2009.09.10 DRAIN THE BANKS - LIKE A RAT

[Makamilman]

I remember reading in a post way back that someone had an issue with their broker and placing pending orders within 4 pips of the market price. I don't recall seeing an aswer to his problem.
I to am having that problem with FXDD.
Is this an allover issue with brokers or is there another one better for getting in front of the rats?

[TheRumpledOne]

MB TRADING is the broker I use to trade:

http://therumpledone.mbtrading.com/forex.aspx

[trueblueTEX]

On the subject of Broker....(meaning a company, not my current financial status )

If I have just $500 to open an account and want to trade Rat reversals at 2% (= 10 pips) risk per trade, what Broker(s) could anyone recommend?

I'm thinking GoMarkets(Oz).

I would appreciate opinions, recommendations, and stories from experience.

Thanks!!

TEX

[TheRumpledOne]

MB TRADING is the broker I use to trade RAT REVERALS

http://therumpledone.mbtrading.com/forex.aspx

[trueblueTEX]

MB TRADING is the broker I use to trade RAT REVERALS

http://therumpledone.mbtrading.com/forex.aspx

Can you do them on $500 and make 2% per day??? What's their smallest lot size you can trade?

[ForexChick]

Hello TRO,

What pairs do you recommend to trade after London close?

Thanks,
FC

Any USD pairs.

Cool thanks!

[zapzinig]

Here is my template and indicators that I use for M15 rat entries.

[zapzinig]

GU M15 rat trade today.

Market was in a tight range after NY open.

[tommydq]

I had a rough day yesterday. I lost 6%. I'm still a long way from mastering the art of "Taking whatever profit you can". In my trades yesterday I could have taken 2-3 pip gains on a couple of trades that I rode to 10 pip losses. I managed 3% profit today. 11 pips on EURJPY and 4 on USDCAD. The biggest problem I see is not being able to let my winners run. Here is today's trade. A lot of pips left on the table.

[left]http://i756.photobucket.com/albums/xx202/tommydq/Forex%20Trading%20-%20Two%20Percent%20Per%20Day/2010-06-24.png[/left]

This happens to me quite often. Because I'm trading the London session I often end up in profitable red rat trades in the green rat zone because the daily range is usually still being formed. I entered the trade today at the daily low at the time when the trading range was only 60 pips. I was comfortable taking the trade because I knew the avg range has been 175 pips but I really didn't know how much to target. So I came up with a plan. If I can take 1/2 my profits at 10 pips, I will do that and lock in a 1% gain. I'll move the stop on the 2nd 1/2 to break even. Coming up with a profit target was difficult for me, but this is what I came up with. I will assume that the current high of the day will be the high for the rest of the day (solid green line). If my entry is below the daily open price (dashed green line - using 5PM New York time as daily open). Then my profit target will be 75% of the 20 day average daily range (dashed red line). The solid red line 100% of the average daily range (assuming the high has already been made).

I wrote an indicator for MT4 to do the calculations for me. This is setup for a red rat. The code could be easily reversed for a green rat. Here's what the indicator looks like in MT4. I drew the lines manually on Oanda.

[left]http://i756.photobucket.com/albums/xx202/tommydq/Forex%20Trading%20-%20Two%20Percent%20Per%20Day/target.png[/left]

Hopefully this will be helpful to someone. I wrote this on MBT's MT4 platform so it assumes MT4 is East Coast USA time for calculating the start of day. So if you're on a different broker the start of day will probably be off.

[zapzinig]

Weekly extremes have much more potential for rat reversals.