Hopefully someone can help within this school of baby pips?
I am looking to go live soon however i face the dilema of what system do I use, this probably the average traders biggest test.
I have tried various systems with different outcomes, however what I find is either slow entry or a guess where the market will go, no good how it looks backtest with the data in front of you, in real time its a guess.
What I have noticed is trend confirmation with emas slow/ fast ie 30/200 more reliable with stops on swing high/lows.
At the end of the day its a probabilty bet which i have come to realise rather than a set of rules that the market follows, which means no holy grail of winners.
A question I ask of any profitable trader willing to give help is, what else can be used to confirm entry rather than the obvious of (rsi 21) >0 or < 0.
I have been profitable with some methods but end up feeling like its more a punt , although with the qouted system ema’s on a 30 min tf and 3,4,5 to 1 risk reward seems capable with some losers as expected does any one trade this way.
You may want to look at Price Action Trading. There are several threads down in the Free Trading Systems sub-forums and some others littered around. It can be pretty easily paired with EMAs to help determine bias. The aforementioned sub-forum provides a bunch of established strategies as well.
As someone that tried to develop my own when I first started off- let me save you a ton of time. Keep looking for an already established system until you find one that clicks for you instead of trying to come up with your own. The difference is that there will be other people that specifically use the foundation of the system you’re using that you can learn from, bounce things off of, and help you figure out how you screwed up when you do. Just keep looking at things until you see something that meshes well with your personality and work to master it.
I think it will take you much more time to decide, the best I can tell you is pick one you favor and test it in your live account using micro-lots. Don’t like what you get, pick another one or create one of your own.
Thanks for all the suggestions, the only issue I would have with price action is the definition of the term in my opinion price action would be looking for a pattern on a chart ie wedge, double top/bottom etc combined with a supp or res, with the goal of reversal? With that in mind I cant see a logical exit on the trade.
A similar issue comes into play with a defined system with parameters met on 60 min chart but on other timeframes the parameters not met.
I really think that the exit holds more weight than the entry of a trade, with many trades going into profit not hitting your set RR then reversing hitting your stop.
Before you go live, start developing a strategy and start looking at price more as one thing that can be viewed from different angles, rather than viewing the different timeframes as separate things. If you want I can have a one on one with you and show you my perspective, see if it clicks with your way of thinking. If you’re interested check out my thread. Im looking for people to debate views with.
Sort of. You don’t need to look for double tops/wedges/head and shoulder type formations with Price Action trading. You mostly concern yourself with 1-3 bar candlestick signals formed at locations that are likely to produce results. For example, a pin bar that forms after a pullback on a point of support warrant placing a long order above the pin to trigger a trade when price started moving in your direction.
As for logical exits; you impose them. It’s impossible to have a 100% fool-proof exit criteria because every trade is different. Speaking from the basis of my strategy- I always want to take at least 2:1 on a trade. To give me the highest probability of that occurring; I check the economic calendar to make sure there are no high volatility events for either currency in the pair I’m trading and I ensure there are no strong points of S/R immediately in the direction I’m trading.
Now if it’s a trend, I might not actually use a Take Profit, let it ride, and just keep advancing my stop to just under each bounce. Then I’ll withdraw when market events are looming.
The term Price Action refers solely to the movement of the price. You can easily trade break outs and continuations with a Price Action strategy as well; not just reversals.
There are tons and tons and tons of opinions on how and when to exit. I trade on the daily time-frames and usually check about 20 pairs for set ups every day after the NY close. I aim to make at least one trade per week. Sometimes there are more, sometimes there are less. But price action is something that is applicable on all time frames, although it does perform differently as you get into the lower increment charts. I can’t provide meaningful experience based input on PA trading on under 4h charts; but there are tons of PA traders on these forums who can.
As mentioned from the others, Price Action would be quite a useful base to have here. In fact, I could not imagine trading without my PA base models, systems, and understanding.
You are welcome to check out my thread, where I share the base models, along with trade setups, and articles regularly.
Sometimes, it is tricky, especially when you hope to develop a strategy that works for you. The truth is, no strategy is new or secret. Some strategies have been tested and used by others. It would be wise to study such strategies use them until you can fully develop a working strategy. While using the already tested strategies for your live account, you can do your own strategy with a demo.
Forget that crap. DO price action, and study markets by yourself. Technicals are for lazies and it gets pretty boring quite soonner. Do you really think you have an edge while most traders are looking at the same indicators as you do?
I dont trade the indicators, they are used as a tool to help measure probability of the trade.
Rsi for example can be very helpfull looking for divergence, however i wouldnt trade on the basis of being over sold etc.
I did have a look at the price action thread by Chris, what I took from it was the 20ema which gives some nice entrys. The rest of it is really good if your trader personality likes longer time frames.
I tend to trade intra day 30m charts, so the only price action for me would be heiken ashi.
I think you are on the right track as you try to figure out what works and what you like. Keep testing different systems, there is no holy grail. Pick one that works for you.
You cannot learn price action over night. It will take some time. I also started like you and ended with Price action. But it took me 1 & 1/2 years to get on the right track. Now I am doing good with PA & still learning.
I also strongly recommend Price Action thread by Chris Capre to get some good advices & knowledge.
Very true. Successful traders never stop to learn about trading. We are not perfect and make mistakes and those who stop and think they learned all there is they will eventually either fail completely or stop progressing.
