The Forex Portfolio - How to Gain Consistent Profits by Staying in the Market 24/7

[mastergunner99]

<img src=“301 Moved Permanently”/>

FYI, I shorted the EURNZD depicted in the chart above a little late this afternoon, at a lower price than I would have preferred; ideally, would have entered a Sell Stop one pip below the prior bar’s low, but not available at the beginning of the day’s trading). [Yet another great advantage of this methodology: I’m not bothered by having missed out on a dozen little pips during entry, since we’re shooting here for dozens of pips!]

It’s the first time that I’ve used a closing bar below a 50% retracement level to help influence an entry, along with the confluence of other price action indications (like those 6 pinbars on the way down, with 7 of the 10 bars being red).

[Notice also how “streaky” the prior swing high was, with 9 straight up-bars, followed by 9 straight down-bars. May the current streak continue …]

My bias on this pair was and continues to be bearish since – before it began “intermediate-term” ranging (with slightly ascending highs) the past seven months – that range was entered from a downtrend, which I would expect to continue with an eventual breakdown below the low level of the range, around 1.5506, hopefully as an extension of this particular (for now) “short-term” downtrend.

P.S. – Already up +43 pips on this pair since entering the Sell Market order right before beginning to write this post.

Ha!

I took the same trade. Up 37 pips at the moment.

[mastergunner99]

I thought you were following myfxbook…lol. The NZDCAD & NZDUSD longs respectively.

Yeah, I wouldn’t have stops yet. But that is me. I’m sure my methodology can survive just fine if people move to break even or lock in some early pips.

I think I’m long on both of them too. They need to make smartphones with two screens.

[fortnight]

Using the MasterGunner99 Methodology® (MG99M) – aside from one stupid mistake that cost me a 100 pip loss – here are my current open positions (in a Simulated Account) as the 2/13 trading day ends (all are POSITIVE!):

AUDUSD (Long) +009 pips
NZDUSD (Long) +008 pips
EURGRP (Long) +022 pips
GBPAUD (Short) +294 pips
GBPCHF (Short) +125 pips
GBPCAD (Short) +088 pips
GBPNZD (Short) +586 pips
AUDNZD (Short) +016 pips
NZDCAD (Long) +030 pips

TOTAL = +1179 pips!

Why didn’t I do this with real money! LOL.

Great job! Bouncing an idea off you and Mg… are you looking to cash out and turn around to short nzd/usd? Looks like it’s hit a level of resistance that has been a solid ceiling for some time. Thoughts?

[mastergunner99]

Great job! Bouncing an idea off you and Mg… are you looking to cash out and turn around to short nzd/usd? Looks like it’s hit a level of resistance that has been a solid ceiling for some time. Thoughts?

I rarely will exit a trade just to go in the opposite direction. It may have hit resistance, but price hasn’t indicated to me that it’s reversing. I’m staying long until the candlesticks tell me otherwise.

[fortnight]

I rarely will exit a trade just to go in the opposite direction. It may have hit resistance, but price hasn’t indicated to me that it’s reversing. I’m staying long until the candlesticks tell me otherwise.

Thanks. As much as learning your methodology, I’m interested in learning your psychological attitude, and tips like this are vitally important my quest to learn the successful trader’s mindset. By the way, have you read any books on the topic? I’m reading “Trading in the Zone” by Douglas.

[sstrnod]

I wouldn’t rush going live yet if you’re not ready for it. This is a methodology that is long term and provides long term positive results. Make the transition when you’re monetarily and mentally ready, not on the basis you had a good early start. Imagine if you would have sustained initial losses. That’s when it requires a true test to maintain your edge.

I have to say, you adapted quickly. And I’m really impressed with the results. If you’re following my methodology surrounding appropriate risk you should have over 10% in open profits.

A positive equity is what I always strive to maintain for that will result in continued growth of your account.

The next step is now taking profit appropriately. It can get tempting to pull out, but any one of those could be your next and possibly first 1000 pip trade.

Yep, from painful experience, I know that it would have been just as easy (perhaps even more helpful, actually) to start out down over 1000 pips (Yikes, make that 500 pips – explanation to follow in next post), so won’t be going live anytime soon – still a lot to learn.

Yes, I have around $1550 in profits, 7.75% of the $20,000 initial demo account size. One factor (I believe) is that many of the pairs are less than $1/pip/mini-lot. However, the other factor is: [B][U]I’d completely forgotten to make my position size equal to my equity[/U][/B] (which would have since garnered increased profits), instead just using an “auto-pilot” 20,000-unit position size (owing to my $20,000 initial balance) for every trade. Yet another lesson learned and mistake I won’t make again. Ha!

On that basis I haven’t shown a good example of taking profit. I’ve closed out some trades, but they weren’t ones I’ve posted. I would prefer to wait to post an example from start to finish, but if you’re okay with it I can post an example of putting in stops on winning and losing trades.

Everyone has full permission to discredit the examples as there is no way that I’m willing to do to illustrate when I entered the trades.

How to exit a profitable trade was going to be my next question. My short of the GBPNZD (on the Feb 12 closing bar @ 1.8684) has, so far, a high-water mark of around 390 pips (or 1.8294, and presently stands at around 350 pips). If a StopLoss is set at 10 pips above the current bar’s high, were that hit it would lock-in around 288 pips. But, like you say, the momentum still appears strong – and it could retrace a bit and continue onward.

My initial thought was to wait until my bias goes from short to indeterminate, and then put in a StopLoss; however, by that time I could possibly lose most, if not all, of those pips. Maybe using some kind of 23.6% or 38.2% Fib retracement level between the entry and the high-water mark could be an option?

I think examples of some real-life stop management of your winners and losers would be great and most instructive; nobody who’s truly followed this thread should have any doubts as to your integrity, sincerity, helpfulness (dare I say, “altruism”?), experiences, and results.

Thanks MasterGunner!

P.S. – Oh noes … I just realized I calculated my number of winning pips incorrectly (by two times the actual value!); well, better now than later. Here comes the obligatory “please forgive me” post …

[sstrnod]

Using the [B]MasterGunner99 Methodology®[/B] (MG99M) – aside from one stupid mistake that cost me a 100 pip loss – here are my current open positions (in a Simulated Account) as the 2/13 trading day ends (all are POSITIVE!):

AUDUSD (Long) +009 pips
NZDUSD (Long) +008 pips
EURGRP (Long) +022 pips
GBPAUD (Short) +294 pips
GBPCHF (Short) +125 pips
GBPCAD (Short) +088 pips
GBPNZD (Short) +586 pips
AUDNZD (Short) +016 pips
NZDCAD (Long) +030 pips

TOTAL = +1179 pips!

Why didn’t I do this with real money! LOL.

Dudes and dudettes: [B]mea culpa, mea culpa, mea maxima culpa[/B]! Please forgive me, but I miscalculated those pip numbers above by a factor of two too much. Where’s the Dunce Cap icon when you need one? :29: I suppose a clown icon will work …

[I was calculating based off $ gain values divided by $/pip, but that only works if you have an even micro-lot of 10,000 units. Since my position size so far on everything has been 20,000 units, I needed to divide that value by two. Aaaaargh …]

Mulligan! Fore!

Here are the true values instead –

AUDUSD (Long) +004 pips
NZDUSD (Long) +004 pips
EURGRP (Long) +011 pips
GBPAUD (Short) +147 pips
GBPCHF (Short) +063 pips
GBPCAD (Short) +044 pips
GBPNZD (Short) +293 pips
AUDNZD (Short) +008 pips
NZDCAD (Long) +015 pips

TOTAL = +589 pips!

[sstrnod]

Great job! Bouncing an idea off you and Mg… are you looking to cash out and turn around to short nzd/usd? Looks like it’s hit a level of resistance that has been a solid ceiling for some time. Thoughts?

What I’ve learned from MasterGunner is: go with your bias, right or wrong. Let the market/price tell you when you’re wrong in both cases (i.e., in the case of winners, when it begins to turn on you).

So that’s my approach to being Bullish NZDUSD (BTW, I believe it just pierced resistance; hopefully it’ll close above it).

P.S. – “Trading in the Zone” is a book I’ve read and enjoyed and from which I’ve learned quite a bit; it’s a little repetitious, but they say that’s one way to learn …

[Sweet_Pip]

Dudes and dudettes: [B]mea culpa, mea culpa, mea maxima culpa[/B]! Please forgive me, but I miscalculated those pip numbers above by a factor of two too much. Where’s the Dunce Cap icon when you need one? :29: I suppose a clown icon will work …

[I was calculating based off $ gain values divided by $/pip, but that only works if you have an even micro-lot of 10,000 units. Since my position size so far on everything has been 20,000 units, I needed to divide that value by two. Aaaaargh …]

Mulligan! Fore!

Here are the true values instead –

AUDUSD (Long) +004 pips
NZDUSD (Long) +004 pips
EURGRP (Long) +011 pips
GBPAUD (Short) +147 pips
GBPCHF (Short) +063 pips
GBPCAD (Short) +044 pips
GBPNZD (Short) +293 pips
AUDNZD (Short) +008 pips
NZDCAD (Long) +015 pips

TOTAL = +589 pips!

I look at the number of pips price has moved from the price when the trade opened, to current price. For me I have a combined total of about 230 pips…but it’s only worth about $23.00 due to the lot size. Pips are pips…the lot size determines the value of them.

It’s kinda of heady actually…one trade is at 150 pips!..I don’t recall the last time, if ever, Ive gotten that many pips on one trade…lol.

[Hogarste]

Great Great Job. This post makes me wish BP had a “Really Like” button. Really awesome

*** [B]EDIT UPDATE:[/B] Please ignore this post with [U][I]incorrectly calculated values[/I][/U] and see post # 414 instead; apologies ***

Using the [B]MasterGunner99 Methodology®[/B] (MG99M) – aside from one stupid mistake that cost me a 100 pip loss – here are my current open positions (in a Simulated Account) as the 2/13 trading day ends (all are POSITIVE!):

AUDUSD (Long) +009 pips
NZDUSD (Long) +008 pips
EURGRP (Long) +022 pips
GBPAUD (Short) +294 pips
GBPCHF (Short) +125 pips
GBPCAD (Short) +088 pips
GBPNZD (Short) +586 pips
AUDNZD (Short) +016 pips
NZDCAD (Long) +030 pips

TOTAL = +1179 pips!

Why didn’t I do this with real money! LOL.

[Hogarste]

MG, do you have any thoughts or could you on the USDX / USD/BSKT (per some broker software) personally I think it’s bearish, but not as forcefully as I’d like.

[Pippatron]

Dudes and dudettes: [B]mea culpa, mea culpa, mea maxima culpa[/B]! Please forgive me, but I miscalculated those pip numbers above by a factor of two too much. Where’s the Dunce Cap icon when you need one? :29: I suppose a clown icon will work …

[I was calculating based off $ gain values divided by $/pip, but that only works if you have an even micro-lot of 10,000 units. Since my position size so far on everything has been 20,000 units, I needed to divide that value by two. Aaaaargh …]

Mulligan! Fore!

Here are the true values instead –

AUDUSD (Long) +004 pips
NZDUSD (Long) +004 pips
EURGRP (Long) +011 pips
GBPAUD (Short) +147 pips
GBPCHF (Short) +063 pips
GBPCAD (Short) +044 pips
GBPNZD (Short) +293 pips
AUDNZD (Short) +008 pips
NZDCAD (Long) +015 pips

TOTAL = +589 pips!

Good job sstrnod, you don’t need a :29: in there you need a :50:

I have a question for you or MG. If I look at your bias as a whole two things pop out:

Strong Bearish bias on GBP:
EURGBP (Long)
GBPAUD (Short)
GBPCHF (Short)
GBPCAD (Short)
GBPNZD (Short)

Strong Bullish bias on NZD:
NZDUSD (Long)
AUDNZD (Short)
NZDCAD (Long)

Now if one of these bias is wrong, all related trades will suffer (loss or small profits before being stopped out). But if both bias are right, the most profitable trade would be Short GBPNZD as this groups the weakest against the strongest currency.

I understand there are benefits from hedging, but with a strong and confirmed bias, wouldn’t it be logical to have a relatively bigger position in GBPNZD from the onset or to scale-in at good opportunities? Our bias entails that this will outperform the other pairs.

P.S. No I’m not saying we should bet the farm

[Sweet_Pip]

It may have hit resistance, but price hasn’t indicated to me that it’s reversing. I’m staying long until the candlesticks tell me otherwise.

Ok NZDCAD is hitting an, albeit, imaginary resistance line (.8500 and top of channel)…but heck it’s like 170+ pips!..and not just it but the other one is @ +150! I’m think I’m going to hyperventilate! You’ve probably seen this a lot and even though it’s not saying it’s reversing, it seems to be due for some kind of retrace …hard to hold out!

[mastergunner99]

Thanks. As much as learning your methodology, I’m interested in learning your psychological attitude, and tips like this are vitally important my quest to learn the successful trader’s mindset. By the way, have you read any books on the topic? I’m reading “Trading in the Zone” by Douglas.

I read some book that Dale once recommended. I think it was by the guy that created the RSI.

From a psychological standpoint, I’ve read countless books on the topic to further my career path. Nothing specific to Forex.

[mastergunner99]

MG, do you have any thoughts or could you on the USDX / USD/BSKT (per some broker software) personally I think it’s bearish, but not as forcefully as I’d like.

I don’t trade that unfortunately. Don’t even have the feed on my demo, and I don’t think.

[mastergunner99]

Good job sstrnod, you don’t need a :29: in there you need a :50:

I have a question for you or MG. If I look at your bias as a whole two things pop out:

Strong Bearish bias on GBP:
EURGBP (Long)
GBPAUD (Short)
GBPCHF (Short)
GBPCAD (Short)
GBPNZD (Short)

Strong Bullish bias on NZD:
NZDUSD (Long)
AUDNZD (Short)
NZDCAD (Long)

Now if one of these bias is wrong, all related trades will suffer (loss or small profits before being stopped out). But if both bias are right, the most profitable trade would be Short GBPNZD as this groups the weakest against the strongest currency.

I understand there are benefits from hedging, but with a strong and confirmed bias, wouldn’t it be logical to have a relatively bigger position in GBPNZD from the onset or to scale-in at good opportunities? Our bias entails that this will outperform the other pairs.

P.S. No I’m not saying we should bet the farm

I prefer to keep my risk spread out across the market and not centered on one pair. The inherent nature of hedging when the market turns and compounding when it’s in your favor disappears if you speculate and concentrate more risk on one pair.

[mastergunner99]

Ok NZDCAD is hitting an, albeit, imaginary resistance line (.8500 and top of channel)…but heck it’s like 170+ pips!..and not just it but the other one is @ +150! I’m think I’m going to hyperventilate! You’ve probably seen this a lot and even though it’s not saying it’s reversing, it seems to be due for some kind of retrace …hard to hold out!

Early on. I recall pulling out of a yen trade when it was 300 pips profit. It went on another 200 pips without me and I pulled out what was left of my hair in frustration.

For me, from a psychological standpoint, I would rather wait for the move to complete and pull out to late than to pull out too early and watch price keep rolling without me.

My largest close this year is a tad over 980 pips. No way I could have ever gotten there if I pulled out too soon.

[mastergunner99]

Focus on your overall equity and view all your trades as a whole. Yes, the decisions made must be individual, but when you focus on a larger picture you are less emotional about the individual pairs. I don’t notice when a pair backs down too much. I just see my equity move up and down. I however as long as it’s more than my net balance I know I’ll be okay in the long run. Thus far this year, and we are close to 100 trades now, my equity has not fell lower than my account balance.

That is how you maintain consistent profitability.

[Ltrader]

Hello MG, I’ve been reading your thread and was wondering;

Suppose I was looking at NZD/USD tonight for the first time and saw it was say a bullish candle sitting high above everything after a long bullish run. would you consider placing a long at the break of the candle or would you wait for any kind of pull-back to get in?

Sorry if this has been covered, but I havn’t seen it.

[mastergunner99]

Hello MG, I’ve been reading your thread and was wondering;

Suppose I was looking at NZD/USD tonight for the first time and saw it was say a bullish candle sitting high above everything after a long bullish run. would you consider placing a long at the break of the candle or would you wait for any kind of pull-back to get in?

Sorry if this has been covered, but I havn’t seen it.

I would wait for an opportunity to increase my potential, so I would wait for a retrace.