Trading Naked - Part 2

[Bloodhound]

Interesting discussion about stops, it really is a personal thing isn't it? I see the benefits of using both "logical" stops and rigid stops, both work in their own way.

Personally, I reallly like break-outs with tight rigid stops, TP (part) very early and move stop to BE, then move stop along with trade. Granted, a lot of trades end up being small profits, small losses or BE, but when they go, they go...

Not the most efficient MM when break-outs re-test S/R before going in your favour, but here is EURJPY from last week, an example of a good 'un!

J

I think you are right. They are personal and I find that on M5 this is exacerbated. The thing is, the more I learn to trade, the more I realise that the entries are pretty irrelevant - it's what one does next (and I completely agree with what you've just written about trade management).

As an aside, is this all relevant to a thread about 'naked' trading?

I think hugely so, as I do believe that this style of trading has meant that I see price / trading slightly differently. After all, one can't believe that price is 100% unpredictable and then not believe that a toss of a coin could do just a good job on the entry front - but it is us as humans who control the exit.....

Hmmm - maybe a little deep for a Sunday evening!!!

 

[trendie]

bracket formed on GU?: 1.6327 and 1.6276?
overall, the overnight range is quite modest, of about 70 pips or so.
Even by my trend-following rules, I am switched to breakout mode for GU.

 

[Vaco]

i'm dying here, when is cable going to form a trend:|

 

[trendie]

i'm dying here, when is cable going to form a trend:|

I used to (and still do, to some extent) get whipped about following trends in choppy conditions.

Thats why I adopted a rule which said I only look for trends when the range is above a certtain pip-value.
Below that value, I switch to breakout mode.

Hows the 1-mins going today?

 

[foredog]

i'm dying here, when is cable going to form a trend:|

Yes, the chop monster is out again

 

[Bloodhound]

The chop monster has definitely come out to play!! It's like the death of a thousand cuts.....



P.S. Running 2 positions per trade as usual so not quite as bad as it looks, but still extremely painful. Reminds me of a Boomtown Rats song......

 

[foredog]

Guilty of looking for whats not there this morning. Taking those trades that you look at afterwards and it's a case of "what were you thinking!!"

 

[foredog]

16330 seems to be the level for cable at the moment, few touches on it.

 

[Vaco]

I used to (and still do, to some extent) get whipped about following trends in choppy conditions.

Thats why I adopted a rule which said I only look for trends when the range is above a certtain pip-value.
Below that value, I switch to breakout mode.

Hows the 1-mins going today?

similer to kite,

7 trades, 2 winners 5 losers down 30 pips so far, been following the stop debate, i'm on the hard stop side of the fence and it certainly saves your bacon on days like today.

using a 10 pip hard stop on the 1 min.

 

[foredog]

similer to kite,

7 trades, 2 winners 5 losers down 30 pips so far, been following the stop debate, i'm on the hard stop side of the fence and it certainly saves your bacon on days like today.

using a 10 pip hard stop on the 1 min.

sounds much like my morning

 

[HawkTrader]

Morning guys.

Yep, today is a day for preserving your capital! I took one trade, finished 0.80% down and that was it. I could see a chop monster was coming...

Anybody notice that London opened at 8am this morning rather than 7am? It could have changed things a bit...

Remember, control your losses, and then the next day you'll be like this...!

 

[trendie]

calling it a day, or waiting for US open and see if there are any directional moves then?

 

[HawkTrader]

I called it a day at about 7:30 this morning!

 

[apmf]

Good morning,
Cable looks bit choppier than GJ.
3 trades so far. T1 my first trade lost -30 pips
T2 and T3 are still running locked 8 pips in T2 and T3 @ the risk of -24 pips.

 

[trendie]

Been giving this PA type stuff some thought.

You get onto a trend faster than anyone else, but you get chopped as well when there is no obvious direction.

I wonder if I am saved from taking too many hits by having a broader direction as well, and only trade in that direction. That way, when I take a hit, I take the hits in one direction, instead of two.

Swings and roundabouts: you guys get more pips on good days, and lose more on bad days (MM notwithstanding). I might get in later on trends, but I stay in longer. And on choppy days, get chopped in one direction, not two.

However, I am envious when KJ banks 5%+ returns in one flippin' day. (actually, in just a couple of hours)
Maybe I should reconsider my 30-pip SLs. This would improve my R;R, but with more stop-outs.

EDIT: on balance, I think I should learn it. potentially more pips per hour!!

 

[mb325]

Apologies in advance if this is blindingly obvious to everyone else, but I thought I'd mention something I noticed on G/U since 11am. It's nothing new but just something that I don't think has been discussed much on these threads.

So it's been pretty choppy this morning, then around 11ish breaks the intraday high and moves about 30 points in 15 minutes up to 16350. Price then spends 30 mins meandering down to previous resistance (RbS...). It then shoots up again in 10 mins, followed by a 25min trickle down.

This pattern of moving up 30 points with momentum and speed, followed by a 30 point fall with nowhere near the speed of the up-move, is repeated 3 times in total, before the break above 16350 at 13.40.

To me this 'price action' or whatever you want to call it seemed a pretty good clue that an upward break was coming. My logic is that within a tight range if buying pressure > selling pressure then eventually sellers are going to be overwhelmed.

Anyone have any thoughts/opinions on this?

 

[Bloodhound]

Sounds pretty logical to me Mitch

 

[Bloodhound]

Hello Trendie

Just some thoughts as I think we have possibly both been down the same mental avenue on this!!

All the best

Rob

Been giving this PA type stuff some thought.

You get onto a trend faster than anyone else, but you get chopped as well when there is no obvious direction. Very true, but I prefer to be out sooner rather than later if the trade is going against me

I wonder if I am saved from taking too many hits by having a broader direction as well, and only trade in that direction. That way, when I take a hit, I take the hits in one direction, instead of two. I tired this but, to me, this M5 stuff is very much about trading intraday ebb and flow. As soon as I get directional bias I start missing moves

Swings and roundabouts: you guys get more pips on good days, and lose more on bad days (MM notwithstanding)Having a max daily drawdown limit which is directly linked to my expected weekly returns is what I think makes what I do work. Some days one just needs to lose gracefully and walk away!!. I might get in later on trends, but I stay in longer. And on choppy days, get chopped in one direction, not two.

However, I am envious when KJ banks 5%+ returns in one flippin' day. (actually, in just a couple of hours) Sadly cable makes me pay for these days lol!!
Maybe I should reconsider my 30-pip SLs. This would improve my R;R, but with more stop-outs.

EDIT: on balance, I think I should learn it. potentially more pips per hour!! TBH this is why I like this way of doing things as it means I'm not tied to screens 24 / 5 and can get on with other stuff.

 

[neil]

5 Minute Cable

Sounds pretty logical to me Mitch

Is this the sort of thing you see Mitch (Ignore the yellow lines)
The white lines mark off levels I find useful.

 

[mb325]

Is this the sort of thing you see Mitch (Ignore the yellow lines)
The white lines mark off levels I find useful.

Spot on.