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cwn6161
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Postby cwn6161 » Thu Dec 16, 2010 2:55 pm

Does anyone remember when MO's entry and exits he taught was based off of avoiding retracements? You'd enter a trade, and when you felt a reversal, you'd get out and wait for price to start moving in the trend's direction again.

Adding to positions is virtually the same thing, except you aren't getting out of the reversals. You ride the wave, and then add in more once price moves in the trend's direction again.

The key is to add to your position at a point where the average price of your trade is above (in the case of shorting) the highest price the last retracement made.

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spa
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Postby spa » Thu Dec 16, 2010 3:22 pm

think your referring to the hedge.. which is softening the "blow" not avoiding it

cwn6161
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Postby cwn6161 » Thu Dec 16, 2010 3:30 pm

A hedge for US people is a trade close though. When MO used the word "hedge" it was to differentiate between "liquidating" where the whole trade plan was finished.

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bacoazul
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Postby bacoazul » Fri Dec 17, 2010 1:59 pm

MightyOne wrote:
bacoazul wrote:
dojirock wrote:Nice trading Bacoazul! I dont see anything wrong withit, I exited short on GU with 205 pips today!

dojirock


Congratz on your trade, pretty nice.
And i was talking about MO's teachings about
adding lots to your possition, is very
interesting, but i still don't completly get it



I'm trying, I'm trying :? :shock:

http://i53.tinypic.com/qycz0m.gif


Am i close?
if i want to jump to
D1 TF, then i have
to expand my pipcushion
right?

These are my principles. If you don't like them, I have others.

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MightyOne
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Postby MightyOne » Fri Dec 17, 2010 8:32 pm

bacoazul wrote:
MightyOne wrote:
bacoazul wrote:
dojirock wrote:Nice trading Bacoazul! I dont see anything wrong withit, I exited short on GU with 205 pips today!

dojirock


Congratz on your trade, pretty nice.
And i was talking about MO's teachings about
adding lots to your possition, is very
interesting, but i still don't completly get it



I'm trying, I'm trying :? :shock:

http://i53.tinypic.com/qycz0m.gif


Am i close?
if i want to jump to
D1 TF, then i have
to expand my pipcushion
right?




The problem with jumping to the D1 right now would be your five lots only giving you four options (5/4, 5/3, 5/2, 5/1) half of which are not options at all.

If you wish to place another trade on the same TF then the questions are:

What line must price close over to signal that I am wrong (a pincushion is not a stop, it is a cushion)?

If price closes over the line with momo (guesstimate) then what am a potentially left with?

What is the trades potential on the longer term charts and is it worth it to take a risk right now to gain a positional advantage?

-You can use your cushion when and where you want.

-Your cushion can be any size you want depending on the period and your guesstimate of the current volatility.

-The war is not won on H1 charts, think survival and get to the weekly charts as safely as possible while risking a single x% loss.

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bacoazul
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Postby bacoazul » Fri Dec 17, 2010 9:08 pm

MightyOne wrote:
bacoazul wrote:
MightyOne wrote:
bacoazul wrote:
dojirock wrote:Nice trading Bacoazul! I dont see anything wrong withit, I exited short on GU with 205 pips today!

dojirock


Congratz on your trade, pretty nice.
And i was talking about MO's teachings about
adding lots to your possition, is very
interesting, but i still don't completly get it



I'm trying, I'm trying :? :shock:

http://i53.tinypic.com/qycz0m.gif


Am i close?
if i want to jump to
D1 TF, then i have
to expand my pipcushion
right?




The problem with jumping to the D1 right now would be your five lots only giving you four options (5/4, 5/3, 5/2, 5/1) half of which are not options at all.

If you wish to place another trade on the same TF then the questions are:

What line must price close over to signal that I am wrong (a pincushion is not a stop, it is a cushion)?

If price closes over the line with momo (guesstimate) then what am a potentially left with?

What is the trades potential on the longer term charts and is it worth it to take a risk right now to gain a positional advantage?

-You can use your cushion when and where you want.

-Your cushion can be any size you want depending on the period and your guesstimate of the current volatility.

-The war is not won on H1 charts, think survival and get to the weekly charts as safely as possible while risking a single x% loss.


Ok i thing i get it with the D1 thing, but its not
5 lots, is 8, i already make the second entry,
but i think my second entry was too late, i'm
gonna keep practicing, trying and trying until
i get it. It would be nice if you can mark the
gj with your toughts, if you have time.
BTW i have 4 shorts on EU now
I really appreciatte that you take the time
to give us feedback.
Tx MO
These are my principles. If you don't like them, I have others.

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newark18
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Postby newark18 » Sat Dec 18, 2010 2:05 am

What is a "No T"? No Trade?

Defensible No T if something bad happens = Target BE if there is a close against your S&R line?

The concept of adding positions is slowly seeping into my head but I have a really really thick skull.
Failure is an opportunity to learn.

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MightyOne
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Postby MightyOne » Sat Dec 18, 2010 3:19 am

newark18 wrote:What is a "No T"? No Trade?

Defensible No T if something bad happens = Target BE if there is a close against your S&R line?

The concept of adding positions is slowly seeping into my head but I have a really really thick skull.



Never ever EVER ever EVER ever EVER ever will you hear me say target break even.

I have always said that you either take a profit or you take a loss.

Adding/subtracting = adjusting a position:

Let us say that price stayed locked at 1.5000 and we went long 7 lots with a 20 pip pincushion that = -4.5%.
We consider ourselves long from 1.4980 (No T or No Touch) with a pincushion of 20 pips.

If price doesn't change and we alter our position size then we change the number of pips that = -4.5%:

(7/9) * 20 = 15.5555p w/ 9 lots
(9/5) * 15.5555 = 27.9999p w/ 5 lots
(5/7) * 27.9999 = 19.9999p w/ 7 lots
(7/14) * 19.9999 = 9.9999p w/ 14 lots
(14/20) * 9.9999 = 6.9999p w/ 20 lots
(20/7) * 6.9999 = 19.9999p w/ 7 lots

Our starting position is 7 lots with a 20p pincushion, price moves 11 pips in our favor, and we decide to [s]add[/s] adjust to 9 lots:

(7/9) * (20+11) = 24.1111 pips from the current price.

If price is at 1.5011 when we adjust to 9 lots then we consider ourselves long from 1.4987.

Lets say that I go long at 1.5000 with 7 lots and a 20p pincushion and price closes 9 pips against me.
Adjusting from 7 lots to 4 would bring me back up to 19.25p as (7/4) * 11 = 19.25 and 4 lots over 19.25p = -4.5%.

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newark18
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Postby newark18 » Sat Dec 18, 2010 3:54 am

MightyOne wrote:What line must price close over to signal that I am wrong (a pincushion is not a stop, it is a cushion)?


MightyOne wrote:Never ever EVER ever EVER ever EVER ever will you hear me say target break even.


So as soon as you are "know you are wrong," then you exit the trade immediately? I am trying to figure out the difference between pin cushion and stop.
Failure is an opportunity to learn.

cwn6161
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Postby cwn6161 » Sat Dec 18, 2010 2:56 pm

MightyOne wrote:
newark18 wrote:What is a "No T"? No Trade?

Defensible No T if something bad happens = Target BE if there is a close against your S&R line?

The concept of adding positions is slowly seeping into my head but I have a really really thick skull.



Never ever EVER ever EVER ever EVER ever will you hear me say target break even.

I have always said that you either take a profit or you take a loss.

Adding/subtracting = adjusting a position:

Let us say that price stayed locked at 1.5000 and we went long 7 lots with a 20 pip pincushion that = -4.5%.
We consider ourselves long from 1.4980 (No T or No Touch) with a pincushion of 20 pips.

If price doesn't change and we alter our position size then we change the number of pips that = -4.5%:

(7/9) * 20 = 15.5555p w/ 9 lots
(9/5) * 15.5555 = 27.9999p w/ 5 lots
(5/7) * 27.9999 = 19.9999p w/ 7 lots
(7/14) * 19.9999 = 9.9999p w/ 14 lots
(14/20) * 9.9999 = 6.9999p w/ 20 lots
(20/7) * 6.9999 = 19.9999p w/ 7 lots

Our starting position is 7 lots with a 20p pincushion, price moves 11 pips in our favor, and we decide to [s]add[/s] adjust to 9 lots:

(7/9) * (20+11) = 24.1111 pips from the current price.

If price is at 1.5011 when we adjust to 9 lots then we consider ourselves long from 1.4987.

Lets say that I go long at 1.5000 with 7 lots and a 20p pincushion and price closes 9 pips against me.
Adjusting from 7 lots to 4 would bring me back up to 19.25p as (7/4) * 11 = 19.25 and 4 lots over 19.25p = -4.5%.


The goal then is just to adjust your pincushion to represent the same amount of pips (more or less) continually as price moves in the direction or profit (or loss) until you can no longer adjust your size and are stopped out, or your pincushion size reaches the size of the highest retracement on the TF you're trading?

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