Daniel is going to learn Wwatson1 to trade

Discussion in 'Trading' started by wwatson1, Sep 17, 2014.

  1. As it says in the title
     
  2. JTrades

    JTrades

    One for the ET hall of fame!
     
    Alpha Trader and wwatson1 like this.
  3. This is going to be good, I can just feel it :cool:
     
  4. danielc1

    danielc1

    Some ground rules:
    1) I will do an honest attempt to learn Wwatson1 to trade.
    2) I will answer the questions Wwatson1 ask.
    3) Please be patient with me, I have life besides trading, so it can be a day or so before I can get back to the forum.

    Are you willing to share what you have done so far? Then I can try to understand what we are going to be working on... Can you also tell me what you like to be doing in regards of trading? (Daytrading, swing, and so on and what instruments stock, futures, options?) I will read you answer tomorrow and get back to you..
     
  5. Forex, 1 hour time frame, strong trend, stop loss below previous swing low, target twice stop loss

    just entered long this pair
     
  6. danielc1

    danielc1

    60 minute chart
    chartcadjpy60min.jpg
     
  7. danielc1

    danielc1

    10 tick chart
    chartcadjpy10ticks.jpg
     
  8. danielc1

    danielc1

    Okay, let's begin. I have no doubt that you know your charts, but let me explain why I use my charts and settings. It looks like a lot, but everything has a purpose. Feel free to speak your mind about it. Only then I can understand what the problem is...
    Chart settings minutes vs ticks:
    Most people use time based chart and not price action charts. Both are fine, but I have an impatient temper. If I look at a time based chart, I get shooked out of a good position because it is moving on the chart sideways for a long time with small candles. My mind goes like this: Hmmm no action, hmmm this is going know where, hmmm, let's get out and try something else, and so on. It's sabotages my trading when I use time based charts. My solution: Tick based charts. 10 ticks up or down, new candle, in this example. No time registration in the candle it self. So it can be a loooooong time before a candle has formed, but it puts me in a state of mind to trade the price and not the time it takes to get there. You will see the difference on the two charts. Also a tick based chart, gives me more "opportunity". That will get clear in a moment.

    You see a lot of things going on, on the chart. Let me explain:
    First of all, if you are going to be a trend trader, you have to define a trend. Many things you can use to define a trend, I use a commidity channel index (cci)with a long period. The number on that period is not so important, but what is important is that it defines an uptrend and a downtrend on your chart. If it doesn't, then the period is to short, if there is a countertrend in your chart and your cci does not go to the otherside, it is too long. In this example 45 period. Green is up trend, red is down trend. I use it as a filter. No shorts when it is green, no longs when it is red. Simple.
    Next on the cci, there is a shorter period on it.(Orange Line) 6 in this example. Gives you an undersold, oversold condition. Only go long, when the cci goes from below to up, and only go short when it comes from above to below.

    On the main chart you see three moving averages:
    Exp.moving average setting 99 (bleu, purple)
    Exp. moving average setting 36 (Green, red)
    Simple moving average high+ low + close/3, setting 3, displace +1 (Orange dot)
    Keltnerchannel period 30, trueaveragerange 30, 3, 3.

    The exp moving averages help me to understand where price is. If it is far away from the moving averages, then it is not a good idea to enter a trade in the direction where price needs to move further away from the averages to be profitable. It helps me to check and allow me to enter a trade with a minimum of risk.

    The simple moving average, in combination with the shorter cci, is my trigger.

    Let's put it together:
    If cci longterm is 'green' and cci shortterm is below the zero line and price is hoovering around the exp. moving average 36 and then closes above simple average (Orange dot) when it was below the Orange dot before, you have a long entry. Short is just vice versa.

    Exits will come later, and moneymanagement too, but for now, I would like you too exit, when you have a 15 tick profit and set you stop just under or above the swing you are coming from. Just take the entry's again and again and again untill you are doing it in your sleep. That will be the first exercise.
    Allthough it is not the same as real trading, I would advice you to do this with a simulated account.

    Questions?
     
  9. Visaria

    Visaria

    You guys should learn English first. daniel gonna LEARN watson to trade, wtf does that mean?
     
  10. danielc1

    danielc1

    Take it easy, Visaria. English is not my native language, but I can make myself understandable in writing and speaking in the following languages: Dutch, French, English, German, Spanish, Italian and Latin. None perfectly, but who cares? If you are offended by our or mine English, I do apologies in all the languages I know:
    I am sorry,
    Mijn verontschuldigingen,
    Lo siento,
    es tut mir leid,
    Mi scusi,
    je suis désolé,

    If you still are offended or will be offended in the near future by my spelling, take the 'wtf' abbreviation somewhere else and stay away from this thread. Thank you.
     
    #10     Sep 18, 2014
    Eddiemorra likes this.