what a great thread thanks P1PTRAD3R for taking the time
I am new to forex trading, made my first ever demo trade yesterday and today, up 45 pips so far…hehe. I have a few questions on your techniques and if you would recommend someone like me that is so green trying to scalp the market.
When you draw out your trendlines what chart time frame do you use, 1 hr, 4 hr, daily, weekly.
You said you don’t use indicators for your positions was wondering how you judge if the market is over or under sold. I am currently using two indicators MACD cross over and P SAR on a 5 minute chart and have had some good results catching a move early. One thing I have noticed in regard to oversold overbought pressure is if you have consecutive longer candles in the same direction (bulllish or bearish) it seems there is a reversal in the near future (not a major trend reversal but just a reversal for a shorter period like a few hours), is this a way to gauge if the bulls or bears are exhausted and to expect the other side to start gaining ground?
Could you explain your risk management techniques. You said you have a 7-10% drawdown does that mean you risk 7-10 percent of your total account size on each trade? And using your 30k lot size for a $30,000 total account size does that mean each pip is worth $3. If so then if you are risking 10% on a trade ($3000) you will get out of the trade if the market moves against you 100 pips, is that right? Do you use a 2:1 risk ratio on each trade, so if you are willing to lose 100 pips, then you see the potential to make 200 pips on the winning side?
Sorry for all the questions, if you could answer any of them it would be much appreciated.
I have read your topic and I really am impressed, I have just 3 questions:
You set the Take Profit when you open the trade. or you decide it and close the trade when you feel comfortable.
If you set the TP when you open the trade, how you decide it ?
I use Oanda too, is there an option where you can set your Stop Loss at 10% of the account, or you decide yourself when to manually close your trades ?
I’m glad to see you are interested in the thread feel free to ask any questions you want.
I have a 3 monitor set up so I use trendlines on all of the time frames. Many times I don’t actually put them all in I just eyeball it.
To help judge when the market is overbough or oversold I really just use heikin-ashi candles when you watch them you can start to see when price slows down and jump in. A large part of it is just feel and experience the more you watch the tape the better feel you will get.
You have half of the money management right, your $3 a pip scenario with a 30,000 account is correct, but I risk 1000 pips not 100 ($3x1000 pips=$3000 loss). I guess my risk reward is technically risking 1000 pips to make 20 pips, but as you can see that’s not exactly what I’m doing. I’m trying to make 100 trades at 20 pips before I ever take a 1000 pips loss. Now the important thing to remember is that a 1000 pip loss is in all of my positons combined. So if I get in 1 trade and it goes against me 100 pips and I add and get into a second positon I will close both positions at the same time when my first positions reaches down 550 pips and my second positions is down 450 pips because I will be down a total of 1000 pips. If i was only in the first position i wouldn’t get out until the single position was down 1000 pips. I hope that clairfies any confusion you have about my money management. I actually think that if you are a new trader trying out this strategy you should only trade half your account size. So if you had a $30,000 account I would only trade $1.50 a pip to learn with. A 10% loss is tough to deal with if you are an inexperienced trader. Even with $1.50 and 150 pips in profit you can make $300 a day.
Best of luck to you and if you have any questions feel free to ask.
I have a standard TP automatically set for 20 pips in the GBP/JPY sometimes the price moves after the ticket is already up and it ends up being like 18 or 22 pips but 20 pips is my standard TP always set. If it gets close to 20 and I’m watching it sometimes I might take a +18 or somthing and other times if something feels off about my position and I feel uncomftorable I might take a very small gain, a break even, or even a loss. Those decisions all come down to experience.
I am not sure if there is that option in Oanda I do all of my stop losses manually. I figure out what price I would be down 10% in all of my positions combined and move all of my stop losses to that price.
I was very short biased in the GJ all day yesterday. I took on 10 trades yesterday, held 3 positions overnight. Ended up making 190 pips on the day. Check chart for more details.
+0
+20
+20
+20
+20
+18
+16
+15
+24 +37 +190 pips
DECEMBER 15TH’S GRAND TOTAL: +190 PIPS
15 DAY GRAND TOTAL: +2,671 PIPS
took a short trade for a +10in the GJ, with rate cuts coming at 2:15pm est i would not be surprised if the GJ goes sideways till the news release. Taking quicker profits today, i do not want to be in the market when the news comes out.
DECEMBER 16TH’S GRAND TOTAL: +33 PIPS
16 DAY GRAND TOTAL: +2,704 PIPS
Yes i am still underwater in 1 EU position short from 1.2850. I currently have a stop loss at 1.4200. I feel the EU will have trouble getting over 1.40, especially with the rally it has had in the past 10 days.
I am looking to get into another short EU position at 1.3950 to manage the position with a 200 pip TP in place. But the hard stop loss will be in placed at 1.4200.
I will keep trading and locking in pips while i hold this EU position.
Im using Interbank FX and the pip spread is 9 pips for gbp/jpy!!
