As a new entrance in forexforum.co.za Journals
I will keep a summary of my methodogy and live trading online.most of my trading style is derived from good trading books I've read,Jesse Livermore etc and some remarkable traders I have had the opportunuity and honor of meeting and learning from.
Most of the will probably be in point form. If you find a need to discuss further or discuss what's worked for you.
You may PM me or simply post.
It's long been a key wish that one day I may form a trading team with strengths that compliment others, I am currently working on an EA with a technician team of developers too.
Fine summary
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Trading time: 7pm EST to 6 am EST
1. Know your fundamentals, Establish the overall trend- Get yours news and sense of what will occur for the day.
There are numerous sources: CNBC, CNN, Reuters, Bloomberg, TTN etc etc, for simplicity that you may just use a consolidator
2. Assessforexforum.co.zaCalender and syncronise news time with your clock. You ought to be reminded of this news 15-30 mins before the news.
There's not any such thing like being caught in surprise by expected news, simply carelessness and stupidity.
Know the news for the day..price is news and news is price. More frequently than not the market will move to the anticipation of this news event for the day.
3. Utilize technicals to determine your entrance and exits.
Around the opening of the NZ / Asia markets. Start looking for the 50% FIB retracement of the preceding big move of the day. It will most likely move there. If you are more competitive. You may trade the retracement and trade the persistent trend in the 50.
Markets: Generally speaking. Asia should likely be used for scalping, London may be used for bigger intraday moves. Asia generally ranges and larger moves are in London.
A. use proper money management.generally 2% of your total account ought to be all that ought to be risked in a proper trade.
For cash management, a position ought to factually be 1 percent of account/ ( ATR* Dollars per pip) - ( Reference Trading )
if you need the formulation please PM me.
As a rule of thumb the higher the Average trading Range of the currency you are coping with. The lower your unit size ought to be, as it has more potential of burning out you. eg. You may hold more of EU as to GJ
as general rule. If I lose 10% of my account. I will trade my account as if it has gone down by 20%. , by lowering your unit sizes significantly, this guarantees longetivity of account and allows you to figure out exactly what went wrong.
B. establish a proper breakout system. I only try to ch breakouts in London. Bigger time frames ( Months. Week, days ,hrs) affirm
general tendencies, I trade off the 1HR and fintune entrance to 1/5 min precise entries when nessesary.
Adding components:
one ought to include components in INCREASING order ( this is really a moot point), the first unit size has been the smallest. This is exactly what I coin the scout
unit - this will want to verify if there's a trend and if it's going in the direction you are expecting it to. If you are wrong, or temporarily so. There's not any point in adding to positions. ALWAYS usage stops.
If the trend is in accore to your anticipation ( you are right!!) , then add positions and let your profits run until it hits your TP.
Entries and exits.
Predetermine your entries and exits before each trade.I utilize a lower TF MA platform to select my entrances, the ATR to determine the expected length of this transfer. Units are concealed beneath the pivots (S/Rs) and Fibs for more protection against retracements.price usually does not move in a direct line.
IN occasion your line is heavy and fully loaded, (you'd the opporuntity to include many unit sizes inserted on it at regular intervals supporting S/R lines ). I regard each seperate unit placed across the way as its own and exposed to what is coined the antihedge rule by Jacko with the position locked in a BE.if the price retraces it takes the previous position out at BE and also the position is re-entered whenever price passes through it . ( this is cumbersome and will require an EA)- Profit is only taken when the TP is reached ( move completed), or at the crystal clear sign of a reversal signal of this trend.
In event, there's not any way to BE. Your stop loss ought to be limited to 30 pips on a single lowests unit size or the scout unit.
If done correctly, this should net you a typical of 200 pips obtained for each 30 pips loss. Or allows 6 losses for each triumph.
Risk reward ought to be 6.67:1
your win loss ratio should be 3:1( in actual trading)
I'll do some live real time trades on Monday's London.
I typically only trade 1 trade each day. I scalp in Asia when I am bored but usually loe this process draining if done within a extended period of intense concentration altho it is profitable
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