EUR/USD & GBP/USD & AUD/USD Forex Trading

Quote from achilles28:

Use longer-term charts to gauge intra-day direction. For example, use your current entry set-up on a longer term chart (1hr, 30 mins or 15mins), to gauge longer-term direction.

THEN, use a short-term chart for entries (1 min, 30 sec, 10 sec), using your same entry set-up.

The trick here is scalping time frames lack the liquidity big institutional players need to move large volume. So they play bigger moves off larger time frames that can accommodate their volume (without slippage) and allow for scaling/pyramiding in/out. This means they're entering on 30 mins/1 hr candles, and building successive positions based on them = large intra-day TRENDS. 1 hour candles are a staple.

By entering on a scalping time frame in relation to the larger macro trend, a trader can vastly reduce his stop size in pips = risk, while exponentially increasing reward by playing larger moves. This results in a heavily favorable risk:reward profile (think stop at 15 pips, reward at 60 pips+++). This puts you on the green, psychologically, and a place where you can still screw up and be profitable.

Whatever you do, please change your current 40 pip stop, 10 pip TP strategy. This always wipes out accounts. Further, the market is precise and generous enough so you can have a 10 pip stop and a 40 pip take profit.

I think a lot of traders on this thread could benefit from this fractal approach. I see a lot of unnecessary 50 to 100+ pips stops. Seems some good traders got long term direction right, but could benefit from much tighter entries. This will do it...
More...
thanks achilles28...I will read in depth and review...
 
I'm gonna be real...got really 'pounded' today trying to 'scalp' Forex...I do not think 'scalping' Forex is for me...I am way too aggressive at the screen watching...BUT...I did have a winning trade on my one and only set and order and exit and go on my way type trade...got filled driving home from the office...I am like batting 100% when I do these type of trades and not very good on the 'up close' scalping...anyone else relate?
 
for me NO MORE SCALPING FOREX...only ALL automated type orders (enter or order to enter and set exits!!)...DON'T LET ME SCALP AGAIN...OKAY GUYS!!!
 
Quote from Ivanovich:

Would you like to make a side wager on that 2USD per Euro call?
More...
I am with you Ivan...we aint seeing no Euro near 2.000...come on cats, back to earth!!!
 
Quote from ddaytrader:

I try to get a 1:1 r/r tatio (or very close to it) on a first profit target where I take profit on 1/2, and then I move stop to breakeven, and I try for 2:1 or better for the second 1/2
More...

I think all this 'risk:reward should be xyz' stuff is nice on paper but it doesn't work in practice, intraday trades rarely work out that way.

I'm not picking on you in particular, similar examples are everywhere, it's just your last trade was a good example...

Short at 1.3250
Stop at 1.3315 (65 pips)
1st target met, closed half for 55 pips
2nd half closed at break even.

So overall for that trade you gained 27.5 pips (55 pips on half the position) for a risk of 65 pips on the whole position. The risk:reward is skewed.

Then there are trades like Ivans short Eur/Usd, where a trader has multiple attempts and takes multiple losses before eventually getting it right. Are all those attempts and losses taken into account on the final trade's risk:reward? Shouldn't they be?

Intraday I don't think it's realistic to have set risk:reward ratios, there are too many events and unexpected short-term moves to mess things up.

Apart from that, if a trader has a high win:lose then risk:reward can afford to be skewed, and for an active intraday trader a stop is there as an emergency in case a trade goes disastrously wrong, most trades are traded out of for less than the original stop loss on the whole position (as in the example above).

There are an infinite number of ways to profit from trading, there isn't one exclusive method and approach, which method he chooses is down to the personality of the trader a lot of the time.
 
Quote from cabletrader:

I think all this 'risk:reward should be xyz' stuff is nice on paper but it doesn't work in practice, intraday trades rarely work out that way ... your last trade was a good example...So overall for that trade you gained 27.5 pips (55 pips on half the position) for a risk of 65 pips on the whole position. The risk:reward is skewed.
More...

Hi Cable,

I try to take trades where there is a 1:1 between my first profit target and my inital stop. Yes, many trades are as last night (and possibly my current EJ short) where the final reward to initial risk falls far short of 1:1.

Also, I wasn't trying to tell anyone to trade like me - increasenow asked, and I answered. I agree with you that we each have to find our own way determine what works best for oneself.

I believe that I probably agree with everything you said. I would only like to add the point that for some, "intraday trader" means trading off 5 minute or 1 minute charts and hitting many trades each day for quick 3, 10, maybe 20 pips. For another trader, intraday may mean trading off of a 15 minute chart, and doing 1-2 trades and trying to hit for 50-100+ pips.

R/R considerations, presumably, are less relevant to the first trader than the second. Afterall, as you point out, the first type of trader will usually trade out of losers for less than the inital stop. However, the second trader needs to give price a bit more room to roam. As such, risk/reward considerations would seem to be a bit more relevant due to the increased risk from spending a longer time in the market per trade.

Good Luck tomorrow (or is it today)
 
Eur/Usd wow....Ivan's gonna be pissed this morning!


IBFX EUR/USD m15
35b84uo.jpg
 
You must log in or register to reply here.
Back
Top