Trading Strategy based on round numbers

[options-george]

Hi everyone,
I have been trading full-time for the past 2.5 years and am based in a small trading office in central London. I am currently producing scratch results with one 5M strategy, trading around 25 times a week. Whilst I continue trading my existing strategy, I am looking to develop a new strategy.

I am looking at trading on the basis of round numbers in several FX pairs and some indices (DAX, FTSE, CAC, SPX). This has been on my list of things I wanted to do for some time.

Rather than going at this alone, I thought it might be good to join forces with somebody else on this task. Thus if you have traded using RN in the past, or are presently doing so, or like the idea of getting together to develop this strategy, then please get in contact with me.

Thanks in advance,
George

 

[options-george]

There should be a price for the T2W members who posts the most threads with zero replies :cheesy:

Anyways, did a bit of R&D the last couple of days.

Will live-trade my initial version of my strategy with small risk for the next six sessions.

 

[MajorMagnuM]

sorry fopr the noob question. what is RN?

 

[Fugazsy]

Fx

If you trade the 1m, having the 20,40,60,80 and 00 can be helpful, they can act as sup/res or sup turning res, in a down trend when the 40 is crossed the 20 might be calling....

On the 5m I would only look at 50 and 00.

 

[options-george]

sorry fopr the noob question. what is RN?

My apologies. RN is my personal abbreviation for "round number".

 

[MajorMagnuM]

duh, sorry, thought it may be a platform. my bad

 

[sun11]

Hi George,

Good idea, there are plenty of round number indicators available for metatrader. I agree with Fugazsy.



It looks nice..but i am not sure about the stops...Are you planning do it solely based on round numbers...? That would be risky...

Regards

 

[Fugazsy]

Hi George,

Good idea, there are plenty of round number indicators available for metatrader. I agree with Fugazsy.

View attachment 220960

It looks nice..but i am not sure about the stops...Are you planning do it solely based on round numbers...? That would be risky...

Regards

Hi Sun

Good to hear from you.

I have a suggestion for you, forget the BS.....if you want to learn to scalp I suggest you to read and learn Bob Volman's first book, he explain very clearly the importance of the RN and how to read price action.

Is it easy? No is not, but the books is a gem. You need to see if it fits your personality.

Bob has a lot of patience. He can wait for hours without taking a trade. it does not take trades to make the broker rich, he is a business man.

He trades the 70 tick chart.

There is good thread about his style on this forum.

 

[options-george]

Hello Sun and Fugazsy. Thank you very much for your comments - much appreciated!

I have a suggestion for you, forget the BS.....if you want to learn to scalp I suggest you to read and learn Bob Volman's first book, he explain very clearly the importance of the RN and how to read price action.

Which one is Volman's first book? Is it "Forex Price Action Scalping: an in-depth look into the field of professional scalping" published in 2011?

 

[Fugazsy]

Hello Sun and Fugazsy. Thank you very much for your comments - much appreciated!



Which one is Volman's first book? Is it "Forex Price Action Scalping: an in-depth look into the field of professional scalping" published in 2011?

OG

yes, his second book is based on the 5m and takes in consideration only the 50 and 00 RN's.

I am very busy with my swing trading atm but I will go back at a later stage to incorporate also his style of scalping.

 

[options-george]

OG

yes, his second book is based on the 5m and takes in consideration only the 50 and 00 RN's.

I am very busy with my swing trading atm but I will go back at a later stage to incorporate also his style of scalping.

thanks again. I will take a look at those.

Sun11 - no, I wasn't going to only use round numbers. The round numbers would play a major part but I would also take some other variables into account as part of a potential setup.

 

[options-george]

bump.

Just to update .... I did do some work on the round numbers concept, but hit a couple of snares.

I have put it on hold for now, and am taking my strategy development in slightly different direction.

 

[Solas0077]

Why round numbers? Doi you mena handles?

 

[options-george]

Why round numbers? Doi you mena handles?

Yes I was meaning handles. I always tend to call them round numbers.