I’ll post updates from time to time, although maybe not every day.
As for the 2-day thing, don’t get too fixated on that. It’s quite possible that I’m just experiencing beginner’s luck. I have several positions which are SHORT either the EUR or the CHF. And that’s worked out well for me, given the most recent banking news out of Europe.
But, I wasn’t attempting to trade the fundamentals, or anticipate the news. I was just trying to determine a bias based on pure (blind?) trend-following — which is how I understand mastergunner’s methodology. I really am trying to respect his methodology, although I’m aware that I have already wandered off the reservation a few times.
Furthermore, if today’s banking news had been positive for Europe, instead of negative, I could have found myself down hundreds of pips, instead of up hundreds of pips.
Sorry, I’m getting word-y here.
All I’m trying to say is this: Don’t try to copy what I’m doing; copy what mastergunner is doing.
But, that’s exactly what mastergunner said to do. Specifically, let the market show you the trend — that becomes your bias. You don’t want to be any later to the party than you have to be, but you definitely don’t want to jump the gun.
After you have identified the trend, and thus determined your bias, look for a retracement from that trend as an opportunity to enter. But, don’t jump the gun on the retracement, either — wait for the retracement to end, and for price to resume moving in the direction of your bias. Then, enter in that direction.
When you enter this way, your LONG entry inevitably occurs [B]after[/B] a swing low has been established, and [B]after[/B] the upmove has already begun.
Again, I’m trying to do things the way mastergunner outlined them. That means (1) enter only one position per pair, (2) make each position equal in size to your equity, and (3) don’t add to open positions.
As I understand the methodology, the answer is no. As I said to Iya, above, it’s my understanding that you should not add to open positions.
Furthermore, you should not manually close any position. If the trend deteriorates, altering your bias, you should exit your trade in an orderly fashion on a stop-loss, not manually. (I have already violated that rule, a couple of times.)
Your question confuses me. In forex [B]we don’t trade pairs vs other pairs.[/B] We trade a single pair, in one direction or the other, which means that [B]we are trading a base-currency vs a cross-currency.[/B]
If your question refers to identifying strong [B]individual[/B] currencies, and weak [B]individual[/B] currencies (a heat-map sort of thing), and then using that to determine your bias — well, that approach might work, but it’s not what this thread is about.
You suggested adding a “day trade” to an existing profitable position. That’s just not part of mastergunner’s portfolio methodology. In this methodology, every trade is entered after a definite trend has been identified. And it is expected that the trend will be long and strong, and therefore the trade will evolve into a swing trade.
However, the trend might fail to meet that expectation. It might reverse early in the trade, prompting an exit from the trade. In that case, the trade might be very short-term — like a day trade. But, it shouldn’t be entered as a day trade.
But I have been studying and reading not stop all the time. Decided to apply this methodology. Giving it a serious try from today.