EJ Daytraders v The Rest of The World

MIKE FARRELL

Active member
183 4
Hi there I would like to start this thread for any one interested in trading the EJ just for each trading day.

I like to work on the 3 day daily average of pips achieved and use a safe range ( = the 3 day average/1.5 for my trades)

Any one interested please let me know
 

MIKE FARRELL

Active member
183 4
Good early morning to everyone, I use the range on the EJ between 11pm - 6am as a guide to my day trades after 6am. The 3 day average range is 119 pips, the safe range is 119/1.5 = 79 pips. All this is quite low for the EJ but all I have to work with atm. The Box Range (11pm - 6am) is currently 24 pips, however, the current day's range is 59 (from 9.001pm - 01.11am). How this will look by 6am is anyone's guess. However, the aim is to set a target either to the long side of the highest price + 3pips or to the short side of the lowest price less 2 pips depending on how wide the total bandwidth will be and complying with not expecting the current day's range to exceed the 3 day average number of pips.
I always use a 45 pips stop loss (SL) on the EJ and am not comfortable with setting a PT to achieve less than my SL. If the bandwidth + brokerage + PT exceeds the 3 day average number of pips then this is a "non-qualifying" (NQ) day for trading. In these circumstances there is a possibility for a "salvage" trade or even a "reverse" trade but I prefer to explain this later on to avoid initial confusion.

Just after 6am price could be any where within the box range. Whilst I may set two trades to trigger if I will be away from my PC for any length of time, the intention is only to execute one trade. I will set one at the top of the range and one at the bottom. Should either one trigger I then cancel the order for the second trade as soon as possible. If price is quite close to the top or bottom (top 1/3 or bottom 1/3 of the box) I will very often just set an order to open closest to the top or bottom.

Once triggered the trade will either win or lose or will expire at 8.45pm on the same day. Sometimes I will exit a trade early but the recorded results will reflect strictly the above criteria.

All my trades are pre-advised and if I oversleep and miss an entry then I think it best to just to class this as a missed trade for simplicity.

I am going to use a virtual bank of £2700 ( = 60 x £45) and trade at £1 pip.

If any one else wants to join in with their own method and use a virtual bank to the same value please feel free to do so. However, you must pre-advise your EP, SL & PT and value per pip in order that your success can be verified by previous posts.

I started making posts under the EY Institute forum in Forex Factory about two weeks ago, however, my day trading style is out of place in that environment and am hoping that I will attract day traders and indeed anyone else who thinks they can do well on the EJ to post to this thread. It should be fun. I will bring forward a loss from my posts there of 108 pips which means that my virtual balance is down to £2,592. I intend to run this over a long period of time so I'm not worried about a minor set back.

Be back later
 

wackypete2

Legendary member
10,229 2,053
Subscribed.
Method seems reasonable enough. I Don't trade EJ much, mostly just eurusd or audusd but I'm interested in seeing how you do.

Peter
 

MIKE FARRELL

Active member
183 4
Good morning all.

The box range is 51.3 whilst the actual range is 86. 86 +5 for brokerage = 91. The top of the box range is 129.61 + 3 = 129.64 and has already broken. However my 3 day average is 119 pips, hence setting a 45 SL to get 28 pips is not for me and is an NQ day.

I may execute a "reverse" trade should price now go past or get near to the 28 pips 3 day average target.

Will be back shortly
 

MIKE FARRELL

Active member
183 4
Subscribed.
Method seems reasonable enough. I Don't trade EJ much, mostly just eurusd or audusd but I'm interested in seeing how you do.

Peter

Many thank Peter,

I trade the EJ primarily because the average number of daily pips available is higher than the EU or GU, though I keep an eye on both. For example, since the start of the year the average daily pips on the EU has been 106 pips, on the GU 119 pips and on the EJ 181 pips! This being so I haven't felt that I could trade the EU for some while. I'd be interested to know how you make trading pay on the EU with these low daily ranges. A lady on the EYI forum said something about EU Dustbins but that means nothing to me (or I haven't made time to look it up yet)
 

MIKE FARRELL

Active member
183 4
I have gone for a reverse trade at 130.05 with a 45SL & 50 pips target.

Always nervous about going against the trend but it is the only play for me atm
 

MIKE FARRELL

Active member
183 4
Looks like I have screwed up here. should have waited a bit longer for the EJ to finish its run,

25 pips down atm so will probably lose

Nuisance
 

MIKE FARRELL

Active member
183 4
Well, I deserved to lose that trade. I need to tweak my "reverse" trade criteria. I know what I used to look for on the EJ. Obviously price needs to be close to the 3 day average limits or having gone beyond it. But one has to wait for a definite sign of price going back on itself proper. Since I trade by using the M15 candles I will wait for price to close in on or go past the 3 day average, then I will wait to see some longer opposite candles to the trend candles as a sign of price reversing before entering the trade. What I am looking for is a sign that price has peaked and will now move back along the range to give me my profit. I was very lucky today as price went as high as 130.46 with my SL being at 130.506. I got back home from lunch and saw a retrace and exited at 130.019 = £3.70 profit at 3.02pm. It did go further down but just reversed back up again. It is currently sitting at 130.24 , hence the official trade will probably expire at 8.45pm showing a loss. Blinking great start for me bringing forward a cumulative loss and then adding to it.

Unfortunately, I will not be able to systemise the "Reversal" trades as apart from the vague description given above at the moment it depends on what's is happening in the market.

However, reversal trades are an important part of my strategy despite all the challenges that it brings by going against the trend.

What I will do is advise when I execute one and its result will be reflected in my figures that will either increase or decrease my virtual bank. Hence despite me getting out after realising that I made a silly error the result stands as per official EP's and SL's notified in this morning's post.

This is also true of my more easily defined "trend" trades. I sometimes exit them sooner or take fewer pips if I feel that price will go into a reverse. I have experienced on more than one occasion when I used to trade both ways (not now) that I could be within half a pip from target and price reverse, take out my stop, then trigger a second trade and take that stop out resulting in a double loss for half a pip!! However, once again it is the pre-advised trades without any interference that goes down on the score sheet

Have a good evening everyone
 

MIKE FARRELL

Active member
183 4
Good morning all

The EJ 3 day average is 135G, safe 90G

The EJ defied the 3 day average, so my reverse trade officially lost 13 pips, though I escaped with a tiny profit of £3.70

The box range = 9 pips whilst the true range is 22. Could have a worthwhile trend trade just after 6am

Sweet dreams
 

MIKE FARRELL

Active member
183 4
Overslept today and trade has triggered at 130.38 Long. Would use a 45 pips target & SL. Will still do so if it can retrace before getting too close to target. Nuissance
 

NVP

Legendary member
37,535 1,988
Many thank Peter,

I trade the EJ primarily because the average number of daily pips available is higher than the EU or GU, though I keep an eye on both. For example, since the start of the year the average daily pips on the EU has been 106 pips, on the GU 119 pips and on the EJ 181 pips! This being so I haven't felt that I could trade the EU for some while. I'd be interested to know how you make trading pay on the EU with these low daily ranges. A lady on the EYI forum said something about EU Dustbins but that means nothing to me (or I haven't made time to look it up yet)

the E/J is a superb pair to trade due to Yen volatility and general nature of the (negative) correlation on those individual currencies

If I see a move on the Yen the Euro is the first Currency I look at for possible trade opportunities (y)

N
 
 
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