Strategies, Systems & Indicators

[ashish1802]

I cant see the chart that you posted, but one the very fundamental rules you should learn while trading is to ACCEPT your LOSSES. No system will give you a 100% strike right. Sometimes, when we enter trades that our system has generated, it seems that this will be a sure winner based on various parameters that our system tells us and then..it looses. And we stat wondering, what happened. A few thoughts that would first crop in your mind would be:

1. Did i take the trade correctly? Did I miss something?

2. Does the system works well? Is it reliable?efficient?

3.Man..It went +10 before going to -25...I should have exited at +10..

and several other such feelings and EMOTIONS. A continued series of loss and our search for HOLY GRAIL will restart.

Remember this, if you have backtested your system and have an idea of its accuracy, you will never doubt your system. Because, you will know that if it has 70% strike rate and you had last 3 trades as loosers, the chances are the next 7 trades are gonna be winners and thus you wont quit. But, this is when you have spent enough time on backtesting and building confidence on your system.


You may ask me, what is the point of such a long post.

I would say...go to trading with a mindset of taking a few losses. With a system like that of Edward, your winners will take over your losses. See for yourself were all the conditions of trade met, when you entered the trade? if yes, smile and wait for next signal.

All the best.

hey ankit..

u hit the nail on the head.... well a position going against me makes me a bit anxious...far better off now..but still need to improve...It happened because the postion taken was 1 stndard lot on a margin of 3000USD... The loss on that position was above 2.5% so got anxious...a wrong mm lead to anxious me and the question.... will look into it n never repeat this mistake...thanks

the link of the chart is http://yfrog.com/6xnewbitmapimageuj

 

[khalidhassan]

the candle closed above the trend line.. let us see what will happen.

Uploaded with ImageShack.us

 

[khalidhassan]

i think we can enter short when the candle touch the trend line.

 

[Sh3v4]

Sumit,

I am not looking at big profits. May be around 10 pips or so. Not even getting that.

Thanks,
Sanjoy

Sanjoy, maybe u thought u're not good at trading coz u often got floating trade.....?
The chart I posted before, at pair gbpusd, I got floating -30++, but I still wait till it profit 20(I set TP), coz I'm believe of Lazy boy system...
Just confident to yerself.....:thumb:
Don't give up...!:clapping:

 

[Raghavacc]

Another 30 Pips = 15 Pips on 0.5 lot.

Live chart.

I took this trade ( Short sold @2802 ) y'day night and the blunder I did was not setting a target.However kept S/L @15pips. See it hit 2720 levels. :annoyed:

Also just look at chart and see how many opportunities are there for the taking.

@Sanjay,

Friend. Please write down all the rules and then enter on the trigger.Then write down the results. and repeat the same again and again.Start with higher timeframe like 30 Min or 1 hour. whenever you lose a trade please post the same alongwith the chart so that Edward can guide you and me on what mistake we did.

Repeat this for a few weeks then see the results.

Remember all good things take time to get materialized.

Regards
Raghav

 

[maidass]

Dear Eddie and friends,
As promised here comes my trades since lst evng, exclusively using Lazzy Boy.
Total No EJ trades - 16 (Winning trades 16, Max profit 39$, Min profit 3.4%)
Total No UG trades -12 ( winning trades 9, Max profit 19$, Min profit 1.92, Max loss 16.85, Min loss 4.65)
Total No EU trades - 19 (winning trades 17, Max profit 23$, Min profit 4.65, Max loss 9.55, Min loss 5.75)
Balance now - 3171.11 (wth 3 trades running)
Will post the upcoming results by 18.00 n by 23.30 IST

IF U R ONLY FOR OTHERS, WHO IS THERE FR U?
IF U R ONLY FOR YRSLF, WHT R U HERE FOR?

WHO IS JOHN GALT ??????????

 

[rag_bh]

Dear Eddie and friends,
As promised here comes my trades since lst evng, exclusively using Lazzy Boy.
Total No EJ trades - 16 (Winning trades 16, Max profit 39$, Min profit 3.4%)
Total No UG trades -12 ( winning trades 9, Max profit 19$, Min profit 1.92, Max loss 16.85, Min loss 4.65)
Total No EU trades - 19 (winning trades 17, Max profit 23$, Min profit 4.65, Max loss 9.55, Min loss 5.75)
Balance now - 3171.11 (wth 3 trades running)
Will post the upcoming results by 18.00 n by 23.30 IST

IF U R ONLY FOR OTHERS, WHO IS THERE FR U?
IF U R ONLY FOR YRSLF, WHT R U HERE FOR?

WHO IS JOHN GALT ??????????

maidass,

Which time frames do you trade?

 

[Edward]

Swap: Carry the Trade overnight (broker time)

This is an article that will help you understanding what happens when you carry a trade overnight... thanks to babypips.

In the forex market, currencies are traded in pairs (for example, if you buy the USDCHF pair, you are actually buying the US dollar and selling Swiss Francs at the same time). Just like the example above, you pay interest on the currency position you sell, and collect interest on the currency position you buy.

What makes the carry trade special in the spot forex market is that interest payments happen every trading day based on your position. Technically, all positions are closed at the end of the day in the spot forex market - you just don't see it happen if you hold a position to the next day.

Brokers close and reopen your position, and then they debit/credit you the overnight interest rate difference between the two currencies. This is the cost of "carrying" (also known as rolling over) a position to the next day.

The amount of leverage available from forex brokers has made the carry trade very popular in the spot forex market. Forex trading is completely margin based, meaning you only have to put up a small amount of the position and you broker will put up the rest. Many brokers ask as little as 1% - 2% of a position - what a deal, eh?

Let's take a look at a generic example to show how awesome this can be.

For this example we'll take a look at Joe the newbie forex trader. It's Joe's birthday and his grandparents, being the sweet and generous people they are, give him $10,000. Schweeeet!

Now, instead of going out and blowing his birthday present on video games and posters of bubble gum pop stars, he decides to save it for a rainy day. Joe goes to the local bank to open up a savings account and the bank manager tells him, "Joe, your savings account will pay 1% a year on your account balance. Isn't that fantastic?" Joe pauses and thinks to himself, "At 1%, my $10,000 will earn me $100 in a year. Man, that sucks!"

Joe, being the smart guy he is, has been studying BabyPips.com and knows of a better way to invest his money. So, Joe kindly responds to the bank manager, "Thank you sir, but I think Ill invest my money somewhere else, yo.

Joe has been demo trading several systems, including the carry trade, for over a year, so he has a pretty good understanding of how forex trading works. He opens up a real account, deposits his $10,000 birthday gift, and puts his plan into action. Joe finds a currency pair whose interest rate differential is +5% a year and he purchases $100,000 worth of that pair. Since his broker only requires a 1% deposit of the position, they hold $1,000 in margin (100:1 leverage). So, Joe now controls $100,000 worth of a currency pair that is receiving 5% a year in interest.

Eddie and other, Can someone explain following line

Don't keep both long and short position open on overnight basis unless it is required for swing trading, else swaps charges with just chew away your profits

 

[sumitdasjoshi]

I saw these guidelines from one of the website & I personally feel that it is something very useful for traders ... as a guideline (but not treat them like Laws... they are not absolute)

Hopefully this information serves all of us well:

32 Rules that can serve as guidelines:

1. Never risk more than 2 - 5% of your current (not initial) trading capital.
2. Always use protective stops in each and every trade you execute.
3. Never average a loss as this can lead to disastrous outcomes.
4. Preferably you should always trade in the direction of the daily trend, holding a position against the daily trend should be done with caution.
5. Never enter or exit a trade without a good reason, you should have a well outlined trading plan and cross each signal out as it unfolds.
6. Never get in or out of the market just because you have run out of patience.
7. You should always see the market from a neutral perspective, be willing to sell as you are willing to buy. Don’t force your opinions on the market.
8. Don’t just sell because you feel the price of a commodity is too high or buy because the price of a commodity is too low.
9. Never cancel or move your stop from its initial position, the only exception is when trailing profits being captured.
10. Specialise in one currency pair at first, and when you get really good at it you can expand your portfolio.
11. As a new trader you should stay away from trading at news time because this can be very risky as the market tends to act in unexpected ways at this time.
12. Always look for signals on higher time frame charts as they provide more reliable signals with more room for errors.
13. Make your analysis with a top down approach, after confirming a signal on a higher time frame chart you should look for confirmation on lower time frames.
14. Never place a trade just because of a single indicator/ signal, always look for at least three to four events occurring at the same time to tell a story.
15. Once you loose an opportunity you should stay out and let the trade be. More opportunities will come
16. When holding a position just focus on the charts and price action, don’t pay attention to the equities window as this will only distract you from making logical decisions
17. Face your fears; don’t think about loosing when placing a trade. Simply put the trade on and let the possibilities play out. We “are” speculators after all.
18. Keep a trading journal where you record all your trades, both losses and winners. This serves as reference when analysing your progress.
19. I f a trade turns out to be looser, just forget it at that instant and move on to the next trade, as a trader you should accommodate the fact that losses are part of everyday trading, even professionals have losses and that they are only a bump on the road to success.
20. Don’t be greedy by trying to pick the exact tops and bottoms of a market, let your strategy tell you when and how to close a trade, and always be satisfied with whatever profit you bank from a trade (no profit is too small).
21. When holding/ initiating a position, don’t think about how much money you stand to make/ loose. Just focus on the task at hand and think about making sound decisions free from fear and greed.
22. There is no single trading formula in the FX market, always use dynamic strategies for different market situations, and learn to swiftly abandon a strategy/ close out your trade the moment the market stops doing what you expect it to do.
23. Never let a loss go by without learning from it, if you learn from your losses then it counts as tuition for a lesson learned, but if you let it pass without learning from it. Then it is indeed a loss.
24. Your trading plan must be followed with absolute discipline in order to succeed. The trading plan should be tailored to suit your personality, ability and resources. It should be YOUR plan and unique to your style of trading.
25. Maximize profits not the number of trades.
26. Have a scheduled time specifically for studying the markets before making trading decisions
27. Do not move with the crowd or do what everybody else is doing because the majority (95%) are usually wrong. You should look to buy when the majority are selling and sell when the majority are buying. It’s the basic law of supply and demand “it is an exchange market after all”.
28. Never blame others for your losses, always examine yourself when your trading results are poor. Only by doing so will you be able to improve personally.
29. Never doubt your trading plan, always trust and have faith in it.
30. Price has a memory; if it did something at a certain level possibilities are that it will do it again.
31. When trading the news, don’t pay much attention to the news itself but rather the charts reaction to the news. The answers are always on your charts as the impact of that news event has already been incorporated into the chart long before the news announcement.
32. You are your biggest mentor, you MUST believe in your analysis and your decisions. Only by doing so will you be able to build the necessary confidence you need to succeed in this business.

 

[Sh3v4]

Thanks for share us the rules, Sumit...

That's very useful...!:thumb::clapping: