Best Thread Live Cable Trading
JillyB
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TraderAli said:
I exited that trade straight away as soon as I got 5 pips. I was busy with other things at the time so was just glad to take 5.
According to Darvas the stop is placed at the other side of the box to the one which is broken through. Unfortunately this gives probably an unsatisfactory risk/reward ratio, however with the high number of 5 pip winning trades - a couple of 15-16 point losing trades does not make so much difference.
JillyB
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Baruch said:Maybe you change the rules? And let the profit run - like Darvas always did. He said: "There's no reason to sell a rising stock".
But Darvas was trading stocks - as you so rightly put it - trading the FX needs some adjustment of this.
For instance, how likely is it that the £ will ever buy $3? Not very likely. As I see it the £/$ is really broad range trading, it is not going to go up and up and up, or conversely go down and down. It has a very wide band that it trades within.
Therefore the Darvas theory needs some adapting.
In addition, I am only trading on a 5 min chart - which could be classed as scalping - I'm never in a trade longer than say 30 minutes. If you were trying Darvas on a longer time frame say 4 hours or a daily chart, then perhaps yes, you could look at it this way.
Baruch said:Maybe you should change the rules? And let the profit run - like Darvas always did. He said: "There's no reason to sell a rising stock".
Baruch,
I understand your point but if I did not take 5 pips, this would have been a breakeven trade. Also the trade which JillyB took earlier this morning reversed with a spike. I think 5 pips is quite easy to achieve but I would'nt feel comfortable having large stops. I personally think it should'nt be more then 10 points although it can be less when the boxes are small.
cheers.
