a DIFFERENT USD pair than the one I happen to trade on any particular morning, then in essence I’m STILL just doubling down on the USD. And if the Fed Chairman happens to BELCH during a press conference then BOTH my trades could end up in the toilet.

Now I think it’s a little ambitious of me to begin with, saying that I’ll monitor ALL the major USD pairs looking for one that had a breakout during the London session for me to trade in the morning. So I feel that it’s unrealistic of me to think that I can then ADD Pound/Yen, Pound/Swiss, Swiss/Yen, etc., for my evening trading, and be able to trade them in any intelligent or profitable way.

But is trading two USD setups over two different time frames to much exposure? Or is trying to trade two different setups in the first place too much to bite off?

2

This actually sounds like day-trading twice. So you would as you say get the advantages but also the risk of trading the same currencies on the same time-frame but doubled, the only difference being your entry criteria (which is the least important element).

I would definitely recommend adding a second time frame once you are consistent in one, but one should be intra-day and one multi-day. This drastically limits your workload, you will be able to pay better attention to both, and you will have the possibility of e.g. being long the USD intra-day but short USD long-term.

But only viable after you’re consistent in one or other time frame first.

3

In a time, I use 4 time frames for any particular trading instruments (Daily, H1, M30 and M5)! Actually, I verify my entry points by using out of 4! Basically, when I get same momentum, then I got for new trades otherwise not! Yes, contradict situations are very available on multiple time frames!

4

Except it’s not.

My “Set It & Forget It” setup is clearly a day trade as I will place a Buy Limit order, and a Sell at my target price along with a Stop Loss, and those placed as One Cancels Other. I fully expect to either hit my sell price or get stopped out within 1-4 hours of placing my Buy order.

The Trend Following setup is a Swing trade that will be kept open for as long as the trend lasts, days or even weeks. I’ll manually trail the Stop Loss.

1 Like
5

Yes, much like the 3 Ducks setup. But that is very much NOT what I’m talking about.

I’m talking about day trading in the morning and swing trading in the evening, and if trading USD pairs for both time frames is to much risk exposure.

I am sorry. It seems that my OP was unclear.