The Zen art of trading
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Thread: The Zen art of trading

  1. #1
    The purpose of this diary is about submitting transactions, and a site about the parallel nature between spirituality and trading. I expect that others will benefit from it, and that a number of the points resonate with some thing that you can#8217;t entirely put into words.

    I have been studying forex for nearly two decades. I trade part-time, like I maintain a day job. During the most extreme parts of my forex journey I had been researching, studying, studying charts, etc upwards of 4-5 hours a night, and 14 hours a weekend.

    When I first started learning forex it was something that appealed to me greatly, I wasn#8217;t certain what exactly about it. At first admittedly much of it had been financial liberty more then anything else. I blew two accounts at the start, just one small, one big (Relatively, but #8217;s all that matters). Many months after I realized how ardently trading resonated with my deepest spiritual self. The self that's mindful of the thinker. This wasn't only something that I could do for a profession, but something that would parallel my primary purpose in life 8211; to be self-aware. From self-awareness comes true liberty, joy, and clarity. I'd found my internal martial art, the mirror that would teach me, and truly put the power of abune directly in my own hands. I'd found my path.

    The more I learn, and the more I encounter with trading the more enamored with it I become. The difficult times are the times which produce the most internal expansion and bring you closer to your goals. Whenever you're in a challenging spot, always remember this actuality.

    I no longer have any query on whether I will triumph. It#8217;s the fact that in my mind, I have already succeeded. Time will simply must pass before I encounter more in my journey.

    I had many revelations, #8220;paradigm shifts#8221;, even moments of satori. Many times things only #8220;clicked#8221;. The biggest shift, and also the one that eventually changed all, was that the previous shift. The shift to practicing patience.


    At the core is self-awareness #8211; the capacity to stay focused in the present moment - above the noise of the endless (and illusory) thoughts of past and future.

    Your mind always wants something to do #8211; it#8217;s not quiet. People are always in a rush. People don#8217;t want to await anything, particularly standing in lineups with nothing else to occupy the mind. Fast food, 30 second commercials, preprocessed foods to the max, diet pills. This sickness of course, does not automatically disappear when you begin trading. Quite the opposite, particularly when you're beginning to learn because you simply would like to discover whether or not what you're doing is right (therefore not making you wrong). And so, I believe patience is the fundamental element of trading. In entrance, exits, studying, testing ideas, and above all #8211; currency management.

  2. #2
    A very interesting thread you have started here.

    Too awful it fizzled out.

  3. #3
    How is it travellin unforseen? Im fighting lately after a leading two month begin I have not been able to replie that performance or even shut. Just wondering how you were doin

  4. #4
    Quote Originally Posted by ;
    using an ATR derived stop distance isn't half bad, so long as you combine it with a fixed maxium risk per transaction. When volatility rises, you're ending up with bigger stop distances. To remain within a fixed risk level per trade for that bigger cease distance, you'd need to decrease position dimensions.

    Conclusion: using ATR-derived ceases in conjunction with a fixed maximum risk per trade could be a powerful implementation of the position dimensions recommendations I posted earlier.

    As to my plogical stops: I do not use a stop-band, but a fixed stop a commerce, based on my mended maximum risk limitation. The stops I actually put in the market are a multiple of the...

    take good care, collect pips!

    Ohka
    Thank you Ohka, this explains my thinking along these lines. I've been doing the same today for the last month, putting my highest possible loss (and therefore lot size), but frequently closing a transaction that starts to build at where I didn't anticipate. These transactions where I've accepted small losses, have often become the best course of action to take. I believe I will not bother using the ATR at this point, simply because my real risk is going to be based on maximum loss, however far off that may be to the transaction accessible. The maximum loss of a commerce is going to be the same regardless of how volatile the market.

    I will continue to use price to gauge the stop, and I feel that's a much better way of making correct transactions for my system.

  5. #5
    Quote Originally Posted by ;
    Hello,

    I'd done somthing very like you in the past. Read much on stops and ideas about the best way best to normalize the risk, I think I will go back to exactly what it is you are describing. I looked up on how to perform the ATR way of settings stops and I simply don't enjoy it. I realized that price will account for volatility and so normalize itself automatically.

    I realized that this is one easy win for simplicity over complexity.

    I do have a question for you, I understand you get a mental stop, but isn't a range? So for example is your risk model such you will say risk between 2% and 3% along with your plogical stop must fall within those parameters?
    Using an ATR derived stop distance isn't half bad, as long as you mix it with a predetermined maxium risk per trade. When volatility rises, you are ending up with larger stop distances. To remain within a predetermined risk level per trade for that larger stop distance, you would need to reduce standing size.

    Conclusion: with ATR-derived stops in conjunction with a predetermined maximum risk per trade would be an effective execution of this position size recommendations I posted before.

    As to my plogical stops: I don't use a stop-band, however a predetermined stop a trade, dependent on my mended maximum risk limitation. The stops I really put in the market are a multiple of the...

    take care, collect pips!

  6. #6
    Hi Ohka,

    I had done somthing very similar to you in the past. After reading much on ceases and thoughts about how to normalize the risk, I think I will return to exactly what you are describing. I appeared on how to perform the ATR method for settings stops and I simply don't like it. I understood that price will account for volatility and therefore normalize itself automatically.

    I understood that this is just one simple win for simplicity over complexity.

    I really do have a question for you, I understand you get a mental stop, but is not that a range? Therefore for example is the risk model such that you will say risk between 2% and 3% along with your plogical stop has to fall within those parameters?


    Quote Originally Posted by ;
    As to entrances stops:

    the stops I place in the market are only intended to be a last resort in the event of an emergeny - events which make it impossible to contact my broker and shut my positions.

    I shut my positions , with another pair of stops that I don't put in the market.

    The nearer you are able to set your entries at a reversal point, the tighter the plogical stops could be. If you're great at this, it allows you to size your position without risking more than your preset limitation.
    My personal position sizing way is simply fractional-f, in which my effective risk (i.e. effective leverage) is limited by the plogical stops I utilize.

    My entries derive from reversals in Fibonacci- and Pivot Point levels and Bolling band extremes, but just so when in the exact same time MACD/RSI show a divergence with price action.
    Currently I'm exploring using Imran's platform (here on FF) as an entry verifiion in those price levels...

    Happy trading
    Ohka

  7. #7
    Back in my break... it was well worth it to ponder matters and do a bit more reading on cash management without being away in your charts and trading. I can't stress enough the value of a fracture to bring clarity of thoughts, this fracture gave me a fantastic boost to my resolve that discipline of my plan is the only way to succeed. It's sometimes hard to clearly view and fix to do the obvious once you are knee deep in all the notions and other distractions which come from trading.

    I came back to some wonderful short commerce I opened late October that went nicely on GBPJPY, decided to close it to get 498 pips today.

    That I am ready to fund my live account again, I'm considering doing it for December. I'm Canadian so I'm mulling shing my broker to a broker that supplies a Canadian denomination rather than needing to worry about the hedging factor that is UCAD

  8. #8
    As to entrances stops:

    the stops I put in the market are purely intended to be a last resort in case of an emergeny - events that make it impossible to get hold of my broker and shut my rankings.

    I shut my rankings , using another set of stops that I do not put on the market.

    The nearer you are able to place your entries at a reversal stage, the tighter the plogical stops could be. If you are great at this, it allows you to size up your position without risking more than your pre-set limit.
    My personal position sizing method is simply fractional-f, where my powerful risk (i.e. powerful leverage) is restricted by the plogical stops I utilize.

    My entries derive from reversals in Fibonacci- and Pivot Point levels and Bolling ring extremes, but only so when in the same time MACD/RSI show a divergence with price action.
    Currently I'm investigating using Imran's platform (here on FF) as an entry affirmation at those price levels...

    Joyful trading

  9. #9
    Regrettably dropping in has sparked some ideas

    I understood that although close stops greatly diminish w/l ratio, but they also make conditions where one good trending commerce captures a massive profit, while the remainder generally break even.

    The challenge is still the same, which method(s) are somewhat more profitable long term?
    Only trying them out, and time, will tell.

    It is just an observation now. Now I'm not sure what I'm likely to do, try to raise stops at less profit, greater w/l ratio, but far better profit?

    Not. Attached is my statement so far for this season. See the chop from the tight stops, but watch the runaway? This was an perfect setup and instinct trade that ended up running. The last profits are very near last month, so I'm going to stay with my tight stops until the end of the month. This month also led to 4 percent less drawdown.

    The question is... how often will these runaway trades happen? Can it be a market condition, or just luck?

    I will also leave on some thing that I stumbled upon on soultrader's thread, composed by him.

    Support and resistance should not only dictate your entries but also your moves along with your stop position.

    You will hear littered through this forum I had been long but got removed by my stop - my broker went stop searching and got me damn thing took me out into the pip on my cease

    These invoices show somebody who fails to take responsibility for a commerce's demise. They utilize a stop to create a decision for them to exit a trade.

    Real traders exit their own trades using their very own fingers. Stops are there for 2 reasons - if you have to sleep or go out and play golf, or to protect your funds from unforseen conditions like an earthquake at canary wharf.

    Stops shoudl always be put further away than you think price will strike. If your assumption is that the market won't go lower than 2.200 on cable then your stop should be at 2.150 in the absolute closest and preferably farther than that or not at all at the market.

    This post in its entirety can be found here:
    https://www.forexforum.co.za/cryptoc...-possible.html

  10. #10
    Quote Originally Posted by ;
    ,

    a fantastic thread, keep it up. If your number crunching isn't yet finalized, please consider also adding current volatility as a step to find out your next position size. The relation is the inverse one: with greater volatility, you should reduce standing size, with lower volatility one should boost standing size...

    The ratio for this: with greater volatility, even if you are on the incorrect side of this market, you are going to make losses big and fast, and that means you want to reduce risk with smaller rankings. If you are on the right side of this market - with a smaller position - you are going to make anyway, as the greater volatility will probably yield more pips.

    Decreasing position size when current volatility is greater is key to becoming a smoother and more consistent equity curve. Place this relation in your model, you are going to be amazed....
    Due Ohka

    I certainly plan on doing this and do it however it is quite poor. I utilize a multiplier system with pair, neutral being EURUSD (or 1). As an example, for Your Dragon GBPJPY I utilize a 0.3-0.4 multiplier, which dismisses the actual risk per pip down 60-70percent from EURUSD.

    I plan on utilizing ATR or a different volatility tool to receive a more effective and principle based system in place, with the goal of normalizing as best as possible across all pairs.

    I have been doing testing all month utilizing the new system and so far it is doing badly (I'm breaking ... consistently). I am used to plogical stops and many times I am finding I am getting stopped out as I'm now using difficult stops and the pair takes off at the path of my position.

    I guess I have two options, the first one being putting the stops quite a bit further away, nicely over regions of value. The next one being to utilize some type of variable system. Say, determining between 2-3 percent, hard stop at 4%, and then making a judgment call. I'd use line alarms to SMS me if these regions are reached so I can make a decision.

    I have a good feeling the first solution is my greatest one, but of courseI won't know which one is going to work for me I try both and give it sufficient time to show results. I will begin with option .

    I have not posted in a week or so as I am taking a little bit of break from trading, and will probably break for another week or two. I often can only feel when I'm out of balance and I need to bring my focus inward, which is what I've been doing and I feel far better and clear headed. Additionally, I found carrying a break gives you space on your mind away from trading, also kills which craving to feel need to trade... in other words, it greatly enhances your ability to be patient (at least for me). Additionally, it allows you time to reflect about the big image, which I've found is difficult to do sometimes when you put so much focus and focus on trading. My most significant revelations and subsequent step forward in my trading have been quite soon after returning from break periods.

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