ZLine Coaching

free & uncensored discussion arena for TheRumpledOne

Moderator: moderators

User avatar
Jalarupa
rank: 1000+ posts
rank: 1000+ posts
Posts: 1138
Joined: Tue Feb 23, 2010 5:50 pm
Reputation: 2
Location: South Africa
Gender: None specified
Contact:

Postby Jalarupa » Wed Dec 15, 2010 10:21 am

MightyOne wrote: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.


I discovered a major flaw in my approach with starting off too big... It means that you can't go big later on... So no more high leverage scalps :( only normal leveraged scalps... :cry:

Lesson learned... Back to the drawing board... :P

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

tfg
rank: 50+ posts
rank: 50+ posts
Posts: 83
Joined: Thu May 06, 2010 8:53 am
Reputation: 0
Location: London
Gender: None specified

Re: ZLine Coaching

Postby tfg » Wed Dec 15, 2010 10:56 am

scratty wrote:Post your (and only) ZLine trades. It should be a learning and coaching topic to exchange expiriences and learn to become a better trader.


Hi, Scratty, where can I learn about the background of Zline? Somewhere in the forum? Do you have a link? Thanks.

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5247
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 46
Gender: Male

Postby MightyOne » Wed Dec 15, 2010 11:30 am

Here is the example you asked for.

This is not exactly how I would trade this chart but it gives you an idea of what to do.

http://i53.tinypic.com/2q2em3a.gif

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5247
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 46
Gender: Male

Postby MightyOne » Wed Dec 15, 2010 11:43 am

Jalarupa wrote:
MightyOne wrote: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.


I discovered a major flaw in my approach with starting off too big... It means that you can't go big later on... So no more high leverage scalps :( only normal leveraged scalps... :cry:

Lesson learned... Back to the drawing board... :P



It also means that you are overexposed when you are most vulnerable.

User avatar
MightyOne
rank: 5000+ posts
rank: 5000+ posts
Posts: 5247
Joined: Wed Dec 10, 2008 6:33 pm
Reputation: 46
Gender: Male

Re: ZLine Coaching

Postby MightyOne » Wed Dec 15, 2010 12:04 pm

tfg wrote:
scratty wrote:Post your (and only) ZLine trades. It should be a learning and coaching topic to exchange expiriences and learn to become a better trader.


Hi, Scratty, where can I learn about the background of Zline? Somewhere in the forum? Do you have a link? Thanks.



A large bodied candle is called a Momentum Candle or momo for short.

The Mighty Zone (MZ) is the midpoint of the momo candle to the open price.

ANY LINE within the MZ is a Zero Line (ZL).

There are two ways to trade a Zero Line without using discretion:

1. The momo signals that price closed above(?) "something" and you trade off of the extreme after it pierces the MZ.

2. You recognize held profit and you trade to cancel it out aka zero line (or flatline) the traders.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.

tfg
rank: 50+ posts
rank: 50+ posts
Posts: 83
Joined: Thu May 06, 2010 8:53 am
Reputation: 0
Location: London
Gender: None specified

Re: ZLine Coaching

Postby tfg » Wed Dec 15, 2010 2:41 pm

Mo, thanks for the succinct explanation. I am trying to conceptualise a zline trade in my mind.

Would you mind to post a chart example so that I can put your words in perspective?

I am trawling thru the forum but I just can't find material explaining the basic of zline in terms of setup/entry/exit althought there are a few trading logs out there.

Appreciate you help.



MightyOne wrote:
tfg wrote:
scratty wrote:Post your (and only) ZLine trades. It should be a learning and coaching topic to exchange expiriences and learn to become a better trader.


Hi, Scratty, where can I learn about the background of Zline? Somewhere in the forum? Do you have a link? Thanks.



A large bodied candle is called a Momentum Candle or momo for short.

The Mighty Zone (MZ) is the midpoint of the momo candle to the open price.

ANY LINE within the MZ is a Zero Line (ZL).

There are two ways to trade a Zero Line without using discretion:

1. The momo signals that price closed above(?) "something" and you trade off of the extreme after it pierces the MZ.

2. You recognize held profit and you trade to cancel it out aka zero line (or flatline) the traders.

cwn6161
rank: 150+ posts
rank: 150+ posts
Posts: 276
Joined: Sun Feb 28, 2010 8:05 pm
Reputation: 0
Gender: None specified

Postby cwn6161 » Wed Dec 15, 2010 2:53 pm

search through es/pip's posts. he has so many examples showing his entrance and exits it's not even funny

Fxforce
rank: <50 posts
rank: <50 posts
Posts: 32
Joined: Fri Feb 12, 2010 5:02 pm
Reputation: 0
Location: Kraków
Gender: Male

Re: ZLine Coaching

Postby Fxforce » Wed Dec 15, 2010 4:16 pm

tfg wrote:
scratty wrote:Post your (and only) ZLine trades. It should be a learning and coaching topic to exchange expiriences and learn to become a better trader.


where can I learn about the background of Zline? Somewhere in the forum? Do you have a link? Thanks.


MO revealed zeroline concept in "Never Lose Again" thread. Start reading from 139 page. Continuation of this you can find in "Lukxzlines" topic.

User avatar
Jalarupa
rank: 1000+ posts
rank: 1000+ posts
Posts: 1138
Joined: Tue Feb 23, 2010 5:50 pm
Reputation: 2
Location: South Africa
Gender: None specified
Contact:

Postby Jalarupa » Wed Dec 15, 2010 5:14 pm

MightyOne wrote:Here is the example you asked for.

This is not exactly how I would trade this chart but it gives you an idea of what to do.

http://i53.tinypic.com/2q2em3a.gif


ta MO,
This illustrates your point perfectly!

and overexposure is not good... :oops: I see that... But I can't help wanting to get aggro when price moves in my favor off a big S&R. But yeah hopefully I can trade smarter now that I have this map.

User avatar
bacoazul
rank: 150+ posts
rank: 150+ posts
Posts: 259
Joined: Wed Sep 30, 2009 12:31 pm
Reputation: 0
Gender: Male

Postby bacoazul » Wed Dec 15, 2010 7:16 pm

Hmm i still don't get it, and i'm trying hard
hehe, i manage to open 3 positions on the
EU going from M15 to H4, looking daily now,
but i'm not sure i'm doing it the right way
These are my principles. If you don't like them, I have others.

Please add www.kreslik.com to your ad blocker white list.
Thank you for your support.


Return to “TheRumpledOne”