Trading Naked - Part 2

[Bloodhound]

Just a quick M15 before and after. Nice break and attempt at a retest of the level which produced a LrH below the level (failure of price to move higher). Blue for entry, red for stop and green for TP (half off):

Before:



After:


Stop on other half now at b/e....

 

[Bloodhound]

Here's another one that's just been triggered. Breakdown followed by consolidation and HrL's etc. leading to a possible break back up through the level?







N.B.Silver line = stop to b/e level to protect against a reversal

 

[Bloodhound]

EJ Update

Slight mistake with this one in that I placed my TP way too far from entry - it should usually be at around the same distance as my stop. By the time I realised what I'd done it was too late and got stopped out for + a few pips but about 1/4 of what it should have been.

Another lesson learnt - must pay more attention......

 

[HawkTrader]

Was that a full TP Rob, or just partial?

 

[Bloodhound]

Was that a full TP Rob, or just partial?

Half off at first TP and then run the other half. In the case of that EJ trade, what I should have done was to take half off at around 132.30 and the rest off at 132.60, given the strong level up there...

 

[trendie]

Are you trading normally tomorrow and Friday??

Thanksgiving tomorrow. Then a Friday into weekend.

Do you anticipate normal activity, or low-volatility spikey stuff?

Also, anyone believe in the "buy the Dow at Thanksgiving (or is it Labo(u)r Day) and hold into New Year" malarkey?

 

[Bloodhound]

Are you trading normally tomorrow and Friday??

Thanksgiving tomorrow. Then a Friday into weekend.

Do you anticipate normal activity, or low-volatility spikey stuff?

Also, anyone believe in the "buy the Dow at Thanksgiving (or is it Labo(u)r Day) and hold into New Year" malarkey?

Hello Trendie,

I've just been thinking about this and it reminded me of a post / observation you made some months ago on the cable thread when a lot took the day off due to a US bank holiday (I think?) and you pointed out that cable produced one of her nicest runs of the year!!

All the best
Rob

 

[foredog]

Hello Trendie,

I've just been thinking about this and it reminded me of a post / observation you made some months ago on the cable thread when a lot took the day off due to a US bank holiday (I think?) and you pointed out that cable produced one of her nicest runs of the year!!

All the best
Rob

Yes, think i remember that, all the same i can't imagine there's much point in trading after midday as no US to push it about.


Cue 1pm 200 pip move:clap:

 

[Bloodhound]

Yes, think i remember that, all the same i can't imagine there's much point in trading after midday as no US to push it about.


Cue 1pm 200 pip move:clap:

I shall take a lie-in until 12.45pm and then get my orders set!!

 

[HawkTrader]

Half off at first TP and then run the other half. In the case of that EJ trade, what I should have done was to take half off at around 132.30 and the rest off at 132.60, given the strong level up there...

Is this your normal way of doing things Rob?

Yes, think i remember that, all the same i can't imagine there's much point in trading after midday as no US to push it about.


Cue 1pm 200 pip move:clap:

I don't think I'll bother with tomorrow, got a decent few pips in my bag and I don't want to let any slip out!! I always hate myself when I end up trading day's I'm not sure about and then giving money away. No rush, back to normal next week... fingers crossed.

 

[Bloodhound]

Eurgbp

Not a great run to the first R level but liked the way this looked...

Blue for entry, red for stop etc.

 

[Bloodhound]

Is this your normal way of doing things Rob?

Sorry Owain, maybe I'm a bit dense. Which bit do you mean?

 

[HawkTrader]

Sorry Owain, maybe I'm a bit dense. Which bit do you mean?

I should have been clearer. I meant do you always take half profits at your first TP and how does that incorporate with your loading up method?

 

[Bloodhound]

I should have been clearer. I meant do you always take half profits at your first TP and how does that incorporate with your loading up method?

Hi Hawk,

This is slightly different to what I do on cable M5 (although the PA principles are exactly the same) and is more based on shooting for pre-defined levels, both in terms of TP's and also when stops go to b/e etc. whereas my cable M5 trading is set at 2xR for scaling the first half out.

With this method I am essentially looking to take half off the table in each trade at about 1xR and then let the other half run. That EJ trade was a little different as I had taken the view that there was likely to be some fairly strong resistance at the higher level so decided to close the rest of the trade around that level. Sadly, I had failed to do my maths right and set my initial TP target way too high.

It's early days yet with this way of trading and I'm just getting used to it using tiny stakes, just to see if I can get it nailed. What is interesting is that it is having what I think is a very beneficial impact on my cable M5 trading as it is making me think much harder about the levels I'm potentially trading into when I enter a trade.

All the best

Rob

 

[Bloodhound]

Eurgbp

Didn't make anything but didn't lose anything either! With the benefit of hindsight the entry was probably a bit too close to that resistance level.

 

[Bloodhound]

FAO Hawk

Sorry Owain,

Missed the other part of your question. Yes I would definitely still load up if a position was going my way with this M15 stuff, but would be looking (as I am doing more and more with cable M5) for a pre-defined level to break to trigger an addition. Hopefully this EURUSD trade from last week will explain what I mean.



Note how the TP level for my first entry became the level where I added to the position when it broke.

All the best

Rob

 

[HawkTrader]

Ah yes, I saw this EUR/USD trade of yours, nice one. Did you add double to that position at TP level?

And am I blind or do I not see where you put your T2 stop?

 

[Bloodhound]

Ah yes, I saw this EUR/USD trade of yours, nice one. Did you add double to that position at TP level?

And am I blind or do I not see where you put your T2 stop?

No, you're not blind! I'm afraid I didn't mark it on but, from memory, it was tough knowing where to put a hard stop so I just put a 20 pip one on and ratcheted it down to above that consolidation when things weren't looking so great for the trade. Regarding the position size, I'm afraid it was my usual bull in a china shop approach and I did add at the same size as initial T1 entry. Remember that my position sizing is always based around my hard stop level which, in most cases, is far removed from the actual level I might get stopped out at should things be going wrong.

P.S. Apologies for the slightly garish colour scheme of late but I am doing this from a psychological aspect so that I can easliy differentiate between my M5 cable trading and this M15 stuff - the theory being that I don't end up confusing the 2 in my own mind....

 

[HawkTrader]

No, you're not blind! I'm afraid I didn't mark it on but, from memory, it was tough knowing where to put a hard stop so I just put a 20 pip one on and ratcheted it down to above that consolidation when things weren't looking so great for the trade. Regarding the position size, I'm afraid it was my usual bull in a china shop approach and I did add at the same size as initial T1 entry. Remember that my position sizing is always based around my hard stop level which, in most cases, is far removed from the actual level I might get stopped out at should things be going wrong.

Of course, but adding to my positions has always confused me. When it looks like the trade might be going against you, are you closing T1 along with T2 or do you just close T2? I'm always worried about giving back my profits made on the first trade, and because of that I end up marrying a direction.

 

[Bloodhound]

In order for me to add to a position I have to be pretty convinced that price is moving in my direction. The way I look at M5 is that the pulllbacks / consolidations etc. during a move are minor blips in a reasonably powerful swing. To this end I am pretty relaxed about where my T1 stop would be and will, very often, just leave the stop at break even and purely focus on managing the addition in order to reduce the risk of the T2 trade ASAP. Once I have got the T2 trade to b/e I will then look to move my T1 stop up to behind the high / low of the consolidation which provided me with a set up for T2. I completely agree with you about fear of givng away hard earned profits from T1 - I tend to treat that scenario as an occupational hazard and one worth risking in order to make more of each successful trade.