Cash FX

[Windowsill]

I don't really understand your point about moving stops to break even. If you know where it will likely run into trouble, and it starts reversing there, then you better not be taking a loss. If you mean simply that, break even is an arbitrary point, and I might move my stop to ahead of break even, then fine.

I think it is nonsense to say that a trader moving his stop up to break even or better is going to lose in the long run because he is playing the P/L. No offence, just my two cents.

I don't know if TD comes to this conclusion through experience or backtesting/forward testing etc. I have though imo.
If you spend a lot of time crunching numbers the inescapable truth in my opinion is, you either have no stops or you have technical stops. You certainly don't keep leaping to break even and you don't trail positions, if you want to make money.
Stops should be placed so that if they are taken out...........you should be seriously considering to reverse the postion because the market mood has changed. In fact you probably should only close out a position if you really believe the market has changed direction....Ie the thought process for exit is pretty much the same as for the entry.
Although mechanical systems are generally pretty hopeless the search for the holy grail does make you examine such things as stop placement...many systems collapse when a stop is added!!

 

[50pips]

I don't know if TD comes to this conclusion through experience or backtesting/forward testing etc. I have though imo.
If you spend a lot of time crunching numbers the inescapable truth in my opinion is, you either have no stops or you have technical stops. You certainly don't keep leaping to break even and you don't trail positions, if you want to make money.
Stops should be placed so that if they are taken out...........you should be seriously considering to reverse the postion because the market mood has changed. In fact you probably should only close out a position if you really believe the market has changed direction....Ie the thought process for exit is pretty much the same as for the entry.
Although mechanical systems are generally pretty hopeless the search for the holy grail does make you examine such things as stop placement...many systems collapse when a stop is added!!

Hi,

I don't mean to be a nob-end here as it's my 1st day at t2w lol!.

But I used to work at a very well known FSB firm in the UK before I was sacked for gross misconduct 4 months ago. Made my 1st post today here... be gentle lol.. ( http://www.trade2win.com/boards/trading-journals/87186-50pips-daily-trading-signals.html ) if you want to know about me.....

Stop losses are a myth in one way or another as just like anything else in trading, they are an "OPINION" a traders choice!

Where is the best place to put a stop loss ? round number, a few pips above/below a round number, above/below support/resistance levels, maybe above below a MA? or a pivot point ? or maybe work with a set stop loss every trade....

I have read books/website and learn't from others and much more that say place your stops at a place that commercial banks & funds wouldn't think of hitting (stop hunting) well true to a point....

But where is that area on any given chart ?

I like to study each signal I get through-out before placing my stop loss.

I don't work with set stops, or place the stop above/below pivots - S&R - round numbers or anything else like that.

I always place my stops at areas I know that are unlikely to be hit or price will be manipulated.
That being said, I do try to keep stops at a sensible place that will allow me to trade more per pip/point. But I wont place them at the normal text book areas or fools gold areas(traders who think thay are better than than market makers)

I regard every trade as a situation, and each situation requires a different approach to fit into place.

Like I say, this is my 1st day here, so be gentle lol. I don't want enemies.

 

[montmorencyt2w]

Hi,

I don't mean to be a nob-end here as it's my 1st day at t2w lol!.

But I used to work at a very well known FSB firm in the UK before I was sacked for gross misconduct 4 months ago. Made my 1st post today here... be gentle lol.. ( http://www.trade2win.com/boards/trading-journals/87186-50pips-daily-trading-signals.html ) if you want to know about me.....

Stop losses are a myth in one way or another as just like anything else in trading, they are an "OPINION" a traders choice!

Where is the best place to put a stop loss ? round number, a few pips above/below a round number, above/below support/resistance levels, maybe above below a MA? or a pivot point ? or maybe work with a set stop loss every trade....

I have read books/website and learn't from others and much more that say place your stops at a place that commercial banks & funds wouldn't think of hitting (stop hunting) well true to a point....

But where is that area on any given chart ?

I like to study each signal I get through-out before placing my stop loss.

I don't work with set stops, or place the stop above/below pivots - S&R - round numbers or anything else like that.

I always place my stops at areas I know that are unlikely to be hit or price will be manipulated.
That being said, I do try to keep stops at a sensible place that will allow me to trade more per pip/point. But I wont place them at the normal text book areas or fools gold areas(traders who think thay are better than than market makers)

I regard every trade as a situation, and each situation requires a different approach to fit into place.

Like I say, this is my 1st day here, so be gentle lol. I don't want enemies.

Hiya 50 Pips,

What I (and I am sure others) really want to know is ....


What was this gross misconduct??????


I hope that this was trying to help out one of the punters.....



......but I fear this was not so



FWIW, I think the best traders have mental stops (not that I consider myself among this elite by any means, not by a long way.).


Sadly, you can make enemas, sorry, enemies, whether you want to or not here...

 

[50pips]

Hiya 50 Pips,

What I (and I am sure others) really want to know is ....


What was this gross misconduct??????


I hope that this was trying to help out one of the punters.....



......but I fear this was not so



FWIW, I think the best traders have mental stops (not that I consider myself among this elite by any means, not by a long way.).


Sadly, you can make enemas, sorry, enemies, whether you want to or not here...

LOL,

I would love to tell the full story on why I was sacked, I really would. But I'm still after pay from them so can't really comment to much if you know what I mean.

Maybe once I get what I think I'm due I will spill the beans.

50pips

 

[montmorencyt2w]

LOL,

I would love to tell the full story on why I was sacked, I really would. But I'm still after pay from them so can't really comment to much if you know what I mean.

Maybe once I get what I think I'm due I will spill the beans.

50pips

Fair enough Chap.

Good luck with your claim.


(Some of us in T2W have been waiting for some time for a SB Firm "insider" to come along and spill the beans .... maybe you are he... But of course, I would not wish to compromise your claim, which I am sure is perfectly valid).

Cheers,

 

[Jason101]

I just closed my Euro/Usd short at 1.3845. (chart 1)

Profit: +553 pips
Maximum drawdown on the trade: -14 pips
Risk-Reward: 1:39.5

If you guys over on FF are reading this, I duly appreciate that I should have added and not doing so has made this a wasted opportunity that could have a huge opportunity cost impact on my performance.

I take the blame and have no excuse.

I will try not to make that mistake with the Gbp/Usd in which I am still short from 1.6140 (chart 2):

Maximum drawdown on the trade: -38 pips
Current position: +300 pips

Risk-Reward: 1:39.5 - Not to shabby.

I trend trade the daily, using momentum entry with ATR initial stops nursing the trade into Darvas style boxes for further stop placements.

I have no idea on rules to follow for adding to trades. My only initial thoughts are to only use profit from the initial trade using the same trigger and only when/if I have moved into a new Darvas box (aka s/r pivot). I have not thought about the percentage of initial trade to risk on subsequent additions, or anything else I probably should be considering.

Do you know of any links to FF, t2w, books or your own thoughts on what I need to consider on planning for pyramiding.

Also, slightly off topic, sorry - Everyone talks of 2.5% risk per trade. But as far as I can work out Darvas seemed to have all his money in a dozen trades at any one time and The Boy Plunger seemed to have all his money in a handful of trades or sometimes all in on just the one. Am I missing something here, I can not see any other way to make large sums?

Thanks
Jason

 

[trader_dante]

Risk-Reward: 1:39.5 - Not to shabby.

I trend trade the daily, using momentum entry with ATR initial stops nursing the trade into Darvas style boxes for further stop placements.

I have no idea on rules to follow for adding to trades. My only initial thoughts are to only use profit from the initial trade using the same trigger and only when/if I have moved into a new Darvas box (aka s/r pivot). I have not thought about the percentage of initial trade to risk on subsequent additions, or anything else I probably should be considering.

Do you know of any links to FF, t2w, books or your own thoughts on what I need to consider on planning for pyramiding.

Also, slightly off topic, sorry - Everyone talks of 2.5% risk per trade. But as far as I can work out Darvas seemed to have all his money in a dozen trades at any one time and The Boy Plunger seemed to have all his money in a handful of trades or sometimes all in on just the one. Am I missing something here, I can not see any other way to make large sums?

Thanks
Jason

Good post. Forget the 2.5% risk per trade rule. No one made a vast fortune following this. Having said that, it is vital that you know what you're doing first or increased risk is a recipe for disaster.

 

[trader_dante]

I just cut and reversed my Gbp/Usd short trade.

I bought back at 1.5598 (chart 1) and went long at 1.5609.

Profit: +542 pips
Maximum drawdown on the trade: -38 pips
Risk-Reward: 1:14.3

 

[trader_dante]

Missed the easiest and most obvious trade I've probably ever seen in the Eur/Gbp since I decided last night to put my personal life before the market. Last time I ever make that mistake again.

 

[trader_dante]

There is absolutely no room for a balanced life if you want to be at the very top of your game.

I must memorise this, repeat it to myself daily and refuse to engage with anyone socially or have any free time to myself unless it is absolutely critical.

 

[trader_dante]

I've had to scratch that last GBP/USD long for breakeven as Euro Sterling is starting to make me feel physically ill.

If anyone took it for the 40+ pip scalp to the pz, well done, you did better than me.

 

[D70]

Here is my response:

"It sounds like you made the notorious breakeven +1 mistake...that's cost me many thousands of pounds in my time...your personal breakeven point means nothing to the market so you can't expect the market not to hit it when it jumps around. It has to be in a technical spot"

Moving your stop to an arbitrary point just for the sake of protecting profit is in my opinion foolish. Those that trade their P&L usually don't make money...but each to their own...

 

[trader_dante]

I'm not sure what your point is.

I didn't scratch that trade because I was afraid to lose money.

I scratched it because I have lost all objectivity and therefore I cannot read the market.

 

[booka61]

Missed the easiest and most obvious trade I've probably ever seen in the Eur/Gbp since I decided last night to put my personal life before the market. Last time I ever make that mistake again.

Was this the trade you missed...

 

[chilltrader]

right... you missed the short.... now, does a long appeal?

parallel channel + 50% fib level ?

 

[trader_dante]

Was this the trade you missed...

Thanks for that.

 

[trader_dante]

right... you missed the short.... now, does a long appeal?

No it doesn't.

What appeals is selling the sh*t out of the first green candle that forms.

I can't call making money over the next few days on the short side to be easy or I'll be called a d*ck again but...

You know what to do.

Hopefully.

 

[chilltrader]

should I post a magnified poster of the EUR/GBP "missed short setup" chart for your bedroom TD? :cheesy:

 

[wh92stang]

TD, do you trade futures or stocks at all, or only forex? Thanks for starting this thread. Reading your old thread here on T2W was very helpful.

 

[trader_dante]

I've got limit orders above the market but there is a conditional filter attached which is that they must not be hit until the Asian session starts.