Here is a summery of the newest trading method:
I will go true the following :
1:Why i use different timeframes.
2:Why i have the targets i have
3:Alittle about moneymanagment.
4:The newest system and how to trade it.
1:Timeframes:
As many of you notice, i am a fan of using multiple timeframes for my trading.
Someone say that why do you need a 3min when u take the trades on a 1min and so forth.In reallity you are not taking the trades on a 1min, but you are taking the on the 10min chart, but you are perfecting your entry with the lower timeframes and in the prosses lowering your risk and stopploss.
We have 30min and 10min, to get a sense of direction of the marked, and we dont dont want to trade against the trend in that timeframe, notice that i am saying in that timeframe, cause marked could be in a downtrend on a larger timeframe.But our trading will not last that long from buy to cover that we need to worrie about those bigger timeframes.So when you have figured out where the shortterm trend is, where do you enter, if you try to enter on a 10min chart, u will need a biggger stop and u will not get the optimal price. The 10min noice is alot if you look at ticks, but as we go on the lower timeframe we still have noice, but the noice is less in ticks, so we go lower , and finally we come to the 1min chart, where noice is around 10ticks. So a 20tick stop is perfect. Yoou have now bought at a price that is lowest possible and the risk on the downside is also minimized.You basicly worked your way from the 30/10 min to the 1min and got your entry. Even though u are taking the trade from the 1min chart u dide in reallity take that trade on the 10min, and used the other timeframes to perfect your entry.
2:My targets:
I always trade 2 cars,if i was not trading two i would trade 4 or 6 or 8 or 10 or 12. You notice that i like number that i can cut in half. There is a simple reason for that, i always sell 50% of my contracts at first target, and i do that with intention.
I am not a big fan of risk and the first thing i look for when in a trade is to remove my risk to 0%. I want to use the markeds money and risk that then to risk my own money.
If you have gotten a decent entry, you will always mangage to get +10 ticks, unless some news comeout. So when +10 is hit i sell 50% of my contracts and the i put my stop from -20 to -8.Now i got +10 ticks, and my stop is -8, if the trade goes against me it will stop me out and i will not have lost anything, and the remaining 2 ticks will cover commission.If the trade is still valid when it stops me , i will simply reenter.
My second half of contracts i either sell at +30 or trail, so on that second half , i am basicly risking markeds moeny, not my own, and i have no problem with that. So i cant get emotional and dont really care where the marked goes, cause im not in any risk.
If its a huge trade, u will get payed, if its a fake trade, u will not loose anything.
Usualy when the first target is hit at +10, then if the price goes agaisnt you with 18ticks then that is in most cases a weak move and will not get you anything eitherway.
Money managment:
This is a importent subject, and alot new traders mess up here.
WHen they open their account they are dreaming about riches, and are using their full margine. And most blow your account and never trade again.
I never risk more then 2% of my account at any time, with a good trading method 2% is good enough, if its a very low hiting trading method then 1%.But never more then 2%.
A general rulse is trade 1 contract pr 5000 usd in your account, forthose who start out with 5000 k account are allowed to trade 2 contracts, simple reason is that they will not make any money with just 1 contract, their risk will be 4%, but they have worse odds with 1 contract then with 2.If you trade only 1 car you are not flexible, and you will most likely loose. Cause the trade goes +30 and then stops u, with 2 u partly profit and if u do get stoppped, u will still make some. With 1 contract you are basicly nailed eachtim the trade goes against you.
Everyones goal should be to lower their risk to 1%, build up ur account as fast as possible to you are not risking more then 1%. Dont get tempted with increasing with more contracts as you grown to the 1% risk level. That will sooner or later nail you.
When you have 20k in your account, then double your contracts size whenever your account doubles. And keep doing that until you grow that big that the marked cant handle that many contracts, that might take some time
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TRADING METHOD********************************************************
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What you need is the following:
1: 1minchart with 10ema + Normal slow stochastics
2: 3minchart with 10ema + Normal slow stochastics+Normal Macd with 12,26,4 settings
3: 10minchart with 10ema+Normal slow stochastics
4: 30minchart with 10ema+Normal slow stochastics
Rules that never can be broken :
1:Always have the 3min on your side and the macd on yourside, it needs to be going up
when thinking long and needs to be going down when short.
2:Always have the 10min on your side ALWAYSSSS
3:And prefer having the 30min on your side, if 30min is on your side then go normal or many contracts. If you its against you, go normal and dont expect the move to have more then 2 trades in it.
When do i go short:
1:When price is below all the moving aveages, that means price needs to be below
1min charts 10ema +3min charts 10ema + 30min chart ema + 10min charts 10ema and the 3min macd is on yourside.
2:Then go short at marked when when the first 1min bar closes below the last ema.
If the 1min is oversold by the time you want to go marked, let the price break the last
ema and then do a retracement on the 1min charts 10ema.
Just make sure that 3min charts stoch and the 10min charts stoch is on your side
and the 3min macd
Where do i cover:
1:First of all, use a 20tick stop.
2:Take first target at +10 and then move stop to -8 behind entry.
3:Then trail the last contract until the 3min macd starts crossing back up.
This will make you get much much higher targets and ur risk reward will most likely be
1/3 or higher.
Whenever price reached round numbers like 8400 or 8000 or 8200 then consider not doing any trades and wait for it to either break or bounce back up.
Note:
Before you start trading make sure you get a overview of what news are coming out and
when they are announced, you dont wanna get caught in a trade when news are hiting the marked.And also write down keysupport levels from the daybefore, or from the premarked. That will help you stay outfrom dangerouse areas where the bulls and the bears will be fighing it out, wait for the winning side and then ride on their backs,you dont want to take a part on their fight, they are have bigger pockets and they will eat you up
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END OF METHOD***********************************************************
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If anyone have any question or ideas, then let me know and i will try to answear them, remember no question is to dumb, not asking is :smart:
Best of luck to everyone for tomorows trading
With kind regards
Bashir Naimy
