Trading Naked - Part 2

[mb325]

It's here http://www.trade2win.com/boards/forex-strategies-systems/75950-trading-naked-59.html#post950442

 

[SimpleTrader09]

Hello kitejedi, I have tried to contact you by sending a private message but you never reply any more. I think trading has changed you a lot ever since I first met you, you were a very bubbly/jovial character back then. I know it's hard/stressful trying to devise a successful strategy, because you seen to have moved from day trading to swing trading then back to day trading, then trading naked Part 1 to part 2 and now scalping on 5/1 minute chart. There is too much noise on a 1 minute chart........it's like gambling my friend.

You do realise that in an hour there are 60, 1 min bars don't you? That would mean that if you looked at the 1 min bars, you would have all the information that someone looking at a 1 hour bar has AND you would have extra information that they don't have.

Cable is the most volatile currency and I hardly ever trade it unless there is a beautiful set up(like last night...please see chart on my website) , minimum stop loss has to be at least 35-40 similar to trading the Dow Jones as it is proven statistically that in the long run you get better returns. I have yet to meet anyone that can trade it successfully just like the Dow Jones, its just too volatile and not for the faint hearted.

Nonsense. It is tradeable with a smaller stop than that. And I want to see your proof for the fact that 35-40 is statistically better in the long run for all trading styles. I know that such proof doesn't exist, but you said it does, so back it up or admit you're writing nonsense. Also you're saying you've yet to meet anyone that can trade cable?! Get out more and meet some people.

 

[Bloodhound]

You do realise that in an hour there are 60, 1 min bars don't you? That would mean that if you looked at the 1 min bars, you would have all the information that someone looking at a 1 hour bar has AND you would have extra information that they don't have.

This is an extremely important, and very well put statement IMO. I hope what I am about to say doesn't detract from what ST09 is getting at.

Not wanting to preach about the relative merits of one timeframe over another but, to me anyway, timeframes are somewhat irrelevant. To me it is what happens at the extremes of clusters of candles (as I think Foredog mentioned), and the levels these extremes produce. The actual timeframe has no bearing on this at all. Having done a certain amount of analysis of my cable trades of late, a high proportion of my entries are actually derived from M15 levels (mixed quite naturally with obvious higher tf levels as well). The actual reason I use M5 is that that is the timeframe that allows me to see the optimal amount of information on one of my screens (approx 3 days worth) to allow me to make trading decisions that I feel comfortable with.

 

[Bloodhound]

In case anyone is interested in how that EURJPY trade could have panned out.

 

[Vaco]

right I thought its time to get this thread back on track. I liked Hawktrader's idea regarding the 4h chart and will follow up on it.

The idea is to wait for price to enter the blue zone and then look for breakouts on the 5m in the other direction.

 

[HawkTrader]

right I thought its time to get this thread back on track. I liked Hawktrader's idea regarding the 4h chart and will follow up on it.

The idea is to wait for price to enter the blue zone and then look for breakouts on the 5m in the other direction.

Interesting, so you would be waiting for a 1-2-3 or HrH/LrL to enter rather than a single reversal candle?

 

[Vaco]

Interesting, so you would be waiting for a 1-2-3 or HrH/LrL to enter rather than a single reversal candle?

exactly, obviously the lower the timeframe i drop to the more i'll have to manage the trade but the stop will be smaller as well and i only intend to micro manage it to be and then for re-entries if required.

Currently price looks like its heading lower. Once it gets below 6550 i'll be looking for long entries.

 

[HawkTrader]

So you'll be trailing stop on the lower TF, not 4H?

What reason have you chosen 6550? I personaly don't see anything striking .

 

[Vaco]

The low point where my line is drawn is 6513 but price does not always touch that line before shooting off and you end up missing the better moves, makes sense that the stronger the up trend the less likely it is to go down to previous lows.

So all i've done is highlighted the wick on the candle that the line is drawn from and this area gives me the green light to look for a reversal.

I'll be trailing on the 30m as i feel this will give me a good balance between letting them run and not giving back too much.

 

[Vaco]

right so price is now in an area of support, should i try to pick a bottom hell no, drop to 5m and wait for price to come to me as per kite's methods.

 

[HawkTrader]

Very good idea, price on the 5m semes to be slowing now but is it just because it's a Friday?

 

[Vaco]

take it easy tenbob,

I know wht you mean about the high frequency, I dont think i'm quick enough to react to trade that way through the day either, much better for me to focus on one area with the bigger time frame in mind. As they say you have to make it work for you.

Have moved my order down to 6534.

As i'm looking for a move up to 6815ish i will be holding over night if triggered.

 

[HawkTrader]

As i'm looking for a move up to 6815ish i will be holding over night if triggered.

B-b-but... it's Friday.

 

[Vaco]

B-b-but... it's Friday.

actually that fills me with confidence more then anything, I find that when we get a 3-4 day move in to friday it tends to turn around sun/mon.

 

[HawkTrader]

You'll have to put up with the small gaps on Sunday though won't you? I hate ANY gaps, no matter how big or small.

 

[Vaco]

funny thing is whilst i've been waiting for a bounce kitejedi has probably enjoyed one of his best runs in the last few days short from about 6620 i'm guessing

 

[neil]

loadsa dosh

here is the 5 minute Cable you chaps like - nice trading set up today - all downhill
Even the hourly overnight range breakout did well. people say that it's the few trades that make the most money for those that stick to their plan, maybe these few bigger winners illustrate the Pareto Principle or 80/20 rule

 

[tenbobtrader]

Good posts / thoughts Elefteres, Hawktrader & Neil

your posts sum up my own feelings regards ideas expressed in thread / threads

trade naked with a higher timeframe filter would be my choice - each to their own I guess

liked this post by Tim on another thread - use with H4 or day I guess to filter plays

http://www.trade2win.com/boards/trading-videos/79714-new-video-macd-part-1-a.html#post978624

M5 naked - H4 fully dressed

Robs just bought that new house in one easy payment by keeping his eye on his own ball

........ congrats are in order I think


anyhows enjoyed the threads and ideas - thanks for the continued heads up everyone, appreciated

good luck with your own trading and have a great weekend :clover:

Know I will

 

[foredog]

Post #797...perfect example of MR Charts method...looks familiar?????!!!


http://www.trade2win.com/boards/us-stocks/38036-how-make-money-trading-markets-100.html

 

[Bloodhound]

funny thing is whilst i've been waiting for a bounce kitejedi has probably enjoyed one of his best runs in the last few days short from about 6620 i'm guessing

LOL - if only Vinnie!! TBH I am feeling a bit stale at the moment with cable. It's not the first time it's happened to me and I know that the best thing to do is take a break.

Then again a change is as good as a rest. I've been reading up a lot on the TL Thales thread of late for a number of reasons but mainly because I really like his approach to trading support and resistance. I took some trades this morning using his approach and thought I'd share one.

The level that I traded was pretty obvious but there was a much better entry lower down. As you can see price tried twice to break a level and failed and then produced a HrL (where I have written footprint). A buy on the break of the next high would have got one in nice and early to the new trend.