Good to se the thread is alive with the sound of music again. Great to see you back onboard Dale, and good to see some great insights coming from a host of other posters as well.
Going back to the original PSAR thingy, I posted on the thread somewhere a while back how I was using it and I am live with a 5000 USD demo account. I think trading the daily is perfect for my “trading personality”.
The only problem I’m finding is that due to work commitments (frequent trips offshore and overseas with no internet connection) I am unable to move stops for several days and I am finding it hard to keep up with the daily economic news etc. The problems of having a full-time job eh! Terrible:)
I totally agree with Dale about reading up on the subject. Too many folks have heard about FOREX as some kind of a get rich quick scheme, but you got to put the time in to learn. I am happy to trade the daily TF just now, and sepnd the rest of the day reading the news and studying various books. Right now I got too much books to go through, but once I’m done I’ll be onto the titles suggested on here.
Now lets get back to the serious business of bouncing ideas of each other and trying to increase our account balances.
Ok: well IN SPITE of a terrible hangover I’ll attempt to answer adamzgreat’s question:
You’re getting confused between a high and a close.
A ‘higher high’ is when the highest price made (reached) by, let’s say, the current candlestick, is higher than the highest price made (reached) by the previous candlestick.
A ‘higher close’ is when the value of the closing price of, let’s say, the current candlestick, is a higher value than the value of the closing price of the previous candlestick.
For ‘lower lows’ and ‘lower closes’ do the math (and the ‘legwork’).
Hi:
I have been trying to undestand this PSAR thats all! system but since I have been unable to read all 170ish posts I would like to know in which post can I find the latest deviation of your first post (using only the PSAR on a daily chart)? I am not trying to sound sarcastic, I am just a bit confused on the rule change.
Also, the pip range on GBP/USD are huge, what currency pairs do you favor or recomend, specificaly for a new account?
Thanks in advance.
Dale its great to see that you’re doing better than treading water. Keep the optimism.
Chuck Norris: thanks for the price action insight, but shouldn’t you now take further discussions on that system to another thread in order to keep Dale’s PSAR pure. I plan to check your system with another support and resistance one I learned last year, and use PSAR to confirm the trade setup. Now if only I could earn a few thousand dollars by March.
I’ve virtually blown my small account on greedy lots on gold and I’ve been extremely busy with my day job; but forex is so seductive I’ve kept at it.
It has been showing an uptrend since yesterday or is it my Platform? but am happy i didn’t trade it. I traded EURUSD instead. I would have lost some of my 500 bucks.
Anyway am still waiting for it to close for today anyway.
Nice to hear from you (I’ve been wondering what happened to all the ‘pioneers’ of this thread)!!!
As far as Chuck starting another thread is concerned: I have absolutely no problems with him posting his stuff here at all if he’s happy to do it. The irony of the whole thing is that this thread gets more ‘reviews’ and posts than any of the other for some or the other reason. Having said that it would probably make sense to have a thread for ‘pure Chuck stuff’ i.e. to keep it all together but I’m not sure that ChuckNorris wants to start another thread and ‘train’ everyone i.e. from what I gather he is ‘keeping it simple’ (which is probably why it works) and as he said in his post there is not really much more to ‘it’ other than people putting in some of their own effort and trading his method. Like I say: I have not problem and welcome his input.
Hi there,
I have one question regarding this system
What about the 2% max risk you should apply to your open positions, isn’t it a little bit difficult (if not impossible) to follow this basic rule of money managment with this system ?
For example,
If I have a 2.000 USD account and I want to risk only 2% of that, that would be risking 40 USD = 40 pips. (I’m assuming 1 pip = 1 USD)
I go short on USD/CHF (10.000 units) open price is 1.0902.
If I follow this system rule… I will look at the first dot of the parabolic - and I see 1.1123.
[B]That is more than 200 pips!!![/B]
So that means I’m risking much more than the recommended 2%
200 pips instead of 40!!!
Isn’t this too much ?
How do you manage proper risk rules with this system ?
Simple but sad. You are undercapitalized. From what I’ve read so far many people have good trading strategies but either over trade their account (open too many trades like I’m currently in) OR their account is too small to start with. Regardless the result is the same. They can’t handle the “looseness” required to not get stopped out or margin called.
Last night, without looking at the spread dummy me, I opened a trade on the AUD/THB. My spread was a greater distance from the actual price than the PSAR dot was! Argh! :mad:
Thanks for your reply.
What would be your suggestion then to open a “confortable” account ?
5,000 USD, trading 10 K ???.. but still here, if you wanted to follow the 2% rule you would only have a buffer of about 100 pips.
Does this mean that this system only works with 50,000 USD accounts and above ?
I’m a newbie so I can only quote from the books of “professionals” that I’ve read. However, I would say that you should trade mini/micro lots. Whichever works “in your budget”. I’m not sure how you are calculating the 2%. Is that your margin or how much you stand to loose that must be within the 2% mark? I’d think you’d be concerned about your Stop Loss requirements.
So, lets assume you trade mini lots. That would “cost” you about (depending on the currency pair) $1 per pip. Therefore, you could withstand a string of 100 pip Stop Loss hits with a $2000 account only 20 times (a little less than 20 times, due to margin reservations). This means you would be risking a potential loss of 5% on your initial account. BUT if you trade the same lot size but had $5000 funded account you would be at your 2% risk! You could withstand almost 50 losses in a row! (Not that ANYONE would want that but you need to be mentally prepared for a string of losses.) Frankly though, if you really follow your 2% rule you should never let your account be less funded that $5000 because after your first loss that dips you below $5000 you are now going to have to risk more than your 2% limit on your next trade (assuming the 100 pip Stop Loss mentioned above).
Boy am on in a chatty mood today! Anyhoo… one more piece of advice I’ve gleaned from my readings. Don’t give up on your trading strategy just because you have a string of losses. That is normal. Just remember: “Plan your trade and TRADE YOUR PLAN!”
