beginner in forex market

Quote from leveragefx:

I have seen many traders make the same mistake. What they tend to do is take HUGE losses and have avg sized wins. One for example was 68% winning with an avg win of about $50 but with an avg loss of $150.

The key in trading forex is to trade WITH the trend until the market has gone too far based on statistics, implied volatility extremes derived from currency options prices and then trade against the trend.

For me I find using the 5 min chart to determine direction and then trading off of a 35 tick chart made up of only FXCM, GAIN,COES,HOTS,GFT banks works great. I'll buy lower keltner on the 35 tick chart if trend is up on 5 min chart and short upper keltner if trend is down. I am very quick to get out so avg loss is about 6 pips and have about an avg win of the same after spread. I'm about 80% winning doing this overall. That's one strategy, the other is to short at the avg high of the day but on the fast 35 tick chart upper keltner. Usually when this gets hit the market reverses. I try to catch 10 to 20 pips on these trades as market is way overbought. Reverse for buying lows. Out of every 10 buy the low sell the high you are likely to take one 20 pip loss as the currency is abnormally strong/weak. It's a part of the game of trading.

One other thing I do to increase avg win size and cut avg loss size is to trade small at the beginning of the day, maybe do 2 or 3 lot trades and then once up $300 to $500 on the day increase to 5 or 10 lot trades. THat way if I'm off that day or market is not acting like it does 9 out of 10 days then I'll lose but have small losses. I only increase size when doing well.

Another suggestion is have a few strategys you employ and KNOW the probabilitys of them working. The BEST strategies may give you 3 to 5 trades a week so you need to trade LARGE size when you see them. I have one method that is about 95% winning. If market down a lot or up a lot on day I will short/buy at the place where most traders have their positions. This trade almost always works the first time touched as losing traders will exit their trades at even giving me nice 6 to 15 pip pop. I'll do 10 lots here.
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Leveragefx,

are you using Topgun software ? I am asking because you mentioned several data feeds that their software shows. You also get info on volume with topgun, but I find it hard to believe that one can use the volume that goes through these bucket shops as an indicator...
 
Leveragefx,

are you using Topgun software ? I am asking because you mentioned several data feeds that their software shows. You also get info on volume with topgun, but I find it hard to believe that one can use the volume that goes through these bucket shops as an indicator... [/QUOTE]

Here is an explanation of the E-signal feed filtered through Top Guns software. I use it and I get accurate entries and exits when I'm trading with the Top Gun platform. Don't knock it till you've tried it.

Alf

Sorry wasn't clear. eSignal's data has about 150 banks that makeup their data. Some banks have wide 8, 10 or 12 pip spreads and they can move their bids by 4 or 5 pips at a time. You don't want to trade off of a tick chart if you don't know the REAL high or low of each bar or swing high/low. A 35 tick chart just means that any time any of these banks adjust their bid by moving it up or down that is 1 trade. When 35 trades happen a new bar happens. If the market goes up 100 pips you still see that in a 35 tick chart but it just updates the moving avg and keltner channels faster so that a tiny pullback in price gives you a GREAT entry. In a real uptrend by the time the market hits the lower keltner on a 5 min chart the trend may have already changed!

What they do is let you filter by banks with spreads under X pips, I used to use 3 but also let you select WHICH banks to use. They take esignal's tick data and create the bars themselves. The banks I posted seem to be honest, ie they don't run stops or have wide WICKS! I want to know real swing highs/lows because I'm a big double top/ double bottom trader! I really need to know what my REAL risk is. If I short a double top I may exit if it goes 5 pips over but if a BS tick is 5 pips too high I'm risking more than I need to and it doesn't give me confidence and I can't at times do 10 lots, need to cut size down due to inaccuracy of charts. If you look at esignal's charts for forex you will see how dirty their data is due to some of the banks.
 
FOREX is a trillion dollar market.

Do you think the "big boys" and "smart money" trade like the little guy?

There's no real reason to trade when you can park your money and make money.

Not to mention, if you are trading with a fixed spread broker, you are just letting them steal your cheese?

Why have to make 3 pips to breakeven on the EURUSD, when you can be in the money at 2 pips?

KNOWLEDGE IS POWER.
 
Quote from TheRumpledOne:

FOREX is a trillion dollar market.

Do you think the "big boys" and "smart money" trade like the little guy?

There's no real reason to trade when you can park your money and make money.

Not to mention, if you are trading with a fixed spread broker, you are just letting them steal your cheese?

Why have to make 3 pips to breakeven on the EURUSD, when you can be in the money at 2 pips?

KNOWLEDGE IS POWER.
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So do you consider yourself one of the "big boys" and "smart money". So does that mean I'll never be able to play with the big boys? Forex is a fast moving river, my job is to get a thimble full. So where do you trade?
 
I don't think I am allowed to post where I trade.

I got banned once for mentioning my broker and don't want to tempt fate.

Remember, you are on the internet, if you (google) search, you will probably find what you are looking for.
 
I remember you from TS forum, you are very good at coding strategies. You are TRO from TS are you not. I see lots of posters mentioning where they trade in the proper context. I think it is fine if you're not blatantly shilling. Besides by the time they find you out it'll probably be a couple of days. So fire away, what instruments and where do you trade?
 
I did the Google and I see what you mean so I joined your group. Thanks, now I know where you parked yourself after the TS blowup.
 
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