How to Trade 10.x Like a Boss

[kwanann]

Cmeade, actually all you have done is trade aud and nzd weakness and stacked them against the other pairs

Not sure about you.l but I find that extremely dangerous..

[cmeade2]

Why do you think it is dangerous? It is totally consistent with the CSS, and as I said, these are total 10.4 extensions.

Otherwise you would have to be looking for reversals, and there is no sign of that.

Cmeade, actually all you have done is trade aud and nzd weakness and stacked them against the other pairs

Not sure about you.l but I find that extremely dangerous..

[cmeade2]

Following up on my previous post here is the H4 CSS showing that the Aud and Nzd screaming down.

These were not risky trades.

[Pipstubborn]

Jem,
What threshold do you use in the H1 CSS?
Can't see it in your posts.
Thanks

[Jemook]

Jem,
What threshold do you use in the H1 CSS?
Can't see it in your posts.
Thanks

2.5

[kwanann]

Just me I guess, I try to limit a currency appearing in my trade at most twice and never in opposite directions eg buy eurusd, sell gbpusd.

While the profit factor increases with ech trade, the loss probability increases as well. Even though they are 10.4 setups doesn't mean I will go and trade all of them

[Jemook]

Hi kwanann, I agree that going in on every pair can be risky if it goes against you but if you're managing the risk / DD effectively then when you are right you'll make lotsa dosh and you won't miss out if the correlated pair you didn't choose moves and the single pair doesn't.

Here's a quick example. I enter GBPJPY, EURJPY, CHFJPY, USDJPY, AUDJPY short with a 1% TP for all trades and SL of 1% for all trades. I will close all the trades at 2% DD if I'm wrong. If I'm right I make 5% and if I'm wrong I lose 2%.

Say I cherry picked the best setup out of those 5 and went with AUDJPY, risk 5% TP 5% but shut at 2% DD it would effectively do the same thing but what happens if for whatever reason AUD strengthened and all the other xxxJPY pairs went down? I'd be left hanging.

I prefer to go in on every good setup and instead of concerning myself with correlation I'll put my focus on what I'm risking and potentially gaining overall if I'm right. Either way I use my head and I do give a lot of thought to correlation so in no way am I dismissing what you're saying.

Cheers,
J

[garyfritz]

There's nothing wrong with buy eurusd / sell gbpusd. The net effect is trading eurgbp, which may be a perfectly reasonable thing to do. And if both eurusd and gbpusd are making good moves, why not play eurgbp that way?

I agree you have to be careful about stacking your hand with a bunch of positions in one currency. If that currency turns, all those positions will come back to bite you. On the other hand if you think the currency is going to keep trending for a long time -- like AUD has so far -- then spreading your AUD position across multiple pairs is a reasonable approach. Just watch your stops and realize you basically have an extra-heavy AUD position, so you'll get hit on a bunch of positions if AUD suddenly turns.

[nicoacademia]

Why do you think it is dangerous? It is totally consistent with the CSS, and as I said, these are total 10.4 extensions.

Otherwise you would have to be looking for reversals, and there is no sign of that.

Cmeade, actually all you have done is trade aud and nzd weakness and stacked them against the other pairs

Not sure about you.l but I find that extremely dangerous..

personally i take each chart as it is.

so i agree with your point of view.

as long as whats in the box/window agrees with the methodology i don't care.

unless of course you're trying to sell dollars in the face of ben bernanke as he was talking. lol. such things no one can teach. some things are caught...some things can never be taught.

i find it more risky to think too much.
and stack that thinking with even more thinking.
that....is more detrimental than anything.

[bluedog23]

Why do you think it is dangerous? It is totally consistent with the CSS, and as I said, these are total 10.4 extensions.

Otherwise you would have to be looking for reversals, and there is no sign of that.

Cmeade, actually all you have done is trade aud and nzd weakness and stacked them against the other pairs

Not sure about you.l but I find that extremely dangerous..

personally i take each chart as it is.

so i agree with your point of view.

as long as whats in the box/window agrees with the methodology i don't care.

unless of course you're trying to sell dollars in the face of ben bernanke as he was talking. lol. such things no one can teach. some things are caught...some things can never be taught.

i find it more risky to think too much.
and stack that thinking with even more thinking.
that....is more detrimental than anything.

I agree, take the system and each chart as they are. It is very easy to over analyze in this business and end up going in a circle.