Alpari Demo Managed Account Discussion

I am making this demo account completely transparent to give anyone who is interested an insight into the way I trade. I am becoming increasingly annoyed by the ramblings of stephanusR who seems to delight in trying to prove that it is impossible to trade profitably without some hidden agenda on this site.

My reasons for joining this site was to provide ME with the analytical functionality that my own mental limitations can't. It is also here to prove to new traders that it is possible to build a small account relatively quickly without going down the route of over-leveraging their accounts in the rush for glory. It also shows that simple Support and Resistance trading, combined with a conservative money management regime can prove more profitable than a screen full of MAs, Oscillators etc.

I look forward to constructive criticism or posts that are seeking a clearer understanding of this technique, the trolls can go pedal their vitriol elsewhere.

Well said!😀

don't mind him peter!

your trading is excellent, thank you for sharing it 😄.

Hello Peter.
First thread i read from start to end on FF was - Help to newbies ;]
That was ~ 2 years ago.
I am realy happy that You provide us with possibilitie to see how You put orders and talk about Your trades !

Thank You for Your help us who wants to learn..

Best,
Tom

FlyerLV posted:
    Hello Peter.
First thread i read from start to end on FF was - Help to newbies ;]
That was ~ 2 years ago.
I am realy happy that You provide us with possibilitie to see how You put orders and talk about Your trades !

Thank You for Your help us who wants to learn..

Best,
Tom

Woohooo... Looks like another success story for PeterFM. It must have helped if you're still around after 2 years.

Don't stop - lol

you've been following him for 2 years? that's what i call loyalty.. 😀

peter, you should open a fan club! 😉

So far there have been 77,679 views of the thread and I've heard back from about 50 new traders who have found it useful. I'm not sure about the rest of them - maybe they didn't like what I had to say - or maybe each one of them read it 1550 times each.

Sheesh - that's enough punishment for almost anyone 😀

Hi PeterFM,

Although it looks it is impossible for me to achieve the level of performance that you have shown here, from what I have known you, I trust what you have shown.

At the end of the day, if someone don't believe that, they have their own opinions. It is hard to and may be not necessary to convince them.

Best Wishes for you.

kk007

P.S. How can I have 'a clearer understanding of this technique'? Or, this technique has been completely presented somewhere on FF?

Hi KK

Support & Resistance is as old as trading itself. Someone else asked this morning if I could give any hints on how I trade. Although the answer is a bit more complicated than 'do this' or 'do that' the basics of how I approach trading is as follows:

Hint #1: Open a Monthly chart on any pair
Hint #2: Switch to the Line chart
Hint #3: Zoom out as far as you can
Hint #4: Go back in history as far as you can
Hint #5: Start looking for all the major areas where price has made a DRAMATIC reversal
Hint #6: Note the CLOSING price
Hint #7: Draw a horizontal line along that price point
Hint #8: Wait for price to meet those price points and wait for confirmation that the S/R lines you have drawn have either held or failed; if it fails wait till price meets the next S/R line and wait for confirmation - wash and repeat until you find the S/R that does appear to hold
Hint #9: Trade the trend (Monthly - Weekly - Daily - in that order)
Hint #10: Trade based on price action around the Daily - 4hr chart
Hint #11: Stops below next S/R line
Hint #12: Use minimum position on entries and add in as the direction is confirmed
Hint #13: Prospective Take Profit area is next S/R area above/below your entry but be ready to get out if price stalls for too long before it gets there
Hint #14: It takes time to learn this so don't rush to make money too fast
Hint #15: Remember: All S/R areas are only potential turning points so be prepared to be wrong
Hint #16: Practice on one pair on demo for a couple of months to get a feel for how this works
Hint #17: You'll pick this up quicker if you have NO indicators on the chart and learn to read what price is doing around these areas
Hint #18: Always wait for price to make at least one Daily close above a Support area or below a Resistance area before entry on a new trade or closing an open trade. This means you'll have to hold for a much longer time than you are probably used to, that's why you enter with the smallest position size you can use and add in as the trend returns in your favour.
Hint #19: Always remember the old maxim - previous Support should become Resistance and vice versa

hint #20: combining hints 1-19 will form a trading system 😀.

as a side note, i agree with peter. his system is not automated but manual so there is a lot of discretion involved. even if he would give us the exact rules he uses, no one will get the same performance as he does.

Many thanks PeterFM,

You are my inspiration!

kk007

Thanks biz0101

There's a couple of other points that I should mention; If you look at the equity graph you will notice there are big bursts of profit and areas of consolidation. If you then look at the chart of EURUSD, for example, you'll see that my curve sort of matches that of the currency chart itself.

I have learned that trading pure S/R allows me to profit whether the pair is ranging or trending. The market, as a rule, spends more time in consolidation than anything else, so it's vital to find a way of surviving these ranging periods and making even a little profit so that your account balance is always edging up. Then when a break out occurs you have a few dollars more to put into your 1-2% normal trending trades.

I'm more cautious when dealing with range trading and all I look to do is pick up a few pips here and there. Account preservation is key. You never know when the range is going to break against you so keep your exposure to the minimum.

Thank you so much, sir!

Two short trades on this pair. The higher trade is a simple fade of the Upper resistance line and the lower one is a break of the Bearish Outside Bar. For my stoploss for these trades I have a maximum of 4 lots available; the initial trade carries only 1 lot and the same with the breakout trade.

If the downtrend is confirmed I'll add the remaining 2 lots at pullbacks either in one hit or in separate trades.

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please continue your good work here PeterFM...i'm following BRV R/S thread in FF and i've found great enjoyment in trading that..although i'm still a very newbie in this method.

your alparidemo_2 gives me some inspiration and sometimes confirmation for my entry..i don't expect to always follow your signal here,but rather just for my confirmation.

happy pipping peter..btw,i am taking that USCDAD too...

hi..why you dont update the tracker anymore peter?are you allright?your AlpariDemo_2 is good and sometime gives me confirmation...please continue to update it..

Regard..

Guess Peter is too busy

Sorry guys, when I got back from France I made some silly errors in entries and position sizing. I usually take at least a week before initiating new entries so I can get back into the rhythm of the charts again.

I got a bit carried away (ego tripping, I suppose) and placed some blind entries compounded by careless over-leveraged positions. Before I went away I thought I'd set my default lot size to 0.01 but somehow set it at 0.10 - it's not the first time I've done that 😳 either.

So, I've had to live with a large drawdown while I've been waiting for the trends to re-establish themselves. I was worried that anyone following this account would try and emulate me and it caused me concern. This time the trend has got me out of trouble again. I know from past experience that to trade the way I do requires entries with the absolute minimum position size so that I can add in on the way to the next S/R level (averaging in) or add to my positions as the trend develops in my favour (pyramid trades).

Neither of these methods are for the faint-hearted or the inexperienced so I didn't want to confuse anyone or cause anyone following my trades to risk their accounts.

I have a new lease of life and I've also been doing some reading on S/R trading that I will be explaining as I go along, so I'll try and keep this up-to-date.

Thanks for your interest and concern. This is a typical mental phase that most of us go through from time-to-time.
🙄

Here's a short overview of the new trading method. I still use S/R but it's apparent that on those occasions that price comes back up to re-test one of these areas there is often an over-shoot. In the past I've placed blind orders 10-15 pips above/below a level with the stop set beyond the next major S/R area. Once this has been determined I know how many lots I can place on this trade.

As well as blind entries I will wait for certain chart patterns to form before committing to a trade so the entry method I'm going to discuss here would not apply to these sorts of trades at the moment.

With the normal entry method outlined in the first paragraph, I have a choice; I can commit the full 1% to the trade and let it run, or start with a reduce entry and add more lots as the trade moves in to profit. I've generally done this once price has broken through the next level and I can assess where price may pull back to so I can set a new limit order.

With this amended routine I will assess the number of lots based on the stop position and the initial entry point that would be my normal location for placing a limit order. I will then split the trade into 2 or 3 lots and place them around the S/R level I'm expecting price to hit. In this way I can average into a trade and take advantage of increasingly better entries as price moves through the S/R level.

If the trade fails then I have actually reduced my overall risk. If price picks up all the orders and returns in the direction I expected, then I have picked up a couple of bargains on the way.

Part of the thinking behinds this is the realisation that there will often be Sell orders above Resistance (and Buy orders below Support) and if these orders are large there will be an immediate and substantial rejection of that level.

Here's an image of my current USDCAD trades. You can see that 2 out of the 3 trades have been picked up at the retracement and although I could have set a Take Profit at the first touch of lower orange line at 1.0598, I'm going to tough this one out. My previous USDCAD trades where closed too early and I'm going to see if I can see this trend a lot further this time.

I also have a EURCAD long running where 1 of the 2 limit orders was picked up (the other missing by only a few pips) and I have profit locked in on that one.

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