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deeforex
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Postby deeforex » Wed Feb 04, 2009 11:12 pm

MightyOne wrote: This indicator is MO approved :roll:



:wink: Good to see that it does refresh and keeps the charts as like you like it.

dee

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TheRumpledOne
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Postby TheRumpledOne » Wed Feb 04, 2009 11:14 pm

I don't think they understood your question.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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razorboy
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Re: Random Entries....

Postby razorboy » Wed Feb 04, 2009 11:47 pm

By tight SL's, (not the trailing SL, just the initial) I mean keeping within the risk tolerance of your account - so if you are risking 2% a trade, your SL would be equal to this amount in pips - that much I have learned :) You end up keeping your positions smaller initially before your capital grows

The trailing SL wouldnt be that tight at all - say 50 pips - about the average EUR/USD range per hour (I mostly play this pair).

In as far as being random, I should have been a little clearer - I tend to enter off of support and res lines when supported by the right candle color - long on green, short on red) - what I meant to say (and should have said), was take every short and long signal you get and leave them open to run - either stopping on a stop loss of say 25 pips or a trailing stop of 50 pips gets hit.

This approach obviously does well with a strong trend and flat in a ranging market - very mechanical and monkey like

I have read phantom of the pits a few times and he is pretty adamant about being bigger the times you are right than when you are wrong and basically the first part of any position is essentially testing the water to make sure you were right in your thinking.

I am currently trying to break my habit of being happy with 20 pip gains........


MightyOne wrote:
razorboy wrote:Don't "yell" at me for this question, but figured it was worth asking? Has anyone experimented with simply using "random" entries with tight SL's and trailing stops?

Thanks


By random I assume you are referring to direction?

Some time ago I was using set patterns as a template for trading.
I would trade from the open price on the open of every time interval in a GO LONG, GO SHORT, GO LONG pattern.

And...

This hour I am *coin flip* xxxxish!

What do you mean by tight SL?
The tighter your SL the more likely it is that you exist only to offer
other traders a better price to enter.

Stops are for risking a set amount of your account; once you place them do not move them.
Why would you use even a 10 pip trailing stop? You might as well count out $1,000 and just throw it in the trash...

Best price to enter --> best price to exit.

...I think you can do better than a monkey.

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Postby TheRumpledOne » Wed Feb 04, 2009 11:59 pm

One 20 pip gain a day is more than enough to make you rich.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby razorboy » Thu Feb 05, 2009 12:14 am

you are right. as my jewish grandmother says........don't be such a hazzar (pig in yiddish). I am just looking to become more proficient.....so when that one trade a day doesnt work a few days in a row, I dont get too flustered.

I've come to grips with the cutting losses/managing risk - now I just need to know how to walk away - I feel this urge to keep practicing

Thought this was appropriate.......http://www.youtube.com/watch?v=kNnrTNFWcsg ....I love the drinking and smoking on a kids show.....

TheRumpledOne wrote:One 20 pip gain a day is more than enough to make you rich.

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Postby TheRumpledOne » Thu Feb 05, 2009 4:24 am

Image

If you stop and think about it, an Inside Bar trade is a trade at a "randomly placed" horizontal line.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!



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Postby MightyOne » Thu Feb 05, 2009 10:11 am

Say trailing stop again! I kill you! :shock:

But seriously, NO TRAILING STOPS!

I might have a 22 pip SL, but that is just because I don't want to risk infinity.
My risk tolerance is ZERO PIPS; if I can manage a trade to near zero or better every time things go wrong then there is nothing that can stop this gun show.

If you take on the risk and spend the time getting into a position and you find your self sitting with a profit then dmmit get paid for your risk and your time.

Would you work 40 hours and tell your boss that if he paid you for 25 that would be cool because you are just trying to make a profit?

If the average range (M15 480) is 22 pips then the currency is offering ~ 1.5 pips per minute (22/15).
The first thing I would do is see if the market will give me 22.5 pips in 15 minutes or less (1.5 * 15 = 22.5).
If the clock reaches 15 minutes then I start adding my smallest time frame chart into the picture.
If it were the 5m chart then I would be going for another 7.5 pips profit for a total of 30 pips (1.5 * 5 = 7.5, 7.5 + 22.5 = 30p)
If the clock reaches 20 minutes then add another 7.5 pips to your take profit.

Another way is targeting 0.5 to 1:

See if you can get your hands on 11.3 pips (7.5 * 1.5) in 7 minutes.
If you are using a 3m time frame as your smallest chart then start adding 4.5p (3 * 1.5) to your TP when 7 minutes pass and you still haven't received a paycheck.
So you are getting paid for: 7, 10, 13, 16, 19, 22m, etc as each way point is reached.

So what is the theme of this post?

GET PAID FOR YOUR TIME ACCORDING TO VOLATILITY :shock:

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MightyOne
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Postby MightyOne » Thu Feb 05, 2009 11:18 am

Image
Last edited by MightyOne on Thu Feb 05, 2009 11:29 am, edited 1 time in total.

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Any of you seen this.......................

Postby razorboy » Thu Feb 05, 2009 11:25 am

slashing retail FX leverage..........

cuz you know it was the retail FX trader that caused this whole credit crunch.........

http://forums.babypips.com/show-me-mone ... #post88803

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Re: Any of you seen this.......................

Postby razorboy » Thu Feb 05, 2009 12:12 pm

My response to the rule

Proposed FINRA Rule 2380.

As an FX trader, I fail to see how reducing FX leverage limits by such a degree provides any investor protection. As the environment now stands, the leverage limits allow customers to risk a very small amount of capital on each trade and makes things like mini and micro contracts a possiblity, risking as little as 10 cents or 1/10th of a dollar per pip, with the automatic margin calls acting as an additional margin of safety, preventing small investors from getting further underwater when the market turns against them

The example you give in your proposed rule of an investor who ?wishes to purchase $1 million worth of a foreign currency offered with a 100 to 1 leverage, the investor would only need a good faith deposit of $10,000. If the investor deposits only the minimum funds required, and if the value of the foreign currency contract dropped by 1 percent (to $990,000), the account equity would be depleted entirely and the investor?s position would be closed out. The investor would lose the entire $10,000 deposit. In the retail forex market, there is neither any margin call nor any notice for an investor to deposit additional funds to maintain his or her position. As a result, even small intra-day swings in currency rates have the potential to close out investors on either side of the market.? is totally inappropriate for the following reasons:

1.The liquidation rules and lack of margin calls should be known to all who deal with the retail FX market. In fact, this situation keeps investors safe ? you can't get over extended beyond your initial capital.

2.The situation you describe, of an investor putting up a 10,000 dollar deposit to control a million dollar position, is just not applicable to a novice or typical investor. No reasonable person would or should take that chance without some experience in the market place. The high leverage offered in retail FX allows smaller investors to gain experience without placing large amounts of capital at risk. Anyone who puts all of their trading capital into one trade, as your example suggests, should not be trading.

The high leverage of retail FX allows for exactly the opposite of what you describe ? it provides investors with an opportunity to better manage their risk. For example, take a retail investor with $1000 of trading capital:

1.At 100:1 leverage while playing micro contracts ($1000 units)? $1000 of capital can be used to assume $100,000 of total leverage, risk can be spread out across 100 total positions with $10 of capital at risk in each trade (1% of the initial capital base). If you have a PIP value of 10 cents, price would have to move against you by 100 pips (1% of the value of the currency) to wipe out the $10 of capital at risk. Most traders would have either closed the position or hedged way before price moved to this point
2.At 1.5:1 leverage while playing micro contracts ($1000 units) - $666 of capital will now be required to assume $1000 of total leverage, so essentially that $1000 of capital is now concentrated in one position, which the investor will be forced to maintain if he wish to stay in the market, they can no longer take smaller positions spread across various prices. This flies in the face of the idea of taking small losses quickly and risk manage, which are pillars of any sound approach to trading.


In essence, you are trying to use regulatory control to eliminate the need for people to practice sound risk management. The situation you refer to in your proposed rules is pure gambling, not investing and for those who want to continue to gamble, they can go to a casino or play the lottery, your proposed rule will not protect them and it will prevent many small investors from learning the benefits of risk management, the lack of which contributed to the current credit crisis. The proposed rule reads as if it was crafted by someone who has very little experience or exposure to trade management and equates retail FX trading to gambling.



razorboy wrote:slashing retail FX leverage..........

cuz you know it was the retail FX trader that caused this whole credit crunch.........

http://forums.babypips.com/show-me-mone ... #post88803

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