[B]Chart 2 [/B] >>>
By tymen1 at 2008-10-14
The green candle is complete (a nice morning star!! 
) and the entry is [U]long [/U]at the open of the next candle.
Note that [U]2 amounts[/U] were entered.
The entry is shown by the red line.
The entry was at 673 (1.3673)
You can also see the red dashed PCI line below it.
The candle has gone red a little.
We are looking to going [U]long[/U], that is, [U]up [/U]with the expectation of [U]green [/U]candles!! 
[B]Chart 3 [/B] >>>
By tymen1 at 2008-10-14
In this chart I have set the profit targets for the 2 amounts.
[U]The PCI stop loss distance[/U]
Entry-PCI is 673-620 = 53 pips.
[U]The 1st amount[/U]ā¦686
exit-entry is 686-673 = 13 pipsā¦3 for spread, 10 for profit.
[U]The 2nd amount[/U]ā¦726
exit-entry is 726-673 = 53 pips.
Thereforeā¦risk (53) = reward 2nd amount (53).
[B]I set the trade up this way deliberately.[/B]
[B]Chart 4 [/B] >>>
By tymen1 at 2008-10-14
In this chart we see that our entry candle did look promising for a time as it went thro the entry but stopped short of our 1st amount target.
The candle is now well and truely in the red, and we are looking for green candles.
[B]The trade is going against us and it is not looking good.[/B] :mad: 
[B]Chart 5 [/B] >>>
By tymen1 at 2008-10-14
Oh no!! :eek:
This trade is really going against us. :mad: :mad:
We could be looking at a loss here.
Remember, I do not prepare beforehand for these trades.
I screen print them as they come.
I do not know the result until it is finished.
We will, therefore, have to wait to find out what will happen.
[B]Chart 6[/B] >>>
By tymen1 at 2008-10-14
Well, thats a bit better!!
The price action has risen and the candle has gone from red to green.
We still have a long way to go, however.
The price action is still well below the entry and we are in a very negative position at the moment.
[B]Chart 7[/B] >>>
By tymen1 at 2008-10-14
Here we see the next candle in green.
But look at that long lower wick!! :eek:
At one stage that was a red candle and going down straight to our stop loss!! :eek: :eek:
[B]This trade is scary!![/B]
[B]Chart 8 [/B] >>>
By tymen1 at 2008-10-14
In this chart, I take a zoom out view.
Have a look at the dashed line just above the solid line.
The solid line is the long entry.
The dashed line just above it is the 1st amount target profit.
If you look at this dashed line, you can see that is acting as a [U]resistance line[/U] for the price action. (examine the whole chart to see that this is so)
This means that we may have some real trouble even getting to this line.
And this line is our 1st amount target profit!! :eek:
When we do hit it (if we hit it :rolleyes:) then the price action should roar after that and reach our 2nd profit target quickly.
That is my prediction.
[B]We will see what happens.[/B]
[B]Chart 9 [/B] >>>
By tymen1 at 2008-10-14
Ahhhhhh!!
The green candle went thro the entry and stopped just short of the 1st target profit line. (as expected - a resistance line. )
But the next candle is red again.
So what is going to happen now?
The price action is see-sawing.
It looks like it is range trading.
This is frustrating.
[B]Is this red candle going to become green and hit our target?[/B]
[B]STOP[/B]
Wait for the next exciting episode tomorrow!!
CUE: [I]The Devilās Galop or Gallop by Charles Williams[/I] aka the theme tune to [B]D I C K ā B A R T O N ā Special Agent[/B]
Keep up the awesome work tymen. Another successful night trading your system.
Iām loving the GBP/JPY at the moment, it has quite a high spread but its well worth it
I am not sure what this is but I think it is a secret code to a successful trading formula.
Phew! Thatās going back a few years I am not sure I
am old enough to remember that. (Unless it was a re-make) :lmao:
Great stuff damo989!!
Ah - power flash.
My computer just went out and the whole of Perth did too!!
Power back on - now need to restart the modem.
Wow, these unexpected happenings could blow up your computer. :eek: :eek:
Well, lets continue that trade now thro to the end.
[B]Chart 10[/B] >>>
By tymen1 at 2008-10-14
Yikes!! :eek: :eek: :eek:
The price action has gone right down again.
We are really having a hard time of it here.
Nothing we can do but sit and wait.
[B]Chart 11[/B] >>>
By tymen1 at 2008-10-15
Horay!!
8 candles later and a 3 green soldiers patternā¦
ā¦and the price action has gone thro our 1st amount which is now in the bag!!
Now look at the top right hand corner.
The 1st amount profit has been transferred to the Unrealized profit/loss window - [U]see blue arrow[/U].
The present 2nd amount profit can be seen in the floating profit/loss window - [U]see pink arrow.[/U].
[B]We now need to do the break even operation and do it quickly.[/B]
[B]Chart 12[/B] >>>
By tymen1 at 2008-10-15
In this chart we have set the PCI stop loss to [U]break even.[/U].
It is directly on top of the entry line.
That is why you can see 2 tags - blue one for the entry and a red one for the PCI.
[U]Again the theory :[/U]
The 2 amounts strategy works as follows :
Firstly, we get one small profit from the 1st amount.
The stop loss or trade closure is now moved to the trade entry point. (Break Even).
The 2nd amount has a much larger profit target, but at worst, it would retrace to the trade entry point, giving a profit/loss of zero for this amount.Therefore, at worst, we have the 1st amount profit only, but this is superior to a loss.
[U]The same theory again :[/U]
Therefore, when the first lot meets its first objective, the second lotļæ½s stop is moved up to break even which locks in the gain and guarantees that profit.
When the first target has been met, the worst that can happen from that point on is the second lot retraces to the breakeven point and the trade is closed out for the net profit on the first lot
[B]It is important that we really get to understand this theory well.[/B]
[B]Chart 13 [/B] >>>
By tymen1 at 2008-10-15
Oh dear!! :eek: 
Do you see what I see?
The price action has gone down again and [U]hit our PCI stop loss[/U] which was set at [U]break even.[/U]
This has closed the 2nd amount trade.
There is no profit and no loss.
Have a look at the floating profit/loss window - [U]pink arrow[/U].
You will see that it is at zero.
So we must now [U]clean the chart[/U] and come to some conclusions.
[B]Chart 14 - Final[/B] >>>
By tymen1 at 2008-10-15
[U]On this chart I show the cleaning operation.[/U]
The 2nd amount take profit order is still on the chart and it must be removed promptly.
If left there, we could unknowingly start a new trade.
This new trade would not be in our best interests.
So in this trade we only make 10 pips profit.
Still, this is better than making a loss.
Sure, we took a long time to make that 10 pips.
But lets not be greedy.
Not every trade turns a million pips in 5 minutes!!
We must learn to take the good trades with the not-so-good ones.
Be humbleā¦andā¦be thankful.
I just had another and updated look at our trade.
After the trade was finished, the price action started a long and massive downtrend.
It never came within a bulls roar of the 2nd profit target.
[U]So if we had traded just one amount, we would have lost that trade completely.[/U]
The price action would have range traded, then gone on to hit our stop loss.
[B]So you can now see the power of the Multiple Amount Strategy on this Basic level.[/B]