A new trade was opened on the EURUSD about half an hour ago.
I got into the trade - a sell @ 1.34469.
I have already moved the stop loss to break even, so I now have zero risk on this trade. It is good to let these ride... The great thing about this trade is that it has broken some really massive resistance, and the next major support level is at about 1.31... so we could be looking at quite a nice little profit on this one (although the cliche 'famous last words' come to mind)....
Already I am in profit, and with the safety net of the stop loss being at break even, I am kind of feeling pretty good about this trade.
Putting the stop loss at break even straight away is a major psycological boost to your trading, and yet it could easily swing back and take away any proifts, but the major thing is that I have absolutely no risk - zilch - to my account, so even if this took a massive reversal, the most I could lose is nothing... How brilliant is that!!! This has got to be the single most best thing I have ever learnt.... and that is no lie. The strategy itself is great, but once I am in proift - I can not not lose. A similar thing can be used by using trailing stops. Although very very useful, I am taking more of an active look at the trades, and trying to determine what should happen with it. It is all a learning curve of course, and in the last two trades, the stop loss was put at a level that meant they were stopped out for relatively small gains when the trades themselves could have gone on for many more pips... HOWEVER, they were stopped out at what was a pretty huge resistance/support level, so despite the fact they were stopped out, I made a profit on something that could have easily gone the other way and wiped out those profits and could have easily gone on to be a loss.
Something I learned a long time ago was never complain about a profit. This means taking small profits despite the fact that a trade goes on to make HUGE gains. If you always make a profit, that is great, if you make 1 or 2 losses, you could be in huge draw down which is not good!
Anways - here's to happy trading!!!
Showing posts with label trailing stop. Show all posts
Showing posts with label trailing stop. Show all posts
Wednesday, November 23, 2011
Tuesday, November 15, 2011
2 trades opened last night
So late last night, there were two trades that opened - one on the GBUSD and one on the USDCHF.
The GBPUSD was a sell order at 1.59003
The USDCHF was a buy order at 0.90856
So far they are both in profit, and what's more important is that I have moved the stop loss to break even. This is something that I will be doing more and more of - moving to breakeven as soon as possible. What this will ensure, is that I will very rarely have a losing trade.
Just a bit of commentary on the trades as they stand -
GPBUSD I am up about 50 pips os far, and it is reaching new lows over the past. It has hit some major support levels, so I will monitor the trade to see whether I will get out or not - if it were to break the resistance, then it could signal a very nice profit! I have locked in 25 pips profit on this trade.
USDCHF - Nearing it's high from September, and I am already in proift by about 100 pips. Again, there are some major resistance levels which will need to be monitored. I have locked in 50 pips aleready on this trade, so regardless of what happens, I am guaranteed a proift which is great!
If for nothing else, this does make the system look better - the more winning trades, the better (but I guess that kind of goes without saying!
What is really heartening about this though, is that in the very very choppy market we have experienced lately, we have not been in it. This is such a major factor - that if you do not knwo how to proift in a market - DON'T GET IN! There are always going to be trades in the market place, so why take rubbish trades??
Anyways- happy trading, and I will keep you posted on how the trades pan out!
The GBPUSD was a sell order at 1.59003
The USDCHF was a buy order at 0.90856
So far they are both in profit, and what's more important is that I have moved the stop loss to break even. This is something that I will be doing more and more of - moving to breakeven as soon as possible. What this will ensure, is that I will very rarely have a losing trade.
Just a bit of commentary on the trades as they stand -
GPBUSD I am up about 50 pips os far, and it is reaching new lows over the past. It has hit some major support levels, so I will monitor the trade to see whether I will get out or not - if it were to break the resistance, then it could signal a very nice profit! I have locked in 25 pips profit on this trade.
USDCHF - Nearing it's high from September, and I am already in proift by about 100 pips. Again, there are some major resistance levels which will need to be monitored. I have locked in 50 pips aleready on this trade, so regardless of what happens, I am guaranteed a proift which is great!
If for nothing else, this does make the system look better - the more winning trades, the better (but I guess that kind of goes without saying!
What is really heartening about this though, is that in the very very choppy market we have experienced lately, we have not been in it. This is such a major factor - that if you do not knwo how to proift in a market - DON'T GET IN! There are always going to be trades in the market place, so why take rubbish trades??
Anyways- happy trading, and I will keep you posted on how the trades pan out!
Tuesday, October 25, 2011
USDCAD Trade closed out
Well, the USDCAD trade has closed, and I was filled at 1.00292 due to my trailing stop, I had shortened it this morning after the run downwards, so quite happy that I did, otherwise I would not have made as much profit.
As it stands I achieved a profit of 94.2 pips on that trade, not too bad at all.
One thing to note, is that I can see it making it's way back down again, but I am not too concerned with direction AFTER I am out of the trade.
The main thing is profits, and we are getting plenty of them!
Happy trading!
As it stands I achieved a profit of 94.2 pips on that trade, not too bad at all.
One thing to note, is that I can see it making it's way back down again, but I am not too concerned with direction AFTER I am out of the trade.
The main thing is profits, and we are getting plenty of them!
Happy trading!
Tuesday, October 18, 2011
First loser
Ok, so last night, the charts went against us, and they told us to get out of dodge...
It was only a 50 pip loss, so no disaster, and you have to expect losers and hope for winners - that is just the nature of the game. Following proper money management, this will not be a big issue... After all, so far for every loser we are having 2 or 3 winners.
The stop loss was not hit, but the technicals on the chart says to get out, so that is what we have done - it was ironic that it came out at exactly 50 pips (I only put a trailing stop of 50 pips when I am guaranteed a return of 50 pips...).
What is really reassuring, is that the strategy is working - exits are the most important thing, and the ability to mechanically get in or stay in is a big bonus.
Looking at the chart, I was hoping for a breakout, and we got stopped around resistance, so it all adds up... The EURCHF is whipsawing a bit, we had a bit of a runup, and at the moment it can not decide what it wants to do, but no worries, I am sure we will be back to winning ways very soon.
Happy trading!
It was only a 50 pip loss, so no disaster, and you have to expect losers and hope for winners - that is just the nature of the game. Following proper money management, this will not be a big issue... After all, so far for every loser we are having 2 or 3 winners.
The stop loss was not hit, but the technicals on the chart says to get out, so that is what we have done - it was ironic that it came out at exactly 50 pips (I only put a trailing stop of 50 pips when I am guaranteed a return of 50 pips...).
What is really reassuring, is that the strategy is working - exits are the most important thing, and the ability to mechanically get in or stay in is a big bonus.
Looking at the chart, I was hoping for a breakout, and we got stopped around resistance, so it all adds up... The EURCHF is whipsawing a bit, we had a bit of a runup, and at the moment it can not decide what it wants to do, but no worries, I am sure we will be back to winning ways very soon.
Happy trading!
Tuesday, September 27, 2011
Watching GBPUSD
Well, most of the markets are trending quite strongly at the moment, and have done for the past week. It would be very easy to get into quite a few trades and make a tidy little profit - however, that woudl take a lot of time sitting in front of the computer, making sure that you can get out as quickly as possible if the trade did go against you - which is why I am not getting into any trades at the moment. If i were to do that, then I woudl not be following my strategy rules effectively.
With that said, there is a good chance that in the next couple of days we could have a signal to get into the GBPUSD (To sell which is contrary to where the currency looks to be heading) I think that this is more of a little false peak, and it will soon turn downwards again. Even if I am wrong, it would be no disaster, as I will only get into the trade if the indicators say I should - this will almost guarantee that the trade will go to profit (looking at the backtesting in any case... which can be very misleading in my opinion - but it is still nice to be able to look back saying that the strategy has never lost...)
I can not see anything else on the horizon as of yet, but the markets will change, and I will be there to try to catch them.
Just a reminder, that the last trade was +220 pips, and the other one I pointed out (but focused on the other trade so missed the boat) went to about 380+ pips that woudl have given us a 330 pip profit (with the 50 pip trailing stop).
That would mean that we woudl have had about a 10% increase in one or two weeks!
With that said, there is a good chance that in the next couple of days we could have a signal to get into the GBPUSD (To sell which is contrary to where the currency looks to be heading) I think that this is more of a little false peak, and it will soon turn downwards again. Even if I am wrong, it would be no disaster, as I will only get into the trade if the indicators say I should - this will almost guarantee that the trade will go to profit (looking at the backtesting in any case... which can be very misleading in my opinion - but it is still nice to be able to look back saying that the strategy has never lost...
I can not see anything else on the horizon as of yet, but the markets will change, and I will be there to try to catch them.
Just a reminder, that the last trade was +220 pips, and the other one I pointed out (but focused on the other trade so missed the boat) went to about 380+ pips that woudl have given us a 330 pip profit (with the 50 pip trailing stop).
That would mean that we woudl have had about a 10% increase in one or two weeks!
Friday, September 23, 2011
Trading rules
So after yesterdays closing result of +220 pips, we now need to look to the future.
Looking at the charts, most of them seem to be trending quite strongly, which is great for getting on the band wagon, however this does not suit with the trading rules of getting into a trade - all the analysis is off at the moment (well except for one indicator, but I need all of my indicators to line up before I enter a trade - which makes this strategy so powerful). This means that we have 2 options:
1) Look at shortening the timeframe of the charts - I am trading on a 4 hourly time frame, which means that I have lots of opportunity for the trade to go in the direction I want, and also for it to get the maximum profit while at the same time minimising my risk- this marying off the best profit conditions, with either the ndicators pointing to get out of the trade due to sudden movements - this will actually mean we get out before a stop loss is hit, or if it is a slow moving turn in the charts, we simply go to the stop loss and get out automatically.
2) Wait until the markets change.
There is a great book called market wizards, which goes into detail about incredibly successful traders and their ability to ride the highs and lows - it is a really intriguing read (you can get it from Amazon - see the link on the right. The reoccurring thoughts in the book is that trading has to be emotionless, and the more greedy you are, the more you will lose. For that reason, I am not overly bothered about jumping into another trade, especially one where the trade is on a shorter timeframe where I am not prepared to sit in front of the charts waiting for something good - or bad to happen.
From this, the option 2 is the prefered solution. We will wait until a good trade comes our way. This system will make money regardless if we have to wait 100 more days for them to change (which lets face it, it won't happen). This was shown with my earlier analysis on the USDCAD pair, where, if I had not been so focused on the EURUSD pair we actually traded, We could have been up about 500 pips by today (although I think we would have been stopped out at during one of the previous days...). Out of two trades - one actual, and one promised, but not executed, already the system is looking good. I still will not be drawn into believeing that it is foolproof just yet, but the signs are looking promising at the moment.
Anyways, here's to a good weekend, and let's hope that next week we can get even more winners as the markets hit their peaks and bottoms and start to look to change (of course, in this climate, who can say if that will happen?....... ok My strategy can ;-) )
Looking at the charts, most of them seem to be trending quite strongly, which is great for getting on the band wagon, however this does not suit with the trading rules of getting into a trade - all the analysis is off at the moment (well except for one indicator, but I need all of my indicators to line up before I enter a trade - which makes this strategy so powerful). This means that we have 2 options:
1) Look at shortening the timeframe of the charts - I am trading on a 4 hourly time frame, which means that I have lots of opportunity for the trade to go in the direction I want, and also for it to get the maximum profit while at the same time minimising my risk- this marying off the best profit conditions, with either the ndicators pointing to get out of the trade due to sudden movements - this will actually mean we get out before a stop loss is hit, or if it is a slow moving turn in the charts, we simply go to the stop loss and get out automatically.
2) Wait until the markets change.
There is a great book called market wizards, which goes into detail about incredibly successful traders and their ability to ride the highs and lows - it is a really intriguing read (you can get it from Amazon - see the link on the right. The reoccurring thoughts in the book is that trading has to be emotionless, and the more greedy you are, the more you will lose. For that reason, I am not overly bothered about jumping into another trade, especially one where the trade is on a shorter timeframe where I am not prepared to sit in front of the charts waiting for something good - or bad to happen.
From this, the option 2 is the prefered solution. We will wait until a good trade comes our way. This system will make money regardless if we have to wait 100 more days for them to change (which lets face it, it won't happen). This was shown with my earlier analysis on the USDCAD pair, where, if I had not been so focused on the EURUSD pair we actually traded, We could have been up about 500 pips by today (although I think we would have been stopped out at during one of the previous days...). Out of two trades - one actual, and one promised, but not executed, already the system is looking good. I still will not be drawn into believeing that it is foolproof just yet, but the signs are looking promising at the moment.
Anyways, here's to a good weekend, and let's hope that next week we can get even more winners as the markets hit their peaks and bottoms and start to look to change (of course, in this climate, who can say if that will happen?....... ok My strategy can ;-) )
Thursday, September 22, 2011
Trailing stop triggered
My trailing stop was triggered - I had it set at 50 pips, and it was stopped out at 1.34356.
This gives us a massive profit of 220 pips for a 4 days being in the trade.
A great first result i think all round. This has increased my account size by $22 with a max risk of only $15.
So we will now wait until the next trade. I am going to create a table to show all the trades (winners and losers when (hopefully not though!) and if they come.
A great first effort, and gives us a running total of +220 pips.
Normally, I would increase my sizings as my account goes up, but I will only give points results on here for eases sakes for looking at winners and losers. In real terms it is even level stakes.
My belief is that this was on the high side of what I would expect, but certainly not what i want. The EURUSD was in a massive down trend, so when we get these - and we will, we canreally look to proift handsomely off them.
Good trading!!!
This gives us a massive profit of 220 pips for a 4 days being in the trade.
A great first result i think all round. This has increased my account size by $22 with a max risk of only $15.
So we will now wait until the next trade. I am going to create a table to show all the trades (winners and losers when (hopefully not though!) and if they come.
A great first effort, and gives us a running total of +220 pips.
Normally, I would increase my sizings as my account goes up, but I will only give points results on here for eases sakes for looking at winners and losers. In real terms it is even level stakes.
My belief is that this was on the high side of what I would expect, but certainly not what i want. The EURUSD was in a massive down trend, so when we get these - and we will, we canreally look to proift handsomely off them.
Good trading!!!
The profits are coming in and guaranteed
So the EURUSD has sunk again, and we are firmly in profit on our trade, 100+ pips. All this and not risking 3% of our account. With an account of $500 (which i have) I had a stop loss at 150 pips, so this would equate to $15 in real money (as i am only using micro lots - 1 pip = $0.10). It did get a little bit hairy yesterday, as there was a massive jump, but the real point is having firm rules to get in and out of trades is a must.
As of writing, the EURUSD is sitting at 1.35272, and is on a downward trend (although I expect it to bounce back up and then continue it's downward trend further). Due to having a guranteed profit, I want to let my profits run, and especially because the recent trend, and the breakthrough of the resistance says it is going to go lower. This is where having a trailing stop comes in very handy. The trick is choosing by how much you let it trail to allow enough room for you to get more profit, without losing all your gains. I have my own rules, and expect there to be more to be had out of this trade.
I could have been in another trade on the USDCAD, but missed the boat through one reason or another, so we missed out on that. Not the worst thing to happen as there will be more trades. The first and most important thing is to be making money, and this has been achieved in this trade.
Heres to some more profit in the next couple of days!
Happy trading!
As of writing, the EURUSD is sitting at 1.35272, and is on a downward trend (although I expect it to bounce back up and then continue it's downward trend further). Due to having a guranteed profit, I want to let my profits run, and especially because the recent trend, and the breakthrough of the resistance says it is going to go lower. This is where having a trailing stop comes in very handy. The trick is choosing by how much you let it trail to allow enough room for you to get more profit, without losing all your gains. I have my own rules, and expect there to be more to be had out of this trade.
I could have been in another trade on the USDCAD, but missed the boat through one reason or another, so we missed out on that. Not the worst thing to happen as there will be more trades. The first and most important thing is to be making money, and this has been achieved in this trade.
Heres to some more profit in the next couple of days!
Happy trading!
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