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scratty
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Postby scratty » Tue Dec 14, 2010 10:52 pm

Ok, cant let it bee :oops:

2) try to say it in my words to see if i understood it...
If you have a profit-cushion and a cc closes under/over a line and in direction of your profit. you hit the bigger position trade (aggression) in direction of profit.

So hit "it" means hit the "button" (buy/sell bigger pos) not hit the "leverage" :idea:

What i dont understand yet is "i keep bagging pips at 2% to build up more cushion for my stop losses" - what effect does your bigger cushion has on your sl? Can you explain this in other words or more detail?

Thank you very much for your support and sorry for not understanding very basic stuff...

Jalarupa wrote:
scratty wrote:Thanks Jalarupa. Congrats, those are nice trades.

I have Q's on the following interessting text on your chart:
Current Leverage is 4x2% looking to hit it with a big stick! Like MO says get leverage out quickly as CC's close over lines..

1. How do you calculate "current leverage"
2. What does hit the leverage with a big stick (Momo) mean?
3. Does it mean to get the leverage out quickly when cc's close over/under a line against your position?

Im sorry for the probably very stupid questions. But i think there are important messages behind it for me! Thanks already!


:oops:
Well Current leverage is my risk % multiplied by the current open positions I have on book...

1 We at 5x2% until I closed one of the 2% off for my daily target of over +5 MPIP(+6.2)

2 Hitting it with a BIG STICK is when you get yourself into enough profit cushion to warrant some aggression... The way I understand MO's style when its time to hit the button you must HIT IT! :evil:
With ya profit cushion in tact you can get aggressive and just keep playing the larger time frame game (which is where we all wanna be really). I just ensure I keep bagging pips at 2% to build up more cushion for my stop losses...

3 well basically I look to see if CC's close over a line... if they do then I get interested...Like today the CC's closed below the Daily Open (A HUGE line for me) and then My bias was strongly short... Keeping my average above daily open I ensured I only took a small amount of heat for a trade that is currently sitting at +12.5% and I've banked 2.5%.

I have the idea along with others on Kreslik that the Euro is in s**t... so I'm gonna keep my trades over the weekend and see if I can perhaps sell a pullback If price can close below a line on a H4 chart... (which I hope for) Otherwise I'll take some profits leaving a profit cushion and get aggressive again with the shorts when price starts heading that way convincingly again...

I donno... I'm still new to the whole concept of currency trading and I am fortunate to be mentored by the best in the business on this website, so thank you all for your invaluable input and guidance.

Bern
Lose professionally!

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scratty
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Postby scratty » Tue Dec 14, 2010 10:59 pm

And no 3 :wink:

i understand the concept about entering after cc closed over/under a line.

But why should you take out leverage quickly after price closed over a line in the direction of your positions/cushion? I think you should take leverage out after price closed over/under a line against your position?! Did i understand something wrong? Thank you for further information/explanation...

Jalarupa wrote:
scratty wrote:Thanks Jalarupa. Congrats, those are nice trades.

I have Q's on the following interessting text on your chart:
Current Leverage is 4x2% looking to hit it with a big stick! Like MO says get leverage out quickly as CC's close over lines..

1. How do you calculate "current leverage"
2. What does hit the leverage with a big stick (Momo) mean?
3. Does it mean to get the leverage out quickly when cc's close over/under a line against your position?

Im sorry for the probably very stupid questions. But i think there are important messages behind it for me! Thanks already!


:oops:
Well Current leverage is my risk % multiplied by the current open positions I have on book...

1 We at 5x2% until I closed one of the 2% off for my daily target of over +5 MPIP(+6.2)

2 Hitting it with a BIG STICK is when you get yourself into enough profit cushion to warrant some aggression... The way I understand MO's style when its time to hit the button you must HIT IT! :evil:
With ya profit cushion in tact you can get aggressive and just keep playing the larger time frame game (which is where we all wanna be really). I just ensure I keep bagging pips at 2% to build up more cushion for my stop losses...

3 well basically I look to see if CC's close over a line... if they do then I get interested...Like today the CC's closed below the Daily Open (A HUGE line for me) and then My bias was strongly short... Keeping my average above daily open I ensured I only took a small amount of heat for a trade that is currently sitting at +12.5% and I've banked 2.5%.

I have the idea along with others on Kreslik that the Euro is in s**t... so I'm gonna keep my trades over the weekend and see if I can perhaps sell a pullback If price can close below a line on a H4 chart... (which I hope for) Otherwise I'll take some profits leaving a profit cushion and get aggressive again with the shorts when price starts heading that way convincingly again...

I donno... I'm still new to the whole concept of currency trading and I am fortunate to be mentored by the best in the business on this website, so thank you all for your invaluable input and guidance.

Bern
Lose professionally!

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Postby nickfury17 » Wed Dec 15, 2010 3:07 am

anyone trading z lines during the asian session? It is the only time of the day i have to trade but there doesnt seem to be a whole lot momentum most nights

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Postby Jalarupa » Wed Dec 15, 2010 4:16 am

scratty wrote:Ok, cant let it bee :oops:

2) try to say it in my words to see if i understood it...
If you have a profit-cushion and a cc closes under/over a line and in direction of your profit. you hit the bigger position trade (aggression) in direction of profit.

So hit "it" means hit the "button" (buy/sell bigger pos) not hit the "leverage" :idea:

What i dont understand yet is "i keep bagging pips at 2% to build up more cushion for my stop losses" - what effect does your bigger cushion has on your sl? Can you explain this in other words or more detail?

Thank you very much for your support and sorry for not understanding very basic stuff...

Jalarupa wrote:
scratty wrote:Thanks Jalarupa. Congrats, those are nice trades.

I have Q's on the following interessting text on your chart:
Current Leverage is 4x2% looking to hit it with a big stick! Like MO says get leverage out quickly as CC's close over lines..

1. How do you calculate "current leverage"
2. What does hit the leverage with a big stick (Momo) mean?
3. Does it mean to get the leverage out quickly when cc's close over/under a line against your position?

Im sorry for the probably very stupid questions. But i think there are important messages behind it for me! Thanks already!


:oops:
Well Current leverage is my risk % multiplied by the current open positions I have on book...

1 We at 5x2% until I closed one of the 2% off for my daily target of over +5 MPIP(+6.2)

2 Hitting it with a BIG STICK is when you get yourself into enough profit cushion to warrant some aggression... The way I understand MO's style when its time to hit the button you must HIT IT! :evil:
With ya profit cushion in tact you can get aggressive and just keep playing the larger time frame game (which is where we all wanna be really). I just ensure I keep bagging pips at 2% to build up more cushion for my stop losses...

3 well basically I look to see if CC's close over a line... if they do then I get interested...Like today the CC's closed below the Daily Open (A HUGE line for me) and then My bias was strongly short... Keeping my average above daily open I ensured I only took a small amount of heat for a trade that is currently sitting at +12.5% and I've banked 2.5%.

I have the idea along with others on Kreslik that the Euro is in s**t... so I'm gonna keep my trades over the weekend and see if I can perhaps sell a pullback If price can close below a line on a H4 chart... (which I hope for) Otherwise I'll take some profits leaving a profit cushion and get aggressive again with the shorts when price starts heading that way convincingly again...

I donno... I'm still new to the whole concept of currency trading and I am fortunate to be mentored by the best in the business on this website, so thank you all for your invaluable input and guidance.

Bern


No worries Scrat,

Lets see...

Yes I add more positions early on as soon as I see lines getting rejected and taken out... Like for instance I was waiting for a rejection of a long term resistance line on the EU which happened mid london session yesterday and I managed to get 5 positions of 3% (increased risk ration a little) each until I almost maxed out my margin... but now I'm sitting in a healthy profit of 130+ pips from my average @ 5x3% so 13 Marco Pips... My target is 50+ Macro Pips from my average which should take me to around 1.2950 (if it all works out in my head like I'm seeing it on the charts. By the time I reach that target I wanna be maxed out, because it seems that because I have moved into a lot of profit over last nights move I know have more leverage for 3 more trades or so, so I will look to sell aggressively when todays extreme gets confirmed or there is a Rat move lower... This aggression comes from the fact that I am in nice profit and my margin requirement is increasing.

This brings me to my second point which is the 2% I like to take every day. This is to ensure I can take a full loss and not be too effected by the loss, if I keep banking 2% on my account daily then I can stay in the game longer. So I build up "lives" so to speak where I can take a hit if need be (I took a few hits on Monday trying to pick the top of the EU) But it didn't hurt as much as it could. Because yesterday I took all that money back trading long towards resistance. So I'm still in a good position relative to the start of the week. My SL stays 50 Pips and if I feel it needs to be left for the larger wick doll then I can ignore my stop because I would have built up a cushion over time... Today I will add to this cushion by taking advantage of MOMO (Zline Trading) - IF the Euro keeps falling...

Hope I'm clear on this...

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Postby Jalarupa » Wed Dec 15, 2010 4:21 am

scratty wrote:And no 3 :wink:

i understand the concept about entering after cc closed over/under a line.

But why should you take out leverage quickly after price closed over a line in the direction of your positions/cushion? I think you should take leverage out after price closed over/under a line against your position?! Did i understand something wrong? Thank you for further information/explanation...

Jalarupa wrote:
scratty wrote:Thanks Jalarupa. Congrats, those are nice trades.

I have Q's on the following interessting text on your chart:
Current Leverage is 4x2% looking to hit it with a big stick! Like MO says get leverage out quickly as CC's close over lines..

1. How do you calculate "current leverage"
2. What does hit the leverage with a big stick (Momo) mean?
3. Does it mean to get the leverage out quickly when cc's close over/under a line against your position?

Im sorry for the probably very stupid questions. But i think there are important messages behind it for me! Thanks already!


:oops:
Well Current leverage is my risk % multiplied by the current open positions I have on book...

1 We at 5x2% until I closed one of the 2% off for my daily target of over +5 MPIP(+6.2)

2 Hitting it with a BIG STICK is when you get yourself into enough profit cushion to warrant some aggression... The way I understand MO's style when its time to hit the button you must HIT IT! :evil:
With ya profit cushion in tact you can get aggressive and just keep playing the larger time frame game (which is where we all wanna be really). I just ensure I keep bagging pips at 2% to build up more cushion for my stop losses...

3 well basically I look to see if CC's close over a line... if they do then I get interested...Like today the CC's closed below the Daily Open (A HUGE line for me) and then My bias was strongly short... Keeping my average above daily open I ensured I only took a small amount of heat for a trade that is currently sitting at +12.5% and I've banked 2.5%.

I have the idea along with others on Kreslik that the Euro is in s**t... so I'm gonna keep my trades over the weekend and see if I can perhaps sell a pullback If price can close below a line on a H4 chart... (which I hope for) Otherwise I'll take some profits leaving a profit cushion and get aggressive again with the shorts when price starts heading that way convincingly again...

I donno... I'm still new to the whole concept of currency trading and I am fortunate to be mentored by the best in the business on this website, so thank you all for your invaluable input and guidance.

Bern


I don't really understand this question... :P

I wait for a line to confirm or deny a move... if confirmed then I get aggressive as I move further into profit if denied the I look to take a little off the top like my 2%+ profits if I believe we have hit strong S&R that opposes my bias...

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Postby Humble » Wed Dec 15, 2010 5:10 am

nickfury17, try watching the currencies of the countries open during the Asian session, such as the yen and aud. Even then nothing much happens until Japan opens.
Is price closing higher or lower than something? Simple yet powerful question. ..MO

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Postby MightyOne » Wed Dec 15, 2010 6:12 am

Accounts in USD:

Units / Margin = Leverage

EU = (100,000 / 2670) = 37:1

(Leverage / 10) * 0.9 = TradeRisk

3.7 * 0.9 = 3.33% TradeRisk

Default initial position size is 20% of max leverage (37:1) which is 3.33% spread over 45 pips.
I do NOT recommend an initial position size greater than 20% of leverage.

Need more pips?

$1,000 account, $33.30 risk, 7 micro lot initial position size.

The volatility may have increased and you decide that you need 60 pips in cushion to comfortably sit through a wick until there is a close above/below your line.

All you do is take your default size of 7 micro and divide it by your new size of 5 micro and you get 1.4. Multiply this number by 45 and you get 63 pips.

So 5 micro over 63 pips is ~ 3.33% Risk.

Need fewer pips?

Aggressive you decide that you need only 20 pips...
so you increase your position size from the default of 7 to the new lot size of 15 and you get (7/15) * 45 = 20.9 pips.

On my charts I use this notation:

No T: If price touches this line then you are screwed...and not in a good way.

7/7: No adjustments have been made, starting size is 7 lots.

7/8: increased from 7 lots to 8.

8/5: decreased from 8 lots to 5

5/0: Liquidated 5 lots.

Another example:

We have a 63 pip pincushion, price moves 20 pips in our favor, and we feel that we can move our MSL down 20 pips or so to a resistance level. 63/83 is 75.9% and the closest we can get with our 5 lots is 5/7 for 71.4% or 83 * 0.714 = 59 for a 24p reduction of our pincushion. After we purchase 2 more lots, we have 7 lots and a 59 pip pincushion.

I consider my "No Touch (No T)" to be my entry and the pincushion to be a defensive moat.
The greater the number of lots I have to work with the more I control over my defenses.

Using profit from smaller charts:

At times I might start with 10/10 on the hourly and catch 100 pips at 10/15. I then dilute the strength like this 15/10 and I have 150 pips to work with.
Next trade I might fade an illusion BO with 10/20 and a 75p pincushion. If I catch 40 pips then I can dilute again like so 20/10 and have 230 pips to work with.
I may want to move to the weekly chart with 10/7 & 328 pips.

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Postby Jalarupa » Wed Dec 15, 2010 6:32 am

MO... this is awesome! :shock:

Thank you! You clearing up a lot for me, as I have gotten myself into trouble before with my understanding of this style of holding onto a position...

Any chance of giving a graphical explanation of your last example?

TIA

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Postby Humble » Wed Dec 15, 2010 6:46 am

A shame to see posts like MO's get lost amongst the many threads, especially for peeps that come later.

Any further thoughts on a blog MO? You would also be able to sort subsequent posts into subjects or context.
Is price closing higher or lower than something? Simple yet powerful question. ..MO

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Postby MightyOne » Wed Dec 15, 2010 7:16 am

Humble wrote:A shame to see posts like MO's get lost amongst the many threads, especially for peeps that come later.

Any further thoughts on a blog MO? You would also be able to sort subsequent posts into subjects or context.


I have a blog but there is nothing in it...that is step 2 :wink: :lol:

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