Harder for Currency Traders to Make Money?

[Handle123]

With my trading approach and selection criteria, the market offers a very limited amount of trade setups per day/month/year. It's not much different than major league baseball. Good pitches are infrequent. I am extremely adamant with my entries on these setups. In my world a bad fill is a good fill. Chasing can be done properly, but the time window and plan of attack requires very fine tuning. This is one of the true edges of the directional daytrader. Recognizing ignition points of momentum

When you get close to trading four decades, except for one to three minute bars, fine tune entries not as important. Well, I disagree as "true edges" as I am a directional and anti directional day trader, my edge certainly NOT even close to your edge. My edge are time stops, how many bars till time to go to breakeven plus 1-2 ticks.

Chasing markets like 3 seconds after release of report, fade initial move is only time I allow stops instead of hitting bids/asks. I think it is just a matter of risk aversion one does, number of filters dictates number of trades.

Good trading.

 

[dartmus]

With my trading approach and selection criteria, the market offers a very limited amount of trade setups per day/month/year. It's not much different than major league baseball. Good pitches are infrequent. I am extremely adamant with my entries on these setups. In my world a bad fill is a good fill. Chasing can be done properly, but the time window and plan of attack requires very fine tuning. This is one of the true edges of the directional daytrader. Recognizing ignition points of momentum

Thanks for this post. It's quite valuable, in fact it's the most helpful post I've ever read anywhere. When combined with the bits I've picked up from traders like Brooks, and something one of his students said that's always stuck with me ...and my own understanding of the component requirements necessary to automate a setup ...

After a little bit of thought, and effort defining the parameters that separate the cases which fail from those that succeed, it simplifies or allows me to focus on the elements that bring me nearer to automating the intangible aspects you described, which I fully agree with at least at this point in my process they are much easier to observe using human skills rather than to automate, but as all of this continues to come together for me, I anticipate there will soon b a time when the elements quantified greatly reduce the effort I need to expend in determining when it's appropriate to consider if any given moment in the present is the appropriate time to b deploying the concepts I'm working on building.

 

[profitlocker]

My own understanding of the component requirements necessary to automate a setup. I fully agree with at least at this point in my process they are much easier to observe using human skills rather than to automate, but as all of this continues to come together for me

The only human skill required is knowing how to recognize and structure opportunity using the historical footprints of potential candidates. I personally feel that developing/improving this skill can't be done without doing the visual analysis first. You can then transfer this knowledge to a computer if your savvy enough. It can get pretty complex at that point, and probably involves some form of artificial intelligence. I have no desire to tackle anything like that.

True intraday momentum ignition points have such great velocity today, that a level of automation is mandatory. Without some kind of an algorithm it's doubtful one will prevail as a momentum trader. There are still ways to extract intraday profits manually but the R:R is lower and the potential drawdown is a hard pill to swallow. You have to jump into the fire if you're seeking intraday R:R beyond 1:1, and if done properly translates into low drawdown.

 

[dartmus]

Definitely have to be algo aware as all the various setups are triggering but not every reversal has the momentum ignition point requirement u described. I had an eureka moment while reading those words because my intuition often tells me pace is changing and this confluence of conditions is different than the others. After I began investigating those areas I found numerous differences which are simple to define when viewed from the perspective of your undefined specification, which anyone who loves TA is likely to have a good but yet possibly intangible understanding of.

Obviously I can't post my thoughts beyond what I've already said but I wanted to publicly thank you for sharing... and hope I haven't said anything those who are unworthy can benefit from. HTH u because you've helped me a lot.

 

[profitlocker]

I like how you think. It's no secret, and can be approached from multiple angles. I can say that to succeed, requires a very deep understanding of the expansion/contraction effect. It's easy to recognize the fire but difficult to crawl through it. All discussions help me. Glad you benefited from my drivel

 

[Maxue]

I don't think so, as we know, now world economy has become slow down, more countries will start money policy adjustment that will be chance for currency traders.

 

[radex78]

If you're looking for volatility, trade any of the Scandinavian crosses. xxxSEK or xxxNOK.... 300 pips is a slow session. I think GBPSEK was >1,000 range today, as was EURNOK.

Never trade on these pair, if I am not wrong these pair included as exotic pair isn't and maybe also spread broker also higher too, if look on average movement seems this is very potential profit and also risk