Double down demo trading

i was gonna make it 'averaging down and pyramiding demo trading' but then we wouldn't have triple alliteration eh?

first trade: EURUSD in downtrend (contagion fears/risk aversion and flight to dollars)

in this case there is IMO no need to average down, we are overbought in this rally and im selling into it, starting small size with a million dollar demo account and pyramiding in as it goes down.

i entered a short GBPUSD trade but cancelled it

I do believe my exits are hard, i want to make them more dynamic, any ideas? i guess it's a habit for me to exit at the previous retracement's high/low

Good luck with this.


Do you really believe EUR/USD is overbought though?
This is a straight question not an ironic one.
I've been bearish on EUR/USD for months.


I'm not sure if anyone knows what's going to happen as a result of the recent stitch-up or whatever you want to call it. I'm sure that in the long term it won't really help, but in the short term there may be some optimism.


Other than specific trades though, I'll be interested in seeing how your pyramiding works out.

Providing you have a really good idea of market sentiment, this could work, stealing 30-80 pips here and there. The problem is if you lose track of what is going on. Good luck.

montmorencyt2w said:

Good luck with this.


Do you really believe EUR/USD is overbought though?
This is a straight question not an ironic one.
I've been bearish on EUR/USD for months.


I'm not sure if anyone knows what's going to happen as a result of the recent stitch-up or whatever you want to call it. I'm sure that in the long term it won't really help, but in the short term there may be some optimism.


Other than specific trades though, I'll be interested in seeing how your pyramiding works out.

Click to expand...

it seems overbought to me, if not i get stopped out for a fraction of what the loss would have been on a full blown position, plus thre's always the chance it retraces up and then comes back down. however looking at USDCHF, looks as if we could need to have a further pullback up, but im not averaging into it, i only average down before the pullback begins

second sell stop triggered: sell 4 EURUSD @1.24530, now short :
2 @ 1.25375
4 @ 1.24530

There are a lot of pairs that i would like to buy/sell off dailies, but i don't understand why they are trending like they are (im learning constantly mor about economics etc) so will not bother.

Target on trades is 1.21578.

i check out the line charts on dailies to see better and clearer S/R, and use candlesticks to perfect that.

edit: i hope i am not coming across as a dossy demo trader takign wild bets with an unrealistic amount of money. I used to do similar things on demo accounts, go long and bet and come back and check and be like wow. However somebody told me that was a really really bad thing to do, damaging as a trader so i stopped. Im using a million so i can scale/in out properly without getting blown up by 100 pips like on a 10k demo

Sorry, thick question here, but by double down you mean adding to a position which is making money? Rather than adding to a losing position?

meanreversion said:

Sorry, thick question here, but by double down you mean adding to a position which is making money? Rather than adding to a losing position?

Click to expand...

i mean adding to a losing position. i double up too.

There's something i haven't added here: my trading plan. I cannot trade without a plan of action in every trade. i will post this up later, i have it wrote down on paper, should be up tonight.

The purpose of this journal is to have something to look back on and analyse, by typing out my observations i feel i can look back and feel what i was thinking so that i can seeh ow i have developed , if at all. I have made journals in the past and often look back on them to see how i've developed. My objective is to not necessarily teach people something, or boast my demo account returns in a big swingin' dick manner, with an ego. That is not my plan. I will write observations on trades, post entries and exits and if possible get some help from the good traders out there.

Wouldn't it be better to disallow other comments (like mine, for example). Aren't they a needless distraction?

no. I also like questions to stimulate thinking and ideas, plus i like advice if i get it

Trading Plan

Here is my trading plan:
I trade currency pairs which are TRENDING, but i only trade a trend if i understand it, otherwise it's a bit confusing and i feel left out and out of the know.

Plus, when you have a basic grasp of what's happening and why you can execute with more confidence. So rather than just 'trendline bounce' it's a combination of economics/fundamentals and technical analysis. There are pretty much two ways to trade the trend: the breakout or the pullback, i trade the pullback.

Another major part of my plan is to average down and pyramid into all of the trades.The only thing i trade is pullbacks in fundamentally strong trends with averaging down. I average down by waiting until i see price as overbought (imagine trend is up) and then setting buy limits below price, the lot size doubles as i head further down.

I average down because i accept that i am not perfect on entry,i accept that i make mistakes and am wrong a lot of the time and understand that i cannot pinpoint reversals.

I also pyramid into winners. This is only for whenever i am late to see a trend, and the pullback has already happened. So the pullback is done and looks ready to reverse, i dont load up on full lots, i buy small amounts first, divide my target into 4/5 orders and double up ( more aggressively at the start, as in 2,4,8,4,2).


Also, i set stop losses on my trades, they are wide and out of volatility to give the trade room.

To summarise:averaging down and pyramiding into pullbacks in fundamentally strong trends, with a wide stop.

Sounds like you have a plan but did you say your demo is $1 million? Wouldn't it be better to demo an amout near where you would actually be funding a real account? If you can do all these nifty things with a large demo but not in your real account then you are really doing yourself a disservice.

Good luck though!!

Peter

wackypete2 said:

Sounds like you have a plan but did you say your demo is $1 million? Wouldn't it be better to demo an amout near where you would actually be funding a real account? If you can do all these nifty things with a large demo but not in your real account then you are really doing yourself a disservice.

Good luck though!!

Peter

Click to expand...

the demo accounts' lot sizes are awkward and are too large, plus i cannot make an account a few hundred dollars, minimum is 10k, but minimum lot size is $10 a pip which is too big for 10k. I found another FXCM's demo and it has bigegr account sizes. Despite what i said i will be calculating returns on percentages so the 'million' seems more realistic

Third sell stop triggered: sell 8 @ 1.23452
overall:
2 @ 1.25375
4 @ 1.24530
8@ 1.23452

My possibly wrong calculations suggest that that is [email protected]

Chartsy said:

Third sell stop triggered: sell 8 @ 1.23452
overall:
2 @ 1.25375

Click to expand...

I was about to congratulate you on getting the high (more or less) for the day, but looking back, I think you got that the other day.

Never mind; it's still a good price as things seem to have turned out.

4 @ 1.24530
8@ 1.23452

My possibly wrong calculations suggest that that is [email protected]

Click to expand...

Don't blind me with science

Thanks . LOL this IS a demo account after all. It's nothing compared to live .

You're on the EUR/USD trade nicely here.... how do you calculate the stop or exit level, is it some kind of trailing stop?