Patterns Observation.

[kiwiarian]

Is trading using layers good?

Yes if you want to go with big risk.
Otherwise, no.

Layers are useful to dull the risk and free up some margin. Also useful if you have very low margin requirement (big leverage).

Then again, it can also be used for conservative trading for the same purpose.

Averaging is layering when you are in the negative area.

Interesting topic:
I learnt from someone where you take say 1.5% and dividing that into 100 trades, taking 2 pip TP, 32 pip SL and build a position, keeping same bias for the first 25 pips, then you have some ammo left to perhaps fix some trades. If you get the bias wrong it can be hard work. I see the TP as one of two ways, take the 2 pips over and over adding to your account balance, or use the BE/average price plus x pips to cash out. Lots and lots of practise and discipline and a biggish account is needed as you can be in drawdown a lot.
When negative and averaging the BE/average price gets closer to the current price, making it a bit easier to get into profit, or kill your account if your get carried away with averaging and it goes against you.
Currently my mindset is as price goes against me initially, I like to have initial smaller positions and then add more smaller ones to hopefully be in a better position if it goes my way.
I don't think this area (MM) is easy as it takes a lot of practise to get the discipline to avoid being over committed and something I am still working on as that is my biggest fault here.
I have a nice little widget on my chart tells me how exposed I am if all my orders closed at their SL or TP targets which helps me keep in check.
widget1.jpg

I also have the BE line which moves up as I added to my position, which is handy. Right now the newer trades have put me into profit as they are offsetting the older trades.

example1.jpg (130.83 KiB) Viewed 1224 times

[Don_xyZ]

Is trading using layers good?

Yes if you want to go with big risk.
Otherwise, no.

Layers are useful to dull the risk and free up some margin. Also useful if you have very low margin requirement (big leverage).

Then again, it can also be used for conservative trading for the same purpose.

Averaging is layering when you are in the negative area.

Interesting topic:
I learnt from someone where you take say 1.5% and dividing that into 100 trades, taking 2 pip TP, 32 pip SL and build a position, keeping same bias for the first 25 pips, then you have some ammo left to perhaps fix some trades. If you get the bias wrong it can be hard work. I see the TP as one of two ways, take the 2 pips over and over adding to your account balance, or use the BE/average price plus x pips to cash out. Lots and lots of practise and discipline and a biggish account is needed as you can be in drawdown a lot.
When negative and averaging the BE/average price gets closer to the current price, making it a bit easier to get into profit, or kill your account if your get carried away with averaging and it goes against you.
Currently my mindset is as price goes against me initially, I like to have initial smaller positions and then add more smaller ones to hopefully be in a better position if it goes my way.
I don't think this area (MM) is easy as it takes a lot of practise to get the discipline to avoid being over committed and something I am still working on as that is my biggest fault here.
I have a nice little widget on my chart tells me how exposed I am if all my orders closed at their SL or TP targets which helps me keep in check.
widget1.jpg

I also have the BE line which moves up as I added to my position, which is handy. Right now the newer trades have put me into profit as they are offsetting the older trades.
example1.jpg

Good tools. Neat buttons.
Having auto BE calculator like that is good for layers.

[Don_xyZ]

More scalp. This time with SL.

ScreenHunter 25.png (5.43 KiB) Viewed 1186 times

as is.png (21.45 KiB) Viewed 1186 times

Line chart is more than sufficient.

Enough for the day. ?

[Don_xyZ]

One size fits all vs. optimization

"A good, profitable trading strategy must work for all time frames and trading instruments. If not, then it's not good."

Ever heard something like this? Is this true? Yes, it's true.

But if you are a student of the market you'll see that there is always room for optimization. Why? Because even though the market is similar but every one of them has distinct characteristics. Some better, some worse. If you dine out in a fancy restaurant, you can show your appreciation in different ways and there is an unspoken rule of how much you should tip. On the flip side, there are countries where tipping is considered rude and in Japan, one of the ways you can show that the noodle is good and that you're very much enjoying it is by slurping. So, even though both need appreciation you must do it differently. Currencies are countries and countries are people and it's the people (citizens, businesses, and government) that move the money. This is why you'll always be able to optimize your trading strategy based on the pair that you are trading. Some pairs are very volatile, others are calmer. Some pairs are active most of the time, others are mostly active during certain trading session. Some have very high daily range, others not as much etc. By observing the behavior of pair, we'll be able to notice the differences and optimize the strategy in the hope that we'll get more juice out of them.

[Yirbu]

More scalp. This time with SL.

ScreenHunter 25.png
as is.png

Line chart is more than sufficient.

Enough for the day. ?

I like trading like this a lot but it's real easy for price to slap you all over the place.

[Don_xyZ]

More scalp. This time with SL.

ScreenHunter 25.png
as is.png

Line chart is more than sufficient.

Enough for the day. ?

I like trading like this a lot but it's real easy for price to slap you all over the place.

Yes, don't do it.

You should read what you wrote first because it will show you your own problem, getting slapped all over the place. Fix that first and then maybe you'll see it differently.

However...

If you still can't find the solutions then don't do it.
If you prefer to be a bit more relaxed by using a bigger tf then don't do it.
If you prefer anchor trade type of trade then don't do it.
If you can't find a good strategy then don't do it.
If, if, if, ... (all the negative ifs) ... don't do it.

Simple as that.

I'm gonna crash out.

[Yirbu]

More scalp. This time with SL.

ScreenHunter 25.png
as is.png

Line chart is more than sufficient.

Enough for the day. ?

I like trading like this a lot but it's real easy for price to slap you all over the place.

Yes, don't do it.

You should read what you wrote first because it will show you your own problem, getting slapped all over the place. Fix that first and then maybe you'll see it differently.

However...

If you still can't find the solutions then don't do it.
If you prefer to be a bit more relaxed by using a bigger tf then don't do it.
If you prefer anchor trade type of trade then don't do it.
If you can't find a good strategy then don't do it.
If, if, if, ... (all the negative ifs) ... don't do it.

Simple as that.

I'm gonna crash out.

Well, I started with "I like..." I'm practicing it and getting slowly better.
It doesn't have to be perfect in the first month so I'll get there

[IgazI]

I've always plotted the line chart like this:
you can fit this whole chart in half the space without losing any information:

- two up-pointing wicks: resistance-line from last wick (like the first two bars on the chart).
- op-facing wicks: tradable closing range (like the '1-2-3-4' example)
- two dn-pointing wicks: support-line from last wick

The odd period is always the wick:
- minute 1, 3, 5, 7, . . .
- half the target period, as in minute 15 or 45.

If I want to further 'crush' the chart then I fit three data points into one bar using closing ranges.

PS: I do see the error in my plot. . .I'm not going to redo the whole thing for an example

why_not_this.jpg (56.94 KiB) Viewed 972 times

[IgazI]

More scalp. This time with SL.

ScreenHunter 25.png
as is.png

Line chart is more than sufficient.

Enough for the day. ?

I like trading like this a lot but it's real easy for price to slap you all over the place.

Trading is a lot like Backgammon; you just move your pieces to the other side of the board

I got a big slice of humble pie when I played a cash game against a far superior opponent:
you might think that you're "playing like him". . .but you're not, you're not

I just read Don's post, take notes, and see what I can do to improve my game.

[kiwiarian]

More scalp. This time with SL.

ScreenHunter 25.png
as is.png

Line chart is more than sufficient.

Enough for the day. ?

I like trading like this a lot but it's real easy for price to slap you all over the place.

I don't get the line chart one, but the MA7 and 19 with a bias I like, that will do for now until I reread and maybe get it later.