EURJPY Trading

[pa18 10]

I was going to put this in the GU thread but felt it was better served with it's very own dedicated thread.

 

Post anything you want about the EJ, anything at all for further discussion.

[pa18 10]

I choose D / H4 / H1 / 30MIN areas which I believe are strong SR levels and use smaller TF for entry such as 1, 5 and sometimes 15 min for entries gunning for whatever pips I can get.

 

Here's my EJ trades for today

[StevenSJC 10]

Thanks for posting your work -- I enjoyed looking at your charts and seeing your perspective.

 

I tend to use Renko bars or Range bars more than time interval.

 

I posted this trade in the GBPUSD thread:

 

http://www.traderslaboratory.com/forums/f24/gbpusd-trading-8009.html#post98219

 

But here it is below - I didn't personally take it since I was already long GBPJPY at the time and my GBPUSD was closing in on a trade so felt I would be over-correlated.....

 

Just noticed you posted some in the GBPUSD thread - cool, looking forward to checking out your analysis there.

 

[pa18 10]

Thanks for posting your work -- I enjoyed looking at your charts and seeing your perspective.

 

I tend to use Renko bars or Range bars more than time interval.

 

I posted this trade in the GBPUSD thread:

 

http://www.traderslaboratory.com/forums/f24/gbpusd-trading-8009.html#post98219

 

But here it is below - I didn't personally take it since I was already long GBPJPY at the time and my GBPUSD was closing in on a trade so felt I would be over-correlated.....

 

Just noticed you posted some in the GBPUSD thread - cool, looking forward to checking out your analysis there.

 

 

HI StevenSJC,

 

I'm not sure I can trade without the added dimension of time factored in, but I do understand that range is the real market, looks like you are doing great though

 

Can you recommend any good reading material on renko/range bars, any famous traders using them effectively?

 

Thanks,

Pete

[StevenSJC 10]

Pete,

 

Famous traders using renko? Why me of course! Ok, all kidding aside not sure on that though I am someone who likes to trade a bit different than the pack. I look at it this way, probably 95% of the people who trade end up failing. Maybe it's worse than that. They almost all try to trade with the same indicators and use time intervals. So I'm usually thinking it can pay to be contrary to that opinion given the odds aren't good.

 

The thing I like about renko are the charts are without noise. However, there are definitely going to be some things that are slow to respond -- since you get less bars indicators that take a while to do their thing won't be effective - I think it's most effective when you have price based strategies -- either looking for price based patterns, or using supports/resisitance, etc....

 

One thing you have to get used to is the fact that renko bars to not plot every move of the market. The reason is if you for example had the a 20 pip renko bar, and the EURJPY went from 109.80 to 110.00 you'd get a bar. But, let's say then it goes up to 110.16 then fades back down - it won't show that move above 110 unless it gets to 110.20 -- and it won't show another bar formed until it either closes at 110.20 or 109.60 -- as it has to go another 20 pips fully above or fully below -- like bricks being stacked up end to end.

 

You need to make sure when testing/back-testing that you have entries that only end up at the high of your renko bar (or open of next) -- otherwise the testing can be faulty.

 

So that takes a bit to get used to.

 

Range bars are really cool as well and you don't have this issue above -- they are not quite as clean though as Renko but definitely have their place and I think respond well to most indicators and quicker than a renko bar would.

 

I think time bars can work if you are strictly looking at price, breakouts, etc... I don't think they work well with indicator based strategies.

 

Hope that helps a bit.

[pa18 10]

Hi StevenSJC,

 

I agree what you are saying, most traders are looking at the same charts and trading the same, I'm glad you found something working out for you.

 

I tried looking at range bars before in real time and it gave me a headache, the movement was jerky, sometimes speed up and or slow in intervals and difficult to read, but in all fairness I didn't experiment on them that long. Renko and range bars sound like a steep learning curve so maybe I stick to what I know so far.

 

Pete

[pa18 10]

Busy day doing other stuff but managed a quickie trade

 

 

 

[pa18 10]

[AmCan1 10]

Hi guys,

 

I'm a newbie and thought I'd respond to this very interesting thread. I really enjoy trading the eurjpy and was fascinated by Steven's Renko chart and comments, especially how most traders fail and it makes sense to do something different.

 

I like using tick charts myself. I find that I can do quite well using a 233 tick chart trading during the US session although there is often good movement at other times, obviously too. I agree with Steven regarding a price action based strategy. I am interested in range bars. Can anyone suggest a good range for a daytrade timeframe?

[cuttshot 11]

AmCan1,

 

It depends on the pair that you are looking at. I have found a good place to start would be a 6 range. Since this is a EURJPY thread I can tell you that the 6 range works well for what I try to do on that pair.

 

Cuttshot

[AmCan1 10]

Thanks Cutshot. I'll put up a chart and take a look. Today on the 233 tick I had some very nice trades. It was the total opposite of yesterday which was not good, at least during the time I like to trade.

 

Today, I went long at 9:27 est at 110.56. I took my first position off at 110.70. I trailed my 2nd position up and exited at 110.92.

 

While in that trade, I scaled in another two positions at 9:48, got filled at 110.50 (my entry was set at 110.46 and I felt nervous with the .50 level but that was my set up). That one worked out great too. I took my 1st position (3rd in the overall trade from the early entry) at 111.21. My trailing position I synced up with my original trailing position and took that off at the same price, 110.92.

 

I then had a losing trade at 10:24, went long at 111.12 and wound up stopping and reversing at 10:38 where I went short at 111.14. I did the same thing on the way down as I did on the way up. I pulled my first position off at 110.71 and trailed my 2nd. I also scaled in another 2 positions at 11:03 at 110.69. I took that first position off at 110.36 I exited both trailers together at 110.86. All in all, a great morning for the 233 tick. I was done at that point.

 

I am going to look at my strategy on the 6 range and see how would look. Thanks for the tip. Have a great weekend.

[pa18 10]

Thanks Cutshot. I'll put up a chart and take a look. Today on the 233 tick I had some very nice trades. It was the total opposite of yesterday which was not good, at least during the time I like to trade.

 

Today, I went long at 9:27 est at 110.56. I took my first position off at 110.70. I trailed my 2nd position up and exited at 110.92.

 

While in that trade, I scaled in another two positions at 9:48, got filled at 110.50 (my entry was set at 110.46 and I felt nervous with the .50 level but that was my set up). That one worked out great too. I took my 1st position (3rd in the overall trade from the early entry) at 111.21. My trailing position I synced up with my original trailing position and took that off at the same price, 110.92.

 

I then had a losing trade at 10:24, went long at 111.12 and wound up stopping and reversing at 10:38 where I went short at 111.14. I did the same thing on the way down as I did on the way up. I pulled my first position off at 110.71 and trailed my 2nd. I also scaled in another 2 positions at 11:03 at 110.69. I took that first position off at 110.36 I exited both trailers together at 110.86. All in all, a great morning for the 233 tick. I was done at that point.

 

I am going to look at my strategy on the 6 range and see how would look. Thanks for the tip. Have a great weekend.

 

Hi AmCam, if it isn't too much hassle, post a chart please

[AmCan1 10]

Oops.. Sorry about that. I was in a bit of a hurry when I wrote the last post and had intended to post up a screen shot. Now, with more time on my hands, I see that I mistyped some of my price levels in the last post. Here is a chart that I marked up to illustrate my trades. I color coded each one so you can easily see them distinctly. I also included a snapshot of my trade log so you can see the accurate price levels. You can see that there were some misprints. I accidentally read some stop numbers as entries, etc. The log is correct though and will correspond with the chart. Again, I like the 233 tick chart a lot. I also like a 144 tick but the setups can be too small sometimes. I put the arrows to mark up the set up bars and also to show you where my trailers came off (pink). In my log, I always post the time stamp of my set up bars and not the actual bar that triggers the entry. It's just the way I do it. If you have any questions, let me know.

Edited June 12, 2010 by AmCan1
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[pa18 10]

Hi AmCan1,

 

I'm more of a visual learner than anything else, when I see a block of words and sentences together, my brain shuts down lol. Thanks again for the charts, very much appreciated.

 

Wow, range and renko bars now tick charts, you TL guys sure trade differently from the herd. I need to do more reading and studying over weekend.

 

Have a nice one by the way!

[AmCan1 10]

Lol.. I hear ya on that. I'm that way too, actually. By the way, in case you were wondering, there's nothing magical about the 233 or 144 tick. Those are just fib numbers so I use them for that reason. Call me superstitious. One could look at any other tick 'time' frame if they wanted. I think the important thing is to try to find a sweet spot. In other words, look for a chart that has enough trades within the time you want to trade. A 233 might be too fast on the S&P, for example but too slow for soy beans. Make sense?

[pa18 10]

PA18 loves Renko!

 

Still looking at normal charts. I'm picking up significant HTF SR levels on these charts and using Renko for entries. Seems I can't get away from looking at normal candlesticks, Exits are quite tricky with Renko, apart from looking at the colour and exiting with opposite colour which is at a pivot, I would say that this is the only rule that you can have. So for exits I'm going to stick to my h1 or h4 candlesticks.

 

Overall, I'm impress with Renko, because of the cleaness of the charts I can see the trend, pivots and swings easier giving you confidence to take a trade with such a small stop.

 

There are still some false signals but trading with Renko, my win rate is up 15%. This EJ I traded today, 4 wins and 1 loss.

 

 

 

 

[AmCan1 10]

That's great PA18. Yes, the renko bars look great. I'm sure after getting used to them, one could really come up with a solid tradeplan. Incidentally, my 233 tick trades did quite well today too. Four trades; 1 full winner, one loss that stopped and reversed into a trade that got a partial winner. I've attached a chart for you in case you're interested. It was a good session from a win/loss percentage point of view. Net pips gained was decent too, +67. My 4th trade was similar to what I showed you in the prior chart where I had a chance to add on to my position. That 2nd entry didn't really take off this time but my trade mgt plan still allowed me to grab 5 pips per the two positions for an additional 10 pips.

[pa18 10]

That's great PA18. Yes, the renko bars look great. I'm sure after getting used to them, one could really come up with a solid tradeplan. Incidentally, my 233 tick trades did quite well today too. Four trades; 1 full winner, one loss that stopped and reversed into a trade that got a partial winner. I've attached a chart for you in case you're interested. It was a good session from a win/loss percentage point of view. Net pips gained was decent too, +67. My 4th trade was similar to what I showed you in the prior chart where I had a chance to add on to my position. That 2nd entry didn't really take off this time but my trade mgt plan still allowed me to grab 5 pips per the two positions for an additional 10 pips.

 

Looks like someone had a great trading session!

 

Yes, it's good to show what you're doing, further learning for me too. The only experience I have with tick charts is from the better volume emini guy and his technique for forex also incorporates tick charts but together with MTF. I liked it but I couldn't find a tick chart to be comfortable with. Do you look at higher tick charts to get the overall big picture if so what are the ticks you are looking at please?

[AmCan1 10]

Good question Pa18. For higher time frames to look at the big picture, I'm perfectly comfortable with looking at time charts, lol.. I'll watch a 15 minute chart, which is pretty high for me as it relates to a 233 tick chart with the eurjpy as an example. But you can triple the 233 and watch a 699 to see a time frame 3x higher also. I'm not married to the 233 by the way. It just so happens to be a fib number and I guess I'm superstitious.

 

More importantly, when I scan through my charts, I see the right amount of trade setups as per my system, within the given timeframe that I want to trade; just about 2 hours or so during the US morning session. I also get the size of trade that I'm comfortable with. If you look at the chart I posted earlier, you can see that the trades don't take very long and I can get my trading done early so I can go about the rest of my day. That's what works for me. I am not one of those that needs or wants to sit there and trade all day long. I think most people end up giving back a lot of their gains and pay much more in trade costs than necessary. For me, I will just leverage up my position size as I grow my account and keep taking a minimalist approach, steady and sure.

 

I think range bars are great too, don't get me wrong. I use a 2 point range with the NQ emini. It gives me the perfect size trade I like with the NQ, 7 points. This week, as been stellar. Nearly perfect in fact. What I like about tick charts though, that you can't get with range bars, is the useful tick counter tool which will count down the ticks on the current bar that's forming. So you always know when the bar will close and the next bar will begin. Not so with range. Make sense? I hope that helps.