Hello everyone,
Well, finally the markets seem to have gone back into normality after the Easter holiday brake and the recent massive 0.75% Interest Rates cut. Now, once the Forex market frenzy is over, it’s time to comb the charts searching for new trading opportunities.
In today’s videos I analyze the setups I am spotting on my Daily and Weekly charts. To sum it up, I am waiting for pullbacks on a number of currency crosses to the Moving Average whereabouts and hopefully we’ll get some valid entry signals from there. I usually do like trades off the Daily charts because one single good trade can turn a dull trading month into a very profitable one: you know, a big chunk of pips from one single position!
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26 March, 1:29 am
hi hector,
i don’t quite understand your statement “I usually do like trades off the Daily charts because one single good trade can turn a dull trading month into a very profitable one: you know, a big chunk of pips from one single position!”
regarding this it sounds like you are using the same lot-size every time?
because for me it does not matter of which timeframe i trade off, because when i trade of the daily i have to use smaller lot-sizes to not do overstretch my 1% risk per trade?!
so you are using the same lot size?
bye, michael
26 March, 12:05 pm
Hello Michael,
No, I certainly don’t use the same lot size for every trade. However, long-term chart do have two adventages over intraday charts (at least in my opinion) on the Money Management department:
1) The Risk/Reward ratio are usually higher, so you get more “bang for your buck” so to speak: same risk but usually higher reward.
2) They are easier to manage once in a trade since they are not so subject to random market noise such as for example stoploss hunting or news spikes. That means that they are easier/safer to determine when to move your stop to breakeven, when to take half of the position out, etc.
That’s just my opinion though. I am sure hard die scalpers might disagree :)
Cheers,
-HECTOR-
26 March, 6:13 pm
Hi, Hector:
Nice Observation. Your system is SIMPLE but effective
Just a question regarding to your trading pairs:
I have followed ur blog for a long time, and I found you seems not picky to the pairs you decided to trade, no matter it is major pairs, like EU GU UJ,etc, or cross pairs, even counts just a reall small portion of daily world forex market, like EUR/AUD, CAD/JPY, CAD/CHF, etc,
I want to know, from your trading experience, are the signals your systmem generated more reliable in major pairs than those cross pairs. (I sort of remember that some guys said dealers don’t trade those cross in inter-bank market.)
Your comments are really appreciated, Thank you
Mike
26 March, 7:23 pm
Hi Hector,
Thank you for sharing the setups you are following!
I have 2 questions that maybe you can clarify:
1) How much of your account do you risk per trade, 1%, 2% ?
2) Why do you show your results in pips? I though only American traders did that :D What i mean is that for me is doesn’t make much sense adding 100 pips in GBPJPY with 100 pips in EURGBP. Makes more sense to me adding percentual profits/losses relative to the account.
Thanks,
Jaime
26 March, 8:34 pm
Hi Hector, Michael:
If I may add a question to Michael’s, say you are trading on a 1hr chart and you set a stop loss of 20pips.Now you open 1 lot size (risking 1$ per pip) and you get stopped out, that would leave you with a loss of -20$ in your account.
Now say you’re opening a trade on a daily time frame, and to get more reward for what you risk, you decide to open up 2 lots (2$ for every pip), setting a stop at 30pips and unfortunately you get stopped out again because your trade has gone sour. This time, $60 has been eaten out of your account.
So, if I understood correctly and open smaller lots on quicker time frames, won’t you loose much more money if you open larger lot sizes on longer time frames and get stopped out? (of course, the up side is that if your trade goes as planned, you’ll be trading Mc.D’s for the Ritz in the weekend) :P
27 March, 1:46 am
Hello guys,
Mike - as I always say a chart is a chart, a trend is a trend and a breakout is a breakout. I don’t care if they take place on EURUSD, EURJPY or EURCAD. As long as there’s a healthy trend I will trade it.
Jaime - you’re quite correct actually. When I started the blog I didn’t even had a “track record” section, I simply posted my individual trades. Later on, when I added the track record tab I simply added up all the pips and have continued doing so ever since. Just laziness from my end to be 100% honest :(
Daniel - I am not quite sure I understand your question (sorry, it’s quite late here and I’m about to go to bed), but if what you’re asking me is if I Martingale my positions the answer is no I don’t. I hope I didn’t totally misunderstand your question.
Cheers all and good night!
-HECTOR-