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10.4/10.5 trades only
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Author:  Jemook [ Thu May 23, 2013 7:57 am ]
Post subject:  Re: 10.4/10.5 trades only
tboy wrote:hey jemook
looking ar your charts yesterday, am i right in thinking you only start opening trades once PA is north of WP for longs and south of WP for shorts? in other words you don't fish the "wrong" side of the WP in the hope of bigger returns? thanks
I waited for the RSI to be pinned and then set trades when the H1 CSS showed exhaustion. Got out quick if the H1 changed colour but held whichever ones turned into an H4 CSS colour change.

But yes, in general I'd prefer price to be on the other side of the WP.
Author:  Staedtler [ Thu May 23, 2013 8:08 am ]
Post subject:  Re: 10.4/10.5 trades only
hard to say what's happening with the yen pairs.. looks like a reversal pattern to me
Author:  tboy [ Thu May 23, 2013 8:14 am ]
Post subject:  Re: 10.4/10.5 trades only
thanks jemook. which version of the RSI are you using there? mine is a lot more erratic, not pinning as nicely as yours!
Author:  rosst [ Thu May 23, 2013 8:18 am ]
Post subject:  Re: 10.4/10.5 trades only
Jemook wrote:
cmeade2 wrote:Jem

On the one hand, you are a monster with this approach.

My question is this. Why not load up with a larger trade when you first get in?

thanks

cmeade2
Hey mate :)

Let's look at 2 scenarios:

A: I open a 1 lot position and my TP is 100 pips away (+$1000). Position goes 20 pips into profit and then boom! Spikes the other way and is now -100 pips floating loss (-$1000).

B: I stagger my 1 lot over 10 x .1 lots going down to the 100 pip TP. If the TP gets hit that's +$550 profit (+100,+90,+80,+70,+60,+50,+40,+30,+20,+10). Again, let's say price moves 20 pips in my favour and then spikes 100 pips the other way then I'll be triggered on 2 entries @ .1 lots each... My open loss is $230 (-110 pips & -120 pips).

In scenario 1 I stood to make +$1000 and my floating loss was $-1000 and in scenario 2 I stood to make +$550 but my floating loss was -$230.

Cheers,
Jeremy

PS. I'm still not 100% sure scaling in is better than opening a full position so I'm open to suggestions. The above is just my understanding of it... Maybe we should start a new thread for a discussion on the topic?
I appreciate your explanation - It sort of makes sense but it also seems like a lot of work. Kind of like using a shotgun rather than a rifle. I guess I am more lazy and just try and find a couple of pairs and make a hundred pips increasing my lot size each week. I have managed to keep my average above 100 for the past 13 weeks - which is unheard of for me! Maybe I can be like you and Bob someday but I am still trying to wrap my mind around the CSS so I am still learning this great system's basics. Maybe a thread on this style of MM would be good and maybe a thread on CSS would be good too. I have CSS set up on charts from the Daily down to the 15M taking screen shots all the way - I don't see how you remember what the last numbers were to see the changes in it...
Author:  spotdespot [ Thu May 23, 2013 8:20 am ]
Post subject:  Re: 10.4/10.5 trades only
Jemook wrote:
PS. I'm still not 100% sure scaling in is better than opening a full position so I'm open to suggestions. The above is just my understanding of it... Maybe we should start a new thread for a discussion on the topic?
I am convinced - for the very reasons you outlined. With scaling in you are adding positions with momentum every time. If you enter one large position and it turns out it was a fake out/stop hunt or something just fundamentally changes your losses are limited. imo it's all about managing risk and maximizing your edge.

Cheers,
Dave.
Author:  Gertje [ Thu May 23, 2013 10:32 am ]
Post subject:  Re: 10.4/10.5 trades only
It's a crazy week.

Monday bank-holiday, not much trading done.
Tuesday some nice profits, yesterday was awesome and today again.
Made over 2400 pips yesterday, and today 1600 already.

JPY retrace caught me off-guard, had some positions open and went into big DD. Recovering already.

Am enjoying the ride back up at the JPY-pairs, entering every 20 pips with 20 pips TP to prevent huge DD again.
.
Author:  nanningbob [ Thu May 23, 2013 11:29 am ]
Post subject:  Re: 10.4/10.5 trades only
spotdespot wrote:
Jemook wrote:
PS. I'm still not 100% sure scaling in is better than opening a full position so I'm open to suggestions. The above is just my understanding of it... Maybe we should start a new thread for a discussion on the topic?
I am convinced - for the very reasons you outlined. With scaling in you are adding positions with momentum every time. If you enter one large position and it turns out it was a fake out/stop hunt or something just fundamentally changes your losses are limited. imo it's all about managing risk and maximizing your edge.

Cheers,
Dave.
What I like about multiple positions is you can TP at anytime. Is price going to continue or will it go on???? Well I can just take the profit and if it goes on I am back in if not I got the max on the trade. If price goes wild for me I have a bunch of trades in the move and if Price goes against me 1 maybe two small trades to deal with. No more guessing whether or not I got a tiger 100 pip + move or just a 20-50 range move. I get both of them now and DD stays low.
Author:  Jemook [ Thu May 23, 2013 11:37 am ]
Post subject:  Re: 10.4/10.5 trades only
spotdespot wrote:
Jemook wrote:
PS. I'm still not 100% sure scaling in is better than opening a full position so I'm open to suggestions. The above is just my understanding of it... Maybe we should start a new thread for a discussion on the topic?
I am convinced - for the very reasons you outlined. With scaling in you are adding positions with momentum every time. If you enter one large position and it turns out it was a fake out/stop hunt or something just fundamentally changes your losses are limited. imo it's all about managing risk and maximizing your edge.

Cheers,
Dave.
I'm still not convinced about scaling in. For example if this trade was a full position from the first entry it would be a little bit in profit rather than in a loss:
2013-05-23 09.33.46 pm.png
On the flipside, with the following NZDCAD position if my first entry was a full position I'd be in huge DD:
2013-05-23 09.42.07 pm.png
Anyway, 10.5 is very fun to trade. I still need to work out what sort of money management suits best for me :)
Author:  tboy [ Thu May 23, 2013 11:37 am ]
Post subject:  Re: 10.4/10.5 trades only
dear Gertje
i'm interested to know what DD you suffer from the occasional news spike - for instance gbpnzd was wildly erratic yesterday with at least two big setbacks. if you were long on this pair (being above the 240) you would potentially have had several longs triggered then reversed hard. that's my concern with the scaling approach.
sorry no pic with this - doing a contract in a bank at the moment and they won't let me access steve hopwood. reliant on iphone only!
Author:  Gertje [ Thu May 23, 2013 12:06 pm ]
Post subject:  Re: 10.4/10.5 trades only
tboy wrote:dear Gertje
i'm interested to know what DD you suffer from the occasional news spike - for instance gbpnzd was wildly erratic yesterday with at least two big setbacks. if you were long on this pair (being above the 240) you would potentially have had several longs triggered then reversed hard. that's my concern with the scaling approach.
sorry no pic with this - doing a contract in a bank at the moment and they won't let me access steve hopwood. reliant on iphone only!
Hi tboy,

DD was bigger than I'm used to, it spiked to over 40% this morning due to JPY retracing across the board.

With the GBPNZD you mentioned, DD was not so bad.
In the 3 trades that opened before the news I had 607 pips DD at the lowest point. I came out with 840 pips on this pair in the end.

Trading small lots is key like Bob likes to state. For me trading with 0.02 mini-lots on a $400 account, it means that for every 200 pips, I risk/ gain 1%. So the GBPNZD was -3% at the deepest, and brought me 4% this morning.

See attached.

This week I'm up 5386 pips, meaning over 25% since starting sundaynight. This can't keep up for sure, sooner or later I'll take a hit somewhere. My dream once was to be able to trade full lots and make 100+ pips a day [that is $1.000,-]. This means I need to be more picky in the trades I start, and close them earlier. No need to haul in 800 pips on one pair and risk 600+.
Look for the best pairs, time the entrance right and TP at the next line. No need to double a $100.000,- account every month....

For sure it's fun to be able to do so though..... :mrgreen:
.
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