In this kind of market volatility it's just crazy so trading can be difficult even if you are using the best strategy(IMHO the best one is Algs Intraday Trading Strategy).
I do two basilar things : less size and larger stop . I double the stoploss value from 25 t0 50 and also divide the lot size by two. You can also use 100 pips stop loss and divide the lot size by four. In this way you will be risking the same amount of money per trade.
What is really important is that you keep on trading only in the direction of the main trend. In this way if you make a mistake you have big chance that the trend will get you out of your problem
When i feel unshore about my entry I use very small position and i add new position on the way. I do this every 20 or 30 pips . Some time I use 50% fib for re enter a trade.
In Algs blog many people ask about where to enter . I always try to get my entry as closer as possible to the pivot level given by Alg . I do not use pending order because before i make my entry I want to see a bounce to confirm that a reversal is happening.
"Price does not like support or resistance levels. It mostly tests them and then moves away quickly. You’ll rarely find much price action in the vicinity of the line. If price is hanging around a support or resistance level, it’s likely to break in the opposite direction. "
Another important issue is how to take profit. In one of algs video he reccomend that we should not close completely our position . I totally agree . Personally i don't use take profit , i let my trade ride and i use manual trailing stop so they stop when there is a strong retracement. Trailing stop is worth only if you leave enaugh room to small retracement to happen.
lunedì 26 gennaio 2009
sabato 27 dicembre 2008
Alg's Intraday Trading Strategy Basic Rules
Alg is the best trader I have ever seen , just take some of his free calls from http://algsnotes.blogspot.com/ and you will be amazed about his accuracy. He put together different techniques .The results is an impressive high percent of winning trade. What I'm going to show you is only a part of the strategy that I learned just by reading Alg's Blog daily and by taking many of his calls.
Alg most of the time follow the main trend , he buy at support and sell at resistance ( if you are new to trading this should be the only way to get the odds on your side). But some time just to make some more pips he might also trade some retracement or the break of a pivot (*1)
Alg's Pivot " In a few words, pivot point is a level in which the sentiment of traders and investors changes from bull to bear or vice versa." "Different time frame need different kind of Pivot . It can be standard ,Fibonacci, Camarilla,Wood's,De Mark's and OHLC."
USD cross correlation. Most of alg call are about usd pair . The best time to trade Alg's Intraday Strategy is when all USD pair are correlate each other. (*2)
The trigger . Alg use slow stochastic oscillator setting are 5 . 5 . 5 but if your trading platform das'not allow you to set the third number 5.5 it's just fine. Let's say that we are planning to trading usdchf and eurusd , first we wait for price to come near the pivot then we watch price behavior . If price go through the pivot we won trade but if price make a bounce and take opposite direction watch correlation and if this is positive we need one more step and we are in a trade. Last step it's the slow stoch. You must compare stoch position of eurusd 5m and 15m with usdchf 5m and 15 minute (I have one monitor just for this 4 chart always open) if the stoch position agree each other we are in a trade.
Trend direction . I'm not 100% sure about this but in my opinion Alg "feels " the traders and investor sentiment in the most logic way, fundamentals analysi . If this is true this is probably the most difficult part of the strategy , because to develop and improve this capacity you need years of experience in reading news and rumors .
Stop loss and take profit cannot be a fixed value . It depend from different factor like your account size , and from volatility. So stop loss can be 15 pips or 30 . Take profit . If you are happy with 20 pips then put 20 pips take profit , in the beginning it's ok. Alg suggest first take profit at 40 pips . It really depends on you .The best way is manual trailing stop , I suggest you to move stop loss to breakeven when you are already 40 pips in profit and move stop loss to lock 40 pips profit when you are 80 pips profit and so on .
Remember stop loss and take profit are some of the most difficult decision after entering a trade, so you must experiment by yourself and even when you found the best setting be ready to change it according with market condition .
(*1)
2 dec Alg wrote: One of our Pivots (USD/CAD) is broken, and it's very strong Signal "USD getting Stronger". It's against my update. If you new do not trade at all.I went follow one my rules: "If one Pivot got broken substantially, I do not take trade for all USD pairs".USD/CAD moved to next resistance 1.2657 it's good to Sell, but break above would cancel all our previous Update on all pairs. Another hand, seems USD/CAD fits nicely in channel. Look at chart.Now I looking for new correlation between all USD pairs. I do adding smaller amount. Before you'll make Entry, watch how correlate all USD pairs. Best time to make Entry, when all pears are near Pivots and made some small turn back. Always use your own Indicators. Make Entry when you do not see conflict between your Strategy and mine. Do not go fallow me in blind, be The Cat that Walks by Itself.
(*2)
26 nov " Like I told watch all USD pairs how they correlate near pivot, and practise for Entry.You see we have 7 pairs, and it's big choice. Never Enter all of them, just which one looks for you more generally available . Now do not add GBP/USD, because other pairs are still so far from Pivot price. If GBP/USD breaks Pivot price, let it go until next support.If breaks two or three pairs do not Enter at all, just wait for next Update.You must to watch, how correlate all USD pairs.And, when most of them will be ready make turn near our pivot or near new support or resistance (+ - 14 pips) we can enter "
I know, it's not a complete explanation but this are some precious hints anyway ,
if there is anything you want to ask you can leave a comment or send me an email at 50pips@libero.it .
All the best
Babafx
Alg most of the time follow the main trend , he buy at support and sell at resistance ( if you are new to trading this should be the only way to get the odds on your side). But some time just to make some more pips he might also trade some retracement or the break of a pivot (*1)
Alg's Pivot " In a few words, pivot point is a level in which the sentiment of traders and investors changes from bull to bear or vice versa." "Different time frame need different kind of Pivot . It can be standard ,Fibonacci, Camarilla,Wood's,De Mark's and OHLC."
USD cross correlation. Most of alg call are about usd pair . The best time to trade Alg's Intraday Strategy is when all USD pair are correlate each other. (*2)
The trigger . Alg use slow stochastic oscillator setting are 5 . 5 . 5 but if your trading platform das'not allow you to set the third number 5.5 it's just fine. Let's say that we are planning to trading usdchf and eurusd , first we wait for price to come near the pivot then we watch price behavior . If price go through the pivot we won trade but if price make a bounce and take opposite direction watch correlation and if this is positive we need one more step and we are in a trade. Last step it's the slow stoch. You must compare stoch position of eurusd 5m and 15m with usdchf 5m and 15 minute (I have one monitor just for this 4 chart always open) if the stoch position agree each other we are in a trade.
Trend direction . I'm not 100% sure about this but in my opinion Alg "feels " the traders and investor sentiment in the most logic way, fundamentals analysi . If this is true this is probably the most difficult part of the strategy , because to develop and improve this capacity you need years of experience in reading news and rumors .
Stop loss and take profit cannot be a fixed value . It depend from different factor like your account size , and from volatility. So stop loss can be 15 pips or 30 . Take profit . If you are happy with 20 pips then put 20 pips take profit , in the beginning it's ok. Alg suggest first take profit at 40 pips . It really depends on you .The best way is manual trailing stop , I suggest you to move stop loss to breakeven when you are already 40 pips in profit and move stop loss to lock 40 pips profit when you are 80 pips profit and so on .
Remember stop loss and take profit are some of the most difficult decision after entering a trade, so you must experiment by yourself and even when you found the best setting be ready to change it according with market condition .
(*1)
2 dec Alg wrote: One of our Pivots (USD/CAD) is broken, and it's very strong Signal "USD getting Stronger". It's against my update. If you new do not trade at all.I went follow one my rules: "If one Pivot got broken substantially, I do not take trade for all USD pairs".USD/CAD moved to next resistance 1.2657 it's good to Sell, but break above would cancel all our previous Update on all pairs. Another hand, seems USD/CAD fits nicely in channel. Look at chart.Now I looking for new correlation between all USD pairs. I do adding smaller amount. Before you'll make Entry, watch how correlate all USD pairs. Best time to make Entry, when all pears are near Pivots and made some small turn back. Always use your own Indicators. Make Entry when you do not see conflict between your Strategy and mine. Do not go fallow me in blind, be The Cat that Walks by Itself.
(*2)
26 nov " Like I told watch all USD pairs how they correlate near pivot, and practise for Entry.You see we have 7 pairs, and it's big choice. Never Enter all of them, just which one looks for you more generally available . Now do not add GBP/USD, because other pairs are still so far from Pivot price. If GBP/USD breaks Pivot price, let it go until next support.If breaks two or three pairs do not Enter at all, just wait for next Update.You must to watch, how correlate all USD pairs.And, when most of them will be ready make turn near our pivot or near new support or resistance (+ - 14 pips) we can enter "
I know, it's not a complete explanation but this are some precious hints anyway ,
if there is anything you want to ask you can leave a comment or send me an email at 50pips@libero.it .
All the best
Babafx
lunedì 22 dicembre 2008
Don't vaste money by buying trading system and expensive trading course. Internet can give you better staff for free.This are some of the best site and blogs :
http://www.babypips.com/ best starting point for newbie
http://www.nobrainertrades.com/ high quality free education
http://www.forex4noobs.com/ high quality free education and much more
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1070+12192,00.html Sam Seiden Keep It Simple article. ( Sam seiden is an experienced pit trader . Reading his article an watching his video is a good way to understand the rules of supply and demand )
http://www.fxstreet.com/live/transcripts/?type=all&page=2 Sam Seiden video and more
http://www.forexfactory.com/ forex factory it's unique ,the very best of free forex society where you can find news calendar and an excellent forum where traders are sharing their experience.
http://www.forexfactory.com/showthread.php?t=27286 the jacko's thread at forex factory about free indicator trading
http://www.forexfactory.com/showthread.php?t=50767 b.o.b.o.k.u.s thread at the very best forex factory about Fibonacci trading.
http://jin-nec.com/showthread.php?t=60272 s.k.u.n.n.y thread at forex factory about Fibonacci trading.
http://michaelshopshire.blogspot.com/2008/08/persistence-is-it-always-good.html I recomend you to read this article about persistence and goals. Michael Shopshire is a traders psychologist he can help you understand your aptitude .
babafx
http://www.babypips.com/ best starting point for newbie
http://www.nobrainertrades.com/ high quality free education
http://www.forex4noobs.com/ high quality free education and much more
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1070+12192,00.html Sam Seiden Keep It Simple article. ( Sam seiden is an experienced pit trader . Reading his article an watching his video is a good way to understand the rules of supply and demand )
http://www.fxstreet.com/live/transcripts/?type=all&page=2 Sam Seiden video and more
http://www.forexfactory.com/ forex factory it's unique ,the very best of free forex society where you can find news calendar and an excellent forum where traders are sharing their experience.
http://www.forexfactory.com/showthread.php?t=27286 the jacko's thread at forex factory about free indicator trading
http://www.forexfactory.com/showthread.php?t=50767 b.o.b.o.k.u.s thread at the very best forex factory about Fibonacci trading.
http://jin-nec.com/showthread.php?t=60272 s.k.u.n.n.y thread at forex factory about Fibonacci trading.
http://michaelshopshire.blogspot.com/2008/08/persistence-is-it-always-good.html I recomend you to read this article about persistence and goals. Michael Shopshire is a traders psychologist he can help you understand your aptitude .
babafx
Hi and welcome . I'll try to explain Alg's Intraday Trading Strategy.
If you are searching for a strategy to trade forex in my opinion you can't find anything better than this . I'll try to do my best to help you trading The Alg's Strategy .
Here you will not found an easy way to quickly become a millionaire. Trading it's a tough business without shortcut . If you are interested in becoming a trader prepare yourself to a long journey . "We all need to go through various stages to get where we are now. " So, if you want to trade you can, it may take you longer than some, but you can get there if you have the desire ". If you are a newbie you can’t jump in to trading business without a proper knowledge , here you will found also some of the best source of FREE FOREX EDUCATION to help you reaching the goal.
babafx
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