Discusión Free Trader

Can't really say I made it in the forex market , but still trying my best.

I'm more or less on break-even, and didn't get a margin call for 3 years, so I consider my self lucky.

Man,

As far as I'm concerned you're already half way there. You know rule 1. Stay in the game. Well done. Now we need to work on the strategy.

Thanks Elkart, I really appreciate it.

The problem I'm having now is move from the break even state to the profitability state - hope I'll get there.

It's really frustrating to know you're almost there, but still not enough. 🙄

We'll you want to work on it? See if I can help a bit?

What time frame are you on?

Elkart posted:
    We'll you want to work on it? See if I can help a bit?

What time frame are you on?

Sure. I guess it can't hurt.

I'm on the 30m, 1H, 4H.

Working with RSI to spot overbought/oversold areas, checking with higher time-frames for entry and lower time-frames for exit.

K,

Does RSI use volume in it's calculations?

I'll tell you why I ask. In fx the volume figures are from the broker.Where in equities volume is from the central stock market, so there's one single figure. In stocks, everyone's RSI will have the same reading, in fx everyone's a different one. If it uses volume I mean, I have no idea really. Don't use them.

Any volume based or influenced indicator is thus out. Can't be used. Higher time frames is a must though, but I can see you don't over trade.

good stuff. I would add that you may want to work on your winners.

Going to have to quantify that FoK. How to do that?

oh I meant his average loser is bigger than average winner, and his worst trade is bigger than his best trade. The problem with this is he has to be right more than 50% of the time to make money. This is very hard. He simply needed to make his winners bigger and losers lighter, so that he can be right only 30% of the time and still make a lot of money. This becomes important when he hits a losing streak. There are a number of systems here on myfxbook that make money by taking many small wins and occasionally hits a big loser. I'm not a fan of this. Somewhere along the line they will hit a losing streak and they will be wiped out. These systems function like an insurance company, they collect small premiums here and there and pay out when there is a claim. But insurance companies have reinsurance companies when they have a run, what do these systems have? Nothing. So I think a good trader needs to make sure he can survive even if he runs into a cold period.

Also I was going through the history page and I noticed he has a few big losers. He held his losers too long. He also did some trades in european crosses GBPCHF which was a carry pair mostly until last year. I have no experience trading this pair but if he's trading carry, why not pick an easy and more liquid pair such as the australian dollar.

Elkart, I don't think the RSI uses volume so - I'm almost certain.

I use the rsi to spot divergence/convergence which does help to filter out a lot of bad moves. Combining it with support/resistance gives a rather simple but effective trading system.

Fill or Kill, thanks for taking the time to go through my history 😄. I do have some big losers, but as every trader has experienced, it was with the beginner's mentality - 'it must come back, I'll wait just a bit longer', and we all know where it leads to.. (Hint: starts with Margin, ends with Call 😀).

I do try to tilt my ratios towards the positive side; ie have at the worst case scenario a 1:1 risk:reward ratio, and not anything lower.

Regarding the GBPCHF trades - no, I'm not doing any carry trades, it was just some experimenting with my system using different pairs.

no problem, mate! You're almost there:) Keep up the good work!

Alright,

I had a quick look and no volume in RSI. Just to be sure.

So, if RSI itself is working as it should, then what's not working? Is it your entries or exits?

61% winners - so guess only the exits needs attention.

Quick question, that open trade you have, was your interest in USD or JPY?

And in which direction?

Elkart posted:
    Quick question, that open trade you have, was your interest in USD or JPY?

Oh sorry, I actually don't have any open trades currently - I'm just too lazy to update the account 🙄.

Elkart posted:
    61% winners - so guess only the exits needs attention.

Yep - you've hit the nail on the head.

I get into an entry just fine, the problem is when I want to exit - in most cases I exit either too early, or too late. Maybe I should use another indicator for the exit, I'm not sure.

k, but do you often have one trade open?

Not likely.

An open trade will remain open while the trade signal is valid, or the stop loss is hit, or I spot a counter signal.

In terms of time, I don't have a limit - it can be minutes, hours, days etc'.

I'm waiting to resume trading next week, so I'll concentrate on my exits and will see how can I improve them.

I will post my progress here (if any...).

Thanks for your help Elkart!