Hey, man, I sense your frustration. Every "real" trader on this or any other reputable forum has experienced the same thing... I'd just say you should consider this: Instead of "All in" and then "All out", you might consider multiple "mini-positions" inside of your overall goal position. This allows for cost basis averaging, improving your position. I always say if you haven't gone "bankrupt" at least once as a Trader, you're really not trying hard enough. Having said that, it's best if you don't have a family depending upon your performance and, after all, trading's not for everyone. HyperScalper
I'm actually proud that I was able to achieve consistent profitability independent of commissions. I once couldn't even do that. It's easier to accept that I might be fundamentally prevented from success due to an unlevel playing field. Some getting a break on commissions that I don't, than due to my own inability to stick to a system. That being said, I need to know for sure.
Hey, are you a U.S. guy? If not, perhaps a brokerage change could open up possibilities you haven't yet considered. Particularly in the area of commission or cost of trading, and retail spreads. What I mean is, I know of some amazing automatic strategies for Dukascopy clients, for example. Put your feet up and make money. I also know of a capital growth account which U.S. persons can use, driven by a similar algorithm. HyperScalper
I am but I've looked up plenty of brokerages, including Dukascopy. The commissions are pretty much comparable everywhere I've seen with Interactive Brokers. You get half off it seems with very large trading volumes at both brokerages. If they gave that rate to everyone, I'd be golden.
OK, here's your problem. You are trying to "day trade" but what you should really be doing is longer term trading. I have some analytics which show you the most "extreme" currency pairs, which you would "fade", and hold for 4-8-24 hours. Personally, I am a micro scalper, but there is a big problem with that; which is that prices take time to move. If you switch to longer term trading opportunities, then your commissions don't matter any more. The key then is to select only the high probability trades. Now, I'm not a "swing" type medium term trader, but I've observed Live trading in our accounts for months, driven by a robot, which proves to me the utility of these strategies for 40-100 PIP moves. HyperScalper
Earlier you talked about using multiple entry limits, grabbing pullbacks, and scaling in. I am onboard with that. But, how to attack multiple short term exits? Recommendations on scaling out and determining multiple exits in very short term positions? Base exits on s/r levels, or on size of move and ratio of stop? Thanks
Hey, we're all "here 2 learn" First of all, I am a "micro scalper" and sometimes a "nano scalper". This means that I use extreme techniques, on the extreme LMAX exchange, and a software platform which is specialized for computer-assisted manual trader guidance, plus I use a strictly "incremental" approach which means I never never go "all in" at a single price. I might close a position at a single price but Entry especially is a "process, rather than a single event". Having said that, these same principles apply to more "normal" trading in that your Entry should not be "all in" at a single price, but should use multiple prices with limit orders to make the market "come to your price" each time, and "cost basis averaging" will apply since you will often enter Long, say, at successively lower prices, until you are "all in, in increments". Having completed that process of Entry, then it's clear that you are "at the mercy" of the markets, but you clearly have carefully chosen that Entry based upon Analytics which tell you that you are trading "in the right direction" with your chosen Entry. In Forex, there's the idea of a "deal" or a "position" and multiple positions can be taken in the same currency pair. Now, this idea of a position is really a "fiction". In reality, you are Long, Short or Flat in a currency pair. However, it is very useful to have the concept of individual positions or "mini positions" which form a part of your overall position. This keeps track of the distribution of your Entry prices, and allows you to reference your position Exit against your position Entry price. BUT... keep in mind that these "positions" are just a "convenient fiction" and that it is your overall "aggregate position" which determines your profit or loss, and in particular, your volume weighted average Entry price (here using Long positions) is the baseline above which your volume weighted average Exit price must reach for you to be profitable. (stay with me...) So, if you have a brokerage which conveniently uses this multiple position approach, then it does give you more of a reference as to just where each partial Entry to your whole position took place, and you can Close these individually acquired positions individually, thus giving you a "scaling out" Exit process just as you had a "scaling in" Entry process. Dukascopy for example, keeps track of individual positions. LMAX does not have this concept (unless the client software imposes the idea) and is strictly whether you are Net Long,Short or Flat and you may wish to keep track of Entry points and partial position closures along the way. At LMAX you Buy 10, Sell 3, Sell 4, Sell 3 and there's nothing to "close" as these operations put you Flat again. (Let's not get into LIFO order sequencing, and all of that crap. You should be able to close positions at a "decent" brokerage in any order you wish but, in fact, even if you have some LIFO crap imposing orderings on your order operations, closing any of your open positions is simply REDUCING your exposure and, in the end, it comes to the same result.) So, "scaling out" is accomplished differently at different brokerages. With "positional" brokerages, individual positions are closed (wholly or in part). With "net only" brokerages, you simply Sell some to reduce your Long exposure (or even move short). More importantly is what do you do when you can take a "partial profit" as the Long position price lifts in your favor? You should close a portion of your position BUT... you should also be prepared to add some more, should the price again move down. This permits you to take "partial profits in your pocket" Intra-trade, which are able to compensate for being "underwater" in the overall trade. Trade Management is fundamental in my view, and using an Incremental technique opens up many possibilities. The more this "bookkeeping" can be automated the better. BUT LET ME BE PERFECTLY CLEAR. No amount of "cleverness" in Trade Management can save you from being "dead against" the trend. There are times when your Analytics will fail you and you will be WRONG, and fighting a losing battle. So Analytics are the Key to Success in all trading. However, instead of going "all in" at a single price, by breaking up your Entry into a "process" at staggered prices, you are able to absorb Price Adversity much more "gracefully" and through Trade Management alone you can often avoid the necessity to Stop Out. HAVING SAID THAT, while you should avoid Stop-Outs at nearly all costs, through using a Strategy and Tactics designed up front to deal with Price Adversity; the Best Traders know when to stop fighting and swimming against the Current, so to speak. So there's a time to "Fold 'em" but if you are an Incremental Trader, you can "magically" avoid most of those Stop Outs through intelligent trade management, which is the same as intelligent "exposure management". I tend to use Fixed Targets for each "mini position" however, as I take Entries lower "scaling into a Long position" I will often increase target distances for the lower entry points. There are many approaches to this, but simply using "fixed target distances" if 10 Entries are used, is not efficiently taking advantage of the Long position, once price begins to move in your favor. Do not be too eager to take profits, or reduce exposure. After all, you have very carefully engineered your Entry, so don't be too eager to take "chicken feed" when you can allow the trend change to play out for much more target profits !! I have some videos on these subjects, but PM if you want to know, as I don't want to "advertise" and create suspicions about my motivation ..... up to you. Hope this helps some, but ask more !! or PM me. Good Trading ! HyperScalper
This is something I'll do some research on over the next couple weeks. Probably looking into the 2hr charts. I dislike having fewer trading opportunities, but I dislike losing money even more.