Trading Naked - Part 2

[foredog]

Hope you've all stayed out of trouble so far, looks like another chopfest, hopefully these figures will give it some direction

 

[Bloodhound]

Thanks, Rob!!!!
It makes a lot of sense... Avoid entry when you have a hunch that a high support/resistance level is approaching. Just play the high probability trades.

One more question - I was looking at higher time frames such as 30min and 1H - which look to be in a uptrend... Before the day started today, were you actually favoring long trades or you don't let that sort of information interfere with your setups in the M5?

THANKS!!!!!
Leandro

Just to round this one off I thought you might like to see how I have my screens set up. One screen just shows cable M5 with nothing on it and I manually draw on levels every day as and when I am trading.

The other one (shown below) is updated every day and shows all Daily (red), H4 (dark blue) and H1 (light blue) peaks and troughs. This is my early warning system to prevent me from taking positions too close to higher timeframe levels. The first chart below shows H1 although I in fact always have it open in M5 (second chart).




In case anyone is interested, I completely ignore things like daily closes etc. as I do not believe they are relevant to a 24 hour a day market and I am also yet to hear anyone give an authoritative view on when a daily close would be. I also ignore a level once it has been busted and retested as, whilst a level from 1975 might be useful to a higher timeframe trader I don't find them useful for intraday trading. I may be completely wrong in these assertions but it's the way that works for me.

 

[Bloodhound]

Just to show that it's not always vital to get the first entry....

 

[traderbrazil]

Hi Rob,

Great to see how you have your charts setup. Thanks!!!!

Questions regarding the levels on HTFs: do you actually have a moment in time when you decide that a level becomes "old"? In other words, if you have an H1 level from 3 weeks ago, do you keep that level in your chart indefinitely?

I'm just thinking out loud here, but I have a feeling that the charts will become overcrowded with levels after a while and one may start to overfilter the trades.
Am I wrong to assume that?

Cheers!
Leandro

 

[Bloodhound]

Hi Rob,

Great to see how you have your charts setup. Thanks!!!!

Questions regarding the levels on HTFs: do you actually have a moment in time when you decide that a level becomes "old"? In other words, if you have an H1 level from 3 weeks ago, do you keep that level in your chart indefinitely?

I'm just thinking out loud here, but I have a feeling that the charts will become overcrowded with levels after a while and one may start to overfilter the trades.
Am I wrong to assume that?

Cheers!
Leandro

HI Leandro,

A level stays on until it has been broken and retested. There is no time limit on how long it will stay on my chart. Remember I have one screen to trade off and one screen with all these levels on and I only look at my 'levels screen' using that M5 chart I showed above so in reality it is pretty uncluttered.

All the best

Rob

 

[traderbrazil]

I see... Thanks!!!!

 

[HawkTrader]

HI Leandro,

A level stays on until it has been broken and retested. There is no time limit on how long it will stay on my chart. Remember I have one screen to trade off and one screen with all these levels on and I only look at my 'levels screen' using that M5 chart I showed above so in reality it is pretty uncluttered.

All the best

Rob

I think I've beat you with simplicity. 1 chart, no lines... okay sometimes I place two horizontel lines.

 

[HawkTrader]

Here is this morning's trade, it was breakeven + a few pips. Start to this week has been a bit slow but I think I may be trailing stop too close after the breakout, not allowing the volatility it usually experiences at is decides whether or not to break or reverse! Also miscaculated TP level, probably got a little greedy.

 

[traderbrazil]

Rob,

I was just wondering if you took any of the two trades I marked on this chart...
Did you by any chance filter them with HTFs?

Thanks!
Leandro

Edit: Or was it the time of the day around London open???

 

[foredog]

Here is this morning's trade, it was breakeven + a few pips. Start to this week has been a bit slow but I think I may be trailing stop too close after the breakout, not allowing the volatility it usually experiences at is decides whether or not to break or reverse! Also miscaculated TP level, probably got a little greedy.

Hawk, it looks like it got pretty close to your TP, worth being a bit more flexible with the target? eg if it's within 10 pts be aggressive with the stop, no point giving back 30 to make 10.

 

[HawkTrader]

Hawk, it looks like it got pretty close to your TP, worth being a bit more flexible with the target? eg if it's within 10 pts be aggressive with the stop, no point giving back 30 to make 10.

Very good point foredog, howerever I wasn't too aggressive with this trade (sometimes I trial on the 5m) because I was quite bullish with the longer TF's. Yeah yeah, sorry about that bias! I just was hoping to catch a big upthrust and grab 30 points. At some point I actually lowered my TP when it showed some lack of momentum, but I was still trading for it to hit at some point. It actually did, but only after it had took me out.

 

[Bloodhound]

Hi Leandro,

I didn't take either of those but that was more to do with a late night last night! Looking at how this morning has played out I would have been long following that HrL at around 7am, so may have tried to add where you have that entry, although I may not have done as it is close to yesterday's high. It's hard to know as I wasn't there (so to speak). It's also worth bearing in mind that, following yesterday's run up, I would have been very close to busting a mental weekly profit target so may have been cautious of losing any gains. The short would have been a definite one though as it would have been showing a decent drop before hitting a possible support level.

It's very hard to know though TBH.

One thing I would be cautious of is using the word 'filter' too much IMO. If I do filter then I guess it is all to do with distance from entry to first problem level where price may come back at me.

All the best

Rob

 

[foredog]

Very good point foredog, howerever I wasn't too aggressive with this trade (sometimes I trial on the 5m) because I was quite bullish with the longer TF's. Yeah yeah, sorry about that bias! I just was hoping to catch a big upthrust and grab 30 points. At some point I actually lowered my TP when it showed some lack of momentum, but I was still trading for it to hit at some point. It actually did, but only after it had took me out.

It's much like the stops tthing, you'll never be right all the time, for everytime you wait for 30 points and get it there'll be another time when it goes back and you kick yourself for not taking 20. I think the best is to stick with one on the whole, i prefer to trail, but they should both average out in the long run.

 

[Bloodhound]

Hi Leandro,

No time to post a chart I'm afraid but cable M5 now is a classic example of what we have been discussing. Consolidation just above 6750 which I have as an important level from yesterday (as an aside i think the 50's are more important round numbers with cable but that's another story). Anyway, I would not trade into that level so am sitting on my hands ATM and will only add to my short position (see post 343) after that level has been broken.

Hope that helps

All the best

Rob

P.S. I should add that I did try to add on the break of 6772 though as it was far enough away from the 6750 level. Sadly that got stopped out!

 

[Bloodhound]

Here's a chart re the above P.S.



Anyone looking at cable ATM I am seeing a failure to test that 6750 level so will be looking at what price does next. A HrL and I will be looking to stop and reverse (possibly) although I have to pop out in a bit so may not be able to trade it.

N.B recent SbR level should be at 6776 not 6772 as shown on chart

 

[trendie]

is it my imagination, or are good (or the better) trades happen around the top of the hour, plus/minus 10 mins or so???

just eyeballing the 5-mins over past two days admittedly!

 

[Bloodhound]

is it my imagination, or are good (or the better) trades happen around the top of the hour, plus/minus 10 mins or so???

just eyeballing the 5-mins over past two days admittedly!

Great minds think alike Trendie. I'm not sure if it is imagination or not TBH, but I do tend to think that may be the case. Another one for me is 12.30pm....

 

[traderbrazil]

Anyone looking at cable ATM I am seeing a failure to test that 6750 level so will be looking at what price does next. A HrL and I will be looking to stop and reverse (possibly) although I have to pop out in a bit so may not be able to trade it.

N.B recent SbR level should be at 6776 not 6772 as shown on chart[/QUOTE]

Hi Rob,

I think that you mentioned before that whenever you add to a position you have to make sure that your original stop from the first trade is moved to breakeven or beyond.

Does that mean that when you got stopped for T2 that both your positions were taken out or T1 would have a different trailing stop?

I hope the question makes sense...

Thanks once again!
Leandro

PS: Let me know when you get tired of all my questions

 

[foredog]

Seem to be, but thats how it goes sometimes, the number of times i'd watch a nice tiny 1hr IB take off at 55 mins past, except of course the one you trade which then falls straight back!

 

[foredog]

Another one for me is 12.30pm....

Early bird Americans