Forex rebates on every trade - win or lose!

welldone H. The guy I'm sharing an apartment with has spent 2.5 years on his system to trade fx!

Thanks Gfi. We'll see how long mine lasts. LOL

One swallow doesn't make a summer. :-)

H, come back to trading after a long lay off, been studying and trading fx since december and I am just starting to get it right.

I think it was Gary Player that said " The more I practice, the luckier I get"

Says it all really

Still short Cable from yesterday.

Well done, Harlosh. Out of interest, was your sell signal from your P & F wotsit? If so, from the dailies?

Thanks Hilary, fraid it wasn't. Just can't find the right combination of box size, reversal size and time scale. I'm still working on it though.

That's a pity ........ It would be nice to know if you manage to get your P & F working for FX.

Personally, I would've thought that using daily P & F charts would be too long a time scale for FX unless you were willing to hold for weeks or even months. The problem being that your stop would probably need to be so far away as to kill you on margin. It would be interesting to see what the hourlies throw up though. I don't know if you've got your rt system up and running yet.

Yes I have Hilary. I'll keep you informed.

Ta Harlosh.

Choccie will probably be in later on today or Monday to say that she's had enough shorting cable this week and she's looking to reverse. How's that for a Jose Mourinho style prediction?

:o)

Stopped out of Cable for 93 points. :-)) . May have set my stop too close but just happy ar this stage to bank a nice profit.

The volatility of forex is a problem for setting stops. Not sure how best to approach them yet.

Harlosh,

I guess that where you locate your stop has got to depend upon which chart you used to enter the position in the first place and how long you aimed to run it.

For instance, there was a sell signal on Monday on both cable and fiber as the moving averages rolled over on the 1 hour chart. Do you remember my comment to Choccy at the time? If you were trading according to that signal, you'd still want to be short now, 5 days on.

If you take cable as an example, your initial stop would have had to have been just above the high on the 1 hour chart which was at 5pm last Thursday (1.7594). The theory behind that is simple ........ if you've shorted it because you think it's going to come down, it shouldn't then make a fresh high. If it does make a fresh high, it's because it's not coming down and you should not be short.

As cable fell into the middle part of the week and the position moved comfortably into profit, the price action was below the moving averages and, by yesterday, you could draw a falling straight line which touched all the highs of the week. You could then pick a moving average, or the straight line or even a SAR as your trailing stop.

Alternatively, you could just leave your stop at entry for breakeven and look to exit the position manually once you get a contra-signal to the signal which prompted you to enter in the first instance.

You can then take the same principle and apply it to whichever time scale of chart that you choose, be it the 15-minute or 1-minute or whatever. Obviously the faster the chart, the shorter period of time that you'll remain in the position, so you'll have to stay on your toes.

Obviously, some signals on certain charts are better than on others, so you need to find one that works for you.

Something for you currency types. Some is not relevant 'cos its from an institutional perspective and they are prepared to accept paltry "safe" returns but the general conclusions about the trendiness of various pairs illustrated by very simple moving average treatments could be of interest, I thought.

Anyway if you are bored over the weekend :-)

http://www.technicalanalyst.co.uk/trendfollowing.pdf

Hilary,

I appreciate the time and thought you have put into such a comprehensive post. I succumbed today to the psychologically satisfying feeling of taking profits but I know I need to adopt a system for exiting a trade which maximises profit. You thoughts will help me do that. Many thanks.

Robb, I'll take a look. Thank you.

Morning. No positions at the moment but looking.......

morning H from sunny spain! Went short eur/usd about an hour ago (tight stop) watching cable.ps looks like its clouding over

Morning Gfi. Watching cable too.

now short cable, stop fairly tight

JPY strong?

Hilary

Have just picked up your comment on the Australian dollar - thanks.