Quote from MidKnight:
That is an unfortunate to get posts like that polluting the thread (moderators?). I was wondering if you would be so kind as to have a discussion about your entry management?
What I'm interested in is finding out how you are doing the scaling in. Are you increasing size of the add on successive adds (i.e. maybe you double up on each successive add)? How far apart are you generally spacing the adds? Do you tend to lighten up some of the adds if it moves a bit in your favor, thus using the adds more as damage control and risk reduction as it wiggles against you?
I understand this is probably mostly 'art' rather than a strict science. I'm just trying to get a feel for how it is done. I've never traded like that, but will probably need to if I am going to swing the FX.
Thanks in advance for your comments.
Kind regards,
MK
No prob... (unfortunately Elite Trader is a free service so I am not going to go moderating yet unless it gets really annoying)
Well if you read my posts I recently have been losing for the past week in USDCAD. Speculation it seems is still to the downside with no relief rally in sight (I am looking at the daily chart and in my opinion we are very over extended to the downside .... no substantial green bars!!) Plus I do not feel comfortable shorting at the lows so guess what i am buying =)
Watch out fo the hourly charts .. .they suggest another move to the downside.
My entries are simple ... consolidation is usually the sign for me to take a position ... So I will allow myself to scale-in / avg-in inside the consolidation band. I am always lightening up and adding (very arbitrarily) but i keep a core of usually 2 to 4 units (depends on how confident I am)
Currently I have been buying in the teens and 20s and lightening up in the thirties and once @ 40.. I am holding two long as my core from 1221
So basically my plan is to hit some singles and hold 2 for a home run right now.
The spread I have is not very comfrotable (4 pips) and USDCAD wicks a lot so I am putting out limits 10 pips ... 15 pips ... 20 pips above my entry just for some income money.
My stops have been lowered to 1175 because of these dips and wicks to the downside ... there is no real sell interest so I put my buy limits in the teens when the price is in the low 30s and when we get to high 30s and 40s I put some buy limits in the low to mid 20s.
Basically its a waiting game and with the money I am making on the upside in this range i can afford a larger stop for my home run effort.
I am not shorting at all since my trading idea is a relief rally ... I do not want to get caught in a losing short trade
