PWP

Here's an update on my trades: Eur/Gbp Long - I closed out for +8 pips due to better opportunity in the below trades Eur/Chf Short from 1.1670 Stop still at 1.1920 Gbp/Chf Short from 1.3260 Stop still at 1.3450 I only have enough equity for a few trades at a time but that is rapidly growing. Therefore when I looked at the angle of the ema's on the Chf pairs vs the Eur/Gbp chart I felt that they had more potential for a trend continuation. Eur/Gbp seemed flat or range bound. I have never had +300 pip gains on any trade in my career - that being said I haven't closed these trades yet. Thanks OT! Oh - I also took a Eur/Cad short and was stopped out for -140 pips - full disclosure... Ingot - One of my favorite aspects of this trade plan is there is no emotion - I have one time a day when I make my trade decisions. That's it. If I think of making a trade at other times during the day it is usually some momentum play that I would typically loose on anyway. Therefore - One time per day for me. I'll look at my trades out of curiosity but won't let myself react. For instance: Both of the above trades today were up 340+ pips early morning then swiftly they rebounded - my thoughts were to close them out before i loose all that was gained - however If I would have done that it would have been at the precise time they again continued their downward trend. Murphy's law effects my trades greatly. Take Care all - Great trading! Thanks OT

Hi OT, Yes I agree. My trade plan was trying to be too controling over the trade. I've decided to change my plan as follows: Initial stop beyond swing high/low - trail stop somewhere between the 21 & 65EMA's - If stopped out can always reenter as signaled - also if a new signal is created before stopping out - I can pyramid in and move all stops to that new swing high/low - RIsk will be set at 1-2% of account balance. Gbd/Usd stop was 125 pips - I was just estimating - sorry - will be more precise with my posts. Question: There are many setups between all of the different instruments - Isn't it best to take every setup? Irregardless of stop size - we should be able to manage the risk with trade size - at least in the FX cash market as you said... I've passed on a couple of setups, due to larger stops, that are all positive at this point - but in retrospect I should have taken those trades as well. The only reason to not take some trades is that some currency pairs are strongly Coorelated and should be counted as 1 trade for risk measurement. For instance Short Eur/Nzd & Short Eur/Aud - Clearly both are short Euro and both are long Commodity pairs... Both trades stops should be added together and then traded appropriatly for ones risk limits. FYI - Looks like tonight may be a good night for setups in the Euro & Swiss Franc pairs... Thanks again OT!

A quick trade update: Gbp/Aud - Stopped out with +1 pip :doh: Eur/Gbp - Stop still at .8700 So my Gbp/Usd was stopped out BE and probably for good reason, but my Gbp/Aud trade was also stopped out but quickly continued the trend. Maybe I should wait longer before moving to BE. Any suggestions? Ultimately I would have lost 200 pips on Gbp/Usd but may gain a lot more on Gbp/Aud. At this point I'm sticking to my plan but any ideas are greatly appreciated. Regards, -Peter

Thank you for the review! I appreciate the information that you've given. My prior trading had a tendency to be very successful for about 1 day and then I'd lose everything I gained and more on the following 3 or so days. Very frustrating and too emotionally, fear, & greed driven. The basic plan that you've helped us all develop is just that - A plan. And if it's followed you actually can objectively make trade decisions. Your plan is far superior - less trading, more sitting on ones hands... not screwing up the plan. Yes - I did mean 4 times the initial risk on the trade. I've committed to doing that because I've learned that you need to take a profit at some point. I've had sooo many trades where I was up 130 pips only to see it evaporate within 1 day and often turn into a loss. The idea of 4:1 and taking 1/2 off is that it’s equal to taking off the entire lot at 2:1 Risk/reward ratio and then still having another whole free trade to hopefully continue to run. Also there's always the opportunity of pyramiding on the next pullback to the 21-65 area.... There is one dilemma that I have with my plan and it's that I have an aversion to loss. That's why I've put in the +50 pip stop loss being moved to BE. The idea was to make sure that I'm actually entering at the correct point. When I look back in history it seems that the entrance points that we're targeting either work - break lower - or don't really commit and tend to float for awhile before committing to the larger trend. That's the dilemma - if I get in too early than I feel lots of pain - by having the +50 pip BE plan than if it retraces I get taken out and can reenter at a better point... There is a lot of whipsaw in FX. However, I want the returns that Kroll spoke of in his book. So I may have to change that part of my plan at some point - still trying to figure the stop part of the plan out... Let me know if you have any ideas. At this point I'll stick with my plan. Sorry for the long post... Thanks again - Peter

HI OT, Sorry for the delay. Yes - Here's the update. I exited with +200 pips and too early. One of your last posts got me thinking about my trade plan or lack there of. I now have a very specific trade plan and follow it without question. I've just finished reading Kroll's book and between that and your thread actually feel like I have control over my trading. I review my charts at 5pm EST - make my trade decisions and that's it. I've caught myself looking at trades and then doubting my trades but have stuck with the plan! It's liberating. Here is my plan. I would appreciate any comments, changes, ideas etc... (but not on my spelling): - 21 & 65 EMA: if 21>65 only long if 21<65 only short positions - Williams%R (8) hook creates entries - Wait for price action to enter into 21-65 price territory Enter on hook Williams%R ob/os extreme - Enter 1 tick below/above bar with stop above/below swing high/low - Move stop to breakeven when +50 pips - If stopped out re-establish entry order on next hook - Take 1/2 off after 4:1 ratio achieved - Trail stop above/below 21 EMA or 65 EMA Depending on Pair - Some follow 65 instead of the 21EMA - Consider removing entire position is price action dictates possible top (Many Dojis) - prepare to re-enter if that happens - Use Monthly charts to determine support/resistance zones I had to establish a written stop and take profit plan for myself. Just recently I took a Gbp/Usd short and it was stopped out at BE. Which is exactly why I have that part of the plan - Gbp/Usd has since rallied. However I'm prepared to enter short again if triggered. Here are my current positions: Eur/Gbp Long from .8800 Stop at .8700 (but will move to BE at +50) Gbp/Aud Short from 1.5106 Stop at BE Well That's it so far. Thanks again OT!

Hi Optiontimer, I hope all is well with you. Again - Thank you creating this project. Here's an update on my Gbp/Chf trade and my actions to date: - I entered trade based on 7-5 daily candle 1.3474 Sell Order Stop at swing High 1.3700 The 7-4 candle would have been a much better candle to enter on - not sure if it had hooked or not... - Once up 125 pips moved stop to BE - Was stopped out - Reentered with same criteria as above - decided not to move stop if trade was executed - it was - at one point I was -103 pips but left trade on - now +40 pips - leaving stop at 1.3700 for time being... My dilema - To move stop to BE once in profit will reduce some of the losses if the trend is not truly continuing - but will also limit catching all moves - OR take the losses if the trend has not truly continued and stick to plan. There are many times where my trade would be entered but then I would be stopped out for -150 pips or so. I'm leaning toward moving stop to BE after +50 pips - If I get stopped at breakeven then I could reenter on next hook in trend direction. Also - I'm still trying to figure out how to take profits. If I take them too soon then I may miss the long trend I'm trying to take advantage of... I'm leaning towards taking half off at 2:1 ratio and letting remaining run with a trailing stop over the prior days high... Thanks again - Any comments or advice from others is greatly appreciated! - Peter (PWP)

Thanks OT, I took the Gbp/Chf Short. Large stop but fit the system. When should I move the stop to BE? Just looking for more info on stop/limit management with your project. Thanks for your thread!

For the forex traders among us, here is the GBPCHF: -OT I took that trade. Large stop but it fit the parameters. When should we move stop to BE? Thanks - Peter