Hi MG99, sorry if this has been answered before, but I dont think so…
Is there any ‘trading-plan’ that makes you ‘safe’(instead of using stop loss), like hedging?
My feeling about your style, is that you trade candles/patterns/flow, just (relativly) extremly long term, and because of that you trade a lot of pairs… is that correct?
And second, If you are already in on a Trade, say Long, fiber, would you ever add more to that position, or would you limit yourself to 1 position pr instrument?
It’s not so much that I trade long term, it’s that I trade with appropriate amount of risk. The method of my trading is best suited for achieving bigger targets to avoid less volatility in your account balance and have a consistent growth to whether some storms.
I never add to my position. As my pip size is based on my equity, when my existing trades rise, it allows me to enter into new trades with a larger pip size.
And yes, I’ve answered this before. I think for questions that get repeated more than twice I’m going to add a FAQ to the first post and redirect people to that.
Say something you are long USD over many pairs, and something happens over there to make the dollar plummet all over the line, in your portfolio, do you protect against a happening like that by any means? Or do you simply close all the positions if something happens? (or try )
I use Oanda’s mt4 and if my “live” acct loses $19.00 more I will be down 10% since last Nov. My problem is their daily close is at 23:00 ct/us. I have used Stop orders usually 10-15 pips away from the previous close; I wake up the next morning to find the stop was hit but price has reversed during the London session. I will follow your methodology to see if I can find a cure so to speak. I believe in one of your posts you mentioned Limit orders which I have never used but maybe should? Or just enter using your method (maybe with a little fib help)?
Could you give me your view on EUR/USD, GBP/CAD and USD/CHF?? I have been trying to trade with your methodology, but I think I made some mistakes in trying to chase the price (long at high and short at low, as a breakout strategy), should I wait for a retracement all the time for an entry?? By the way, thanks alot for all the trading advices, really enlighten me up, now i am trying to “unlearn” what i have learned before and trade with your methodology (but still having problem in identifying and timing the entry)
I’m not going to go through all three, but I looked at EURUSD. My long term bias is still long just looking at how it’s been trending up so strong. It’s struggling for direction right now. Yesterday looked good and I would have probably entered long if it was able to break today’s high.
The candle hasn’t closed yet, but thus far it looks like there is still some struggling on price direction.
I wouldn’t be looking for short positions yet as it has harder retraced enough to give me a reason to think that it’s reversing.
So if I have $600 in the account or equity (being the same when no trades are open yet) then I would use 600 units (which would be not quite a micro lot)…would that then translate to a 0.006 position size when entering a trade in MT4?
Mt4 won’t let you trade less than .01 lots. So you’ll need a broker with a micro account. On Oanda which is what I use you’ll have to use their fxtrade platform to place trades because they don’t offer micro accounts just the ability to trade however many units you want on their fxtrade platform.
I also asked about shorting GBP/CAD last night and MG commented, so his post is there if you want to check it out. I took a small short and it’s gone both ways but showing a tiny (as in cheese pizza and breadsticks, but you buy the beer) profit at the moment.
That would require me doing math. Math hurts my brain.
Keep in mind, that’s just how I trade each unit. The methodology behind it is that it’s allowing me the opportunity to have a multitude of trades and making sure my risk is manageable. Furthermore, as I base it on my equity, as I keep trades for weeks at a time frequently, I’m able to increase my lot size as my overall equity is increasing.
I’ll add a picture later to this post, but I wanted to give an update on the USDCHF short.
This is a great example of why I wait until the candle closes before rendering decisions. If this was my only trade, and I needed a win I would have probably been biting some nails as I watched it shoot above the high of the previous two days candles.
Now we are left with an candle that’s an outside bar that rejected both the high and the low of yesterday and was left looking like a weak bull. That’s enough nonesense for me. This pair hasn’t figured out where it’s going for the last three days and while it looks like it hit the 38 Fib (haven’t measured for certain) and pulled back, depending on how you look at it, it created somewhat of a higher high and a higher significant low.
Since there’s no clear direction, it’s time to put in a stop loss and lock in some pips. I placed a stop ten pips above the high of the previous candle, so we locked in about 33 pips if it hits. I don’t like to guess where price is going to go, but if it manages to move up further and hit the stop, it’s clearly not a trade that I want to be in anymore. I’d rather settle for the 30 pips and call it a day and if it goes down, hey… all the better.
Com’on…it’s not that hard …lol… are you using MT4 or Oanda’s other platform?
As for the methodology I guess with that small a lot size, 900 pips would equate to something like $5.00 (using my 0.006 lot size)…lol. So, if you have 10 trades going like that, then, well you do the math ;). So it definatley gives price aLOT of room to wiggle it’s way along hopefully in the direction one has carefully deemed it will go based on one’s PA analysis. Hmmm…
You got it. You’re spreading the risk around and exposing yourself to move opportunities to run into nice trends. You don’t have to be an expert at price analysis to get this to work. But I encourage everyone to study up on candlesticks, fibs, and areas of support and resistance. That should give anyone the opportunity to start turning things around for them.
Glad to see we’re looking at the same stuff again. Been some years since the days of getting excited about gartleys and butterflies.
On the subject of the Harmonics, meaning Gartley’s, Butterfly’s, I know these occur, but the pursuit of them always seemed like too much effort for too little payoff. I don’t want to defer the conversation from what you’re showing us now, but generally is that how you see these patterns as well.
I always was in the hunt for the easy solution to trading. Despite, all logic, I figured there had to be some way to just figure this thing out. Butterflies and gartleys seemed like the easy thing. Especially when I read up on it and found some EA on the web that was able to spot them out on MT4 automatically.
I probably still have the message I sent to SweetPips as I was busting out of my seams with the find of a lifetime.
Well the hype was shortlived. While it was able to find the patterns, they by far and large were unprofitable if you traded them exclusively.
It helped me to understand that every system, every methodology, requires manual discretion. If the trade doesn’t make sense for me, it’s not going to work for me. Shortly there after, I pretty much dropped looking for the easy road and started working on trading price action. If you read Price Action Hero, you’ll even be able to see my progression from when I started figuring out how to be profitable to where I am now.
I started trading on hourly charts if I’m not mistaken using RSI and maybe even a 9EMA. I really can’t remember without going back and looking myself. That really all feels like a lifetime ago.
I stopped trading for awhile, when I got picked up by a firm. I came back here shortly, with a new head full of knowledge that I shared, but I disappeared again as I went to work on my current business. I was trading again, but not realizing how well I was actually doing until I stopped and really started paying attention to what I was doing. I was comingling concepts and strategies I learned on an institutional level and applying them in this arena. It’s weird, having that time away from Babypips allowed my mind to gravitate to new ideas and concepts.
Given the fact that the thread seems to be taking off, and it is a very positive experience for people, do you foresee any BP chat room conversations on occasion? Also I meant to say yesterday that I thought it was great being able to ask questions and have you fire back answers regarding trade ideas. I thought it was really fun and informative.
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