GBP/USD freebie trading strategy

Interesting that eu/$ finding support off 100 ema again before it starts to move... gbp also moving off the previous support area i mentioned it above @ 1.6125 but looks nearer 1.6120.. as i also mentioned i consider it a watch area and it is within a few points. GBP looking like a reversal but it will most likely consolidate for a while... we'll find out when it happens :cheesy:
 

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JT
Now my head hurts !
All I want to do is trade the Euro /Dollar Future
But not sure I want to pay the mytrack cme fee of £50.

Could use the free fxcm chart maybe?

AARGH !!

:)
 
Long while i was at lunch re-entered at 1.6155

Lambchops & bertie,
Yes it it slightly tinkered with as i mentioned in the original posting. What i posted was the very basic version but there is not a great deal of difference. I watch the action at the next entry level to decide if i should trade it or not... mostly the orders go in the market but sometimes they dont for a few reasons
 
Just but SeirraChart and use IB as the data source.

$45 ish for 6 months...

JonnyT
 
mytrack give you the spot rate as a part of the price along with dji and a few others

Or use future sources charts
 
Newtron

when you place your stops, what do you do about the spread?

eg gbp/usd with cmc is 5 pip spread. If your stop is 30, is it 30 plus 5 spread- total risk 35 pips or is it 30 including spread- total risk 30, but stopped out if the market moves 25 against you?

Also, can you clarify if you use a fixed points stop or if you vary it according to volatility, or other factors. (I ask this as I have observed the use of 30 and 40 points stops).

Many thanks

Darren

PS. Nice trades over the last few days.
 
No its 30 points full stop so if i buy at 1.6150, my sell stop is at 1.6120

If you trade with a broker do you take their spread into account? you also add your costs... so if i was trading this with a 2 point spread plus cost of 2/3 to break even on a trade i have to have a 4/5 point move go in my favour to break even, which is the same with a SB

On the loss side i would still use a 30 point stop with a broker regardless of a 2 point spread or a 5 point spread i only want to loose 30 points.

I think people focus too much on the spread of an SB company, when your making money does it really matter where you pay your cost be it up front in the spread or per transaction. plus there are other reasons for my choice of trading vehicle which dont amount to tax or bet size issues and i am better off before the pro/against arguments start.
 
Thanks for the reply Newtron

I wasn't really getting at trading costs, nor do I want to get into (another) debate about SB v other trading vehicles- I use SB too.

I was just trying to establish that by using a 30 point stop, does the market need to move 25 or 30 points against you in order for you to be stopped out (ie 5 point spread with CMC on gbp/usd).

Your answer confirms 25. (ie 30 points total risk including 5 point spread).

Thanks
 
sorry it did come accross as being a bit abrupt but i did nt mean it in that way... i was trying to prevent further questions and answers by explaining more than i should have. :)

Generally because of cmc's bazaar exection methods you get a little bit of leigh way. it can touch your price but still not be executed and then return to be back in your favour
 
Days round up

The over night entry was put in as a limit order just in case it meandered down, i though it unlikely that it would go even further down to trigger the stop as it turned out this time, it was a good plan...

If you missed that then the BO of the overnight range would have done you just as well.

Next entry area was @1.6155 conveniently a pullback just before my entry and then it was stopped out for 30 points.... replaced my stop entry on the assumption of it being a pullback RSI support to confirm this... after that its went sideways, the lowest is got was 1.6134 so my stop is safe on the last entry.

Overnight stop for the rest is just below the ema @1.6110 assuming that the ema will drift up and have a 20 point clearance by morning... and good rally to finish the session :cheesy:
 

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Have read neils link to elite earlier.

It makes reference (among other things) to round numbers offering good support / resistance levels. I have not really considered this on FX before although I know the nasdaq and index traders on here use it.

However, just looking at newtrons chart of the last day or so, it is interesting to note that the cable rally lost steam and pulled back from 1.6100 yesterday and 1.6200 today.

Does anyone have experience in using this particular strategy with cable or other fx pairs?
 
Mmmm

Have just looked further back on the cable chart.

Interestingly.....

yesterday morning's breakout of the overnight range was through resistance at 1.5900. Once broken, the rally did not pause until 1.6000. After a brief pullback, the rally broke 1.6000 and did not face strong resistance until the afore mentioned 1.6100.

Don't know how to post a chart but I am sure you can see this on Newtrons previous charts.
 
Its uncanny to wake up to sometimes !!! :eek:

See how the ema catches up this time so you will short beneath it which is the same as a BO entry

Long if i wasnt already for a BO above 1.6180 which its doing as i type.
short entry to reverse the position @ 1.6125
My next long entry area is still 1.6230 and with that am of back to bed :cheesy:

Why dint i trade the long BO :?:
I am already have a long enrty @1.6155 so my next consideration is 75 points higher @ 1.6230 so am not over trading
There is no reason why you wouldnt trade the BO it is a valid entry.
 

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