Lancaster wrote:Hey gang,
Bob I have two questions (but I'm happy for anybody to chime in) specifically and in general about tiered pending orders, market sessions, and exposure~
First, the obligatory huge 'thank you!' for all your work here. A gigantic amount of my growth as a trader is owed to you and the folks here on Steve's forum.
My questions are prompted by your comments about successfully trading low leverage/lots with multi level trading:
1.) In 10.4 the practice was to wait for a valid setup and then, at the same time, lay out a series of pending orders on that pair at the respective levels. Since we have removed the support/resistance levels and weekly pivot, do you still advocate the tiered approach with round numbers and DP? Would this be the same thing as multi level trading?
I am working my way through that issue. I am trying to find some consistent formulas to use multiple levels but unless you know the underlying fundamental it is a hard thing to consistently do. Right now the only thing that may work on a consistent level would be the old CSS indi from 10.2 in which if above/below 4 stay in and take the ride. But then I would be cluttering up the screen with another indi for a limited use basis. That CSS did not use the same figures as the 10.4 one does.
2.) In the 10.5 manual I was interested in the section you wrote about the currency sessions and how your trading day was split into 3 parts, and that you would often bank profits at the midway point of the session. Do you still make an effort to close trades in profit according to the time of day, or is it more about evaluating the strength of a trade at a given moment?
My trading day does not change and I still follow that trading pattern. I will need to find that and post it on page 1. I close out my profitable trades at the session peak and then decided which of my other trades I wish to keep or close.
And as a follow-up to get a sense of your process, do you typically have several positions open throughout the week as a result of volume?
Yes it is common for me to have 10-40 trades going on at a time. I will trade all 24 pairs on my list of currencies I trade. Right now I have trades going on 13 pairs but as I get into December I will be decreasing that until I get to the 2nd week and close out what is left.
I feel like I jump on the good entrances as they occur but I definitely don't have near your volume of pips (well not positive pips at least
), and I would like to try increasing, but I want to do it the correct way
It is not easy doing what I do. It is like being a juggler. I know which currency pairs are high, medium, and low volatility. Which ones tend to trend and which ones are likely to bounce up and down. For example commodity currencies like to trend like crazy once they get going. I once decided to wait one out and the stupid AUD trended for 6 months. I finally got out at a loss (about 10% of my account) and the very next week it dropped like a rock. After playing with the stupid thing for 6 months I couldnt wait one more week. Now some of you may think I am crazy but being a CT trader I was taking profits along the way on the retraces but they never covered my losing trade. So I have learned an important lesson. Do not fight the positive swap of the aud and nzd. You can do it the other way because while you are holding onto the trade the positive swap keeps increasing and sooner or later it will go on a long run. Strong positive swap currencies tend to trend these long runs and then collapse when they are on the negative side. People hang onto them for as long as they can and then dump positive swap currencies as a big group. Then they slowly buy back in. So aud and nzd are dropping right now but I expect them to go back into a nice run probably early 2014
Ultimately what I'm trying to do is increase my exposure with open positions so the edge of this system along with trend have more opportunity to be realized. I feel like this system really opens the doors to following a long term trend, but I'm limiting myself when I take profit at that first round number level and then leave it to look at other pairs.
I apologize in advance if this has been answered in part or full already. I haven't finished the latest pdf yet but I'm getting through it!
Thanks in advance,
Lan
See the red above.