Trading Naked - Part 2

[HawkTrader]

Spoke too soon...

 

[foredog]

Not so much fun so far, missed the rally just before 10am. Oh well, waiting for the next one.

The line on the chart posted earlier seems to be a magnet at the moment with cable springing back and forth through 16815.

 

[trendie]

GU has just gone and formed a bigger range to breakout of. (1.6845 / 1.6770)
mega-choppy.

looks like euro-session a waster.
waiting for US to give direction.

 

[foredog]

Which one should we have traded this morning???

 

[Bloodhound]

think we better stick to horizontal lines rob

its just turned into a diamond !

 

[HawkTrader]

What next? Rob's favorite - the inverse shampoo??

 

[Bloodhound]

Just one of those days........

 

[traderbrazil]

Just one of those days........

View attachment 68512

Hi Rob!

Not looking very good today....
I just wanted to confirm with you if you were trailing these trades using M1 or any other rule.

Many thanks!!!!!!
Leandro

 

[HawkTrader]

Just one of those days........

View attachment 68512

Not meaning to question your trade management Rob!! But why didn't you move T1 to B/E after that nice upwards thrust and close, and then another small candle closing bullish with a large gap from entry? Also looks like it's hit a resistance level from the line on your chart.

Just wondering as I always thought you were aggressive with moving your stop to B/E.

Cheers.

 

[Bloodhound]

Not meaning to question your trade management Rob!! But why didn't you move T1 to B/E after that nice upwards thrust and close, and then another small candle closing bullish with a large gap from entry? Also looks like it's hit a resistance level from the line on your chart.

Just wondering as I always thought you were aggressive with moving your stop to B/E.

Cheers.

Hi Owain,

Feel free to comment

On Metatrader the price quoted is the bid price. When I enter orders to go long I have to add the spread (approx 2.5 which I always round to 3) and then I always add 1xspread to lessen the chances of getting triggered by fakes. The result being that this trade never really went onside and I got out on the break of an M1 swing low.

With regards to that resistance level, that was drawn on after the event. The resistance level I was focused on was 6831 (the next one up).

Hope that makes sense.

All the best

Rob

 

[Bloodhound]

Hi Rob!

Not looking very good today....
I just wanted to confirm with you if you were trailing these trades using M1 or any other rule.

Many thanks!!!!!!
Leandro

Just M1. With the benefit of hindsight T2 was a mess IMO. Given that we've had an extremely choppy morning the emphasis should have been on battening down the hatches and getting stops to b/e ASAP. Sadly, an element of greed crept in and I tried to hold onto that one when, following a firm 10 pip move down I should have got stop to b/e.

Still water under the bridge now and onto the next one!

 

[traderbrazil]

Just M1. With the benefit of hindsight T2 was a mess IMO. Given that we've had an extremely choppy morning the emphasis should have been on battening down the hatches and getting stops to b/e ASAP. Sadly, an element of greed crept in and I tried to hold onto that one when, following a firm 10 pip move down I should have got stop to b/e.

Still water under the bridge now and onto the next one!

I think I'm not getting this yet.

Please confirm if the swing low for the M1 would have been the 6803 level.
Thanks for the patience
Leandro

 

[Bloodhound]

Hi Rob!

Not looking very good today....
I just wanted to confirm with you if you were trailing these trades using M1 or any other rule.

Many thanks!!!!!!
Leandro

Hi Leandro,

Just a further thought on stops etc. When I first got into this style of trading a couple of things became apparent to me from reading how experienced traders seemed to work.

1) They used hard stops but never allowed these to be hit (unless price was moving so fast they couldn't close a trade in time before their hard stop was hit or PC's crashed etc.). The main thing was that they focused on reducing risk from their hard stop.
2) There has to be a certain element of discretion in all of this as applying a 100% systematic approach to something which isn't, in itself, systematic, won't work. What I mean by this is that, whilst I am trailing using M1, there are times when I may not follow that rule to the letter as sometimes it just doesn't look right. A good example being if an entry is triggered, goes onside by 20 pips and then starts to reverse and come back fast, or today where cable is a nightmare and there's a good chance that everything that can go wrong will do - hence why I feel that my T2 was a really bad trade on my behalf!!

Hope that makes a bit of sense.

All the best

Rob

 

[mb325]

Hey Leandro, not quite sure if I'm right but i think you're quoting one trade, and looking at a chart of the other. Your chart is of Rob's T1 I believe, where he bought on a break of resistance at about 6820, and got stopped out. The piece of his post which you've quoted refers to T2 which i'm guessing was triggered when price broke support at the ~6790, pushed down about 10 pips, but then found support at ~6778.

Apologies if I misunderstood your question or got the wrong end of the stick!

 

[Bloodhound]

I think I'm not getting this yet.

Please confirm if the swing low for the M1 would have been the 6803 level.
Thanks for the patience
Leandro

Sorry Leandro - I'm a bit confused. Can you explain where you think the entry is etc.? I've given up on cable for today so I'm more than ahppy to work through this with you.

 

[traderbrazil]

Sorry Leandro - I'm a bit confused. Can you explain where you think the entry is etc.? I've given up on cable for today so I'm more than ahppy to work through this with you.

Sorry for the confusion guys...
I thought the entry on the 5Min would have been on the break of 6820.
In this case, looking at M1, I believe the prior swing low would have been 6803.

Makes sense?

 

[Bloodhound]

Sorry for the confusion guys...
I thought the entry on the 5Min would have been on the break of 6820.
In this case, looking at M1, I believe the prior swing low would have been 6803.

Makes sense?

Aha - got it.

OK, the entry was on a break of 6819. Now price broke that level and I was triggered but didn't move very far before stalling a bit which always concerns me. At that point I am thinking that I have 2 options:

a) Place stop below breakout level in case it is retested or
b) Look to place stop below an M1 swing low

I chose the latter option as I was quite concerned that this trade was going wrong on me.



Please ignore the gaps on my chart BTW - one of my MT4 feeds has been playing up today!

 

[Bloodhound]

I was quite concerned that this trade was going wrong on me.

Just to pre-empt the next possible question. The reason I thought it was going wrong on me was because it wasn't going right.

In other words, my expectancy was for a decent break and move up and that wasn't happening.

 

[traderbrazil]

Aha - got it.

OK, the entry was on a break of 6819. Now price broke that level and I was triggered but didn't move very far before stalling a bit which always concerns me. At that point I am thinking that I have 2 options:

a) Place stop below breakout level in case it is retested or
b) Look to place stop below an M1 swing low

I chose the latter option as I was quite concerned that this trade was going wrong on me.

View attachment 68530

Please ignore the gaps on my chart BTW - one of my MT4 feeds has been playing up today!

Perfect, Rob! Now I see it...
I just thought that your swing on the M1 was the "most significant" one at 6803 level on my chart.

Thanks a lot
Leandro

 

[Bloodhound]

Perfect, Rob! Now I see it...
I just thought that your swing on the M1 was the "most significant" one at 6803 level on my chart.

Thanks a lot
Leandro

I can see what you were thinking. It's really tough and I honestly don't know if there is even a 'right' answer. For me it has to come down to what I am 'expecting' to happen which is a firm break and maybe a retest of the breakout level. In this case there was a weak break and then the pullback didn't retest the level so I took the view to move the stop up to where I put it. Ultimately I think it comes down to one's risk tolerance and mine is extremely low!!