For the USD pair I group GU, EU and AU for correlation purposes. Sometimes I look at NZD USD also but generally I dont use it for correlation. I have USD CHF. Use to be that when GU, EU or AU fell, then UCHF would be a buy, but that has not been the case for the last two months or so since USDCHF had gone on a free fall.
The second group is UJ GJ and EJ. UJ drops or shows a drop on Daily, I try to only look for a sell on GJ or EJ.
You sure got alot happening at the same time. Anyways wish you the best and hope you having a good time.
I have not added much since I think I didnt want the thread to have a few hundred pages of threads and charts rehashing the same thing.
Trading bias has not been very easy in the last week or so, especially GU and EU. If we look at D TF chart, we will see the last two weeks has been quite rangy with jerky movements up and down. AU has been smooth sailing. NZD USD has also done well.
Those who are just starting out, just a reminder that an easy meal will not be an everyday affair.
Keep at it and as Bobmaninc said, if you dont see something, then its best to skip it.
glad to see some new posts here!! just want to update
iāve been able to consistently collect few pips here and there. i understand the basics pretty much well now. i might still enter too early so my heart beats faster when the retrace goes further.
currently i just trade EU and GU since these two pairs i see with wider range. and yaaā¦ itās been uneasy to follow these two lately with the #1 rule. yesterday it was up and today it goes down and the other way around. i was frustrated of this and started to doubt hahhahaha but noā¦ i looked at the chart again and my belief strengthened.
now i think what i need to do is
start to draft my trading plan
learn about money management
keep my patience checked
practice
keep my patience checked
practice
speaking of money management, iāve been trading with no regard of the risk and reward rule. i just put the SL above the previous daily wave peak/bottom just to collect 40 - 50 pips. how is that? rarely got stopped out again but once i got out it took me days to recover
cool looking forward for that MM thread. in the end we trade for the money. trading maybe interesting and fun but it is the money that i look for. so far with small lot size i am able to maintain my balance. not a big profit yetā¦ i knowā¦ i knowā¦ patienceā¦ patienceā¦
Also looking forward to the money management posts (instead of creating another thread why not continue in this one?).
Iām understanding most of your method, it is just the compounding with the lotsizes Iām still trying to get my head around (I get the compounding on its own, just trying to understand how to put the two together).
I see the the sense in it and thats why I want to understand it better.
I was just re reading some of the thread and post #111 stuck out at me.
I think I might have it nowā¦lets see if Iām understanding this better.
Your aim is to capture 60 pips and once you have you then increase the lotsize.
Do you have to collect the 60 pips in one trade or can be a series of trades, as long as there is a total of 60?
So once you have collected the 60pips you increase the lotsize.
For example started trading 0.10 (mini) lotsize, taken the 60pips and now you would go up to 0.20 mini lots and then 0.30 once the next 60 have been taken, then another 60pips move upto 0.4 mini lots etc?
You can take it in one trade or ten. It does not matter.
But its a guide on when you think you can up your lot size.
Ofcause it does not need to be 60. It can be 50 or 40 or 10 even. Mine is 60 cause even on slow days you can take 30 pips per trade. Two trades later ( maybe not on the same day ) I am ready to compound again.
But then the catch is if its 10 pips TP each trade, you wont be changing gears often cause you have to keep your risk in check.
How do you do that?? By having a SL for your system. Like we discussed the other day, pick an arbitrary value for ur SL, say 100 pips, then calculate your lot size from there on.
Once your new TP is hit, recalculate your lot size with the new account balance in place.
i think i got it. once TP/SL hit, then the equity is changed. the value of risk and reward (target) automatically also changed. the pip stays the same, it is the lot size that we adjust.
And we pick a SL of say 100 pips for the commie system because most of the entries will give you a valid SL of say 30 to 40 pips if we pick it according to wave on H1.
So our calculations will be valid when we get a trade set up that is smaller then our max risk or SL. We cant calculate with a 20 pip SL or less cause then you will have to wait for a month or two to get a trade that has such a small valid SL.
If we get a trade set up that is higher then our arbitrary SL, then we skip. ( or take with smaller risk ). But since our system has a SL of less then 30 or 40 pips per trade, then its safe to calculate it at 100. ( this also gives you multiple chances if you blow 20 or 30 pips on a dud entry. )
It doesnt mean if we calculate our risk with SL of 100 pips per trade, we must put a SL of 100 pips for each trade we take. We āspendā or risk x amount of pips as per entry wave formation on it. Most of the time we will only spend less then 30 pips per trade in this system.
So why use 100 pips as SL calculations?? Its our guide on what we can spend max on a trade according to the risk we want to take. Most of the time it will give us entry with smaller SL. ( re read again where I have said that SL cannot be a number you just simply pick but it has to be a valid wave on the charts ).
in a slower market the H1 maybe wavy and we can put the SL on previous top/bottom. but what about in a sharp fall/hike, where can we put the SL? take the GU for the last few hours for example. i think the question is also valid about where do we open the position
GU was a sell if we had looked at the chart. But by the time UK market kicked in AU was already looking a like a big pullback on D TF. EU was not very clear either.
So correlation wise it was out.
But if we had still taken a position then the sell would have been the next bear candle after the nearly doji candle after the series of bull candles between b and c.
Of cause it went against us and above the wave to the tune of about 50 pips if we had entered at the candle opening, but it gave us a profit of 180 pips max.
My TP would have been a little higher then ur entry price. Just at the bottom of the wave.
Again I would not have sold so late now cause the correlation is even worst at this juncture.
We are to look for buy at LL and sell at HH. To sell again on a candle formation after a 180 pip drop, with correlation out of whack is very very risky.
Got to agree with nikita here I trade close to the same. I wait for a nice whick on a retracement candle (with looking at the daily for market bias) then wait for the next candle to hit about 50% of the previous candles whick (to hold my risk down) so I would have still got in where she said she would have and would have been stopped out (it does happen but that candle went far enough I would have moved my SL to BE plus a little for my time ;)) but then I would have got back in on the very next 2 candles and that would have gone pertty nice there. But then again I was out of the maket early this morning with a sell on the aussie (previous candle was a sell on DTF) But glad I cashed out when I did todays candle on the daily is now a buy (or yesterdays candle to be precise since it closed at 5pm est)
Did you just add an indicator before it started crashing, if so delete or rename the indicator and it will run properly, often I have found that an indicator can crash it just as itās loading.
Sorry I dont use MT4 but I did have a similar issue with vista. Never did figure it out my computer got a virus so I upgraded to windows 7 ultimate and have not had a problem since. Except now I have to figure out how to adjust my monitor setting to have charts on multible screens. I cant figure it out.
this is another dear nikitafx letter from your fans
iāve been thinking about the #1 rule. iāve been strictly following this rule now. however now i feel that my trade options have been limited. iām only trading to one direction only. it is safe indeed, the position yesterday was finally closed with some pips. now take the chart yesterday. i was so focused on the day trend which was bearish that i only knew to sell. i was waiting for retracement only to open a sell while i actually could buy and collect some pips out of the retracement.
so todayā¦ nowā¦ price is still going down. as yesterday was a sell today will be another sell. however i wanted to buy to the resistance area. but then i remember the #1 rule again and i hesitate. what should i do? should i indeed wait for retracement? should i buy and ride the retracement? should i check other pairs to find some signals and retraced price?
