10.4 A Complete System

[Pedigree]

As for swap its entirely possible to have 0 swap, especially when you play small lots e.g 0.01

then if the swap is say 10c, you will have zero swap.

Just wondering Kwan, so you mean if that trade had been say, 0.05 lots, there would have been some swap, but if I'd had 5 x 0.01-lot trades there will be none?

[Pedigree]

Hi Pedigree, price testing previous support right now, so I would either take profit now, or get ready to close if price starts moving up again, either way I would SL to BE.

Thanks Pips. I actually have a feeling the support will be broken. For the moment anyhow, JPY is going up, EUR is going down and the 15-minute stoch is going down so I'll hang on just a while longer to see. Don't forget I've been waiting a whole week for this!!!!!!!!!!

Re DD, it is not recommended to be more than 1% on any one trade. When talking about 5% or 10% DD that is for the basket of all trades. Money management is key to staying long term. Forgive me if I misundertood, just don't want you to get burned, and want you to succeed.

Thanks again Pips. I meant 10% of equity not 10% on the trade.

[pips400]

Don't forget I've been waiting a whole week for this!!!!!!!!!!

So far so good. Really hope you get some payback My style of trading doesn't let me stay in a trade for too long, I don't have the patience and easily get anxious or over stressed if I'm sitting on DD for too long. In and out, ideally in a day trading the sessions if I can like Bob, unless there's a clear runner, but sometimes DD is inevitable and you have no choice. May the pips be with you

[Pedigree]

Don't forget I've been waiting a whole week for this!!!!!!!!!!

So far so good. Really hope you get some payback My style of trading doesn't let me stay in a trade for too long, I don't have the patience and easily get anxious or over stressed if I'm sitting on DD for too long. In and out, ideally in a day trading the sessions if I can like Bob, unless there's a clear runner, but sometimes DD is inevitable and you have no choice. May the pips be with you

I know exactly what you mean Pips. It's just that far too many times than I care to recount, I've closed a trade in loss to "be safe" only to see price turn around in its favour and zip away! It just seems to me like needlessly throwing away money. So, as long as the trend is on my side, I've learnt to endure a little DD. That's the luxury small lots afford you - that and getting away with paying swap (not quite clear on that one yet!!!!!).

[Pedigree]

Another “pending” pair I’m currently tied up by is AUDNZD. Apologies to the Aussies and Kiwis but this is one miserable pair, I have to say! Just look at it. Up and down pins literally everywhere! Just wandering about like a lost soul! And with an ADR of just over 100, you need the patience of Job to trade it!

[kwanann]

Just wondering Kwan, so you mean if that trade had been say, 0.05 lots, there would have been some swap, but if I'd had 5 x 0.01-lot trades there will be none?

Actually typically when you get 0 swap, it is to your disadvantage.

e.g EURJPY has a swap long for $0.10, and swap short for $0.60

So if you take a full lot, keeping this one day will either earn you $0.1 or cost you $0.6

Now if you are trading 0.01, this will become 0.001 or -0.006. Since this amount does not exist, what happens is the 0.001 will disappear i.e 0 swap and the -0.006 will become -0.01 (round up)

Of course if the negative swap is less than 0.5 then yes you are basically trading it "swap-free"

I actually do take that into account when i trade and i typically do not like to keep positions that incur negative swap over to the next day. those with positive swap i might consider.

e.g i HATE keeping any aud or nzd shorts because their negative swap is ridiculously high. BUT i love to keep AUD or NZD buys because their positive swap is also on the high side

[Pedigree]

Just wondering Kwan, so you mean if that trade had been say, 0.05 lots, there would have been some swap, but if I'd had 5 x 0.01-lot trades there will be none?

Actually typically when you get 0 swap, it is to your disadvantage.

e.g EURJPY has a swap long for $0.10, and swap short for $0.60

So if you take a full lot, keeping this one day will either earn you $0.1 or cost you $0.6

Now if you are trading 0.01, this will become 0.001 or -0.006. Since this amount does not exist, what happens is the 0.001 will disappear i.e 0 swap and the -0.006 will become -0.01 (round up)

Of course if the negative swap is less than 0.5 then yes you are basically trading it "swap-free"

I actually do take that into account when i trade and i typically do not like to keep positions that incur negative swap over to the next day. those with positive swap i might consider.

e.g i HATE keeping any aud or nzd shorts because their negative swap is ridiculously high. BUT i love to keep AUD or NZD buys because their positive swap is also on the high side

Now Kwanann you’ve gone and opened another can of worms! Fancy one trading all this while and not knowing this! I have a raft of questions swirling around now and I’m not even sure this is the right place to carry on this drift. So I’ll go sleep on the much you’ve said and if I can boil the questions down to one simple inquiry that can be quickly disposed of in a line or two I’ll come back with it!

Thanks a lot for the trouble answering. Anyone reading a couple of past posts might begin to think you are a defendant and I’m the prosecuting attorney!!!

[Pedigree]

I earlier spent a whole post bashing AUDNZD and just look what it ended up doing today, bless its merry soul!!!

[aSushiRoll]

I don't see a typical 10.4 trade in that am I right?

Anyway I'm trying to find a good 10.4 setup right now but..


across the board

[kwanann]

Hmm gbpusd should be a 10.4 setup, crossing of 240ma.. Earned quite a fair bit off that in less than 2 hours..