P2: A batch of FX market trades

[peter2]

I think it is worth the risk.

That's all you need for a trade.

I'd be careful if you're only going for 1R with most of your trades. An occasional quick one is OK if you think the RR acceptable or the probability very high.

 

[sasch]

That's all you need for a trade.

I'd be careful if you're only going for 1R with most of your trades. An occasional quick one is OK if you think the RR acceptable or the probability very high.

Thanks Peter,

Going Sideways at the moment. Looks like traders are waiting for the Nondefense Capital Goods report later tonight.

I knew this one was going to be a grind, so in hindsight I should have waited for a better entry, with improved risk reward ratio.

 

[sasch]

Thanks Peter,

Going Sideways at the moment. Looks like traders are waiting for the Nondefense Capital Goods report later tonight.

I knew this one was going to be a grind, so in hindsight I should have waited for a better entry, with improved risk reward ratio.

This position finally hit 1R target. Now it has finally decided to take off, it was a bit like watching paint dry there for a while.

 

[willoneau]

Peter2 thankyou for this thread, I have re-read it a few times and have adopted the strategies that you have outlayed within to get my FX trading back on track.

 

[willoneau]

I am long,
USDCHF, USDJPY and XAGUSD
although placing the orders before the open on Monday I noticed the USDJPY order was filled too soon because of the large spread.
USDCHF entry = 0.89254, isl = 0.89045, risk = 24.3p.
USDJPY entry = 105.044, isl = 104.892, risk = 15.2p.
XAGUSD entry = 27.455, isl = 27.126, risk = 32.9p
1% risk per trade and only 2 max trades in USD.

 

[willoneau]

Peter2 , you drop down to the 1hr for tighter entries in the 4hr, do you also tighten your stops in the 1hr if 4hr bar closes against you?

 

[peter2]

I do tighten exit stops but I've found that this is the wrong thing to do in the FX markets. As long as your trading with the higher timeframe trend then leave your trades alone. Much easier said then done. It's one of my biggest weaknesses when trading FX.

 

[willoneau]

I use c-trader for my FX trading and am currently trialing a bot that sets position size in relation to my risk profile.

 

[willoneau]

I do tighten exit stops but I've found that this is the wrong thing to do in the FX markets. As long as your trading with the higher timeframe trend then leave your trades alone. Much easier said then done. It's one of my biggest weaknesses when trading FX.

I am trading in direction of 4hr but daily can go either way . Ref to USDCHF
I moved my isl up slightly below 1hr to reduce my R to 0.53

 

[willoneau]

Closed USDCHF at 0.89087 for -0.69R

 

[peter2]

The USDJPY is looking good. Nicely done.

 

[peter2]

Peter2 , you drop down to the 1hr for tighter entries in the 4hr,

Sorry, I didn't reply to this part of your question. Yes, I do drop down to the 1hr chart to look for tighter entries. My higher time frame trend is the daily more so than the 4hrly. I prefer the trend that is clearer. As you know it can sometimes get tricky, like the USDCHF this morning. Is the trend up or down? The daily trend is down but there's been a rally off the low to switch the 4hr trend to up. Which direction do we trade or do we pass and find another easier to read chart?

Earlier this morning the AUDUSD and AUDJPY were showing clear up trends in both the daily and 4hr charts. The AUDUSD didn't get very far but the AUDJPY rallied strongly.

 

[willoneau]

Hi Peter2 , I closed USDJPY on the hrly for 2.14R

 

[willoneau]

Sorry, I didn't reply to this part of your question. Yes, I do drop down to the 1hr chart to look for tighter entries. My higher time frame trend is the daily more so than the 4hrly. I prefer the trend that is clearer. As you know it can sometimes get tricky, like the USDCHF this morning. Is the trend up or down? The daily trend is down but there's been a rally off the low to switch the 4hr trend to up. Which direction do we trade or do we pass and find another easier to read chart?

Earlier this morning the AUDUSD and AUDJPY were showing clear up trends in both the daily and 4hr charts. The AUDUSD didn't get very far but the AUDJPY rallied strongly.

I did look at AUDUSD this morning but disregarded it as I thought it was too far away from the EMA"s
following on from what you wrote earlier in thread

 

[willoneau]

I like your systematic approach here which makes it much easier to track more markets at a glance.

Just entered AUDNZD LONG 1.07536

looking at it's 4 hrly I have noticed it is the third PB so will watch closely and may expect blow off top or increased volatility to the up side.

 

[willoneau]

I do tighten exit stops but I've found that this is the wrong thing to do in the FX markets. As long as your trading with the higher timeframe trend then leave your trades alone. Much easier said then done. It's one of my biggest weaknesses when trading FX.

would you consider going to hrly TF once 2R is reached? or just close at 2R

 

[willoneau]

Sorry, I didn't reply to this part of your question. Yes, I do drop down to the 1hr chart to look for tighter entries. My higher time frame trend is the daily more so than the 4hrly. I prefer the trend that is clearer. As you know it can sometimes get tricky, like the USDCHF this morning. Is the trend up or down? The daily trend is down but there's been a rally off the low to switch the 4hr trend to up. Which direction do we trade or do we pass and find another easier to read chart?

Earlier this morning the AUDUSD and AUDJPY were showing clear up trends in both the daily and 4hr charts. The AUDUSD didn't get very far but the AUDJPY rallied strongly.

I thought you traded the 4 hrly trend in the same direction as the daily TF?

 

[willoneau]

Looking for an entry in GER30 on the 1hrly with target up at resent high for 2.5R

 

[willoneau]

Hi Peter2, do you scale out of your position at all and what is your take on scaling out?

 

[peter2]

There's two opinions about scaling out. Do it and don't do it. The reasons for doing it are for emotional and psychological reasons. Scaling out makes people feel better as they grab some profit on the way. Having taken some profit they're more able to let the rest go to it's final result. I think scaling out is a good thing to do if you lack confidence and discipline. Most new traders should scale out until they realise how much profit they're wasting by scaling out.

The reason for not doing it is money. Not scaling out makes more money. If your system has a good edge let it run without handicapping it by scaling out. Of course, this is harder to do.