Trade2Win's 10 Year Anniversary - Day 5 (Anatomy of a Trade)

Sharky

Admin
5,576 306
To celebrate our 10 Year Anniversary, Trade2Win has been announcing a different contest every day this week. Today is the final day!

Day 5 - Anatomy of a Trade

In this final contest we want you to talk us through your trade. It's not important if it's a winning or a losing trade but it must be be a trade placed today. It can just be an entry and not an exit, but you should then explain when you'll exit the trade. This isn't about making the best trade it's about explaining clearly and methodically your thinking behind it. It would be great if you can illustrate the trade with charts or even video! Anything that helps to explain it.

All entries must be posted on this thread and only one entry is allowed per member.

The best explained trade, as judged by the T2W staff, will be announced by 12pm noon (GMT) Monday, 24th Jan on this thread. :clover:

The Prize

For today's winner we've got the latest generation Kindle 3G 6" - considered by many to be the best e-book device around. In addition we'll be giving away $100 worth of trading books of your choice.

The Rules

- Only one entry per member.
- Contest is open to all existing members (as of 9am GMT today) including mods and guides but excluding staff.
- The judge's decision is always final!
 
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the hare

Senior member
2,949 1,283
My system will open a trade at 10:35. I have no idea what instrument, position size, or direction !
 

Sharky

Admin
5,576 306
Well as long as it's not a black box system and you know what the rules are for it, you can explain, in however much detail you're comfortable with, how the system goes about deciding the entry and exit. It's less about specifics rules and more about the types of things that system is taking into account and why.
 

the hare

Senior member
2,949 1,283
stop moved to 1.5922
stop moved to 1.5918
stop moved to 1.5911
stop moved to 1.5910
 
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timsk

Legendary member
7,194 1,947
the hare,
Tar is right - it's not about entries, stops and exits per se, its about the rationale and thinking behind them. Why has your system generated the trades? In your 1st post, you said you'd be going short cable at 10.35. What's the significance of the time?
Tim.
 

HawkTrader

Established member
620 130
Does this have to be done in real time as the trade is taking place? May be hard for some...
 

the hare

Senior member
2,949 1,283
the hare,
Tar is right - it's not about entries, stops and exits per se, its about the rationale and thinking behind them. Why has your system generated the trades? In your 1st post, you said you'd be going short cable at 10.35. What's the significance of the time?
Tim.
To be accurate, I didnt specify an instrument in my first post, only the time at which the trade would be opened (it was actually 10:36). The time is generated completely at random (but within restricted session times)

the random entry component decided to go short, and it decided that it wanted to close at 13:00 ! The system scans through a bunch of instruments that might have a short bias over that kind of time horizon, then it picks one at random, which just happened to be cable.

You can laugh, but last year I made in excess of 195% return, with an absolute drawdown of less than 5% and a peak to valley drawdown of less than 15%. :LOL:

Stop hit at -23 so sadly you wont get to see how I manage winning trades !
 

Sharky

Admin
5,576 306
Good question HawkTrader, no it doesn't need to be a live trade. As long as it's a trade made today and you've posted your explanation before midnight tonight. It could even still be open at the end of the day, but in that case I suggest you explain your rationale for when you'll exit the trade.
 

counter_violent

Legendary member
10,106 2,605
Right i'd better keep it simple.

Short AUDUSD

This trade opened @ .9850
Target will be @ .9750
Stop will be @ .9915

Chart 1 shows first and second legs of what I believe will be a third leg continuation move.

Rational for this trade is. Continued relative usd dollar strength versus continued relative aud and gold weakness.

Theres no sense in expanding on this basic premise. Most over complicate analysis to the point where they get nothing done.

Win or lose, this is the trade I am in.

If target is not met, then I will probably close before end of play.
 

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Mr. Charts

Legendary member
7,366 1,181
c-v,
If you win the prize you and Sharky will be accused of conspiracy, favouritism, cheating and all sorts of other crimes against humanity and will empower some members to wallow in the dubious joys of delicious outrage :)
 

timsk

Legendary member
7,194 1,947
Stop hit at -23 so sadly you wont get to see how I manage winning trades !
Hi the hare,
Thanks for this.
I've read your post several times and I'm still undecided as to whether or not it's a complete pi$$ take or whether you're actually being serious! (I'm referring to the random component of your system - as opposed to the profitability of it.) Either way, it's way more interesting and in the spirit of things than a largely meaningless set of numbers.
Tim.
 
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