Well you could use price action like PIN bars, enter at close of PIN, SL 1 tick beyond high/low of PIN. That would be price action only. That's a 5 minute chart, I have found nothing to suggest that longer timeframes are much more reliable. The other problem with trading longer time frames is that you will have bigger draw downs and they will last longer. Who cares if you have to work harder, would you rather work hard and make money or take it easy and not make money?
Well you could use price action like PIN bars, enter at close of PIN, SL 1 tick beyond high/low of PIN. That would be price action only. That's a 5 minute chart, I have found nothing to suggest that longer timeframes are much more reliable. The other problem with trading longer time frames is that you will have bigger draw downs and they will last longer. Who cares if you have to work harder, would you rather work hard and make money or take it easy and not make money?
Its my understanding that positional players trading longer time frames often use sl's
of around 100 pips ,nasty on the occaisions you do get bitten.
If you adjust your position size then yes the draw down would be the same, but then the profits would also be reduced accordingly. So unless the bigger time frames were more reliable (and I couldnt prove in testing that they were) then there is no advantage other than it being less 'work'.
The draw downs would still last longer as you will have fewer signals so it will take longer to recover. This would be a disadvantage if you are scaling up each time you reach a certain profit level eg adding one contract for every $1000 you increase you account etc.
Do not get confused with bigger sl's meaning bigger losses. Look at my above example. Two traders risking 2% of their acc; 1 using 10 SL other using 100 SL.
They both lose 2% but pip total is vastly different.
mark120169
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This is for Dubai and Tang who just can't seem to leave here!
M
M
stevepatt
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I've been picking up a lot of free information about trading the longer time frames from
http://www.learntotradethemarket.com/ it's also good for money management and the psychological side of trading.
I've been paper trading a couple of the price action methods mentioned on the site and so far so good. What I've liked most about this is the reduction in screen time and the better risk reward 1:2 being the minimum. In the last two days I've found two trades one on USD/CHF and today GBP/CHF both going short on the 4hr time frame and risking 120 pips to make 240, both have been winners. Could also have done the same thing with the EUR/CHF but missed the signal.
One thing to keep an eye on is when one currencie starts to make gains or losses cross check it with other currencies to see if the same thing is happening.
http://www.learntotradethemarket.com/ it's also good for money management and the psychological side of trading.
I've been paper trading a couple of the price action methods mentioned on the site and so far so good. What I've liked most about this is the reduction in screen time and the better risk reward 1:2 being the minimum. In the last two days I've found two trades one on USD/CHF and today GBP/CHF both going short on the 4hr time frame and risking 120 pips to make 240, both have been winners. Could also have done the same thing with the EUR/CHF but missed the signal.
One thing to keep an eye on is when one currencie starts to make gains or losses cross check it with other currencies to see if the same thing is happening.
This bloke must have been a contrarian as well!
peterf1966
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This is me upon getting stopped out. F$&K Yeah!
http://www.youtube.com/watch?v=U68s4JI22Zk&feature=related
Good, looks like we have quite a few stops to clear above the tops for 2 hours after 18:30 before we face strong R at R3 = 1.5633. Left limit sell 1.5632 SL 20 TP 61, down to R4 = 1.5565. If it works well must be filled at around 3:30am; any stalling there to the morning will be a sign of strength and signal to change the plan.
stevepatt
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From what I'm learning from different sourceses,, like you say, it's better start with the higher time frames before moving on to lower ones. It's a lot less stressful than trying to scalp on lower time frames and gives you more time to evaluate what's going on. At the end of the day of course it's down to what suits the individuals trading style from what I've been experiencing I think the higher time frames will suit me.
mark120169
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Do you own Net Trap manual ? If you do join the private forum. We have 60+ members now.
M
My plan is working so far. I am a bit concerned about being "the first mouse" as a bear but so far so good. 15620 is strong S, let's see how it tackles it.
Anyone else is shorting?
mark120169
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Bolivian Admiral
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Now that July is over, how many pips did RH get
Would be interesting to see how it will react to the 1:30pm US GDP today. For Y, SL100 is a bit conservative, it's not that volatile?
paulhayes57
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yep im short tangers 15613
mark120169
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Yes but this is not intraday trade. This is far quarter trade. Could creep up above recent all time highs of 11616 before retrace.
Previous recent all time highs were 11795 & 11653 Both Nov 2009.
Has already dropped to my target within the last 2 weeks, but aim aiming much higher it really starts to drop, maybe 400 - 500 pips by Xmas.
M
+2 for all the effort...
