Baruch's Forex System Journal

izeickl · Mar 19, 2004

Quote from Baruch:

Hi Scientist,

We all have our own tradingstyle. But what's wrong adding to winners?

Forgot to mention in last one, yes I add to winners too, if I see an entry point in a smaller time frame from where I made my initial trade e.g. trade initially executed from 4hr charts or so, then another entry into the trend appears on hourly or something.

Baruch · Mar 19, 2004

Quote from izeickl:

I agree with Scientist on adding to losers/scaling in...sometimes I take a trade but perhaps the R:R isnt as high as I would like, so I use smaller size initially, then if it goes against me but still looks a good trade overall I will add to my position, keeping the same stops and my R:R increases. It all depends on the R:R as to what size I use at each point.

On the scalping issue, I think, yes you can make more profits with smaller size, but for me its just too much work and screen staring, I like to use size and just leave a trade patiently and go do something else, some of my trades last day/two, others week/two...I try to stay hourly, 4hrs etc, or...go down to 15min etc for an entry point into a longer trend, if I missed an entry point on the 4hr chart say, ill zoom down to 5, 15min or whatever looking for a entry point into it. After I get a good entry, I use very wide stops looking for the bigger trend and move it in accordance to supp/res points. Can be a lot slower going than what many traders enjoy, and in truth bores hell out of me also many times!!

Hi izeickl,

Do you only look at the charts - or do you trade a system? Any indicators?

izeickl · Mar 19, 2004

I use trendlines a lot, stoch, and also 50MA as my main Bread 'n butter...I overlay fibs, supp/res, 34ma and 100ma aswell. I do have a system, but, its not mechanical...it gives me trade indications but I use judgement on whether or not I take it/precise entry point. I dont use set stop sizes either, it all depends on where I think "the price should not hit here if im correct" is.

Jayford · Mar 19, 2004

Quote from Baruch:

Hi again,

OK, but you could let the market take you out (with a stop), instead of going out, when your target is hit? Or you could let the chart decide it - looking after broken trendlines, double tops etc., when you are long.

Yes, many people trade with stops that way. Very valid. R/R changes at my targets though, so I usually bail there. Stops take me out if my targets are not hit (or I bail before the stop is hit if trade really looks ugly).

I always let the chart decide it. thats how I set stops in the first place. And targets.

Jay
PS temperature in Cabarete, Dominican Republic is constant year round.

Baruch · Mar 19, 2004

Quote from izeickl:

I use trendlines a lot, stoch, and also 50MA as my main Bread 'n butter...I overlay fibs, supp/res, 34ma and 100ma aswell. I do have a system, but, its not mechanical...it gives me trade indications but I use judgement on whether or not I take it/precise entry point. I dont use set stop sizes either, it all depends on where I think "the price should not hit here if im correct" is.

Hi again,

OK, but could you tell something about your system?

Baruch · Mar 19, 2004

Quote from Jayford:

Yes, many people trade with stops that way. Very valid. R/R changes at my targets though, so I usually bail there. Stops take me out if my targets are not hit (or I bail before the stop is hit if trade really looks ugly).

I always let the chart decide it. thats how I set stops in the first place. And targets.

Jay
PS temperature in Cabarete, Dominican Republic is constant year round.

Hi Jay,

OK, but how hot? And what about crime?

Jayford · Mar 19, 2004

Quote from Scientist:

Man, your trading style is just so similar to mine, it's not even funny. Also the bit about which ones you day trade and which ones swing trade.

Many people trade the same mrkets we do, in the same way. It makes sense due to liquidity, range, etc.

Yes, your trading style is almost dead on with mine, except I take very small losses always. It kills my % winners, but works well for me.

I had a similar position to you in ES. I took 5 pts on the day. I trade ES largely out of habit, and cause its always moving. I need entertainment, even after many years of doing this.

Also agree that you can scalp any market. I used to. Hard work though. Leads to quick burn out. Sorta miss my Bright days though, with 20 guys hammering away at keyboards all day long, frequent screaming, swearing, etc. Sorta like a football game.

Jay

Jayford · Mar 19, 2004

Quote from Scientist:

Jay, did you take the 50% retracement on EUR in the 310 area? I'm sitting in there, waiting for a good continuation, and it's starting to look like decent rejection.

It was pretty much a no-brainer after that big move, really. Wonder what you think.

I'm flat. Getting picky, but yes I was looking at same thing. I was waiting for a test of the old 60 min downline. I get really picky with entries and miss plenty of moves.

Jayford · Mar 19, 2004

thats prolly a good trade for ya Sci. Even yen is frisky again already, but too over bot still for my taste.

You have almost no risk on the Euro trade now imo.

Jay

Scientist · Mar 19, 2004

Quote from Jayford:

Many people trade the same mrkets we do, in the same way. It makes sense due to liquidity, range, etc.

Yes, your trading style is almost dead on with mine, except I take very small losses always. It kills my % winners, but works well for me.

I had a similar position to you in ES. I took 5 pts on the day. I trade ES largely out of habit, and cause its always moving. I need entertainment, even after many years of doing this.

Also agree that you can scalp any market. I used to. Hard work though. Leads to quick burn out. Sorta miss my Bright days though, with 20 guys hammering away at keyboards all day long, frequent screaming, swearing, etc. Sorta like a football game.

Jay

Jay, I definitely agree. The things we do are some of the most common (that's why they work LOL), though I do have a few things up my sleeve which probably very few people know or do (as a result of very long & hard study).

And apart from yesterday's triangle play, I think even in the point of small stops we both agree and do the same thing (at the cost of lower hit rate but so what). I like to have a really high R:R, so I usually pick very very conservative entry points, so I can use microscopic stops. Just ask Baruch...

I agree also on ES and trading it out of habit... LOL! I used to be a full-time ES scalper, doing nothing else but that index. As the range disappeared, I looked for better shores. Now I just cherry-pick the occassional really good trade as it arises and possibly swing trade it. Since I look at the ES all day (as a major correlation reference for almost anything on the planet), I might as well trade it...