10.6 EDSEL

[trucomallica]

Thanks Skyline, I thought it may be so, however, when the STO7 and daily pivots are influenced I get concerned (perhaps out of ignorance) as these two items would influence when and where entry would take place...

I understand your concern but there is so much pair to look at, don't try so hard analyzing a chart trying to pick perfect entries (at least this is how i do), just look if there could be a signal and place order accordingly, double check with css daily to see if that order is reasonable then place pending orders and move onto next pair. The fact that not everyone here are using the same broker and among us there are some profitable traders should tell you that broker is not that important (from an entry signal point of view).
I have no doubt that if i switch to Cowboy Cowboy IBFX (or whatever different broker) i will be still profitable (or with little loss) not because i'm a genius but due to trading system rules which will put you (more often than not) on the right direction (which is the main trend).
As Bob said, start with small comfortable lot size (start with 0.01) and pile up trades ( i usually have 10-15 trades opened, one for each pair), you will see then magically (when trend resume or kick in) that pips will start to come in your account just let the trend have the time to develop, don't close order as soon as you are 20-50 pips in profit, and don't move stoploss to breakeven too early, wait at least 100-150 pips gain before to do so, then when you reach a positive % gain of overall account (or friday is coming) close all basket orders with positive and negative trades and take your profit for the week, very simple , this how i'm trading sucessfull using edsel.

Hope this helps

I actually think that you're trading 0.01 standard lots, and not 0.01 microlots as Bob has said he likes. If you can keep that volume just go on

I unexpectedly had to travel this week, so my trading was interrupted for several days and now that I returned I see that I lost a lot At least still positive.

[nanningbob]

Thanks Skyline, I thought it may be so, however, when the STO7 and daily pivots are influenced I get concerned (perhaps out of ignorance) as these two items would influence when and where entry would take place...

I understand your concern but there is so much pair to look at, don't try so hard analyzing a chart trying to pick perfect entries (at least this is how i do), just look if there could be a signal and place order accordingly, double check with css daily to see if that order is reasonable then place pending orders and move onto next pair. The fact that not everyone here are using the same broker and among us there are some profitable traders should tell you that broker is not that important (from an entry signal point of view).
I have no doubt that if i switch to Cowboy Cowboy Cowboy IBFX (or whatever different broker) i will be still profitable (or with little loss) not because i'm a genius but due to trading system rules which will put you (more often than not) on the right direction (which is the main trend).
As Bob said, start with small comfortable lot size (start with 0.01) and pile up trades ( i usually have 10-15 trades opened, one for each pair), you will see then magically (when trend resume or kick in) that pips will start to come in your account just let the trend have the time to develop, don't close order as soon as you are 20-50 pips in profit, and don't move stoploss to breakeven too early, wait at least 100-150 pips gain before to do so, then when you reach a positive % gain of overall account (or friday is coming) close all basket orders with positive and negative trades and take your profit for the week, very simple , this how i'm trading sucessfull using edsel.

Hope this helps

I actually think that you're trading 0.01 standard lots, and not 0.01 microlots as Bob has said he likes. If you can keep that volume just go on

I unexpectedly had to travel this week, so my trading was interrupted for several days and now that I returned I see that I lost a lot At least still positive.

Those that trade with bigger lots will use fewer trades and will hit more SL. From testing you can hit a 30% win rate at a 2.5:1 win to loss trade ratio. I have not tried that kind of trading in years but when I did I got tired of always trying to make up my losses. Probably would work well with 10.6 and staying with trend trades. Now I get to play with a floating DD instead of DD of account balance. Either way DD comes into play. The difference is I close trades if I think the direction changes, means I might hold them a while or price didnt do what I wanted and I close quickly on those. For example I didnt hold onto gbp/cad sells but I did hold cad/jpy sells. I do expect the cad/jpy to rebound soon but the gbp/cad may run awhile. So I didnt keep it.

[Skyline]

I unexpectedly had to travel this week, so my trading was interrupted for several days and now that I returned I see that I lost a lot At least still positive.

Yes you're right actually i'm trading 0.04 standard lots, not micro lots , of course i want to be somehow rewarded for my effort and i'm willing to have a little bit risk to speed up my account growth, i'm not interested to gain few pennies per year but if i have to give an advice is far better to trade a real microlots account with few $ than trade in a fake demo account (different feed, different psicological aspect and so on..).
Btw even if i'm pushing with risk looking at myfxbook stats, my risk of ruin actually is almon nil (< 0.01% to get a > 20% overall account loss, around 0.94% to lose 10% of account) and that's all that counts.
Actually my weekly goal is to hit +10% account growth or close all orders on friday whatever comes first.

Cheers,
Skyline

[Skyline]

Those that trade with bigger lots will use fewer trades and will hit more SL. From testing you can hit a 30% win rate at a 2.5:1 win to loss trade ratio. I have not tried that kind of trading in years but when I did I got tired of always trying to make up my losses. Probably would work well with 10.6 and staying with trend trades. Now I get to play with a floating DD instead of DD of account balance. Either way DD comes into play. The difference is I close trades if I think the direction changes, means I might hold them a while or price didnt do what I wanted and I close quickly on those. For example I didnt hold onto gbp/cad sells but I did hold cad/jpy sells. I do expect the cad/jpy to rebound soon but the gbp/cad may run awhile. So I didnt keep it.

Hi Bob thx for reply
Well actually i'm at 45% winning trade with a profit factor of 2.03, i know this figures could lower in future but at the moment i'm happy with them. You're right about the DD , i'm playing with DD of account balance but i don't guess so much on pairs direction since i'd not yet developed those gut feeling about currency direction based on fundamental as you greatly do, maybe with experience in future , who knows

Thx again
Skyline

[nanningbob]

Those that trade with bigger lots will use fewer trades and will hit more SL. From testing you can hit a 30% win rate at a 2.5:1 win to loss trade ratio. I have not tried that kind of trading in years but when I did I got tired of always trying to make up my losses. Probably would work well with 10.6 and staying with trend trades. Now I get to play with a floating DD instead of DD of account balance. Either way DD comes into play. The difference is I close trades if I think the direction changes, means I might hold them a while or price didnt do what I wanted and I close quickly on those. For example I didnt hold onto gbp/cad sells but I did hold cad/jpy sells. I do expect the cad/jpy to rebound soon but the gbp/cad may run awhile. So I didnt keep it.

Hi Bob thx for reply
Well actually i'm at 45% winning trade with a profit factor of 2.03, i know this figures could lower in future but at the moment i'm happy with them. You're right about the DD , i'm playing with DD of account balance but i don't guess so much on pairs direction since i'd not yet developed those gut feeling about currency direction based on fundamental as you greatly do, maybe with experience in future , who knows

Thx again
Skyline

The difference I found out between carrying a DD versus closing losers and having permanent DD with account balance it two things.

1. If I carry a DD and say it is 1000 dollars my account balance can continue to go up with other trades. Since 70% of the time the market is ranging, I have a 70% chance of it at least coming back to break even or making a small profit. That eliminates perhaps 700 dollars in losses I never have to make up with other trades.

2. I also increase my odds by placing a 2nd trade and countering the first trade by breaking it even or a small profit. My account balance does not change.

3. If I take constant SL I have a decrease in my account balance and end up maybe making up the losses with smaller lot sizes or riskier trades. If I carry a limited DD I only need to close out those trades that truly reversed the trend. Avoiding the death trades in carrying DD is key. All trend trades become profitable if you give them room.

4. A new part of my strategy is I show more patience with positive swap trades over negative swap trades. I can decrease my DD by 1% or more of my account balance by playing with the positive swap trades more than negative swap trades.

Now can I teach that. No but some may understand the concept.

So in carrying a limited DD my account balance keeps going up because I still have winning trades going into the bank. My DD trades have a 70% chance of breaking even or making a profit. I just need to read the market and know when a trade truly has reversed on me and it is fruitless to carry it further. Add to this a discipline that closes bad trades when they are no good and close trades that dont do what you expect early and you have a consistently increasing account balance.

The last thing is barriers of DD. Anything less than 10% is OK 10-15 need to be closing some bad trades, over 15%; what is it you are refusing to close. Never go past 20% because by 30% you can kiss your account good bye. You dont know it yet but you have no more room to trade at 30% so 20% is you max. Take a 4-8% hit and live to trade another day. If you go past 15% DD you have trades you should have closed by then and you are just being stubborn or stupid. 4-8% is recoverable in 4-8 days and happens to me 6-8 times a year. I did two in December but hadnt done any since Sept. I had two in June. So it was a good year for me as far as keeping DD under control.

Anyway, why am I even talking about it??

[Pipstubborn]

The last thing is barriers of DD. Anything less than 10% is OK 10-15 need to be closing some bad trades, over 15%; what is it you are refusing to close. Never go past 20% because by 30% you can kiss your account good bye. You dont know it yet but you have no more room to trade at 30% so 20% is you max. Take a 4-8% hit and live to trade another day. If you go past 15% DD you have trades you should have closed by then and you are just being stubborn or stupid. 4-8% is recoverable in 4-8 days and happens to me 6-8 times a year. I did two in December but hadnt done any since Sept. I had two in June. So it was a good year for me as far as keeping DD under control.

Anyway, why am I even talking about it?

Bob, when you talk about % of DD is that in a daily, weekly or monthly basis? Thanks

[boldtrader]

Hi there just checked the spreads on ATC web site, they are having a laugh 17 pips on gbpjpy no way

Art, thank you for your info... Not sure what you are seeing, but the normal spread on GJ is around 1.2/1.7. sometimes less, sometime more, depending on markets. If you are looking at spreads at close of market they are always wide 3-10 minutes near close. That is how it works. But to come in and post a negative, arbitrary comment about GJ being 17 pips, well. Please, I would not even think about posting any firm that has a 17 pip wide spread on a pair. I would not want to insult all the smart and intelligent traders here. I am a professional trader with more than 20 years experience, adviser for large funds, as well former top FX Trader for a top 5 Chi Town Futures/Commodity firm, Futures, Options, Commodity and FOREX trader, teacher, author, etc.. I am not about to post comments here recommending a service that has a spread of 17 pips. May I recommend that you look at the spreads, which are very competitive, when the markets are moving normal. I am not here to promote ATCBokers, only to share the broker name I am using and share that I have had great success and no complaints with them. I trade standard and mini lots sizes. If you want micro, they are available upon request. Micro is not their norm. Many pips to your Art, and if I can be of service, feel free to contact me. Best regards.

[art]

I do apologise I looked at the site when market had closed will check it out monday

[James Roscoe]

Those that trade with bigger lots will use fewer trades and will hit more SL. From testing you can hit a 30% win rate at a 2.5:1 win to loss trade ratio. I have not tried that kind of trading in years but when I did I got tired of always trying to make up my losses. Probably would work well with 10.6 and staying with trend trades. Now I get to play with a floating DD instead of DD of account balance. Either way DD comes into play. The difference is I close trades if I think the direction changes, means I might hold them a while or price didnt do what I wanted and I close quickly on those. For example I didnt hold onto gbp/cad sells but I did hold cad/jpy sells. I do expect the cad/jpy to rebound soon but the gbp/cad may run awhile. So I didnt keep it.

Hi Bob thx for reply
Well actually i'm at 45% winning trade with a profit factor of 2.03, i know this figures could lower in future but at the moment i'm happy with them. You're right about the DD , i'm playing with DD of account balance but i don't guess so much on pairs direction since i'd not yet developed those gut feeling about currency direction based on fundamental as you greatly do, maybe with experience in future , who knows

Thx again
Skyline

The difference I found out between carrying a DD versus closing losers and having permanent DD with account balance it two things.

1. If I carry a DD and say it is 1000 dollars my account balance can continue to go up with other trades. Since 70% of the time the market is ranging, I have a 70% chance of it at least coming back to break even or making a small profit. That eliminates perhaps 700 dollars in losses I never have to make up with other trades.

2. I also increase my odds by placing a 2nd trade and countering the first trade by breaking it even or a small profit. My account balance does not change.

3. If I take constant SL I have a decrease in my account balance and end up maybe making up the losses with smaller lot sizes or riskier trades. If I carry a limited DD I only need to close out those trades that truly reversed the trend. Avoiding the death trades in carrying DD is key. All trend trades become profitable if you give them room.

4. A new part of my strategy is I show more patience with positive swap trades over negative swap trades. I can decrease my DD by 1% or more of my account balance by playing with the positive swap trades more than negative swap trades.

Now can I teach that. No but some may understand the concept.

So in carrying a limited DD my account balance keeps going up because I still have winning trades going into the bank. My DD trades have a 70% chance of breaking even or making a profit. I just need to read the market and know when a trade truly has reversed on me and it is fruitless to carry it further. Add to this a discipline that closes bad trades when they are no good and close trades that dont do what you expect early and you have a consistently increasing account balance.

The last thing is barriers of DD. Anything less than 10% is OK 10-15 need to be closing some bad trades, over 15%; what is it you are refusing to close. Never go past 20% because by 30% you can kiss your account good bye. You dont know it yet but you have no more room to trade at 30% so 20% is you max. Take a 4-8% hit and live to trade another day. If you go past 15% DD you have trades you should have closed by then and you are just being stubborn or stupid. 4-8% is recoverable in 4-8 days and happens to me 6-8 times a year. I did two in December but hadnt done any since Sept. I had two in June. So it was a good year for me as far as keeping DD under control.

Anyway, why am I even talking about it??

Bob, what lot size do you use? Does one trade equal a penny, a dime, a dollar? I need some clarification on this. And your posts about risk management are very good. Thanks for taking the effort.

[nanningbob]

The last thing is barriers of DD. Anything less than 10% is OK 10-15 need to be closing some bad trades, over 15%; what is it you are refusing to close. Never go past 20% because by 30% you can kiss your account good bye. You dont know it yet but you have no more room to trade at 30% so 20% is you max. Take a 4-8% hit and live to trade another day. If you go past 15% DD you have trades you should have closed by then and you are just being stubborn or stupid. 4-8% is recoverable in 4-8 days and happens to me 6-8 times a year. I did two in December but hadnt done any since Sept. I had two in June. So it was a good year for me as far as keeping DD under control.

Anyway, why am I even talking about it?

Bob, when you talk about % of DD is that in a daily, weekly or monthly basis? Thanks

DrawDown DD is the amount of money you are in the negative compared to your account. If you have 1000 dollar account and you close -200.00 in losses you have a 20% DD of your account. Your account balance is 800.

If you have a 1000 in your account and your open trades = -200.00 you have a DD of 20% of your account but the DD is floating and hasnt been closed yet. A floating DD of 100 or less is acceptable to me. 15% or 150 there are warning signs that something is wrong. 200 or 20% means you are really doing something wrong and need to get your DD back into line. 30% or 300 dollars you are in big trouble even if you dont realize it. You should never get to this point.

The difference between the two is if you close all your losses you have to make them up with live trades before you can increase your account size. If you trade smart and are patient in a trend, most of your DD will disappear and you will constantly banking your winners. The key is your account balance, I keep mine level or angling up at all times with a couple of exceptions during the year when I misread the trend. Everytime I have taken that 4-8% account hit to close out my misread trades. I have recovered within two weeks.

I guess you can say my SL are based on trend direction, not a point on the chart. That is why the 240 line is important to me. As long as price is on the same side of 240 line as my trade I am not concerned. However, I close out many times long before price gets there. That is usually because I understand that a fundamental has changed and I needed to change or I dont know the fundamental. for example the past week the CAD dropping like a rock was a fundamental I missed. No one was talking about it and i was caught. The key was I dont trade the CAD heavily so the damage has been minor. But lets say I was on the wrong end of those trades. I would have closed out at the cross of the 240 line. If I was CT trading a pair I know not to fight the trend so I bailed out quickly.

The exception I made was the cad/jpy. I stay with those trades because as soon as this news passes the jpy fundamental will go back in place and I wont have to take any losses there. I also realize that the cad/jpy wont be making any new highs this month so stay with the high/low that has been set.

I drive people nuts with this but it works and has worked for years for me. If you are a one in/one out trader you will never get it. You have to think in a series of trades not a single trade. Some people cant do that. Especially those that like firm trading rules.