Hi ST,
same as how i took my trades too…
Btw how many trades u took per week? rough estimation?
This month of june the market seem ranging and could not take anything out of it. Remember i was asking about the risk:reward of more than 1:1 or high win %? I could have a lot of small profits of 1:1, however my ultimate target was 2:1 and every time i got stopped out at break-even so not much profits coming.
What your take on this case? I really don’t know when i should take 1:1 or when 1:2…
right next trade is running as we speak…
i have been holding it back just in case someone jumps on it and loses money…even though i think its a winner…
now that direction is established …ill publish it.
its CABLE long…
i ll probably let it draw my account down 1 percent before i pull the plug.
right i have taken out 75 percent profit at this stage see below…
the rest can run on
BANK & COMPOUND !
better shift that stop up…bye.
right just got stopped out …had moved stop loss to break even plus a few pips…and now that trade is history.
NEXT
bank & compounded.
Good morning.
Yes, the NZD/JPY worked out nicely. How many trades I take a week varies enormously. In a clean market I trade both end of day and intraday, but when the market gets choppy then I ditch the intraday stuff as I don’t like too many spikes, and avoiding them widens the Stops too much for my liking in a choppy market.
At the moment I am basically only trading end of day, I will take what setups are available, which means that the number is based on what the market wants to give me rather than any particular target (although I won’t take more than a couple in the same evening unless I am well ahead on the month and they are not conflicting Pairs). I would guess 2-4 end of day trades a week? Less if the market is not throwing up many opportunities. I have had the odd week over the past few months when I have not placed a trade. I don’t worry about it, I don’t feel under pressure to be in the market, as I know that overall it works if I just focus on methodically selecting setups. Mechanical execution of an effective strategy might not be exciting or glamorous, but for me it is the way to consistent returns.
In terms of what R:R works best, there are many shades of opinion on BP (and elsewhere!) about this, and it is central to the success of any strategy. It is obviously highly tied into the whole question of when to close trades, when to let them run, it’s a really key question.
My own view? I take some trades at 1:1. I know that over time my strategy gives a better than 50% win rate, so I will take any setup that looks good and gives room for at least a 1:1. As you highlight in your post, sometimes holding on for more can lead to the frustration of having a trade go into profit, then slump back and stop you out at BE (or even for a loss!). This is all wrapped up in the psychology of trading, what are you most happy with? A string of trades stopping out at BE, knowing that sometimes you will get trades that hit profits of several times your SL? Or a number of trades that stop out at 1:1 that, had you left them alone, could have gone on to make a lot more? This just boils down to personal preference, both approaches can work as long as they are traded mechanically using a good underlying strategy.
I will target whatever the chart tells me there is room for, as long as it gives a minimum of 1:1. As the profit grows past that level, I tend to lock in some, perhaps on 50% of the position, and trail the Stop on the remainder to BE. But that will be governed by the Support and Resistance levels in play on that particular trade, so I don’t have a concrete rule for all situations! My average return is certainly over double my risk, but I take anything giving me 1:1 or better. I tend to target bigger returns, in terms of R:R, on my end of day trading, and be more conservative on my intraday trades, but that is not true of everybody.
Anyway, this response has covered a lot of ground, as it was a big question, so I will stop there - I hope I sort of answered the question!
ST
(Apologies, it was morning when I started typing that, then life intervened and I had to go out for a few hours. Just to be clear, I am in the UK and it was morning no longer when I finished the post and clicked ‘submit’!)
And yes, the market looks pretty rangey to me, too. Not too many setups, I am currently long AUD/USD but not in anything else.
yes i got to agree with you simon …its a bit rangey out there today…im only taking certs.
like the one above…and i just missed my price for shorting the AU…(as i was in a heated debate on the telephone)
anyway …well see if my price comes round againg…and see if the short is still on.
Haha,
same same long AUD/USD, took @1.0050, seem ok at first then a bit choppy…
Sorry to disturb you with so long winded qns…
Just 1 more qns, hehe.
Will u most likely move your stop loss to break-even once the trade moves into your favor i.e once move 1 time your risk in your favor then move to break-even???
Cheers
soulreaction02
Dont feel bad about missing the short. I was eyeing the same level but honestly there was just not enough breathing room before we hit support for me to take on the risk. Price did make a nice setup before dropping however it is now slamming support at 100.50. All I see now is price stalling and going north. Ideally I will hold off for 1.0180 before looking to get back short. This should allow the summit to get out of the way aswell. Letting the dust settle. We all know how much I love to short the Aussie but I just dont see it being a good idea right now. However what I see does not move the market but the big boys in the summit now thats what can move a market. Best for me to sit out right now as this Tropical storm is now passing so its time to clean up its aftermath. Was pretty devastating to many around here with major flooding. Water got so high it took out bridges like they were dominoes. However after moving away from the forest fires I learned a very important lesson (location location location). This time I am far from the forest fires and I chose the high ground. So I am free and clear from the floods but many trees down. I have my work ct out for me right now. I will sit out till next week.
Hey BrinkFX.
I trade using a system called “No Brainer System” dependent solely on Trend line and Support/Resistance.
Can I post my trades here?
I am certain you’ll allow but just making sure.
MA system. Its good for all.
Lol no problem at all with the questions, it’s a learning forum, and I ask a lot of questions myself so certainly don’t mind answering a few.
I went long at 1.0028 - it has been a little choppy, yes, but AUD often moves during my nights and evenings, here, so I’m half expecting that, and as we have said it is a choppy market. A Stop nicely below Parity gives enough protection that it will be okay if the underlying idea behind the trade is sound. If not, well, they don’t all work out!
To be honest I am undecided on where to move the Stop on this one at the moment. There are a few hurdles to clear - the Weekly Pivot is at 1.0098, the 100 EMA looks as though it will intersect at around 1.0150-1.0160, a zone which also coincides with a rough falling trendline I have on the Daily.
I might just halve my risk on the trade tonight, or trail my Stop to below the low of today’s bar, as it looks like marking a second green bar in a row, or I might leave my Stop as it is, hope for the trade to carry on moving in my direction and then trail my Stop to below the low of the next pullback. I honestly have not decided, yet, as this is a slightly odd one.
We have a recent downtrend - which is why there is a lot of BP chatter about shorting - and it is not clear yet whether we are currently looking at a Reversal or simply a Pullback within the overriding downtrend. A couple of the hurdles I have just mentioned will clarify that, which will in turn inform my decision on trailing the Stop. If Price now retraces but forms a higher low, I will likely consider that a pullback within a new uptrend. Ordinarily, I would consider the current move mostly likely a pullback within the overriding downtrend, but with Parity just below us I am not as confident in that, it could go either way.
If you squeeze up a Daily chart to show the past year or so, then you could say that AUD is ranging between 0.9665 or so and 1.0850 or so, in which case we are in nice and early with our Long…!
I’m not saying that that is what we are looking at, but while the chart suggests that that is a possibility, I am going to keep my options open and my Stop a little looser than I otherwise might. If I leave it where it is, then my risk is only 1% - if I give this room to breathe and this is a Reversal back towards the other side of that range, then it’s worth playing the long game. Might find out soon, but it’s unclear right now, imho.
ST
It might be too small to make out much detail, but what I posted above became a little complicated, so I threw a few lines on a chart (AUD/USD Daily) to make it (hopefully!) clearer:
dread course you can post your trades here…your welcome…and im interested in any price action trade…
by the way your method of trading is pretty much same as mine…except i like to try and understand candlestick formations…for high probability formations…some candle setups are big winners.
thing is you have cracked the biggest secret in forex…the no brainer system is it.
and dread here is what i mean…
im not taking credit for this one because one of the other price action guys found it
it is AUD /NZD
a pair i rarely trade because of the double pip transaction costs.
if you look at the 4 hour chart…you will see that a bearish engulfing bar has formed at a swing high point…
this i woould say is highly probable to pay about minimum 30 pips…you trade at the break low of the bar and you should put your stop at the top of the bar…but in this case i dont think its needed as i monitor charts constantly…
but that is what i mean by candle formations are powerful…
ill post a picture of me collecting the money also later.
if you are a risk taker then trade could be taken immediately.
if you are more conservative then the correct way to trade a bearish englufing bar (BEEB) is to wait until a new candle OPENS up under the bottom wick of the engulfing bar…THIS IS WHEN YOU REALLY HAVE A HIGH PROBABLITY OF THE TRADE BEING SUCCESSFUL.
plus there is a NBNZ important RED business confidence report coming out in an hour and this may have a temporary effect on the market…maybe it has already been factored in…maybe price will move and then move back to where it is now…mybe the report will help it along a bit.
edt 2
right here is a picture of mid trade.
so far i dont like the performance of the trade…its too choppy and too much support going on around the price.
maybe it is good…but the red line on the photo…is the ask line…so i have to get even more cash out of this deal than has been offered all night just to break even…i dont like losing on any of my trades…even though i would cut and run if necessary.
that is the problem with cross currency pairs…you need about 12 pips just to pay the broker…and if the deal is tight its not worth taking.
plus should always wait for the london opening on close trades like this ( close trade because although the signal was nice…the retracement that it came from was a bit small really, and congested with support and resistance. ).
cool and the gang… over and out.
edt 3
right i bailed on the trade when candle was just above my trade line…
so i have lost the spread of about 1000 pips on the cross pair…and a couple of pips over my intital trade line.
but i dont like the way this pair moves…they can keep it.
cool and the gang.
edt 4.
in future dont pay attention to anyone elses trades…from a take the trade point of view…unless it is one i have found myself.
stick to trading from key levels. until i catch a trend. and bank and compound early…so if it turns bad you got some profit… a lot of little profits compounded is all thats needed…plus if price action is making me vomit…bail immediately.
Don’t worry ST,
i understand what u are saying because your targets and hurdles are roughly what i seeing in my chart…
I was putting my target @ 1.0150 because of a small swing low happen at 09Jan and i will lock in at 2:1 reward… however if they clear this level with ease, then different strategy comes out…
Although i think a trader must have set of rules and discipline and patient system to be able to play this game. However for taking good profit or letting profits run as what the professional always teaches, it must really be done at own discretion… be flexible man…
Now the AUD/USD be up slightly.
I already move my stop to break even… btw how you got your entry @ 1.0028?
I manage to enter @1.0050 as there was a bullish bar which happened @1.0000 to 1.0080…so i catch it next day @ almost half entry…
Pardon me for my lousy written english as it is not my mother tongue, hehehe
There is almost always some form of retracement when Price moves. Occasionally, when trading off the Daily chart, I will place my entry order halfway up the bar, which on this occasion would have been 1.0016. I had a soft level going through my chart just above there, plus I wanted a little more of a cushion between my Entry and Parity, so I moved the Entry up a few pips, to 1.0028. It helps the R:R, obviously, but only suits certain setups, so is pretty discretionary.
No problem at all - I have lived overseas a couple of times previously, both times living in a foreign language, so I know what it is like to communicate complex stuff outside of mother tongue. You’re doing well!
ST
ok… so enter based on daily tf chart? what your stop-loss like?
phew …what a day…
today i tried a new price action technique that i got from reading some posts of a guy who does price action on a different forum…my interpretation of what he said…
i probably took about 10 trades possibly more
the method was to watch a chart and once the price gets lively …try and read it in real time and jump in on the action. not too much analysis…just movement of the candles etc.
anyway i ended up in a frenzy…and made some cash and then lost it all and then ended up losing about 4 percent of my total equity…
the problem was…i think i totally misinterpreted what the guy was saying…and i got in the gamblers zone…and in the end just decided to grow up and cut my loses.
h aha …it seemed exciting at the start of the day…
i wont be doing that again…
on one of the trades it actually rocketed up and i jumped on the knife and doubled up twice…and it at one stage held 10 percent of my total account equity…luckily i pulled back about 7 percent of the equity on that one…
then on another trade i was up about 3 percent total account equity…then it got suckered into another trade.
talk about casino…
i am lucky to come out with only a 4 percent loss…at one stage it could have been more like 12 percent…
anyway…lesson learned…
and to think over the past couple of weeks my equity had been building nice and steady…and my total account was nearly 2 percent up on the week.
ah well …no more of that nonsense.
edt it was based on the fact that apparently that is how some prop traders trade at large institutions…i know it may be hard to believe …but apparently so…
at some places they sit in front of the fast charts…like 5 minutes and without stops or anything…just buy and sell at the snap of a finger…millions of pound worth of currency…and they just ‘dance with the price’…on a pair that they understand…they just know its moving up and buy and then sell when they feel its going down…if the deal turns bad they move to higher time frame and then try and pull it back from there…by snowballing or something…anwyay…its just another lesson in price action.
the thing is with that style of trading you need absolute rapid execution of trades…no delays…after pressing key you need trade executed in nano seconds…and zero requotes…maybe todays story would have been more profitable if i had a nano second execution broker.
on the retail systems we use …its not fast enough to get in and out effectively…so even if the trading method is ok…it doesnt work well on a bog standard MT4 platform with a noddy broker.
i dont know if i believe it…but thought id give it a try…and as usual i always godda roll with real money to keep my edge.
anyway back to bank and compound tactics.
Wow…I never knew that Institutional traders use M5 charts for trading. I always thought they will be using charts higher than H1 and so. Btw, wer’d you get the info from ?
