Less is more strategy

[rsd886647]

I've decided to trade less often than I used to before, but to wait for bigger than average signals and then invest a relatively large amount in them.

I am trying this strategy out because I think it will reap more rewards in the long run than I have been getting till now.

I intend to keep this journal of how things go.

 

[rsd886647]

Euraud is my first trade. News is imminent, so may experience some volatility, but I fancy a short @ 1.3875.

Edit: -120 pips and out.

 

[SmartGeek]

There are many strategies that you are needed to learn in Forex, and this one is also a good one, but it will not work each time, so we need more strategies.

 

[rsd886647]

There are many strategies that you are needed to learn in Forex, and this one is also a good one, but it will not work each time, so we need more strategies.

I have tried a lot of strategies, intraday etc I really do believe that the best way forward for me is to play the big daily signals.

The signal I saw (euraud) was a borderline one, it was just about big enough to take, but in hindsight it was not a huge signal. I have to be patient and wait, it may take weeks, the trick is to not get sucked in. I will try to sit on my hands now until a bigger signal comes along.

 

[gerryg]

I've decided to trade less often than I used to before, but to wait for bigger than average signals and then invest a relatively large amount in them.

I am trying this strategy out because I think it will reap more rewards in the long run than I have been getting till now.

I intend to keep this journal of how things go.

Spreads costs are important. You are heading in the right direction, just use proper money management (ability to withstand N losing trades in a row is a major rule).
And don't forget about limiting your losses.

 

[Wicked_Daddy]

There are 5 parts to a successful trading method:
1. Trend/Bias - establish the bias of the market. Is it up, down or sideways (consolidating)
2. Strength - if there is a trend, how strong is it. A simple MA cross can establish this as well as the angle of the trend/price action.
3. Cycle - there are cycles in a trend. What is the current cycle: is it in retrace or continuance. How many cycles has this trend had: 3 is average, 5 is often the maximum before a trend change.
4. Blockage - notice significant S&R levels in relation to current price. Will blockage stall the current trend or cause a retrace or consolidation.
5. Higher Time Frame - Once the above is established on the time frame of your choosing, verify the same in a time frame 3x to 4x higher. Ex: trade in a H1, verify in H4. Trade in H4, verify in Daily, etc.

If all 5 factors are in alignment, you have a high probability trade. Create rules that follow these factors and you will do well, but only if you are disciplined enough to actually follow your own rules.

 

[Dinos]

There are 5 parts to a successful trading method:
1. Trend/Bias - establish the bias of the market. Is it up, down or sideways (consolidating)
2. Strength - if there is a trend, how strong is it. A simple MA cross can establish this as well as the angle of the trend/price action.
3. Cycle - there are cycles in a trend. What is the current cycle: is it in retrace or continuance. How many cycles has this trend had: 3 is average, 5 is often the maximum before a trend change.
4. Blockage - notice significant S&R levels in relation to current price. Will blockage stall the current trend or cause a retrace or consolidation.
5. Higher Time Frame - Once the above is established on the time frame of your choosing, verify the same in a time frame 3x to 4x higher. Ex: trade in a H1, verify in H4. Trade in H4, verify in Daily, etc.

If all 5 factors are in alignment, you have a high probability trade. Create rules that follow these factors and you will do well, but only if you are disciplined enough to actually follow your own rules.

Not always, as a trader who specialises in trading the 5 minute charts only, no other time frame has any importance to me what so ever, and I use only 2 parts to set up a trade and one part to exit a trade. Traders, as I see generally are blinkered by the need to over analyse things. just keep it KISS, and things will improve dramatically, all of course, IMHO

 

[Wicked_Daddy]

Not always, as a trader who specialises in trading the 5 minute charts only, no other time frame has any importance to me what so ever, and I use only 2 parts to set up a trade and one part to exit a trade. Traders, as I see generally are blinkered by the need to over analyse things. just keep it KISS, and things will improve dramatically, all of course, IMHO

You have to do what works for you. My method works extremely well for me.

 

[rsd886647]

There are 5 parts to a successful trading method:
1. Trend/Bias - establish the bias of the market. Is it up, down or sideways (consolidating)
2. Strength - if there is a trend, how strong is it. A simple MA cross can establish this as well as the angle of the trend/price action.
3. Cycle - there are cycles in a trend. What is the current cycle: is it in retrace or continuance. How many cycles has this trend had: 3 is average, 5 is often the maximum before a trend change.
4. Blockage - notice significant S&R levels in relation to current price. Will blockage stall the current trend or cause a retrace or consolidation.
5. Higher Time Frame - Once the above is established on the time frame of your choosing, verify the same in a time frame 3x to 4x higher. Ex: trade in a H1, verify in H4. Trade in H4, verify in Daily, etc.

If all 5 factors are in alignment, you have a high probability trade. Create rules that follow these factors and you will do well, but only if you are disciplined enough to actually follow your own rules.

Hi,

This is very comprehensive. I follow this pretty much. I tend to look at the trend over the last 3 - 6 months, and I do verify on the weekly and monthly charts for my daily signals. I particularly like the advice on cycles, it is one aspect I perhaps ignore at times, to my peril. Also, no strategy will work if one is not disciplined, and this is where I have fallen down before. But I am working hard to improve on this.

Thanks, Rob

 

[Wicked_Daddy]

Hi,

This is very comprehensive. I follow this pretty much. I tend to look at the trend over the last 3 - 6 months, and I do verify on the weekly and monthly charts for my daily signals. I particularly like the advice on cycles, it is one aspect I perhaps ignore at times, to my peril. Also, no strategy will work if one is not disciplined, and this is where I have fallen down before. But I am working hard to improve on this.

Thanks, Rob

I use a stochastic for cycle identification. In a clear up trend, a cycle down will be a Stochastic at or below the 20% level. This retrace will also be clear on the chart because the low will not be as low as the previous low. My favorite trade is to enter at the first cycle down after an MA cross upward. Reverse for downward trends. The second cycle is also a good trade but not as reliable as the first.

 

[csc2009]

I've decided to trade less often than I used to before, but to wait for bigger than average signals and then invest a relatively large amount in them.

I am trying this strategy out because I think it will reap more rewards in the long run than I have been getting till now.

I intend to keep this journal of how things go.

I think that's smart.

 

[rsd886647]

I don't have much to say on this trade, except there is a lot of confluence. Whether price will continue to rise is debatable, I think the odds are good, so I am investing.

 

[FxTim]

In my View the Best strategy is to trade according to the Trend of the market and learn Candle sticks to well so that you can get signals.

 

[options-george]

There are 5 parts to a successful trading method:
1. Trend/Bias - establish the bias of the market. Is it up, down or sideways (consolidating)
2. Strength - if there is a trend, how strong is it. A simple MA cross can establish this as well as the angle of the trend/price action.
3. Cycle - there are cycles in a trend. What is the current cycle: is it in retrace or continuance. How many cycles has this trend had: 3 is average, 5 is often the maximum before a trend change.
4. Blockage - notice significant S&R levels in relation to current price. Will blockage stall the current trend or cause a retrace or consolidation.
5. Higher Time Frame - Once the above is established on the time frame of your choosing, verify the same in a time frame 3x to 4x higher. Ex: trade in a H1, verify in H4. Trade in H4, verify in Daily, etc.

If all 5 factors are in alignment, you have a high probability trade. Create rules that follow these factors and you will do well, but only if you are disciplined enough to actually follow your own rules.

Excellent post (IMHO) !!

Although this might initially seem complicated/comprehensive, I figure that Wicked_Daddy checks through these steps fairly quickly on the basis that he has been it doing for a long time and very often.

 

[Wicked_Daddy]

Excellent post (IMHO) !!

Although this might initially seem complicated/comprehensive, I figure that Wicked_Daddy checks through these steps fairly quickly on the basis that he has been it doing for a long time and very often.

Thank you, George! Yes, it may seem complicated but trading is complicated. I find that following a set of steps/rules actually makes it more simple.

 

[FxTim]

rather then concentrating on many Strategy its far good idea to focus on just one strategy so that you an master it and then earn Consistently.

 

[verial]

In December, I was traveling in Korea. I told myself I wouldn’t watch the market and trade every day, like I usually did. However, I couldn’t resist placing two trades.

Both were big winners. I realized that it was the high probability of being right that pushed me to break my rules and make a trade on vacation. It was an opportunity I would regret missing.

Nowadays, because of that event, I trade less. I have not realized a loss since November. Overall, I’m making less, but I have a higher ROI, accuracy, and well-being.

So yes, I think less is more.

 

[gerryg]

Main trading rule I stick to is to let winning trades go and close losing trades as much as its possible. Sometimes it means I break my TP rule to flow with a trend to squeeze max from the opportunity.

 

[rsd886647]

I have shorted S&P, The market has been strongly trending upwards of late, but looks to be rolling over now. I am up some pips and will move to breakeven at 1R, aiming to exit at 2.5R. Chart to follow. Dow and ftse too look to be rolling over.

 

[rsd886647]

Lower lows and lower highs on daily and a big signal suggested this was heading lower, but it is against long term trend so hopefully I can get to breakeven soon.