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How to Trade 10.x Like a Boss
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Author:  mjws00 [ Fri Jun 21, 2013 5:51 am ]
Post subject:  Re: How to Trade 10.x Like a Boss
Jemook wrote: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%.

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.
For me the "ALL TRADES" is the key. There seems to be an edge in the diversification. But it is EASY to get very heavy on one currency if you aren't careful. Especially with NZD or JPY pairs that can cover huge distances and be very spikey.

With fixed lots, you can end up with your trades completely dominated, by a fast moving pair. The EA's get crushed when this happens.

Jem's approach to divide the risk, and adjust position size by SL eliminates this risk.

Love it. Exactly where my head has been at as well with this. Nice one, Boss.

Mike
Author:  Sojourner [ Fri Jun 21, 2013 8:43 am ]
Post subject:  Re: How to Trade 10.x Like a Boss
kwanann wrote:Sojourner

With a 500$ account, why are you trading 10c???
Its the lowest I can go. I think the big fault I made is taking on too many pairs that had the same currency. Greed clouded judgement. Just saw so many of everyone doing so well with it, I thought it was bulletproof. :(
Author:  Sojourner [ Fri Jun 21, 2013 8:44 am ]
Post subject:  Re: How to Trade 10.x Like a Boss
Fourxxxx wrote:
kwanann wrote:Sojourner

With a 500$ account, why are you trading 10c???
Might be the coffee!
That could be a contributing factor, yes. :D
Author:  kwanann [ Fri Jun 21, 2013 9:29 am ]
Post subject:  Re: How to Trade 10.x Like a Boss
Kind of like a double whammy

First you never lose more than 1% per trade, with a 1:1 rr, that means that even if you lose half the time, you will not lose more than you win

Why weekly pivots, well they change only once a week, which is safer than daily pivots, so if they cross a weekly pivot, chances are they will continue in that direction
Author:  Pedigree [ Fri Jun 21, 2013 9:33 am ]
Post subject:  Re: How to Trade 10.x Like a Boss
kwanann wrote:Kind of like a double whammy

First you never lose more than 1% per trade, with a 1:1 rr, that means that even if you lose half the time, you will not lose more than you win

Why weekly pivots, well they change only once a week, which is safer than daily pivots, so if they cross a weekly pivot, chances are they will continue in that direction
Apologies Kwanann & Everyone.
I removed the post this was responding to in order to re-think the issue.

Here it is:
kwanann wrote:Anyway Jem good job, i just switched over to the weekly pivots instead of the daily and immediately i can see why your DD would be low with this method!
kwanann wrote:
Jemook wrote:And keep your 1% SL well away from price so you never take a full hit and always have time to close before it reaches your stop. That's the killer twist.
Yup as it is after the retrace when price goes your way your probability of loss is close to 0. Add in a maximum loss of 1% that NEVER gets hit, you have a very high r:r ratio

Good job!
Kwanann, how does keeping the 1% SL well away from price tie up with using weekly rather than daily pivots?
Author:  Pedigree [ Fri Jun 21, 2013 9:44 am ]
Post subject:  Re: How to Trade 10.x Like a Boss
kwanann wrote:Kind of like a double whammy

First you never lose more than 1% per trade, with a 1:1 rr, that means that even if you lose half the time, you will not lose more than you win

Why weekly pivots, well they change only once a week, which is safer than daily pivots, so if they cross a weekly pivot, chances are they will continue in that direction
Thanks Kwanann, all clear.
Author:  rosst [ Fri Jun 21, 2013 10:12 am ]
Post subject:  Re: How to Trade 10.x Like a Boss
Jemook wrote: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%....


J
Jem thanks for sharing your setup - you state on the first page "I use Easy Order Script to enter all my trades risking 1% per trade. It automatically calculates the lot size depending on where you place your SL and you can place a TP as well using it. I do all my trading on Global Prime the best broker in the world as voted by me."
Does the Easy Order script you use automatically select a 1% TP & SL? I am not sure I have the correct version - is there a way to tell which is the correct version?
Also, in the above example where you have 5 pairs with a 1% SL do you manually close the trades with a 2% SL or do you use a basket manager to do this?
Thanks again
Author:  Pedigree [ Fri Jun 21, 2013 10:47 am ]
Post subject:  Re: How to Trade 10.x Like a Boss
Jemook wrote:

LONG PAIRS (price is above the 960MA)

1. Wait for a decent retracement. Best setup is when price has retraced to a pivot or support (WP, WS1, WS2, MS1, MS2)
Hi Jemook,

In the context of the above, I understand the rationale behind waiting for the WP to be crossed (downwards) before buying, but what is the relevance of WS1, WS2, MS1 and MS2?

If, for instance, price is between WP and WS1, and H1 CSS goes goldenrod (H4 rsi2 pinned down), what does WS1 have to do with the set-up?

Why does it not suffice to just say price must cross the WP for a set-up to be valid?
Author:  spotdespot [ Fri Jun 21, 2013 11:22 am ]
Post subject:  Re: How to Trade 10.x Like a Boss
Pedigree wrote:
Jemook wrote:

LONG PAIRS (price is above the 960MA)

1. Wait for a decent retracement. Best setup is when price has retraced to a pivot or support (WP, WS1, WS2, MS1, MS2)
Hi Jemook,

In the context of the above, I understand the rationale behind waiting for the WP to be crossed (downwards) before buying, but what is the relevance of WS1, WS2, MS1 and MS2?

If, for instance, price is between WP and WS1, and H1 CSS goes goldenrod (H4 rsi2 pinned down), what does WS1 have to do with the set-up?

Why does it not suffice to just say price must cross the WP for a set-up to be valid?
Jeremy can correct me if necessary but the point I believe he is making is that price must retrace to a significant weekly level for the setup to be valid.

So for example if (for a long) price raced to WR1 then a retrace to the WP or WS1, MS1, MS2 then an H1 CSS colour change with the H4 RSI(2) being pinned low would signify a valid setup at any of these levels.

So essentially you could have perfectly valid setups without the WP being crossed.

Hopefully that makes sense.

Cheers,
Dave.
Author:  pips400 [ Fri Jun 21, 2013 11:36 am ]
Post subject:  Re: How to Trade 10.x Like a Boss
I could be wrong, but I think once price has crossed under WP for a long, or crossed above WP for a short, then that's the decent retrace we're looking for, so if it goes to S1 for a long or R1 for a short, it doesn't really matter because we already had a decent retrace at WP. Exception to this is a bounce off the WP which happens a lot, which would also be a valid setup.
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