Currency Trading; September 03

[Lambchops]

NB - Does your pyramiding make a big difference to your final results.

 

[Newtron Bomb]

It is very significant... the idea is you have your smallest lot size when it is ranging or changing direction and the whips around the ema are kept to a minimum and when the market runs and as we've seen you can probably expect a decent run of 5/6 cents and anywhere up to 10/12 cents if is really takes a run

 

[Newtron Bomb]

screen time varies as i dont just trade 15 min cable.
however, if i was to just trade cable you could probably do what ive been doing and have your feet up reading the paper this morning and am only up now because i got a phone call at 8.50, i am off to the shops to meet a friend for coffee for about an hour. If anything happened ill get a text alert

The only action time is when the price is around the ema like now but even then you dont need to be glued to the screen.

If the prices wildly spiked up 25 points and down 25 points on every bar, hence whipping you long and short, it is still only a phone call to put your stop & reversal orders in, but what are the odds of this happening regularly. I accept it may happen, but i have a methodology that allows me sufficient time & means to deal with these extreme scenarios.

Look at it another way, am going out for an hour now that is 4 bars look at the price action over any random 4 bars... what ever happens whip or rally i'll be in the move where ever i am :cheesy: :cheesy: :cheesy:

 

[Goober]

NB - you're the man!

I take your point on volatility. Looking back on the charts, it appears that Cable rarely spikes wildly. I certainly like your style of trading and need to work hard at stepping away from the noise.

Goober.

 

[Newtron Bomb]

I find it so much more relaxing... i did things backward when i started out... and went full time into day trading and now looking at longer time frames... however the good thing about currencies is you can if you want look at any time frame with this method... less screen time if you increase the time frame and conversely more screen time with the shortening of time frames.

 

[Goober]

NB

If you increase the time frame to say 60 mins, would you amend your entry to ema + 30 (or more) to compensate for the potential increase in the range of the bar over the extended time frame?

Thanks

Goober

 

[Newtron Bomb]

Without working out the potential pullback size on 60 minute bars and therefore an average stop loss, 30 points would be a fair assumption by just quickly doing a visual check on a 60 min chart....

Another option may be to use the high and low of the bar that crosses the 100 perid ema to trigger an entry and your stop

 

[Goober]

Thanks NB.

A BO of the H/L of the bar that crosses over the ema is an excellent suggestion.

Goober.

 

[Newtron Bomb]

No problem at all