Lol Pete ~ don’t take everything too seriously! Do you know that’s where you will get wrinkles? And you do not want to get one of those… relax… Trading should be fun and enjoyable lol … No pressure.
Speaking of SL… I have been experimenting not to put on a SL. Of course, it is base on my analysis and if my analysis is still holds true. I just make a mental note of it to exit out when I needed too. I will make my own judgement as to when I should close it. TP it varies… I can hold on to it for a while or I can exit out soon… I am experimenting this strategy for about a couple months and so far so good… I will keep doing what I am currently doing until it works then I will review it if something I needed to change.
Yep, the SL /TP thing is something that I have been thinking about for a long time, Pizza’s thread brought those thoughts to the fore.
Imagine if Pizza were to reverse his method, if he set a TP at 500 and a SL at 10 - imagine what his results would have been to date - the risk/reward is brilliant but…this is the type of questioning that goes through my head.
My ‘real’ work often involves the eur/gbp - there we never set tp or sl, we set target levels and act on those levels, we anticipate those levels from the daily and fundies and use averaging, e.g. the most recent level was 86.20
then will be 86.50 and 87.00, we allow months to pass (ie we’re patient) before the anticipated level is reached.
Sorry, I’m digressing, back to my thoughts on SL/TP - I suspect that getting this right can help a trader in creating his own mini version of a bank algo, a bit like Pizza, get your fundies right, check your chart, set your SL (maybe not necessarily 500), set your tp (this is key imo) and then you have the makings of a set and forget.
Yeah, there is a little more for a good set and forget, trend filter and a reliable overbought/sold reader - this is what I’m working on.
Anyway, thks to Pizza for the thought provocation.
For all of what you have said, I am more curious about your wrinkles lol j/k.
I like how you analyze SL/TP and something that I too have been noticing before but I just couldn’t put in into words. Yes, Pizza showed a valid point on how to approach things and it works for him and now it is working for me too…and yes, thanks to him
Good luck on your experiment and please feel free to let us know your results ;)… it is always good to hear your thought process
I see your point but I think you are too harsh here. I think there is also some good in MM metodologhy. Like there is good and bad in any system. It is to the intelligence of each learner to discriminate between what to take and what to leave in the path of creating their own trading system or metodologhy.
For example I like your thread but you trade without stop loses and this is a very bad example for any newbie and I don’t remember I saw a disclaimer on the first page advising to always use a stop lose and that you don’t use it because you are an expert trader.
If any disclaimer is there than please forgive me but I didn’t check the first page lately!
First page of this thread says " this is not a system and he is not a teacher" something like that… Is that a good enough disclaimer for you? Lol
As for his other thread, that thread is for him only its a journal for him and not meant to be copied by anyone. If they do like to copy or using maybe a 500 SL is their own choice. I choose not to use SL when I see it fit and that is my choice too and it works for me so far but we will see in about 6 months or so…
For example I like your thread but you trade without stop loses and this is a very bad example for any newbie and I don’t remember I saw a disclaimer on the first page advising to always use a stop lose and that you don’t use it because you are an expert trader.
If any disclaimer is there than please forgive me but I didn’t check the first page lately! :-P[/QUOTE]
Not entirely true… I have a 500 pip stop loss OR I close the trade when the fundamental bias shifts. I also do not think that is a bad example. Yeh large SL’s go against what most new traders hear when they are learning… But then again most new traders never make much profit with the common advice they are given
When you are trading off of fundamentals, it doesn’t make sense to exit your position unless the fundamental reason you entered the trade is now no longer valid… Even if you are down a few hundred pips.
Most new traders gravitate towards mechanical, rigid trading systems where trades are executed only after meeting all the requirements of a lengthy checklist… Where they don’t have to make any decision at all. It takes a lot of time to be able to trade in a purely discretionary manner, but I can assure you that’s what holds back most newbie traders from realizing profitability.
I see your point but I think you are too harsh here. I think there is also some good in MM metodologhy. Like there is good and bad in any system. It is to the intelligence of each learner to discriminate between what to take and what to leave in the path of creating their own trading system or metodologhy.
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What do you think is good about mastergunners thread? Just curious…
Well I am not following it at the moment neither using anything from it I guess however I liked the idea to follow all the 28 pairs and invest in the best combinations between weakest and strongest pair.
i opened a demo account to practice mastergunners technique but i bent a few rules. mostly i look also at weekly time frames and get in on setups that form across both time frames if i can. also i use stop loss a bit earlier, though so far not immediately (actually had a few hit so i’m trying to learn how to gauge distance still)
i think the whole ‘28 or bust’ idea might be taken too far. so far i’m at about 7 to 10 trades at a time and that is enough to catch A FEW correlated pairs when they are on the move. mastergunner averages only 12 trades at a time though, with a maximum of 20 at a time(yikes)
here is the current status of the 3000 demo account opened exactly 14 days ago
I am only 1 or 2 trade at the most. I don’t have an extra head, arms, eyes to monitor 10 and above lol. Konan offer to be my assistant but he took a break for now oh well…
maybe with more practice it can be done? I don’t know…
one thing i realized about swing trading is things happen in slow motion. setups take days to form and/or dissipate so it’s not hard to flick through 20+ pairs once a day. you only pay attention to those that look promising and you have plenty of time to watch the trades develop and act on them
Ok so if you just enter positions without regard to future price movement, what happens when your account draws down, to a margin call and closes you out, at a loss? If you do not know where your trades are going, all could go in the wrong direction long enough to wipe you out. Floating could work, but not as accurate as actually predicting the market. If it can not be predicted, why are some getting it right? Trend following can work, but you need to know where it will start, and end, or you leave money on the table, if not lose it all. True, most are guessing, even pros, but you do not have to guess. You could “learn to trade”. Just be careful what you learn.
[QUOTE=“kgcken;522553”]Ok so if you just enter positions without regard to future price movement, what happens when your account draws down, to a margin call and closes you out, at a loss? If you do not know where your trades are going, all could go in the wrong direction long enough to wipe you out. Floating could work, but not as accurate as actually predicting the market. If it can not be predicted, why are some getting it right? Trend following can work, but you need to know where it will start, and end, or you leave money on the table, if not lose it all. True, most are guessing, even pros, but you do not have to guess. You could “learn to trade”. Just be careful what you learn.[/QUOTE]
This is a parody thread of mastergunner99’s thread “the forex portfolio” … I have summed up the gyst of his thread and highlighted the flaws of his “methodology” using a little bit of tongue in cheek… I don’t agree with his thread and would not recommend anyone following what is in his thread (and subsequently this one)
relax… Trading should be fun and enjoyable lol … No pressure.
